Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Jacob has 7 years of professional buy-side experience in real estate investment and listed equities.  Jacob worked as a portfolio manager/analyst in Global Listed Real Estate team in AMP Capital and Macquarie Asset Management.  Prior to that, Jacob has spent 5 years in APG asset management, in the listed real estate team.  As one of the largest RE funds in Asia, he co-managed EUR6bn investment portfolio with the team with a focus on Hong Kong and China property.  He led the USD200m cornerstone investment in Wanda Commercial Properties IPO (the largest mall operator and developer in China).  Prior to this, Jacob has 3 years of experience in investment banking in Bank of America Merrill Lynch, covering equity, debt and M&A transactions across real estate, consumer& retail and TMT sectors.  Jacob specializes in fundamental bottom up research.  Aside from work, Jacob has a personal interest in spirituality and personal development.  He practiced meditation and has published a book about meaning of life in 2016.

Listed Real Estate Asia

SHKP 16 HK: A Very Safe Play to Bet on Hong Kong Future

The Rate Hike and Capital Flow: 5 Conviction Trades in Asian Real Estate

The 20 Trillion RMB Property Wealth Erosion and Its Impact on China's Structural Retail Slowdown

Yield Shock: Navigating the 85% Fed Hike Probability in APAC Real Estate

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Equity Bottom-Up

Sun Hung Kai Properties / Equity Bottom-Up

<ul>
<li>Double Drag: HK’s monetary policy is tied to US, while economic growth is tied to China. Now the city is crushed between restrictive US monetary policy and slowing Mainland growth.</li>
<li>Real Estate Breakdown: Elevated interbank rates, 40,741 negative equity mortgages, and severe retail spending leakage across the boundary to Shenzhen have triggered structural property devaluations and developer margin compression.</li>
<li>Asymmetric Short Trade: Generating over 70% of gross asset value locally, Sun Hung Kai Properties is the purest liquid proxy for Hong Kong's unhedgeable macroeconomic headwinds and multi-year margin compression.</li>
</ul>


Double Drag: HK’s monetary policy is tied to US, while economic growth is tied to China. Now the city is crushed between restrictive US monetary policy and slowing Mainland growth.
Real Estate Breakdown: Elevated interbank rates, 40,741 negative equity mortgages, and severe retail spending leakage across the boundary to Shenzhen have triggered structural property devaluations and developer margin compression.
Asymmetric Short Trade: Generating over 70% of gross asset value locally, Sun Hung Kai Properties is the purest liquid proxy for Hong Kong's unhedgeable macroeconomic headwinds and multi-year margin compression.


Hong Kong’s Perfect Storm with Double Drag: Shorting SHKP 16 HK as the Ultimate Macro Proxy