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>Caixin Explains: China takes another step to unshackle interest rates</li><li>Uproar over a baby taken during the one-child policy days</li><li>Shenzhen codifies living wills, giving terminally ill patients more rights</li></ul>

Caixin Explains: China takes another step to unshackle interest ratesUproar over a baby taken during the one-child policy daysShenzhen codifies living wills, giving terminally ill patients more rights

CX Daily: China Takes Another Step to Unshackle Interest Rates

Thematic (Sector/Industry)

<ul><li>A handful of debt-encumbered Chinese real estate developers have postponed publishing their 2021 annual reports, blaming disruptions from a recent wave of Covid-19 cases that hit China.</li><li>Sunac China Holdings Ltd., the country’s third largest developer by sales, said it could not complete audit procedures on time due to restrictions on personal movement that resulted from the recent Covid flare-ups, according to a Monday<a href="https://www.sunac.com.cn/upload/file/2022-03-21/9d39d143-efb5-49e3-8a84-8ef8f1d57818.pdf" target="_blank" rel="noopener"> exchange filing</a>.</li><li>A suspension of express delivery services coupled with Covid-19 containment measures that closed down offices and quarantined workers in several cities left some Sunac subsidiaries unable to finalize the necessary documents for its report, the filing said.</li></ul>

A handful of debt-encumbered Chinese real estate developers have postponed publishing their 2021 annual reports, blaming disruptions from a recent wave of Covid-19 cases that hit China.Sunac China Holdings Ltd., the country’s third largest developer by sales, said it could not complete audit procedures on time due to restrictions on personal movement that resulted from the recent Covid flare-ups, according to a Monday exchange filing.A suspension of express delivery services coupled with Covid-19 containment measures that closed down offices and quarantined workers in several cities left some Sunac subsidiaries unable to finalize the necessary documents for its report, the filing said.

Debt-Wracked Chinese Developers Delay 2021 Financial Reports

Equity Research in HK and Mainland China

Li Tang

Some developers have reportedly proposed to extend their offshore bond maturities or conduct debt restructuring at the NDRC and SAFE meeting earlier this week.Eight developers were summoned to the meeting, according to local media reports. The attendees include a mixture of overlevered and stable developers in terms of offshore debt risks, such as <a href="https://www.smartkarma.com/entities/china-vanke-co-ltd" target="_blank" data-smartkarma-citation="entities:26076:1" rel="noopener">China Vanke (000002 CH)</a> , <a href="https://www.smartkarma.com/entities/shimao-property-holdings-limited" target="_blank" data-smartkarma-citation="entities:8375:1" rel="noopener">Shimao Property Holdings (813 HK)</a> , <a href="https://www.smartkarma.com/entities/sino-ocean-land-holdings" target="_blank" data-smartkarma-citation="entities:8898:1" rel="noopener">Sino Ocean Land (3377 HK)</a> , <a href="https://www.smartkarma.com/entities/kaisa-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:169:1" rel="noopener">Kaisa Group Holdings (1638 HK)</a> ,  <a href="https://www.smartkarma.com/entities/central-china-real-estate-ltd" target="_blank" data-smartkarma-citation="entities:513:1" rel="noopener">Central China Real Estate (832 HK)</a> , and <a href="https://www.smartkarma.com/entities/oceanwide-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:14048:1" rel="noopener">Oceanwide Holdings (000046 CH)</a>
We have seen a shift in the property policy stance from comprehensive tightening to finetuning policy.

Some developers have reportedly proposed to extend their offshore bond maturities or conduct debt restructuring at the NDRC and SAFE meeting earlier this week.Eight developers were summoned to the meeting, according to local media reports. The attendees include a mixture of overlevered and stable developers in terms of offshore debt risks, such as China Vanke (000002 CH) , Shimao Property Holdings (813 HK) , Sino Ocean Land (3377 HK) , Kaisa Group Holdings (1638 HK) ,  Central China Real Estate (832 HK) , and Oceanwide Holdings (000046 CH)
We have seen a shift in the property policy stance from comprehensive tightening to finetuning policy.

