Blue Lotus Research Institute

Andy Fu

China growth and global non-US Internet equities

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>Counting of consumption differs among different countries. Chinese definition of consumption (social retail sales) leave out many categories that are included in the definition of consumption of Japan and US;</li>
<li>If we trim the consumption of Japan and US by adopting China's definition, China actually <strong>over-consumes</strong>, both by GDP and by individual categories;</li>
<li>If we expand and align China, Japan and US to consist the same categories, the conclusion of China <strong>underconsumption</strong> becomes true. The categories belong to an older and wealthy society. </li>
</ul>


Counting of consumption differs among different countries. Chinese definition of consumption (social retail sales) leave out many categories that are included in the definition of consumption of Japan and US;
If we trim the consumption of Japan and US by adopting China's definition, China actually over-consumes, both by GDP and by individual categories;
If we expand and align China, Japan and US to consist the same categories, the conclusion of China underconsumption becomes true. The categories belong to an older and wealthy society. 


How to Stimulate China's Consumption? Part I

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>Securities / In Depth: China’s securities firms rein in pay packets as pressures mount</li>
<li>Personnel /: Veteran diplomat appointed deputy head of Communist Party’s international liaison arm</li>
<li>Disclosure /: CSRC probes information disclosure consultancies amid tightening stock market oversight</li>
</ul>


Securities / In Depth: China’s securities firms rein in pay packets as pressures mount
Personnel /: Veteran diplomat appointed deputy head of Communist Party’s international liaison arm
Disclosure /: CSRC probes information disclosure consultancies amid tightening stock market oversight


CX Daily: China’s Securities Firms Rein In Pay Packets as Pressures Mount 

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>Many have missed out on the 14%, or 2,300 points, rally of the HSI in the last 9 trading days. There are still several stocks that look interesting now.</li>
<li>
<a href="https://www.smartkarma.com/entities/li-auto-inc-3dbe6187-544f-40dd-b9f9-72fba9c0110e" target="_blank" data-smartkarma-citation="entities:33811:1" rel="noopener">Li Auto (2015 HK)</a>, <a href="https://www.smartkarma.com/entities/link-reit" target="_blank" data-smartkarma-citation="entities:872:1" rel="noopener">Link REIT (823 HK)</a>, <a href="https://www.smartkarma.com/entities/china-mengniu-dairy-co" target="_blank" data-smartkarma-citation="entities:354:1" rel="noopener">China Mengniu Dairy Co (2319 HK)</a>, <a href="https://www.smartkarma.com/entities/hang-lung-properties-ltd" target="_blank" data-smartkarma-citation="entities:49:1" rel="noopener">Hang Lung Properties (101 HK)</a> and <a href="https://www.smartkarma.com/entities/galaxy-entertainment-group-limited" target="_blank" data-smartkarma-citation="entities:806:1" rel="noopener">Galaxy Entertainment Group (27 HK)</a> are massive laggards YTD.</li>
<li>As they have only experienced limited rebounds from the 19-Apr trough, they are set to catch up. Also, their earnings prospects look positive this year. </li>
</ul>


Many have missed out on the 14%, or 2,300 points, rally of the HSI in the last 9 trading days. There are still several stocks that look interesting now.

Li Auto (2015 HK), Link REIT (823 HK), China Mengniu Dairy Co (2319 HK), Hang Lung Properties (101 HK) and Galaxy Entertainment Group (27 HK) are massive laggards YTD.
As they have only experienced limited rebounds from the 19-Apr trough, they are set to catch up. Also, their earnings prospects look positive this year. 


HK Strategy: Where Are the Short-Term Opportunities?

<ul><li>Tesla / Analysis: Mounting competition in China comes at a bad time for Tesla </li><li>Corruption /Exclusive: China probes another central bank official linked to fallen businessman</li><li>Regulator /NFRA seeks to accelerate new energy vehicle sales by cutting loan down payments</li></ul>

Tesla / Analysis: Mounting competition in China comes at a bad time for Tesla Corruption /Exclusive: China probes another central bank official linked to fallen businessmanRegulator /NFRA seeks to accelerate new energy vehicle sales by cutting loan down payments

CX Daily: Mounting Competition In China Comes At A Bad Time For Tesla 

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 August 14th.</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 Minimax, Alibaba, Tencent, Meituan, AIA, China Life, Beone Medicines, Xiaomi, Wuxi Bio.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of August 14th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Minimax, Alibaba, Tencent, Meituan, AIA, China Life, Beone Medicines, Xiaomi, Wuxi Bio.


HK Connect Flows Weekly (Aug 14th): Minimax, Alibaba, Tencent, Meituan, AIA, China Life, Xiaomi

China

Nongfu Spring is a leading Chinese company primarily engaged in the production and sale of packaged drinking water and a diverse range of beverages. Its product portfolio includes natural packaged drinking water, ready-to-drink teas, functional beverages, and fruit juices. The company was founded in 1996 and is headquartered in Hangzhou, China.

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Nongfu Spring (9633 HK)

How to Stimulate China's Consumption? Part I

The myth of China underconsumption depends on how you count it. China under-consumes in certain consumption categories associated with an older and...

Blue Lotus Research Institute

CX Daily: China’s Securities Firms Rein In Pay Packets as Pressures Mount

Securities / In Depth: China’s securities firms rein in pay packets as pressures mount Personnel /: Veteran diplomat appointed deputy head of...

Caixin Global

HK Strategy: Where Are the Short-Term Opportunities?

Li Auto, Link REIT, China Mengniu, Hang Lung Properties, and Galaxy Entertainment are massive laggards YTD but the recent rebound from the trough...

Osbert Tang, CFA

CX Daily: Mounting Competition In China Comes At A Bad Time For Tesla

Tesla / Analysis: Mounting competition in China comes at a bad time for Tesla More of Tesla’s Chinese rivals are catching up in the sales race...

Caixin Global

HK Connect Flows Weekly (Aug 14th): Minimax, Alibaba, Tencent, Meituan, AIA, China Life, Xiaomi

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Minimax, Alibaba, Tencent, Meituan, AIA, China Life,...

Ke Yan, CFA, FRM

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