Global Asset Allocation, Politics & Governance, Ecstrat

John-Paul Smith

Global Asset Allocation, Politics & Governance

Ecstrat

Ecstrat is a consultancy advising on asset allocation between global equity markets, with a focus on the intersection of governments, geopolitics, governance and markets.
 
Over the past few years and more especially since the Great Financial Crisis (GFC), investors have become more focused on short-term market movements and real-time returns and have consequently neglected the analysis of the underlying structural themes that underpin longer term performance.
​
More specifically we believe that the evolution of governance-based relationships between investors, controlling shareholders, labour and the state is one of the primary determinants of both relative and absolute performance between individual equity markets.
 
We will endeavour to provide investors with some of the context surrounding governance-related issues which encompass many different disciplines including history, economics and political science, as well as the financial metrics which are the most obvious manifestation of the structural characteristics of each market.
 
We will pay particular attention to the shifts and potential inflection points for governance in individual markets as these are often the best lead indicators for both economic and market performance.

Cross Asset Strategy

Our bearish outlook for 2016 predicated on the rising risk of a “sudden stop” for China and uncontrolled FX depreciation across EM is unfortunately starting to play out; although markets currently feel very oversold and could rally sharply over the short term, we believe that there is further downside for EM equities in absolute and relative terms over the remainder of the year.

Our bearish outlook for 2016 predicated on the rising risk of a “sudden stop” for China and uncontrolled FX depreciation across EM is unfortunately starting to play out; although markets currently feel very oversold and could rally sharply over the short term, we believe that there is further downside for EM equities in absolute and relative terms over the remainder of the year.

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Thematic (Sector/Industry)

We have earlier covered Xinyi Solar's <a href="http://www.smartkarma.com/insights/xinyi-solar-968-hk-rapid-growth-set-to-continue-take-the-deal" target="_blank">US$150m</a> and <a href="http://www.smartkarma.com/insights/xinyi-solar-968-hk-policy-support-remains-strong-momentum-likely-to-continue-take-the-deal" target="_blank">US$70m</a> placement for the development in solar farm and its Malaysia PV glass plant. Flat Glass, the key competitor of Xinyi, is said to be raising US$200m in an upcoming IPO. We think it is interesting to get the latest feel of the industry dynamics.We spoke to Xinyi Solar's management recently, to understand the the latest industry dynamics and how the company is positioned for the tailwind.In this insight, we cover the following topics:<ul><li>Recent promotional effort and policy changes by Chinese government</li><li>Industry players' reaction and observation</li><li>How Xinyi maintain its leadership in PV glass and diversifies into the downstream</li></ul>More fold below...

We have earlier covered Xinyi Solar's US$150m and US$70m placement for the development in solar farm and its Malaysia PV glass plant. Flat Glass, the key competitor of Xinyi, is said to be raising US$200m in an upcoming IPO. We think it is interesting to get the latest feel of the industry dynamics.We spoke to Xinyi Solar's management recently, to understand the the latest industry dynamics and how the company is positioned for the tailwind.In this insight, we cover the following topics:Recent promotional effort and policy changes by Chinese governmentIndustry players' reaction and observationHow Xinyi maintain its leadership in PV glass and diversifies into the downstreamMore fold below...

Xinyi Solar: post deal call with management. Where the industry and the company are heading?

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

David Millhouse

Head of China Research - Forsyth Barr Asia

Forsyth Barr Asia

There is a growing expectation that mergers involving huge state-owned conglomerates could be part of China's soon-to-be-announced reforms of state-owned enterprises, according to a report in today's Securities Daily. Li Jin, deputy head of the China Enterprise Reform and Development Society, said that state-dominated industries with problems of overcapacity, namely construction, electricity and rail would "face large scale mergers and restructuring". The article also notes that rumours of mergers in the construction, energy and telecommunications industry have been circling for a while now. The mergers could help reduce excessive competition between large SOEs, cut waste, encourage the formation of huge conglomerates that could better compete against large foreign firms and also assist in the internationalisation of the Chinese yuan. &nbsp;Below we look at what sectors and stocks could be effected.

There is a growing expectation that mergers involving huge state-owned conglomerates could be part of China's soon-to-be-announced reforms of state-owned enterprises, according to a report in today's Securities Daily. Li Jin, deputy head of the China Enterprise Reform and Development Society, said that state-dominated industries with problems of overcapacity, namely construction, electricity and rail would "face large scale mergers and restructuring". The article also notes that rumours of mergers in the construction, energy and telecommunications industry have been circling for a while now. The mergers could help reduce excessive competition between large SOEs, cut waste, encourage the formation of huge conglomerates that could better compete against large foreign firms and also assist in the internationalisation of the Chinese yuan. &nbsp;Below we look at what sectors and stocks could be effected.

CHINA SOE REFORM: Detailed plan due in the next 3 weeks. Potential implications  

China is proposing an overhaul of its foreign-investment rules, which some news sources are saying is "the biggest revamp of China’s rules governing foreign investment since Deng Xiaoping introduced elements of capitalism into the economy in the late 1970s." The draft looks to unify regulations overseeing foreign investment in China, scale back restrictions and begin regulating the variable interest entities (VIE) that are commonly used to circumvent foreign-ownership limits. The ministry said the rules should “promote foreign investment and normalize foreign investment management.” This represents a major step toward the formal regulation of the use of VIE structures in foreign investments in China, as well as simplifying rules for foreign companies looking to invest in China. Thoughts and implications of the changes below

 China is proposing an overhaul of its foreign-investment rules, which some news sources are saying is "the biggest revamp of China’s rules governing foreign investment since Deng Xiaoping introduced elements of capitalism into the economy in the late 1970s." The draft looks to unify regulations overseeing foreign investment in China, scale back restrictions and begin regulating the variable interest entities (VIE) that are commonly used to circumvent foreign-ownership limits. The ministry said the rules should “promote foreign investment and normalize foreign investment management.” This represents a major step toward the formal regulation of the use of VIE structures in foreign investments in China, as well as simplifying rules for foreign companies looking to invest in China. Thoughts and implications of the changes below

CHINA REFORM & ADRs:  Big overhaul of foreign investment rules in China. Thoughts and implications

China

Hangzhou Hikvision Digital Technology Co., Ltd develops, manufactures and sells video surveillance products.  The Company manufactures video and audio compression card, network hard disk video recorders, video servers, cameras, network storage, and other digital products.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Hangzhou Hikvision (002415 CH)

China and the EM Ugly Contest

Our bearish outlook for 2016 predicated on the rising risk of a “sudden stop” for China and uncontrolled FX depreciation across EM is unfortunately...

John-Paul Smith

Xinyi Solar: post deal call with management. Where the industry and the company are heading?

We have earlier covered Xinyi Solar's US$150m and US$70m placement for the development in solar farm and its Malaysia PV glass plant. Flat Glass,...

Ke Yan, CFA, FRM

CHINA SOE REFORM: Detailed plan due in the next 3 weeks. Potential implications

There is a growing expectation that mergers involving huge state-owned conglomerates could be part of China's soon-to-be-announced reforms of...

David Millhouse

CHINA REFORM & ADRs: Big overhaul of foreign investment rules in China. Thoughts and implications

China is proposing an overhaul of its foreign-investment rules, which some news sources are saying is "the biggest revamp of China’s rules...

David Millhouse

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)