Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Listed Real Estate Asia

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Thematic (Sector/Industry)

<ul>
<li>HK and China RE stocks on average rallied 20% and 174% respectively, since the US started rate cut and China’s huge economic stimulus</li>
<li>Based on trading flows, positioning, and valuation, it is not too late to chase the rally.  The timing, the language and the form of Chinese policy announcements are un-precedented</li>
<li>Don’t fight against Beijing!  We analyze upcoming catalysts and risks.  Next Tuesday is a key time to watch due to potential policy window and trading resumption of Chinese equities. </li>
</ul>


HK and China RE stocks on average rallied 20% and 174% respectively, since the US started rate cut and China’s huge economic stimulus
Based on trading flows, positioning, and valuation, it is not too late to chase the rally.  The timing, the language and the form of Chinese policy announcements are un-precedented
Don’t fight against Beijing!  We analyze upcoming catalysts and risks.  Next Tuesday is a key time to watch due to potential policy window and trading resumption of Chinese equities. 


What to Do with Hong Kong and China Property Stocks After a Crazy Week? Upcoming Catalysts and Risks

<ul>
<li>Over the weekend, Shanghai, Shenzhen and Guangzhou, 3 of the 4 tier-1 cities, announced policy to loosen and support the property market</li>
<li>China property stocks are very policy-driven.   We think there will be more policies to be announced.  Hence it is not too late to chase the rally</li>
<li>We think COLI 688 HK, Longfor 960 HK and Sunac 1918 HK offer attractive upside and decent risk-reward profile</li>
</ul>


Over the weekend, Shanghai, Shenzhen and Guangzhou, 3 of the 4 tier-1 cities, announced policy to loosen and support the property market
China property stocks are very policy-driven.   We think there will be more policies to be announced.  Hence it is not too late to chase the rally
We think COLI 688 HK, Longfor 960 HK and Sunac 1918 HK offer attractive upside and decent risk-reward profile


Short Note: China Property – Guangzhou/Shenzhen/Shanghai Loosen the Property Sector – Buy Now!

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

Shenton Research

Shenton 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 analyze the weekly Hong Kong Connect flows with our data engine for holding position as of September 4th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Zj Innolight, Tencent, AIA, Minimax, Knowledge Atlas, Yofc, Hua Hong Semi, CCB, Alibaba, ICBC.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of September 4th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Zj Innolight, Tencent, AIA, Minimax, Knowledge Atlas, Yofc, Hua Hong Semi, CCB, Alibaba, ICBC.


HK Connect Flows Weekly (Sep 4th): Zj Innolight, Tencent, AIA, Minimax, Knowledge Atlas, Yofc, CCB

<ul>
<li>Today news reported that China has announced policy where mortgage holders can negotiate with banks on their rates.  We think this is a strong boost to the sentiment</li>
<li>Despite today sector is up 3-11%, valuation is at all time low and we think the risk reward profile is attractive, especially macro environment is turning more favorable</li>
<li>We think there can be potential upside of 40-200% depending on stock selection.  We also identify 5 factor that can drive a sector rerating</li>
</ul>


Today news reported that China has announced policy where mortgage holders can negotiate with banks on their rates.  We think this is a strong boost to the sentiment
Despite today sector is up 3-11%, valuation is at all time low and we think the risk reward profile is attractive, especially macro environment is turning more favorable
We think there can be potential upside of 40-200% depending on stock selection.  We also identify 5 factor that can drive a sector rerating


What Is the Upside if Buy China RE Stocks? Valuation Is All-Time Low, 5 Factors to Drive Re-Rating

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

<ul>
<li>Uptick in Real Estate positioning driven by a shift towards Indian Real Estate stocks, which has outweighed reductions in exposure to China &amp; HK Real Estate</li>
<li>Three names stand out: Phoenix Mills, Macrotech Developers, and DLF Limited, all of which have seen ownership rise to record levels.</li>
<li>New positions in Indian Real Estate by Allianz and JKC have been offset by closures in Chinese Real Estate by LO Funds and SEB, among others.</li>
</ul>


Uptick in Real Estate positioning driven by a shift towards Indian Real Estate stocks, which has outweighed reductions in exposure to China &amp; HK Real Estate
Three names stand out: Phoenix Mills, Macrotech Developers, and DLF Limited, all of which have seen ownership rise to record levels.
New positions in Indian Real Estate by Allianz and JKC have been offset by closures in Chinese Real Estate by LO Funds and SEB, among others.


Real Estate:  India/China Rotation Sparks Sector Growth

Hong Kong

China Overseas Land & Investment is a Hong Kong-based real estate conglomerate primarily engaged in property development and sales, property investment, and property management services. The company develops residential and commercial properties, including office buildings, shopping malls, and hotels. It was founded in Hong Kong in 1979.

China Overseas Land & Investment (688 HK)

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China Overseas Land & Investment (688 HK)

What to Do with Hong Kong and China Property Stocks After a Crazy Week? Upcoming Catalysts and Risks

After a crazy week, we think it is not too late to chase the rally, based on trading flows, investor's positioning and valuation. The timing,...

Jacob Cheng

Short Note: China Property – Guangzhou/Shenzhen/Shanghai Loosen the Property Sector – Buy Now!

Over the weekend, tier-1 cities Shenzhen, Guangzhou & Shanghai announced to loosen the property sector. We think this is just the beginning. ...

Jacob Cheng

HK Connect Flows Weekly (Sep 4th): Zj Innolight, Tencent, AIA, Minimax, Knowledge Atlas, Yofc, CCB

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Zj Innolight, Tencent, AIA, Minimax, Knowledge Atlas,...

Ke Yan, CFA, FRM

What Is the Upside if Buy China RE Stocks? Valuation Is All-Time Low, 5 Factors to Drive Re-Rating

We think there can be 40-200% potential upside if we buy China RE stocks now. Valuation is at all time low, there is government policy support,...

Jacob Cheng

Real Estate: India/China Rotation Sparks Sector Growth

Real Estate exposure grows among active Asia Ex-Japan funds, sparked by a rotation in to Indian Real Estate, as China & HK positioning falls.

Steven Holden

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)