Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyse the changes of A-H premium on 182 stocks over the last week. The average A-H premium was 71.9% as of May 15th.</li>
<li>The average A-H premium changed by 1.7ppt week-on-week, led by utilities, consumer staples, information technology and offset by communication services, consumer discretionary.</li>
<li>We highlight weekly changes in A-H premium for Datang Power, CIMC, Beone Medicines, Midea, Weichai Power, China Telecom.</li>
</ul>


We analyse the changes of A-H premium on 182 stocks over the last week. The average A-H premium was 71.9% as of May 15th.
The average A-H premium changed by 1.7ppt week-on-week, led by utilities, consumer staples, information technology and offset by communication services, consumer discretionary.
We highlight weekly changes in A-H premium for Datang Power, CIMC, Beone Medicines, Midea, Weichai Power, China Telecom.


A-H Premium Weekly (May 15th): Datang Power, CIMC, Beone Medicines, Midea, Weichai Power

Silver Point

Thomas J. Monaco

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Thematic (Sector/Industry)

* Increased NPL Recognition - Not Exactly Comforting; and * Lowered Reserve Coverage Each Invoke Capital Forebearance. <h2>Investment Summary</h2>Seemingly, nonperforming loan (NPL) recognition at the mainland Chinese banks is likely tighten as ALL loans 90 days past due loans or more are required to be downgraded to NPL status by end 1H18 for the larger and larger 2nd Tier banks. Isn't that a giant kick in the pants? So, after all of these years, who knew that the mainland Chinese banks were…

* Increased NPL Recognition - Not Exactly Comforting; and * Lowered Reserve Coverage Each Invoke Capital Forebearance. Investment SummarySeemingly, nonperforming loan (NPL) recognition at the mainland Chinese banks is likely tighten as ALL loans 90 days past due loans or more are required to be downgraded to NPL status by end 1H18 for the larger and larger 2nd Tier banks. Isn't that a giant kick in the pants? So, after all of these years, who knew that the mainland Chinese banks were…

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

It is hard to envisage a positive reading of the abysmal 6.1% YoY fixed asset investment growth in China for May 2018 year-to-date. Headlines and commentators have urged that a recovery in China is underway for some time. If this were so, fixed asset investment growth would not likely be on a downward trend for so long, while now reaching the lowest point in our time series that spans 23 years.  Perhaps as interesting, is that the average rate of growth of all the YTD periods is 20.0%. Retail…

It is hard to envisage a positive reading of the abysmal 6.1% YoY fixed asset investment growth in China for May 2018 year-to-date. Headlines and commentators have urged that a recovery in China is underway for some time. If this were so, fixed asset investment growth would not likely be on a downward trend for so long, while now reaching the lowest point in our time series that spans 23 years.  Perhaps as interesting, is that the average rate of growth of all the YTD periods is 20.0%. Retail…

China Banks – Worsening Macro Will See Higher Bad Loans

* Risk Increasing Within Tier 2 Banks:  The 2nd tier banks is looking increasingly vulnerable. Tighter asset management regulations are being implemented in March 2018 which should force the sector to abandon their high level of illiquid assets and promote “real” NAV-type products. This risk has now morphed into a size where confidence in the financial system could erode quickly. * Watch Your Insurers: Mainland Chinese insurers have 50%-60% of their investment portfolios exposed to the weakest…

* Risk Increasing Within Tier 2 Banks:  The 2nd tier banks is looking increasingly vulnerable. Tighter asset management regulations are being implemented in March 2018 which should force the sector to abandon their high level of illiquid assets and promote “real” NAV-type products. This risk has now morphed into a size where confidence in the financial system could erode quickly. * Watch Your Insurers: Mainland Chinese insurers have 50%-60% of their investment portfolios exposed to the weakest…

China Financials – The Accident About to Happen

<ul>
<li>We analyse the changes of A-H premium on 180 stocks over the last week. The average A-H premium was 70.1% as of May 8th.</li>
<li>The average A-H premium changed by 0.2ppt week-on-week, led by utilities, energy, communication services and offset by financials.</li>
<li>We highlight weekly changes in A-H premium for Datang Power, Eastroc, Montage Tech, China Life, Midea, Fuyao Glass.</li>
</ul>


We analyse the changes of A-H premium on 180 stocks over the last week. The average A-H premium was 70.1% as of May 8th.
The average A-H premium changed by 0.2ppt week-on-week, led by utilities, energy, communication services and offset by financials.
We highlight weekly changes in A-H premium for Datang Power, Eastroc, Montage Tech, China Life, Midea, Fuyao Glass.


A-H Premium Weekly (May 8th): Datang Power, Eastroc, Montage Tech, China Life, Midea, Fuyao Glass

China

Bank of Communications is a Chinese multinational banking and financial services corporation. It offers a comprehensive range of services including corporate and personal banking, wealth management, investment banking, and international settlements. The bank was originally established in 1908 and is headquartered in Shanghai, China.

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Bank of Communications (3328 HK)

A-H Premium Weekly (May 15th): Datang Power, CIMC, Beone Medicines, Midea, Weichai Power

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Datang Power, CIMC, Beone Medicines, Midea, Weichai Power,...

Ke Yan, CFA, FRM

China Banks - Back to the Land of Silly

* Increased NPL Recognition - Not Exactly Comforting; and * Lowered Reserve Coverage Each Invoke Capital Forebearance. Investment SummarySeemingly,...

Thomas J. Monaco

China Banks – Worsening Macro Will See Higher Bad Loans

It is hard to envisage a positive reading of the abysmal 6.1% YoY fixed asset investment growth in China for May 2018 year-to-date. Headlines and...

Daniel Tabbush

China Financials – The Accident About to Happen

* Risk Increasing Within Tier 2 Banks: The 2nd tier banks is looking increasingly vulnerable. Tighter asset management regulations are being...

Thomas J. Monaco

A-H Premium Weekly (May 8th): Datang Power, Eastroc, Montage Tech, China Life, Midea, Fuyao Glass

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Datang Power, Eastroc, Montage Tech, China Life, Midea,...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)