Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

Thematic (Sector/Industry)

This time could be DIFFERENT!For years, investors have shorted Chinese property companies due to the excess capacity. Excess capacity is still there but combined with the sky-high level of indebtedness, the government initiative to cool the overheated property market, banks' over-reliant on Wealth Management Products sales to boost income could; they all could be the much-needed catalysts to re-start the hard-landing investment theme. Among others, property developer stocks and rural bank stocks are most vulnerable to the increase in interest rates as the former are highly indebted, yet provide high yielding corporate bonds that become an important component to the booming wealth management product (WMP) in China. Rural bank stocks have been pushing wealth management product aggressively to boost their income, neglecting the real risk of having increased and concentrated exposure to domestic corporate bond market which is susceptible to interest rate increase.

This time could be DIFFERENT!For years, investors have shorted Chinese property companies due to the excess capacity. Excess capacity is still there but combined with the sky-high level of indebtedness, the government initiative to cool the overheated property market, banks' over-reliant on Wealth Management Products sales to boost income could; they all could be the much-needed catalysts to re-start the hard-landing investment theme. Among others, property developer stocks and rural bank stocks are most vulnerable to the increase in interest rates as the former are highly indebted, yet provide high yielding corporate bonds that become an important component to the booming wealth management product (WMP) in China. Rural bank stocks have been pushing wealth management product aggressively to boost their income, neglecting the real risk of having increased and concentrated exposure to domestic corporate bond market which is susceptible to interest rate increase. 

High Leverage Property Developer and Rural Bank Stocks in China: Smells Like Trouble?

Founder, Supreme Peoples Court Monitor

Susan Finder

Founder

Supreme Peoples Court Monitor

<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

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’…

Bespoke Research on China and neighbouring regions, Bixmoor

Bixmoor

Bespoke Research on China and neighbouring regions

Bixmoor specialises in providing bespoke research to business, governments and the financial community on China and neighbouring regions. We seek to build long-term relationships with our clients, based on our expertise, our reliability and our determination to find the right solution.

One of America's most prestigious investment banks was fined hundreds of millions of dollars last year for bribing Chinese officials through its 'Sons and Daughters Program'. The silence since then from Chinese anti-corruption officials has been deafening.

One of America's most prestigious investment banks was fined hundreds of millions of dollars last year for bribing Chinese officials through its 'Sons and Daughters Program'. The silence since then from Chinese anti-corruption officials has been deafening.

Chinese Officials Turn a Blind Eye to Corruption

Public Relations and Social Media Manager, Dechert LLP

Peggy Heffner

Public Relations and Social Media Manager

Dechert is a global specialist law firm

Dechert LLP

Dechert is a global specialist law firm.
Focused on sectors with the greatest complexities, legal intricacies and highest regulatory demands, we excel in delivering practical commercial judgment and deep legal expertise for high-stakes matters.

Our work is widely recognized. We have 20 standout practices noted by Chambers Global, including global-wide rankings for arbitration, corporate investigations, anti-corruption, investment funds and life sciences. Named Antitrust Team of the Year, Chambers USA commends our “accomplished group” as “routinely sought after to handle some of the most significant litigation and transactions in the antitrust world.” 

In an increasingly challenging environment, clients look to us to serve them in ways that are faster, sharper and leaner without compromising excellence. We developed a first-of-its kind legal project management department, which uses technology, people and processes to drive efficiency and deliver value for our clients.

We are innovators. Dechert ranked #7 in the Financial Times’ Top North American Innovative Law Firms. Financial Times also recognizes us among the Top European Innovative Law Firms and highly commends World Compass, our marketing compliance service, which offers investment firms advice in more than 100 jurisdictions.

China has announced the launch of a new initiative that is likely to liberalize the process for foreign investors to invest in the China bond market. As the third largest bond market in the world, this could be a significant boost to international investors wanting access to the Mainland China debt market.<div class="content-highlight">On 15 March 2017, following the fifth annual meeting of the 12th National People' Congress, Premier Li Keqiang announced the intention to launch a bond trading link between China and Hong Kong…</div>

China has announced the launch of a new initiative that is likely to liberalize the process for foreign investors to invest in the China bond market. As the third largest bond market in the world, this could be a significant boost to international investors wanting access to the Mainland China debt market.On 15 March 2017, following the fifth annual meeting of the 12th National People' Congress, Premier Li Keqiang announced the intention to launch a bond trading link between China and Hong Kong…

China-Hong Kong Bond Connect on Its Way. A Legal Update from Dechert's Financial Services Group

China

China Minsheng Banking Corp., Ltd. operates in commercial banking businesses. The Bank provides deposit, loan, settlement, discount, financial bond issuance, government bond underwriting and trading, letter of credit, bank guarantee, and other related financial services.

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China Minsheng Banking A (600016 CH)

High Leverage Property Developer and Rural Bank Stocks in China: Smells Like Trouble?

This time could be DIFFERENT!For years, investors have shorted Chinese property companies due to the excess capacity. Excess capacity is still...

Henry Soediarko

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

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

Chinese Officials Turn a Blind Eye to Corruption

One of America's most prestigious investment banks was fined hundreds of millions of dollars last year for bribing Chinese officials through its...

Bixmoor

China-Hong Kong Bond Connect on Its Way. A Legal Update from Dechert's Financial Services Group

China has announced the launch of a new initiative that is likely to liberalize the process for foreign investors to invest in the China bond...

Dechert LLP

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52-week Range

Market Cap (USDm)

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Dividend (Yield)