Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

Equity Bottom-Up

China Merchants Bank H / Equity Bottom-Up

Some may be lulled by the stable non-performing loan (NPL) ratios of many China banks. This can be a mistake. Often, worsening credit quality reveals itself in other areas of banks’ financial statements, or their notes. It often pays to review these behemoth earnings releases or annual reports, from back to front. We showcase a couple of our findings from <a href="https://www.smartkarma.com/entities/10987" target="_blank" data-smartkarma-citation="entities:10987:1">China Merchants Bank (H) (3968 HK)</a>, which are not positive.CMB’s liquidity coverage ratio (LCR) plummeted. It fell from 115% at the end of…

Some may be lulled by the stable non-performing loan (NPL) ratios of many China banks. This can be a mistake. Often, worsening credit quality reveals itself in other areas of banks’ financial statements, or their notes. It often pays to review these behemoth earnings releases or annual reports, from back to front. We showcase a couple of our findings from China Merchants Bank (H) (3968 HK), which are not positive.CMB’s liquidity coverage ratio (LCR) plummeted. It fell from 115% at the end of…

China Merchants Bank - Failing Liquidity, Inflamed Overdue Loan Distribution

APAC Investment Strategy, Animal Spirits Report, Quiddity Advisors

Paul M. Kitney, PhD

APAC Investment Strategy, Animal Spirits Report

Quiddity Advisors

Pan-Asia Catalysts/Events

<ul><li>BOC And Chinese Banking Sector Notionally Attractive Valuations Might Be A "Value Trap" As We Are Sceptical Over NIMs,  NPLs, Loan Growth And Divergent Analyst Earnings Revisions</li><li>BOC Net Interest Margins Underperform A Chinese Banking Sector Facing Policy Pressure</li><li>Analysts Revise Up Earnings Despite Slower Loan Growth And NIM Pressure - Why??? </li><li>BOC And Sector Loans Books Suffer From Indigestion - The NPL Cycle Has Further To Run. This Provides Additional Risk To Asset Quality and Earnings</li><li>BOC Is Removed From "Top Picks" And Suggest "Underweight" Positioning In Chinese Banks</li></ul>

BOC And Chinese Banking Sector Notionally Attractive Valuations Might Be A "Value Trap" As We Are Sceptical Over NIMs,  NPLs, Loan Growth And Divergent Analyst Earnings RevisionsBOC Net Interest Margins Underperform A Chinese Banking Sector Facing Policy PressureAnalysts Revise Up Earnings Despite Slower Loan Growth And NIM Pressure - Why??? BOC And Sector Loans Books Suffer From Indigestion - The NPL Cycle Has Further To Run. This Provides Additional Risk To Asset Quality and EarningsBOC Is Removed From "Top Picks" And Suggest "Underweight" Positioning In Chinese Banks

ANIMAL SPIRITS: "You're Fired"- Underweight Chinese Banks & Bank of China (3988 H) Exits "Top Picks"

Founder, Supreme Peoples Court Monitor

Susan Finder

Founder

Supreme Peoples Court Monitor

Thematic (Sector/Industry)

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/024/749/original/Screen%20Shot%202017-04-21%20at%208.49.13%20PM.png?1492779009" class="editor-image img-responsive" data-smartkarma-image-id="24749"></figure><div class="content-caption">CBRC penalty decision</div>I recently wrote about penalties imposed by China's securities regulator, the China Securities Regulatory Commission (CSRC).  It has been widely reported by the business and legal press in greater China that China's bank regulator, the China Banking Regulatory Commission (CBRC) has launched a <a href="http://www.caixinglobal.com/2017-04-17/101079381.html" target="_blank">regulatory frenzy</a> and <a href="http://newscontent.cctv.com/NewJsp/news.jsp?fileId=403998" target="_blank">inspection campaign</a> to crack down on abuses in the banking sector.  The regulator revealed in an announcement on its <a href="http://www.cbrc.gov.cn/chinese/home/docView/4D9893F514B14E0894CA1B85335C7017.html" target="_blank">website</a> early April penalties that it had…

