Fintech & EM-focused Analyst, KT Capital Group

Alec Tseung

Fintech & EM-focused Analyst

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

China Merchants China Direct Investments / Equity Bottom-Up

China Merchants China Direct Investments Limited is a close-ended investment company. It invests principally in unlisted enterprises in China. It also invests in hi-tech projects, including initial public offerings and/or pre-listing placements and any shares listed in Hong Kong.

China Merchants China Direct Investments (133 HK)

<ul>
<li>ASM is a hedge fund with a strong track record of investor activism in taking over distressed assets and closed-end funds. </li>
<li>Lazard, the second largest CMCDI shareholder, bought shares last week at a multi-year high sending a strong message to the market.</li>
<li>CMCDI can also explore announcing a discount management program besides agreeing to ASM's claim to sell assets to pay dividends and offer a share buyback to reduce the NAV discount.</li>
</ul>


ASM is a hedge fund with a strong track record of investor activism in taking over distressed assets and closed-end funds. 
Lazard, the second largest CMCDI shareholder, bought shares last week at a multi-year high sending a strong message to the market.
CMCDI can also explore announcing a discount management program besides agreeing to ASM's claim to sell assets to pay dividends and offer a share buyback to reduce the NAV discount.


The Battle of CMCDI: What Is the Endgame?

<ul>
<li>While Elizabeth Kan barely survived the AGM vote, ASM has effectively mobilized minority shareholders.</li>
<li>Lazard (owns 15% of CMCDI) probably voted alongside ASM (owns 9%). Other than China Merchants Group and Victor Chu, almost no "outside shareholders" voted in favor of Kan, .</li>
<li>The next battleground is a vote in November when CMCDI needs to renew its investment management agreement. Intense behind-the-scene negotiations are expected, given the bargaining power ASM now demonstrated.</li>
</ul>


While Elizabeth Kan barely survived the AGM vote, ASM has effectively mobilized minority shareholders.
Lazard (owns 15% of CMCDI) probably voted alongside ASM (owns 9%). Other than China Merchants Group and Victor Chu, almost no "outside shareholders" voted in favor of Kan, .
The next battleground is a vote in November when CMCDI needs to renew its investment management agreement. Intense behind-the-scene negotiations are expected, given the bargaining power ASM now demonstrated.


CMCDI Update: Warning Shot Fired At AGM Despite Kan’s Successful Re-Election

Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Listed Real Estate Asia

Thematic (Sector/Industry)

<ul>
<li>We are at an unprecedented moment in history where USDJPY is breaking 34-year high.  At the same time, all Asia EM currencies (except CNY) are seeing strong depreciation pressure</li>
<li>What’s happening behind the scene?  We look at the underlying reasons and SHORT trades.  The implication is huge and we need to assess what will happen</li>
<li>Depending on what Central Banks will do (intervention?), we try to access if there is risk of another Asia Financial Crisis.  We look at potential trades to bet on</li>
</ul>


We are at an unprecedented moment in history where USDJPY is breaking 34-year high.  At the same time, all Asia EM currencies (except CNY) are seeing strong depreciation pressure
What’s happening behind the scene?  We look at the underlying reasons and SHORT trades.  The implication is huge and we need to assess what will happen
Depending on what Central Banks will do (intervention?), we try to access if there is risk of another Asia Financial Crisis.  We look at potential trades to bet on


USDJPY Breaking 34-Year High: Are We Seeing Another Asia Financial Crisis? What Will Come Next?

NIPPON PROLOGIS REIT INC. is a real estate investment trust (REIT) that directly invests in real estate properties used for logistics businesses.

