Alpha-Centric ESG Research

Kyle Rudden

In <a href="https://www.smartkarma.com/insights/delisting-deceitful-chinese-companies-act-not-a-slam-dunk-and-has-more-bark-than-bite-if-it-passes" target="_blank" data-smartkarma-citation="insights:40025" rel="noopener">"Delisting Deceitful Chinese Companies Act" Not a Slam Dunk and Has More Bark Than Bite if It Passes</a>, I made three "predictions." First, the U.S. House of Representatives would not get around to voting on the "delisting act" before the end of the Congressional session. Second, if the House does vote, it would likely pass the bill. Third, if the bill passes, it would have more bark than bite.As a bloke called Meat Loaf once sung, "two out of three ain't bad."On Wednesday, the House voted and passed Senate Bill 945, titled the "Holding Foreign Companies Accountable Act." That the House managed to vote amidst the dual chaos of a raging pandemic and an unhinged President – so close to adjourning this 116th Congress – is a surprise. That it voted to pass S945 is not at all surprising, however, given widespread bi-partisan support for the bill.The real epiphany comes from additional details provided during House testimony just prior to the vote. Not many, but those details that were disclosed (plus the tone in which they were articulated) shed light on how S945 will be implemented and enforced by the SEC, and why foreign issuers and investors should duly-cautious but not overly-concerned. And why this "delisting bill" is ...... more bark than bite.This Insight presents an updated analysis of S945 (general and China/Hong Kong-specific aspects), shares new details provided by Representative Brad Sherman, offers an opinion on the SEC's likely approach to writing and enforcing S945 rules, analyses China/Hong Kong stocks most at risk under S945, and stocks affected by the France/Belgium angle (similar to China/Hong Kong).

In "Delisting Deceitful Chinese Companies Act" Not a Slam Dunk and Has More Bark Than Bite if It Passes, I made three "predictions." First, the U.S. House of Representatives would not get around to voting on the "delisting act" before the end of the Congressional session. Second, if the House does vote, it would likely pass the bill. Third, if the bill passes, it would have more bark than bite.As a bloke called Meat Loaf once sung, "two out of three ain't bad."On Wednesday, the House voted and passed Senate Bill 945, titled the "Holding Foreign Companies Accountable Act." That the House managed to vote amidst the dual chaos of a raging pandemic and an unhinged President – so close to adjourning this 116th Congress – is a surprise. That it voted to pass S945 is not at all surprising, however, given widespread bi-partisan support for the bill.The real epiphany comes from additional details provided during House testimony just prior to the vote. Not many, but those details that were disclosed (plus the tone in which they were articulated) shed light on how S945 will be implemented and enforced by the SEC, and why foreign issuers and investors should duly-cautious but not overly-concerned. And why this "delisting bill" is ...... more bark than bite.This Insight presents an updated analysis of S945 (general and China/Hong Kong-specific aspects), shares new details provided by Representative Brad Sherman, offers an opinion on the SEC's likely approach to writing and enforcing S945 rules, analyses China/Hong Kong stocks most at risk under S945, and stocks affected by the France/Belgium angle (similar to China/Hong Kong).

House Passes "Delisting Act" Giving SEC 90 Days to Write Its Rules (And Yes, More Bark Than Bite)

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Equity Bottom-Up

<ul><li>The SET Index is expected to move sideways while awaiting clarity concerning the US CPI in November and the FOMC meeting, with the support at 1,615/1,610 points and the resistance at 1,630/1,635 points.</li><li>Positive factors include the expected fall in the US CPI in November, with the consensus projection at 7.30% YoY, down from 7.7% YoY in October.</li><li>Negative factors include the possibility that the baht may weaken in the short term, which may prompt foreign investors to take profit, thus limiting the possible gains of the SET Index.</li></ul>

The SET Index is expected to move sideways while awaiting clarity concerning the US CPI in November and the FOMC meeting, with the support at 1,615/1,610 points and the resistance at 1,630/1,635 points.Positive factors include the expected fall in the US CPI in November, with the consensus projection at 7.30% YoY, down from 7.7% YoY in October.Negative factors include the possibility that the baht may weaken in the short term, which may prompt foreign investors to take profit, thus limiting the possible gains of the SET Index.