Developers Said to Propose Offshore Bond Extension to Regulators

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

On the 11th of September, IsZo Capital and other shareholders presented <a href="https://www.smartkarma.com/entities/nam-tai-property-inc" target="_blank" data-smartkarma-citation="entities:29275:1" rel="noopener">Nam Tai Property Inc (NTP US)</a> with certification of ownership above 30% and an official request to call a Shareholder General Meeting as per the bylaws. That started the clock ticking.The next business day, the Nam Tai CEO and Chairman of the Board Mr. Ying Chi Kwok, who happens to be the younger brother of the CEO of largest shareholder <a href="https://www.smartkarma.com/entities/kaisa-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:169:1" rel="noopener">Kaisa Group Holdings (1638 HK)</a>, <a href="https://www.sec.gov/Archives/edgar/data/829365/000156459020043351/ntp-6k_20200914.htm" target="_blank" rel="noopener">resigned</a> "for personal reasons", effective immediately. A week later, Nam Tai <a href="https://www.sec.gov/Archives/edgar/data/829365/000156459020044137/ntp-6k_20200921.htm" target="_blank" rel="noopener">named</a> Dr Lai Ling Tam, to the role of Executive Chairman, and Mr Jiabiao Wang as CEO. Both are ex-Kaisa. So much for independence. In my previous insight <a href="https://www.smartkarma.com/insights/nam-tai-property-an-interesting-activist-situation" target="_blank" data-smartkarma-citation="insights:43183" rel="noopener">Nam Tai Property - An Interesting Activist Situation</a> which introduced the activist situation, I concluded by saying... <blockquote>...where the company has just spent a lot of cash last quarter buying the Dongguan asset and now that cash is depleted, there could be a risk of a downturn so the company would need to raise cash by offering shares. A third-party placement to a strong development partner like Kaisa might be engineered. It is often the way of things. It is specifically what the activists and their supporters are trying to make sure does not happen. But they are right to be worried that it might.</blockquote>And so it did. I was trying to be gentle in my wording. It is not clear that I needed to be. <a href="https://www.smartkarma.com/entities/nam-tai-property-inc" target="_blank" data-smartkarma-citation="entities:29275:1" rel="noopener">Nam Tai Property Inc (NTP US)</a> on 5 October announced pre-open that it had raised US$170mm through a private placement (PIPE) of common shares to <a href="https://www.smartkarma.com/entities/kaisa-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:169:1" rel="noopener">Kaisa Group Holdings (1638 HK)</a>.There may be problems with this.  There may not be.More below the fold.

On the 11th of September, IsZo Capital and other shareholders presented Nam Tai Property Inc (NTP US) with certification of ownership above 30% and an official request to call a Shareholder General Meeting as per the bylaws. That started the clock ticking.The next business day, the Nam Tai CEO and Chairman of the Board Mr. Ying Chi Kwok, who happens to be the younger brother of the CEO of largest shareholder Kaisa Group Holdings (1638 HK), resigned "for personal reasons", effective immediately. A week later, Nam Tai named Dr Lai Ling Tam, to the role of Executive Chairman, and Mr Jiabiao Wang as CEO. Both are ex-Kaisa. So much for independence. In my previous insight Nam Tai Property - An Interesting Activist Situation which introduced the activist situation, I concluded by saying... ...where the company has just spent a lot of cash last quarter buying the Dongguan asset and now that cash is depleted, there could be a risk of a downturn so the company would need to raise cash by offering shares. A third-party placement to a strong development partner like Kaisa might be engineered. It is often the way of things. It is specifically what the activists and their supporters are trying to make sure does not happen. But they are right to be worried that it might.And so it did. I was trying to be gentle in my wording. It is not clear that I needed to be. Nam Tai Property Inc (NTP US) on 5 October announced pre-open that it had raised US$170mm through a private placement (PIPE) of common shares to Kaisa Group Holdings (1638 HK).There may be problems with this.  There may not be.More below the fold. 

Nam Tai Property - Equity Placement Is Awful Governance. Permanent Entrenchment Risk Exists.

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

MSCI Emerging Markets Index / Technical Analysis

The MSCI EM index (local currency) remains in an uptrend and is testing all-time highs set in January 2018 near 65,800; as long as the index is above 60,000 we are constructive from a price perspective.  China (CSI 300, MSCI China) continues to offer many attractive setups and accounts for the vast majority of today’s recommendations. Taiwan (TAIEX) continues to be worthy of an overweight within the EM universe, while South Korea (KOSPI) and India (SENSEX) display improving price and RS trends -- add exposure.

The MSCI EM index (local currency) remains in an uptrend and is testing all-time highs set in January 2018 near 65,800; as long as the index is above 60,000 we are constructive from a price perspective.  China (CSI 300, MSCI China) continues to offer many attractive setups and accounts for the vast majority of today’s recommendations. Taiwan (TAIEX) continues to be worthy of an overweight within the EM universe, while South Korea (KOSPI) and India (SENSEX) display improving price and RS trends -- add exposure.

China

Kaisa Group Holdings Ltd. is a large-scale integrated investment group primarily engaged in property development, investment, and management, alongside hotel and catering, cultural center, and healthcare operations. Its portfolio includes residential properties, villas, offices, serviced apartments, and urban complexes. The company was founded in 1999 and is headquartered in Hong Kong.

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Kaisa Group (1638 HK)

CX Daily: China Takes Another Step to Unshackle Interest Rates

Caixin Explains: China takes another step to unshackle interest rates. Uproar over a baby taken during the one-child policy days

Caixin Global

Debt-Wracked Chinese Developers Delay 2021 Financial Reports

A handful of debt-encumbered Chinese real estate developers have postponed publishing their 2021 annual reports, blaming disruptions from a recent...

Caixin Global

Developers Said to Propose Offshore Bond Extension to Regulators

Some developers have reportedly proposed to extend their offshore bond maturities or conduct debt restructuring at the NDRC and SAFE meeting...

Li Tang

Nam Tai Property - Equity Placement Is Awful Governance. Permanent Entrenchment Risk Exists.

In the previous insight Nam Tai Property - An Interesting Activist Situation which introduced the activist situation,

Travis Lundy

Remain Overweight EM Relative To EAFE

The MSCI EM index (local currency) remains in an uptrend and is testing all-time highs set in January 2018 near 65,800; as long as the index is...

Vermilion Research

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