<ul>
<li>In this insight, we look at the fundamentals of J-REITs.  We look at overall Japan real estate, interest rate impact, as well as industry dynamics</li>
<li>We like logistics sector due to its strong industry fundamentals; we are more bearish on office as vacancy will see more fluctuation in terms of new supply</li>
<li>On the back of valuation and industry fundamentals, we suggest LONG Nippon Prologis REIT and SHORT Nippon Building Fund</li>
</ul>


In this insight, we look at the fundamentals of J-REITs.  We look at overall Japan real estate, interest rate impact, as well as industry dynamics
We like logistics sector due to its strong industry fundamentals; we are more bearish on office as vacancy will see more fluctuation in terms of new supply
On the back of valuation and industry fundamentals, we suggest LONG Nippon Prologis REIT and SHORT Nippon Building Fund


J-REITs: LONG Nippon Prologis 3283 and SHORT Nippon Building Fund 8951 on Valuation and Fundamentals

CapitaLand Investment /Sing / Equity Bottom-Up

CapitaLand Investment Limited (CLI) is a global real estate investment manager with the aim to scale its FUM and fee-related earnings through its full stack of investment management and operating capabilities. The Company's portfolio of integrated developments, retail, office, lodging and new economy assets are either owned/managed directly or through its fund management platform.

<ul>
<li>CapitaLand is a real estate investment manager with funds under management of c.S$100b and core markets being Singapore, China and India</li>
<li>They reported solid FY2023 results earlier this year.  Singapore and India are showing strong market outlook while China struggles.</li>
<li>Valuation is attractive with &gt;50% upside and we view there are multiple catalysts ahead</li>
</ul>


CapitaLand is a real estate investment manager with funds under management of c.S$100b and core markets being Singapore, China and India
They reported solid FY2023 results earlier this year.  Singapore and India are showing strong market outlook while China struggles.
Valuation is attractive with &gt;50% upside and we view there are multiple catalysts ahead


CapitaLand Investment (CLI): A Leading Global RE Investment Manager with Asia Presence, BUY

KT Capital Group
Principal investments and advisory firm

The Battle of CMCDI: What Is the Endgame?

CMCDI's AGM was held yesterday, where Elizabeth Kan survived the vote with a razor-thin margin. The outcome demonstrated ASM's ability to mobilize...

Alec Tseung

CMCDI Update: Warning Shot Fired At AGM Despite Kan’s Successful Re-Election

ASM successfully demonstrated its ability to mobilize other minority shareholders and its bargaining power at the AGM, although Director Elizabeth...

Alec Tseung

USDJPY Breaking 34-Year High: Are We Seeing Another Asia Financial Crisis? What Will Come Next?

USDJPY breaking 34-year high. Other Asian currencies saw huge depreciation pressure. We look at underlying reason and it is concerning. We...

Jacob Cheng

J-REITs: LONG Nippon Prologis 3283 and SHORT Nippon Building Fund 8951 on Valuation and Fundamentals

We look at the J-REIT market, the interest rate impact, as well as industry fundamentals. We like logistics sector but more bearish on office. We...

Jacob Cheng

CapitaLand Investment (CLI): A Leading Global RE Investment Manager with Asia Presence, BUY

CLI is a leading RE investment manager with a solid presence in Asia. It generates fee income and invests in real estate across different asset...

Jacob Cheng

The Battle of CMCDI: What Is the Endgame?

CMCDI's AGM was held yesterday, where Elizabeth Kan survived the vote with a razor-thin margin. The outcome demonstrated ASM's ability to mobilize...

Alec Tseung

CMCDI Update: Warning Shot Fired At AGM Despite Kan’s Successful Re-Election

​ASM successfully demonstrated its ability to mobilize other minority shareholders and its bargaining power at the AGM, although Director Elizabeth...

Alec Tseung

USDJPY Breaking 34-Year High: Are We Seeing Another Asia Financial Crisis? What Will Come Next?

USDJPY breaking 34-year high. Other Asian currencies saw huge depreciation pressure. We look at underlying reason and it is concerning. We...

Jacob Cheng

J-REITs: LONG Nippon Prologis 3283 and SHORT Nippon Building Fund 8951 on Valuation and Fundamentals

We look at the J-REIT market, the interest rate impact, as well as industry fundamentals. We like logistics sector but more bearish on office. We...

Jacob Cheng

CapitaLand Investment (CLI): A Leading Global RE Investment Manager with Asia Presence, BUY

CLI is a leading RE investment manager with a solid presence in Asia. It generates fee income and invests in real estate across different asset...

Jacob Cheng

ASM successfully demonstrated its ability to mobilize other minority shareholders and its bargaining power at the AGM, although Director Elizabeth...