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>Metal /: Cover Story: Metal magnate’s fall from China’s rich list to bankruptcy</li>
<li>Personnel /: China central bank Deputy Governor Pan Gongsheng named Communist Party chief</li>
<li>China-U.S. /: China, U.S. have shared interests in getting ties back on track, party official says</li>
</ul>


Metal /: Cover Story: Metal magnate’s fall from China’s rich list to bankruptcy
Personnel /: China central bank Deputy Governor Pan Gongsheng named Communist Party chief
China-U.S. /: China, U.S. have shared interests in getting ties back on track, party official says


CX Daily: Metal Magnate’s Fall From China’s Rich List to Bankruptcy

Thematic (Sector/Industry)

<ul><li>Chinese insurance companies’ overseas investments remained flat in 2022, and only half of them made profits on the investments, a recent survey showed.</li><li>Foreign investments in 2022 by Chinese insurers totaled $83.2 billion, about the same as in 2021. The funds were invested mostly in Hong Kong and the U.S., according to the survey of 52 Chinese insurance companies.</li><li>The average return on investments was 1.32%, with a median of 0.22%. Returns were lower than insurers’ returns of 3.76% on total investments at home and abroad. About 54% of the insurers made money on the investments, down 19 percentage points from 2021, the survey showed.</li></ul>

Chinese insurance companies’ overseas investments remained flat in 2022, and only half of them made profits on the investments, a recent survey showed.Foreign investments in 2022 by Chinese insurers totaled $83.2 billion, about the same as in 2021. The funds were invested mostly in Hong Kong and the U.S., according to the survey of 52 Chinese insurance companies.The average return on investments was 1.32%, with a median of 0.22%. Returns were lower than insurers’ returns of 3.76% on total investments at home and abroad. About 54% of the insurers made money on the investments, down 19 percentage points from 2021, the survey showed.

Only Half of Chinese Insurers Made Money Abroad Last Year

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>As of 8 May, we see three potential changes to the <a href="https://www.smartkarma.com/entities/ishares-china-large-cap-etf" target="_blank" data-smartkarma-citation="entities:766:1" rel="noopener">iShares China Large-Cap (FXI) (FXI US)</a> at the June rebalance. This is mainly driven by the inclusions.</li>
<li>There is over 1 day of ADV to trade on all stocks with the largest impact on <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a> at nearly 4 days of ADV.</li>
<li>Short interest has been increasing on the potential adds as they have run up a lot in the last few months.</li>
</ul>


As of 8 May, we see three potential changes to the iShares China Large-Cap (FXI) (FXI US) at the June rebalance. This is mainly driven by the inclusions.
There is over 1 day of ADV to trade on all stocks with the largest impact on BeiGene Ltd (6160 HK) at nearly 4 days of ADV.
Short interest has been increasing on the potential adds as they have run up a lot in the last few months.


FXI Rebalance Preview: Three Potential Changes in June

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 111.9% as of Mar 3rd.</li>
<li>The average A-H premium changed by 0.3ppt week on week, led by communication services, consumer discretionary, financials and offset by real estate, information technology, industrials.</li>
<li>We highlight weekly changes in A-H premium for Xinjiang Goldwind, ZTE, China Southern, CRRC, GWM, China Telecom, CCCC, China Oilfield.</li>
</ul>


We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 111.9% as of Mar 3rd.
The average A-H premium changed by 0.3ppt week on week, led by communication services, consumer discretionary, financials and offset by real estate, information technology, industrials.
We highlight weekly changes in A-H premium for Xinjiang Goldwind, ZTE, China Southern, CRRC, GWM, China Telecom, CCCC, China Oilfield.


A-H Premium Weekly (Mar 3rd): Xinjiang Goldwind, ZTE, China Southern, CRRC, GWM, China Telecom

Founder of Antler Capital

Stanley Tsai, CFA

<ul>
<li>We welcome the regulators' formalization of financial asset classifications. This will gradually remove regulatory arbitrage and pave the way for further bank reintermediation.</li>
<li>The new rules will likely have limited impacts on bond holdings that have active secondary markets, but illiquid debt investment plans will come under more intense regulatory and auditor scrutiny.</li>
<li>We see an impact of 10-15bp on the listed banks' reported NPL ratios. That said, a handful of banks may be at risk of capital shortages if the environment worsens. </li>
</ul>


We welcome the regulators' formalization of financial asset classifications. This will gradually remove regulatory arbitrage and pave the way for further bank reintermediation.
The new rules will likely have limited impacts on bond holdings that have active secondary markets, but illiquid debt investment plans will come under more intense regulatory and auditor scrutiny.
We see an impact of 10-15bp on the listed banks' reported NPL ratios. That said, a handful of banks may be at risk of capital shortages if the environment worsens. 


Chinese Banks: New Asset Classification Rules | You Can Run but You Can't Hide

China

The People's Insurance Company (Group) of China Limited, through its subsidiaries, offers a range of property and casualty insurance products. The Company also offers asset management services for a variety of customers throughout China.

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People's Insurance (PICC) (1339 HK)

CX Daily: Metal Magnate’s Fall From China’s Rich List to Bankruptcy

Metal /: Cover Story: Metal magnate’s fall from China’s rich list to bankruptcy Personnel /: China central bank Deputy Governor Pan Gongsheng...

Caixin Global

Only Half of Chinese Insurers Made Money Abroad Last Year

Chinese insurance companies’ overseas investments remained flat in 2022, and only half of them made profits on the investments, a recent survey...

Caixin Global

FXI Rebalance Preview: Three Potential Changes in June

There could be 3 changes for the FXI in June. Some stocks are close to the add/delete zone, so relative perf needs to be watch. Passive trackers...

Brian Freitas

A-H Premium Weekly (Mar 3rd): Xinjiang Goldwind, ZTE, China Southern, CRRC, GWM, China Telecom

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Xinjiang Goldwind, ZTE, China Southern, CRRC, GWM, China...

Ke Yan, CFA, FRM

Chinese Banks: New Asset Classification Rules | You Can Run but You Can't Hide

New asset classification rules have officially been announced. We see this as a long-term positive for the sector as regulators continue to bring...

Stanley Tsai, CFA

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