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)

* Questionable Reduction in Reserve Coverage: Just as the wheels are about to fall off the bus, the China Bank Regulatory Commission (CBRC) - in their infinite wisdom – decided to allow Chinese banks to reduce the minimum NPL coverage ratio from 150% to 120%, and the minimum LLR cover of total loans from 2.5% to 1.5%.* Knee Jerk Reaction Is Silly – At Least For the 2nd Tier Banks:The 2nd tier banks carry the risk of substantially higher capital requirements and inadequate provisions as these…

* Questionable Reduction in Reserve Coverage: Just as the wheels are about to fall off the bus, the China Bank Regulatory Commission (CBRC) - in their infinite wisdom – decided to allow Chinese banks to reduce the minimum NPL coverage ratio from 150% to 120%, and the minimum LLR cover of total loans from 2.5% to 1.5%.* Knee Jerk Reaction Is Silly – At Least For the 2nd Tier Banks:The 2nd tier banks carry the risk of substantially higher capital requirements and inadequate provisions as these…

China Banks – Can You Say Capital Forbearance?

* 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

* Orchestrated Collapse: The CIRC notified Anbang that it took over the company’s Board and managerial functions for an extendable one year period until the proper controls are installed. In other words, until asset disposals are completed and strategic shareholders have injected enough capital.* Tail Risk: Some of Anbang’s more high profile stakes in mainland China include: China Minsheng Bank (1988.HK); SNS Reaal (SRH.NV); Vivat Holdings (VVT.LN); Delta Lloyd banking unit (DL.BB); and Fidea…

* Orchestrated Collapse: The CIRC notified Anbang that it took over the company’s Board and managerial functions for an extendable one year period until the proper controls are installed. In other words, until asset disposals are completed and strategic shareholders have injected enough capital.* Tail Risk: Some of Anbang’s more high profile stakes in mainland China include: China Minsheng Bank (1988.HK); SNS Reaal (SRH.NV); Vivat Holdings (VVT.LN); Delta Lloyd banking unit (DL.BB); and Fidea…

Macro & Asian equity Technical Strategies, BBSP Asia

Federico D'Inca

Macro & Asian equity Technical Strategies

BBSP Asia

Technical Analysis

Sony Financial Group / Technical Analysis

Mid Term Country Allocation (Tactical view) in terms of Relative Value vs MXAP • HSCEI/MXAP ratio is moving in a range pattern. Therefore downgrade HSCEI from increase exposure to hold. While HSI/MXAP ratio remains above a trend line support (preference for a tactical HSI outperformance over HSCEI). • Keep “overweight” position on HSI, Nikkei, ASX and TWSE. • Maintain “Hold for KOSPI and Nifty vs MXAPShould you have any questions and wish to speak with one of our analysts, please don’t hesitate to…

Mid Term Country Allocation (Tactical view) in terms of Relative Value vs MXAP • HSCEI/MXAP ratio is moving in a range pattern. Therefore downgrade HSCEI from increase exposure to hold. While HSI/MXAP ratio remains above a trend line support (preference for a tactical HSI outperformance over HSCEI). • Keep “overweight” position on HSI, Nikkei, ASX and TWSE. • Maintain “Hold for KOSPI and Nifty vs MXAPShould you have any questions and wish to speak with one of our analysts, please don’t hesitate to…

BBSP Equity Asia Weekly Research 10th January 2018

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.

Actionable Charts from Smart Karma’s Most-Searched Tickers.We ran through a list of the most frequently searched tickers on the SmartKarma platform using the Discovery Tool.  Notable themes include:<ul><li>Add exposure to Energy and Materials. </li><li>Financial stocks are strengthening. </li><li>Avoid Australian banks. </li></ul>See the attached report for a complete list of our recommendations from this list.

Actionable Charts from Smart Karma’s Most-Searched Tickers.We ran through a list of the most frequently searched tickers on the SmartKarma platform using the Discovery Tool.  Notable themes include:Add exposure to Energy and Materials. Financial stocks are strengthening. Avoid Australian banks. See the attached report for a complete list of our recommendations from this list.

China

PICC Property & Casualty is the largest non-life insurance company in mainland China, providing a broad range of property and casualty insurance products. Its offerings include motor vehicle, commercial property, cargo, liability, accidental injury and health, agriculture, credit, surety, and homeowners insurance. The company also offers reinsurance and insurance agency services. It is headquartered in Beijing, China, and was incorporated in 2003.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

PICC Property & Casualty (2328 HK)

China Banks – Can You Say Capital Forbearance?

* Questionable Reduction in Reserve Coverage: Just as the wheels are about to fall off the bus, the China Bank Regulatory Commission (CBRC) - in...

Thomas J. Monaco

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

Anbang Group - Snared

* Orchestrated Collapse: The CIRC notified Anbang that it took over the company’s Board and managerial functions for an extendable one year period...

Thomas J. Monaco

BBSP Equity Asia Weekly Research 10th January 2018

Mid Term Country Allocation (Tactical view) in terms of Relative Value vs MXAP• HSCEI/MXAP ratio is moving in a range pattern. Therefore downgrade...

BBSP Asia

Popular Stocks, Attractive Charts

Actionable Charts from Smart Karma’s Most-Searched Tickers.We ran through a list of the most frequently searched tickers on the SmartKarma platform...

Vermilion Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)