<ul><li>The SET Index is expected to move sideways up, with the support at 1,612/1,600 points and the resistance at 1,630/1,640 points.</li><li>The primary positive factor is the lower-than-expected Thai inflation in November, which may lessen the pressure on the MPC to aggressively hike interest rates while also aiding the recovery of domestic consumption.</li><li>We suggest trading buy on domestic plays.</li></ul>

The SET Index is expected to move sideways up, with the support at 1,612/1,600 points and the resistance at 1,630/1,640 points.The primary positive factor is the lower-than-expected Thai inflation in November, which may lessen the pressure on the MPC to aggressively hike interest rates while also aiding the recovery of domestic consumption.We suggest trading buy on domestic plays.

Krungthai XSpring Zoom Eng. December 8, 2022

<ul><li>The SET Index is expected to move sideways, with the resistance at 1,640/1,650 points and the support at 1,625/1,620 points.</li><li>Positive factors include the valuations of Thai stocks, which remain inexpensive, as reflected in the fact that the earnings yield gap is still higher than the 12M average.</li><li>The negative factors include concerns that the Fed may hike the policy interest rate more aggressively than expected due to the better-than-forecast employment figures and the continued increase in the ISM services PMI.</li></ul>

The SET Index is expected to move sideways, with the resistance at 1,640/1,650 points and the support at 1,625/1,620 points.Positive factors include the valuations of Thai stocks, which remain inexpensive, as reflected in the fact that the earnings yield gap is still higher than the 12M average.The negative factors include concerns that the Fed may hike the policy interest rate more aggressively than expected due to the better-than-forecast employment figures and the continued increase in the ISM services PMI.

<ul><li>The SET Index is expected to move sideways, with the resistance at 1,630/1,635 points and the support at 1,611 (50-week EMA)/1,600 points.</li><li>Technically, the SET may continue to fluctuate until breaking out from the current trading range, at which point its direction will be determined.</li><li>Today's momentum is slightly positive due to the buybacks of risk assets after the Fed signaled a slower pace for rate hikes.</li></ul>

The SET Index is expected to move sideways, with the resistance at 1,630/1,635 points and the support at 1,611 (50-week EMA)/1,600 points.Technically, the SET may continue to fluctuate until breaking out from the current trading range, at which point its direction will be determined.Today's momentum is slightly positive due to the buybacks of risk assets after the Fed signaled a slower pace for rate hikes.

China

TuanChe Limited operates as a holding company. The Company, through its subsidiaries, offers an automotive e-commerce platform that focusing on car trading activities through auto shows and group-purchase events. TuanChe serves customers worldwide.

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TuanChe (TC US)

House Passes "Delisting Act" Giving SEC 90 Days to Write Its Rules (And Yes, More Bark Than Bite)

The U.S. House of Representatives passed Senate Bill 945, the "Holding Foreign Companies Accountable Act." New details support the notion that S945...

Kyle Rudden

Market Outlook

The SET Index is expected to move sideways while awaiting clarity concerning the US CPI in November and the FOMC meeting, with the support at...

Krungthai XSpring

Krungthai XSpring Zoom Eng. December 8, 2022

The SET Index is expected to move sideways up, with the support at 1,612/1,600 points and the resistance at 1,630/1,640 points. The primary...

Krungthai XSpring

Market Outlook

The SET Index is expected to move sideways, with the resistance at 1,640/1,650 points and the support at 1,625/1,620 points. Positive factors...

Krungthai XSpring

Market Outlook

The SET Index is expected to move sideways, with the resistance at 1,630/1,635 points and the support at 1,611 (50-week EMA)/1,600...

Krungthai XSpring

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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