China and US Equity Analyst

Roger Xie

10 year investment experience on public and private equity. Deep-dive fundamental research. Specialize in China and US market.

Digital Currency: Still Remember Facebook Libra/Diem ?

China Equity Strategy: Domestic Funds Rush to Deploy Capital in Hong Kong Market

China A-Share Strategy: Strong Fundamental Recovery and Decelerated Liquidity Growth

China A-Share Strategy: Deregulation in QFII/RQFII Scheme to Boost up Foreign Fund Inflow

China A-Share Strategy: R/QFII Quota Removal to Offer More Attractive Channel to Invest In China

Cross Asset Strategy

<ul>
<li>China is accelerating its efforts to launch its sovereign digital currency. In October, the People’s Bank of China published a draft law that would give legal status to the Digital Currency Electronic Payment (DCEP) system, and for the first time the digital yuan has been included and defined as part of the country’s sovereign fiat currency.</li>
<li>Pilot testing of China’s DC/EP system has rolled out recently in Shenzhen, Suzhou, Xiong’an and Chengdu. The digital currency will also feature at the Beijing Winter Olympics in 2022. In the public testing in Shenzhen, "red pockets" valued at RMB200 each have been distributed to 50,000 residents to use in 3,000 local retail stores and restaurants. The pilot program has shown 2 distinct features for DC/EP system: 1) the use of DC/EP app does not require an existed bank account, this will target to serve any non-bank customers; 2) DC/EP app uses QR code or NFC for payment, which is similar to popular Wechat or Alipay system. We believe these payment methods will facilitate the wide adoption of DC/EP system.</li>
<li>PBoC’s DC/EP is fundamentally different to crypto currencies and stablecoins. Its main function, is to partially replace paper cash (M0) and supplement retail ePayments (C2C or C2B) in China. We believe the success of pilot DC/EP system will pave way for a solution for cashless environment. China is leading the race for digital currency. </li>
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China is accelerating its efforts to launch its sovereign digital currency. In October, the People’s Bank of China published a draft law that would give legal status to the Digital Currency Electronic Payment (DCEP) system, and for the first time the digital yuan has been included and defined as part of the country’s sovereign fiat currency.
Pilot testing of China’s DC/EP system has rolled out recently in Shenzhen, Suzhou, Xiong’an and Chengdu. The digital currency will also feature at the Beijing Winter Olympics in 2022. In the public testing in Shenzhen, "red pockets" valued at RMB200 each have been distributed to 50,000 residents to use in 3,000 local retail stores and restaurants. The pilot program has shown 2 distinct features for DC/EP system: 1) the use of DC/EP app does not require an existed bank account, this will target to serve any non-bank customers; 2) DC/EP app uses QR code or NFC for payment, which is similar to popular Wechat or Alipay system. We believe these payment methods will facilitate the wide adoption of DC/EP system.
PBoC’s DC/EP is fundamentally different to crypto currencies and stablecoins. Its main function, is to partially replace paper cash (M0) and supplement retail ePayments (C2C or C2B) in China. We believe the success of pilot DC/EP system will pave way for a solution for cashless environment. China is leading the race for digital currency. 


China A-Share Strategy: Leading the Race for Digital Currency