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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

China Zheshang Bank / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/22636" target="_blank" data-smartkarma-citation="entities:22636">China Zheshang Bank Co Ltd</a> launched book building on March 14th, targeting to raise up to US$1.8bn. We have covered the fundamentals of the deal in our previous insight <a href="https://www.smartkarma.com/insights/zheshang-bank-ipo-preview-you-have-to-like-leveraged-wmp" target="_blank" data-smartkarma-citation="insights:3005">Zheshang Bank IPO Preview: You Have to like Leveraged WMP</a> . <ul><li>In this insight, we ran the deal through our Smartkarma IPO framework, which ranks it below our threshold for participation</li><li>Combined with out earlier finding on its banking fundamentals, we wouldn't want to participate in the deal. </li></ul>

China Zheshang Bank Co Ltd launched book building on March 14th, targeting to raise up to US$1.8bn. We have covered the fundamentals of the deal in our previous insight Zheshang Bank IPO Preview: You Have to like Leveraged WMP . In this insight, we ran the deal through our Smartkarma IPO framework, which ranks it below our threshold for participationCombined with out earlier finding on its banking fundamentals, we wouldn't want to participate in the deal. 

Zheshang Bank IPO: Deserves No Premium to Peers

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.

Equity Bottom-Up

<ul>
<li>There is talk that the regulator in China will allow banks to swap NPLs for equity stakes in the debtor companies. </li>
<li>This is also talk that the government will allow banks to package NPLs in the form of securities and sell them.  </li>
</ul><div class="content-highlight">The fact that these stories are coming out now, suggests that Beijing is incredibly worried about NPL formation, bank health and the state of economy.  And it should be, but these measures do not solve the asset quality problem, for want of scale for one thing.   </div><h2>Ping An</h2>…


There is talk that the regulator in China will allow banks to swap NPLs for equity stakes in the debtor companies. 
This is also talk that the government will allow banks to package NPLs in the form of securities and sell them.  
The fact that these stories are coming out now, suggests that Beijing is incredibly worried about NPL formation, bank health and the state of economy.  And it should be, but these measures do not solve the asset quality problem, for want of scale for one thing.   Ping An…

China Zheshang Bank, a Zhejiang Province based joint stock bank, is said to have started pre-marketing and hopes to launch its $1.75bn book soon. In this insight, we worked with Asian bank specialist <a href="https://www.smartkarma.com/profiles/12" target="_blank" data-smartkarma-citation="accounts:12">Daniel Tabbush</a>, to look at the fundamentals and try to answer the following questions:<ul><li>What should you know about the company?</li><li>What should you know about the deal?</li><li>What are the key risks?</li><li>Where is its fair value?</li><li>How it fares against its peers in banking metrics?</li></ul>

China Zheshang Bank, a Zhejiang Province based joint stock bank, is said to have started pre-marketing and hopes to launch its $1.75bn book soon. In this insight, we worked with Asian bank specialist Daniel Tabbush, to look at the fundamentals and try to answer the following questions:What should you know about the company?What should you know about the deal?What are the key risks?Where is its fair value?How it fares against its peers in banking metrics?

Zheshang Bank IPO Preview: You Have to like Leveraged WMP

Thematic (Sector/Industry)

<ul>
<li>There is a new proposal from BIS that is seeking to change the way banks calculate their operational risk. </li>
<li>The concern they have is the current method is too simplistic and fundamentally flawed. Of course it is; it is simply a percentage based on gross revenue.  
</li>
<li>Operational risk is all about processes, systems and internal controls. While we may not know exactly how any new calculation will look, what is telling is how three China banks compare with three Australian banks.</li>
<li>Is it even in the realm…</li>
</ul>


There is a new proposal from BIS that is seeking to change the way banks calculate their operational risk. 
The concern they have is the current method is too simplistic and fundamentally flawed. Of course it is; it is simply a percentage based on gross revenue.  

Operational risk is all about processes, systems and internal controls. While we may not know exactly how any new calculation will look, what is telling is how three China banks compare with three Australian banks.
Is it even in the realm…


New BIS Proposal on Operational Risk, Comparing China to Australia

Transport Sector, China and Asia-focused Research

Charles De Trenck

Short answer: We get more Larry Summers editorials.Long answer…Larry Summers, a key accidental architect of Wall Street’s GFC of 2008-09 and neo-Keynesian piece of work, wants to do away with the $100 bill based on evidence most big bills are used for criminal purposes.Citing work by Harvard colleagues from <a href="http://www.hks.harvard.edu/centers/mrcbg/publications/awp/awp52" target="_blank"> Harvard Study</a>, Summers is fully armed, failing of course to realize that criminals were around before him and will continue to launder money for a long time to come, even if they have to do…

Short answer: We get more Larry Summers editorials.Long answer…Larry Summers, a key accidental architect of Wall Street’s GFC of 2008-09 and neo-Keynesian piece of work, wants to do away with the $100 bill based on evidence most big bills are used for criminal purposes.Citing work by Harvard colleagues from  Harvard Study, Summers is fully armed, failing of course to realize that criminals were around before him and will continue to launder money for a long time to come, even if they have to do…

Keynesian Brain Twister: What Happens When We Get Inflation & Negative Rates?

Hong Kong

China Zheshang Bank Co. Ltd. operates as a commercial bank. The Bank offers deposits, loans, international settlement, wealth management and other related financial services.

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China Zheshang Bank (2016 HK)

Zheshang Bank IPO: Deserves No Premium to Peers

China Zheshang Bank Co Ltd launched book building on March 14th, targeting to raise up to US$1.8bn. We have covered the fundamentals of the deal in...

Ke Yan, CFA, FRM

China Is Frantic About NPLs

There is talk that the regulator in China will allow banks to swap NPLs for equity stakes in the debtor companies. This is also talk that the...

Daniel Tabbush

Zheshang Bank IPO Preview: You Have to like Leveraged WMP

China Zheshang Bank, a Zhejiang Province based joint stock bank, is said to have started pre-marketing and hopes to launch its $1.75bn book soon....

Ke Yan, CFA, FRM

New BIS Proposal on Operational Risk, Comparing China to Australia

There is a new proposal from BIS that is seeking to change the way banks calculate their operational risk. The concern they have is the current...

Daniel Tabbush

Keynesian Brain Twister: What Happens When We Get Inflation & Negative Rates?

Short answer: We get more Larry Summers editorials.Long answer…Larry Summers, a key accidental architect of Wall Street’s GFC of 2008-09 and...

Charles De Trenck

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