Avox, Xinhua Partner for Business Entity Data Delivery
August 25, 2008
Wrexham, U.K.-based Avox has inked a deal with Xinhua Finance to deliver global business entity data to qualified domestic institutional investors (QDII) in mainland China and brokers in Taiwan.
Ken Price, CEO of Avox, majority owned by Deutsche Borse, said in a statement that Xinhua's strong sales capacity in the region will help the company reach more clients and better understand customer demands. Counterparty data management specialist Avox's clients includes Barclays Capital, Citigroup and Standard Bank of South Africa.
"Chinese QDII clients will be more confident in making their investments, trading, partnerships and compliance judgments with this service," added Chen Chunghsing, head of ratings and research with Shanghai-based Xinhua Finance.
Though Avox has said it sees great potential in China and Taiwan for data services, the market has already attracted providers such as Bloomberg and Reuters-particularly Taiwan, which is far more open than the mainland. "We have been using Bloomberg's data service for a long time," said Michael Zheng, wealth manager with Taipei-based President Securities Corp. "It's one of the most important sources for Taiwanese investment managers to analyze companies' market performances."
However, Joy Tsang, spokesperson for Xinhua Finance, said that the new service has a different focus. "For example, it satisfies the know-your-client regulations which require financial institutions to strengthen timely and accurate oversight of client, counterparty and issuer data," said Tsang. "International institutions will benefit from license-based maintenance that allows companies to distribute data throughout the entire group regardless of locations and business units," which other vendors usually don't allow.
According to Tsang, the delivery of the information is customizable and customers will not need additional infrastructure. "Data is updated daily, weekly or monthly, based on clients' requirements," she noted, adding that while the service is only available in English, a Chinese version could be added if there is sufficient demand.
Over the first half of the year, China's four leading QDII funds-run by China Southern Fund Management, Harvest Fund Management, China International Fund Management and China Asset Management-fell by an average of 22.9 percent. But Tsang asserted that the timing is right: In a depressed global environment, "the service will be particularly useful for Chinese institutional investors in assuring the accuracy of information on which they base their investment decisions."
"Frequently updated, accurate data is always welcomed by investment managers because it helps them make better decisions," agreed Hua Zhang, market observer in Beijing for Boston-based research firm Celent.