CBRC penalty decisionI recently wrote about penalties imposed by China's securities regulator, the China Securities Regulatory Commission (CSRC).  It has been widely reported by the business and legal press in greater China that China's bank regulator, the China Banking Regulatory Commission (CBRC) has launched a regulatory frenzy and inspection campaign to crack down on abuses in the banking sector.  The regulator revealed in an announcement on its website early April penalties that it had…

China's Bank Regulator Launches Regulatory Campaign

Shenji Group Kunming Mach Tool Co Ltd / ESG

China's securities regulatory authority, the China Securities Regulatory Commission (CSRC) <a href="http://www.csrc.gov.cn/pub/newsite/jcj/aqfb/201702/t20170227_312735.html" target="_blank">issued</a> a set of typical "inspection of illegality" cases in late February, part of its campaign against stock market "crocodiles" (explained <a href="http://www.scmp.com/news/china/economy/article/2074366/why-beijing-declaring-war-stock-market-crocodiles-now" target="_blank">here</a>). The Chinese authorities (Party, government, courts, prosecutors) have a long history in using "typical/model cases" to educate a certain audience, but (as I have <a href="https://cpianalysis.org/2014/04/07/using-model-cases-to-guide-the-chinese-courts/" target="_blank">written previously</a>) the audience and content of the instruction depends on the type of case. Model…

China's securities regulatory authority, the China Securities Regulatory Commission (CSRC) issued a set of typical "inspection of illegality" cases in late February, part of its campaign against stock market "crocodiles" (explained here). The Chinese authorities (Party, government, courts, prosecutors) have a long history in using "typical/model cases" to educate a certain audience, but (as I have written previously) the audience and content of the instruction depends on the type of case. Model…

China's Securities Regulatory Authority Issues "Typical Inspection of Illegality" Cases

Head of Research at Fusion Wealth Management Ltd

Michael McGaughy

In my research and investing I stress three things: people, structure, and value.  I look for companies that are controlled and managed by quality people, have corporate structures that align minority and majority shareholder interests and trade at valuations that are below fair value if not outright cheap. This note is actually not about any of that and instead just a quick one about bitcoin and how my initial skepticism may have been wrong.  I usually don’t write “macro” or ‘thought pieces’…

In my research and investing I stress three things: people, structure, and value.  I look for companies that are controlled and managed by quality people, have corporate structures that align minority and majority shareholder interests and trade at valuations that are below fair value if not outright cheap. This note is actually not about any of that and instead just a quick one about bitcoin and how my initial skepticism may have been wrong.  I usually don’t write “macro” or ‘thought pieces’…

China

China Merchants Bank Co., Ltd. operates as a commercial bank. The Company provides deposits, loans, wealth management, asset custody, finance leasing, investment banking, and other banking services. China Merchants Bank conducts businesses domestically and internationally.

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China Merchants Bank H (3968 HK)

China Merchants Bank - Failing Liquidity, Inflamed Overdue Loan Distribution

Some may be lulled by the stable non-performing loan (NPL) ratios of many China banks. This can be a mistake. Often, worsening credit quality...

Daniel Tabbush

ANIMAL SPIRITS: "You're Fired"- Underweight Chinese Banks & Bank of China (3988 H) Exits "Top Picks"

BOC And Chinese Banking Sector Notionally Attractive Valuations Might Be A "Value Trap" As We Are Sceptical Over NIMs, NPLs, Loan Growth And...

Paul M. Kitney, PhD

China's Bank Regulator Launches Regulatory Campaign

I recently wrote about penalties imposed by China's securities regulator, the China Securities Regulatory Commission (CSRC). It has been widely...

Susan Finder

China's Securities Regulatory Authority Issues "Typical Inspection of Illegality" Cases

China's securities regulatory authority, the China Securities Regulatory Commission (CSRC) issued a set of typical "inspection of illegality"...

Susan Finder

Bitcoin - The View From Lagos

In my research and investing I stress three things: people, structure, and value. I look for companies that are controlled and managed by quality...

Michael McGaughy

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