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

Shimao Property Holdings / Equity Bottom-Up

<ul>
<li>
Liquidity Crisis:Shimao’s ability to cover short-term liquidity needs are very real, as it does not have the wherewithal to bridge the short-term funding gap;  </li>
<li>
Other Nuggets From Auditor: PWC suggests material valuation concerns exacerbate fundamental risks; and</li>
<li>
Left Holding The Bag:We have very little confidence that HSBC Holdings Plc (5.HK) and Bank of Communications (3328.HK) have marked their Shimao financings as NPL. Watch your bank risk.</li>
</ul>



Liquidity Crisis:Shimao’s ability to cover short-term liquidity needs are very real, as it does not have the wherewithal to bridge the short-term funding gap;  

Other Nuggets From Auditor: PWC suggests material valuation concerns exacerbate fundamental risks; and

Left Holding The Bag:We have very little confidence that HSBC Holdings Plc (5.HK) and Bank of Communications (3328.HK) have marked their Shimao financings as NPL. Watch your bank risk.


Shimao Property Holdings – Here We Go Again

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

The Asia HY Trade Book for the month of December includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index.

  The Asia HY Trade Book for the month of December includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Book - December 2021 - Lucror Analytics

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>A connected party transaction and a pending management shake-up see <a href="https://www.smartkarma.com/entities/shimao-property-holdings-limited" target="_blank" data-smartkarma-citation="entities:8375:1" rel="noopener">Shimao Property Holdings (813 HK)</a> shares fall to a record low amid renewed liquidity concerns.  </li>
<li>Preceding my comments on Shimao, 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%.</li>
<li>The title of this insight is in reference to a heading in Shimao's 2021 interim report, "Diversified “Giant Aircraft” flown at full speed". </li>
</ul>


A connected party transaction and a pending management shake-up see Shimao Property Holdings (813 HK) shares fall to a record low amid renewed liquidity concerns.  
Preceding my comments on Shimao, 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%.
The title of this insight is in reference to a heading in Shimao's 2021 interim report, "Diversified “Giant Aircraft” flown at full speed". 


StubWorld: Shimao (813 HK) - Gear-Up Landing For "Giant Aircraft"

Event-Driven

<ul>
<li>Less than a week after <a href="https://www.smartkarma.com/entities/china-evergrande-group" target="_blank" data-smartkarma-citation="entities:479:1" rel="noopener">Evergrande (3333 HK)</a> and <a href="https://www.smartkarma.com/entities/kaisa-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:169:1" rel="noopener">Kaisa (1638 HK)</a> were officially declared defaulters,  <a href="https://www.smartkarma.com/entities/shimao-property-holdings-limited" target="_blank" data-smartkarma-citation="entities:8375:1" rel="noopener">Shimao Property (813 HK)</a>'s bonds and shares plunged, as did <a href="https://www.smartkarma.com/entities/shimao-services-holdings-limited" target="_blank" data-smartkarma-citation="entities:29199:1" rel="noopener">Shimao Services (873 HK)</a>'s shares. </li>
<li>
<a href="https://www.smartkarma.com/entities/sunac-services-holdings" target="_blank" data-smartkarma-citation="entities:29239:1" rel="noopener">Sunac Services (1516 HK)</a> is the second-worst worst performing property services play over the past week/month.  Separately, parent <a href="https://www.smartkarma.com/entities/sunac-china-holdings-ltd" target="_blank" data-smartkarma-citation="entities:240:1" rel="noopener">Sunac (1918 HK)</a> recently sold &gt;US$1bn of <a href="https://www.smartkarma.com/entities/xinjiang-beiken-energy-eng-a" target="_blank" data-smartkarma-citation="entities:29381:1" rel="noopener">Beiken Energy (002828 CH)</a> shares. </li>
<li>
<a href="https://www.smartkarma.com/entities/first-service-holding-ltd" target="_blank" data-smartkarma-citation="entities:34884:1" rel="noopener">First Service (2107 HK)</a>'s long stop date for the share transfer agreements expire at month-end. This may not be the ideal time to second-guess whether Sunac agrees to an extension. </li>
</ul>


Less than a week after Evergrande (3333 HK) and Kaisa (1638 HK) were officially declared defaulters,  Shimao Property (813 HK)'s bonds and shares plunged, as did Shimao Services (873 HK)'s shares. 

Sunac Services (1516 HK) is the second-worst worst performing property services play over the past week/month.  Separately, parent Sunac (1918 HK) recently sold &gt;US$1bn of Beiken Energy (002828 CH) shares. 

First Service (2107 HK)'s long stop date for the share transfer agreements expire at month-end. This may not be the ideal time to second-guess whether Sunac agrees to an extension. 


First Service (2107 HK): Too Hot To Handle

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight inflows into Meituan, China Power, Kuaishou and Evergrande. </li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight inflows into Meituan, China Power, Kuaishou and Evergrande. 


Hong Kong Connect Flows: Meituan, China Power, Kuaishou, Evergrande

China

China Evergrande Group is an integrated residential property developer. The Company, through its subsidiaries, operates in property development, investment, management, finance, internet, health, culture, and tourism markets.

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Evergrande (3333 HK)

Shimao Property Holdings – Here We Go Again

SHIMAO PROPERTY: Shimao, in our view, does not have the wherewithal to bridge the short-term funding gap. Further, the auditor suggests that...

Thomas J. Monaco

Asia HY Trade Book - December 2021 - Lucror Analytics

The Asia HY Trade Book for the month of December includes a summary of our recommendations, as well as our high-conviction ideas. The report also...

Lucror Analytics

StubWorld: Shimao (813 HK) - Gear-Up Landing For "Giant Aircraft"

The placement, the pledge, the connected party transaction, and a large parcel of shares moving into CCASS (most likely connected to the founder...

David Blennerhassett

First Service (2107 HK): Too Hot To Handle

I expect these share transfer agreements to be extended, if need be, and the spread to tighten once completed. But that outcome is by no means...

David Blennerhassett

Hong Kong Connect Flows: Meituan, China Power, Kuaishou, Evergrande

We highlight weekly HK Connect inflows into Meituan (3690 HK), China Power Intl (2380 HK), Kuaishou (1024 HK) and Evergrande (3333 HK).

Ke Yan, CFA, FRM

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