Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Fund manager <a href="https://www.smartkarma.com/entities/china-everbright-ltd" target="_blank" data-smartkarma-citation="entities:167:1" rel="noopener">China Everbright (165 HK)</a>'s implied stub and simple ratio (CEL / <a href="https://www.smartkarma.com/entities/everbright-securitie-co-a" target="_blank" data-smartkarma-citation="entities:15343:1" rel="noopener">Everbright Securities Co (A) (601788 CH)</a>)) are at multi-year lows.</li>
<li>Preceding my comments on China Everbright are the weekly setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


Fund manager China Everbright (165 HK)'s implied stub and simple ratio (CEL / Everbright Securities Co (A) (601788 CH))) are at multi-year lows.
Preceding my comments on China Everbright are the weekly setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: China Everbright (165 HK) Trading Wide

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul>
<li>
In Depth: How China’s shrinking population is driving education reform
</li>
<li>
Beijing’s EU envoy warns of risks if bloc curbs China trade
</li>
<li>
Exclusive: Shagang still wants to buy Nangang Iron &amp; Steel from Fosun
</li>
</ul>



In Depth: How China’s shrinking population is driving education reform


Beijing’s EU envoy warns of risks if bloc curbs China trade


Exclusive: Shagang still wants to buy Nangang Iron &amp; Steel from Fosun



CX Daily: How China’s Shrinking Population Is Driving Education Reform

Bond market data and technology, BondEvalue

BondEvalue

Bond market data and technology

BondEvalue is a Singapore-based Fintech that specializes in bond market data and technology. The company's information services business offers bond market data on hard-currency corporate & sovereign bonds across Asia, Middle East, Europe and the Americas. The data, which includes bond prices, yields, news and analytics, is offered to end investors via interactive Mobile and Web Apps. Investors can sign up for a free trial of the service either via the company's website (https://bondevalue.com) or by downloading the BondEvalue Mobile App (http://onelink.to/wej7jq). BondEvalue is also developing an electronic bond exchange, BondbloX in Singapore that allows investors to trade bonds electronically in smaller sizes (US$1,000 or equivalent). For more information, visit https://www.bondblox.com/

Bond Market Data and Technology

Credit

US markets remained closed for labor day celebrations. European markets notched the best day in six weeks – DAX, CAC and FTSE were up 1%, 0.8% and 0.7% respectively. Saudi’s TASI was also up 0.6% while UAE’s ADX was down 0.1%. Brazil’s Bovespa also closed 0.8% higher. The Chinese Vice President said that Beijing will back private business in a bid to boost investor confidence. Asian markets had a mixed start – HSI and Nikkei gained 1% and 0.9% in early trade. Shanghai was broadly flat. Singapore’s STI was down 0.2%. US 10Y Treasury yields climbed another 2bp to 1.34%. EU Main CDS and Crossover CDS spreads tightened by 0.5bp and 2.7bp respectively. Asia ex-Japan CDS spreads widened 0.1bp.

DBS, Keppel, China Everbright Launch Bonds; Macro; Rating Changes; Talking Heads; New Issuances; ...

US markets remained close to highs even as the S&amp;P dipped slightly by 0.1%. The tech heavy Nasdaq on the other hand gained 0.5%. There seemed to be little impact of the new G7 15% global corporate tax on multinationals as Amazon was up 0.3% and Google up 0.1%. US 10Y Treasury yields were 1bp lower at 1.56%. In Europe, DAX closed marginally lower by 0.1% while FTSE and CAC were up 0.1% and 0.4% respectively. US IG and HY CDS spreads widened slightly by 0.3bp each. EU main CDS spreads tightened marginally by 0.2bp and crossover CDS spreads were flat. Asian markets are largely flat with Nikkei up 0.3% and Shanghai and HSI unchanged, Asia ex-Japan CDS spreads tightened 1.2bp.

Kaisa, Everbright Launch Bonds; Macro; Rating Changes; New Issues; Talking Heads; Top Gainers & L...

Silver Point

Thomas J. Monaco

Independent Insight Provider

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

Equity Bottom-Up

*Positive Operating Jaws: China Everbright Bank (6818.HK) [CEB] reported 1Q21 results of CNY 11.5 bn, increasing CNY 3.3 bn (40.1%) linked quarter. When we exclude securities gains, results were less robust coming in at CNY 8.5 bn, but still improving CNY 1.8 bn (27.4%). Results were driven by CEB’s positive operating jaws, as revenues improved CNY 2.6 bn (7.7%) while costs declined CNY 660 mn (6.1%); and*Credit Wall Continues To Grow: Net new problem loans continue to accelerate at Indian bank pace of CNY 11.5 bn or 110.8% on an annualized basis. By our calculation, reserve are short in the neighborhood of CNY 103 mn which represents about three years of 1Q20 core operating results. Provided (and its not a stretch) that the net new NPL ratio trajectory holds, reserve cover of NPLs will drop to 77%.

*Positive Operating Jaws: China Everbright Bank (6818.HK) [CEB] reported 1Q21 results of CNY 11.5 bn, increasing CNY 3.3 bn (40.1%) linked quarter. When we exclude securities gains, results were less robust coming in at CNY 8.5 bn, but still improving CNY 1.8 bn (27.4%). Results were driven by CEB’s positive operating jaws, as revenues improved CNY 2.6 bn (7.7%) while costs declined CNY 660 mn (6.1%); and*Credit Wall Continues To Grow: Net new problem loans continue to accelerate at Indian bank pace of CNY 11.5 bn or 110.8% on an annualized basis. By our calculation, reserve are short in the neighborhood of CNY 103 mn which represents about three years of 1Q20 core operating results. Provided (and its not a stretch) that the net new NPL ratio trajectory holds, reserve cover of NPLs will drop to 77%. 

China Everbright Bank – Credit Remains Troublesome

Hong Kong

China Everbright Limited, through its subsidiaries, provides investment banking, commercial banking, corporate finance, and investment advisory services.  The Company also invests in properties and provides insurance, brokerage, secretarial, and money lending services.

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China Everbright (165 HK)

StubWorld: China Everbright (165 HK) Trading Wide

A 77% discount to NAV is wide by any measure. Everbright Securities Co is trading full. I'd look to buy CEL outright, or hedge with ESC. Pushback?...

David Blennerhassett

CX Daily: How China’s Shrinking Population Is Driving Education Reform

In Depth: How China’s shrinking population is driving education reform. Beijing’s EU envoy warns of risks if bloc curbs China trade

Caixin Global

DBS, Keppel, China Everbright Launch Bonds; Macro; Rating Changes; Talking Heads; New Issuances; ...

US markets remained closed for labor day celebrations. European markets notched the best day in six weeks – DAX, CAC and FTSE were up 1%, 0.8% and...

BondEvalue

Kaisa, Everbright Launch Bonds; Macro; Rating Changes; New Issues; Talking Heads; Top Gainers & L...

US markets remained close to highs even as the S&P dipped slightly by 0.1%. The tech heavy Nasdaq on the other hand gained 0.5%. There seemed...

BondEvalue

China Everbright Bank – Credit Remains Troublesome

CHINA EVERBRIGHT BANK: Operating results grew 27.4% QOQ, driven by positive operating jaws. Credit continues to weaken and the loss reserve...

Thomas J. Monaco

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