Asia biased macro & technical analysis, Untying The Gordian Knot

Untying The Gordian Knot

Asia biased macro & technical analysis

A differentiated process with a primary focus on Asia. Technical Analysis as core and Macro drivers that could bring the view to fruition & changes that could make the idea fall apart. The objective is to be the best in class, hence corner shop.

Technical Analysis

<ul><li>The consensus of bottom in China Tech and China A shares continue to gain favour.</li><li>Bank of America is the latest to recommend selling US tech to buy China Tech.  </li><li>The Bullish China stocks call is predicated on reopening Pivot, yet the daily increase in cases and sporadic lockdown put the Pivot callers to double down.</li></ul>

The consensus of bottom in China Tech and China A shares continue to gain favour.Bank of America is the latest to recommend selling US tech to buy China Tech.  The Bullish China stocks call is predicated on reopening Pivot, yet the daily increase in cases and sporadic lockdown put the Pivot callers to double down.

US Vs China Technology, Alibaba, China Unicom, and New World Development

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul><li>Three Chinese miners ordered to divest from Canadian lithium projects</li><li>A father’s nightmare rescuing a three-year-old under Covid lockdown</li><li>China’s services activity extends contraction amid Covid outbreaks, Caixin PMI shows</li></ul>

Three Chinese miners ordered to divest from Canadian lithium projectsA father’s nightmare rescuing a three-year-old under Covid lockdownChina’s services activity extends contraction amid Covid outbreaks, Caixin PMI shows

CX Daily: Three Chinese Miners Ordered To Divest From Canadian Lithium Projects

Research from Quam Securities, Quam Securities

Quam Securities Research

Research from Quam Securities

Quam Securities

Since its inception in 1986, Quam Securities Limited (Quam Securities) has grown to become one of the few mid-tier securities brokerages in Hong Kong with global execution capabilities for both private and institutional clients. It boasts a well-established network in Greater China including Taiwan and in major world markets through the Global Alliance Partners (GAP). Quam Securities is well-positioned not only to harness and drive business within the China Tonghai International Financial Limited but also between China and the world markets.

Thematic (Sector/Industry)

<ul><li>MIIT recently released Aug operating data for the telecoms industry in China. On items related to revenues, MIIT reported on YTD basis and, for 8M22, telecoms industry revenue grew 8.2% y/y, which slowed marginally from 8.3% for 7M22.</li><li>Mobile data traffic revenue, which is the single biggest item and accounted for 40.9% of total industry revenue in 8M22, edged up 0.5% y/y.</li><li>Revenue of new businesses, which include IPTV, IDC, big data, cloud and IoT, continued to be the star performer with YTD y/y growth of 34.1%.</li></ul>

MIIT recently released Aug operating data for the telecoms industry in China. On items related to revenues, MIIT reported on YTD basis and, for 8M22, telecoms industry revenue grew 8.2% y/y, which slowed marginally from 8.3% for 7M22.Mobile data traffic revenue, which is the single biggest item and accounted for 40.9% of total industry revenue in 8M22, edged up 0.5% y/y.Revenue of new businesses, which include IPTV, IDC, big data, cloud and IoT, continued to be the star performer with YTD y/y growth of 34.1%.

Tactical Trade Ideas – Telecoms-A Small Step in Revenue Growth, a Giant Leap in Sentiment

<ul><li>We initiate coverage on the three Chinese telcos following their impressive 1H22 results.</li><li>We rate all three as BUYs with China Unicom (762 HK, BUY) and China Telecom (728 HK, BUY) as our top picks.</li><li>Despite their outperformance YTD, all three are still attractive in PE valuation with a range of 5.6-7.5x FY23 earnings and div yld of 9.5- 9.9%.</li></ul>

We initiate coverage on the three Chinese telcos following their impressive 1H22 results.We rate all three as BUYs with China Unicom (762 HK, BUY) and China Telecom (728 HK, BUY) as our top picks.Despite their outperformance YTD, all three are still attractive in PE valuation with a range of 5.6-7.5x FY23 earnings and div yld of 9.5- 9.9%.

TMT – Chinese Telcos - Growth Momentum Sustained

<ul><li>The market pivoted late last week from there will be no PBOC rates cut to there being much more Monetary Policy support needed.</li><li>The pivot was the sharp slowdown in Aggregate Financing, Industrial Production, Real estate, and Retail Sales. All it took was a 10-bps cut in one-year MLF.</li><li>Meanwhile, Hong Kong saw HIBOR continue to rise even with currency strength.</li></ul>

The market pivoted late last week from there will be no PBOC rates cut to there being much more Monetary Policy support needed.The pivot was the sharp slowdown in Aggregate Financing, Industrial Production, Real estate, and Retail Sales. All it took was a 10-bps cut in one-year MLF.Meanwhile, Hong Kong saw HIBOR continue to rise even with currency strength.

HSI Index, HSITECH Index, Hong Kong Stock Exchange, and China Unicom

Hong Kong

China Unicom (Hong Kong) Limited is an investment holding company that provides comprehensive telecommunications services in China. Its core businesses include mobile services such as voice, roaming, mobile broadband, and value-added services, as well as fixed-line services like broadband access and internet networks. The company also offers ICT, IoT, software development, big data, and cloud computing services. It was incorporated in Hong Kong in February 2000 and is headquartered in Central, Hong Kong.

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China Unicom (762 HK)

US Vs China Technology, Alibaba, China Unicom, and New World Development

The consensus of bottom in China Tech and China A shares continue to gain favour. Bank of America is the latest to recommend selling US tech to buy...

Untying The Gordian Knot

CX Daily: Three Chinese Miners Ordered To Divest From Canadian Lithium Projects

Three Chinese miners ordered to divest from Canadian lithium projects. A father’s nightmare rescuing a three-year-old under Covid lockdown

Caixin Global

Tactical Trade Ideas – Telecoms-A Small Step in Revenue Growth, a Giant Leap in Sentiment

Mobile data traffic revenue, which is the single biggest item and accounted for 40.9% of total industry revenue in 8M22, edged up 0.5% y/y.

Quam Securities

TMT – Chinese Telcos - Growth Momentum Sustained

Despite their outperformance YTD, all three are still attractive in PE valuation with a range of 5.6-7.5x FY23 earnings and div yld of 9.5- 9.9%.

Quam Securities

HSI Index, HSITECH Index, Hong Kong Stock Exchange, and China Unicom

The market pivoted late last week from there will be no PBOC rates cut to there being much more Monetary Policy support needed.

Untying The Gordian Knot

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