Head of China Research - Forsyth Barr Asia, Forsyth Barr Asia

David Millhouse

Head of China Research - Forsyth Barr Asia

Forsyth Barr Asia

Macroeconomics

China’s RMB has just had its largest two-day loss since 2008, and has also fallen a recorddiscount to the central bank’s reference rate (1.89%, nearing the limit of its trading band of 2%). &nbsp;I have recieved several questions on the move in the past 24 hours, specifically around "could we see a material correction to the Rmb." Although&nbsp; i see further downside to the RMB (a further 2-3% against the USD)&nbsp;i do not believe the Chinese government will look to manage down the RMB aggressively.&nbsp;I beleive the government will employ&nbsp;other administrative tools to support the economy, and conceptually there are several reasons why they WOULD NOT want a significant correction from here. <span style='color: black; font-family: "Calibri","sans-serif"; font-size: 14pt; mso-fareast-language: EN-US; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-ansi-language: EN-US; mso-bidi-language: AR-SA;'>Please see&nbsp;my Q&amp;A below, on the 10 major issues investors having being asking on the RMB outlook.

 China’s RMB has just had its largest two-day loss since 2008, and has also fallen a recorddiscount to the central bank’s reference rate (1.89%, nearing the limit of its trading band of 2%). &nbsp;I have recieved several questions on the move in the past 24 hours, specifically around "could we see a material correction to the Rmb." Although&nbsp; i see further downside to the RMB (a further 2-3% against the USD)&nbsp;i do not believe the Chinese government will look to manage down the RMB aggressively.&nbsp;I beleive the government will employ&nbsp;other administrative tools to support the economy, and conceptually there are several reasons why they WOULD NOT want a significant correction from here.   Please see&nbsp;my Q&amp;A below, on the 10 major issues investors having being asking on the RMB outlook.    

CHINA MACRO: My thoughts on the RMB move. Will we see a large correction??

Ex-Buyside Principal, now doing Independent Secondary Research on Indian Equities

Pawan Sachdeva

Thematic (Sector/Industry)

In preparing this insight, I have tried to compare ACC (as an Indian Cement Sector Proxy) to Holcim and Anhui Conch. &nbsp;<div><ul><li>I discuss Long Term trends of cement pricing in India, environmental issues and relative cost structures.&nbsp; </li><li>I believe that this work might aid fund managers / analysts in deriving a better view on the cement sector.&nbsp; </li><li>Cement Company Managements can also use this as an analysis framework to benchmark their own performance.&nbsp; </li><li>Lastly, I also try to raise thoughts on whether 2015-2020 is like 2003-2008 for the Indian stock market.&nbsp;</li></ul><blockquote>My work examines publicly available data spanning 15 years, going back to 1999.&nbsp;</blockquote></div>

In preparing this insight, I have tried to compare ACC (as an Indian Cement Sector Proxy) to Holcim and Anhui Conch. &nbsp;I discuss Long Term trends of cement pricing in India, environmental issues and relative cost structures.&nbsp; I believe that this work might aid fund managers / analysts in deriving a better view on the cement sector.&nbsp; Cement Company Managements can also use this as an analysis framework to benchmark their own performance.&nbsp; Lastly, I also try to raise thoughts on whether 2015-2020 is like 2003-2008 for the Indian stock market.&nbsp;My work examines publicly available data spanning 15 years, going back to 1999.&nbsp;

ACC, Holcim & Anhui Conch: A Cross-Country Benchmarking Study of Cement Sector Leaders

China

Sinopec Shanghai Petrochemical Company Limited processes crude oil into a broad range of synthetic fibers, resins and plastics, intermediate petrochemical products and petroleum products.

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Sinopec Shanghai Petrochemical (338 HK)

CHINA MACRO: My thoughts on the RMB move. Will we see a large correction??

China’s RMB has just had its largest two-day loss since 2008, and has also fallen a record discount to the central bank’s reference rate (1.89%,...

David Millhouse

ACC, Holcim & Anhui Conch: A Cross-Country Benchmarking Study of Cement Sector Leaders

In preparing this insight, I have tried to compare ACC (as an Indian Cement Sector Proxy) to Holcim and Anhui Conch. I discuss Long Term trends...

Pawan Sachdeva

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)