Independent Insight Provider

Stewart Paterson

Taurus Advisors LLP

Macroeconomics

<p> Over the past five years or so, since the RMB moved into over-valuation territory, there has been a consistent and inverse relationship between the RMB and US bond yields. RMB strength has been associated with rising US bond yields while RMB weakness has been associated with falling bond yields. The rationale should be apparent but as RMB weakness is associated with the potential for Chinese exporters to lower their USD prices (and incidentally reduce Asian corporate earnings outside of China)…</p>

 Over the past five years or so, since the RMB moved into over-valuation territory, there has been a consistent and inverse relationship between the RMB and US bond yields. RMB strength has been associated with rising US bond yields while RMB weakness has been associated with falling bond yields. The rationale should be apparent but as RMB weakness is associated with the potential for Chinese exporters to lower their USD prices (and incidentally reduce Asian corporate earnings outside of China)…

Money Matters: US Bond Yields & USD/RMB - A Paradigm Shift?

APAC IPOs & Placements

Zhen Zhou, Toh

Smartkarma

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

Research Reinvented

Equity Capital Markets

Shinhan Financial / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/208" target="_blank" data-smartkarma-citation="entities:208:1">POSCO (005490 KS)</a> will be raising US$160m by selling 4.36m shares of <a href="https://www.smartkarma.com/entities/6978" target="_blank" data-smartkarma-citation="entities:6978:1">Shinhan Financial Group Ltd (055550 KS)</a> in a secondary share placement. The deal amounts to 0.92% of Shinhan's total outstanding shares. This will be a clean up trade for POSCO.</p><p>The deal scores marginally positive on our framework due to its strong earnings momentum which partly offset by valuation. Korean bank stocks have performed well in the past few months due to the expected easing of bank regulation. Shinhan is expected to…</p>

POSCO (005490 KS) will be raising US$160m by selling 4.36m shares of Shinhan Financial Group Ltd (055550 KS) in a secondary share placement. The deal amounts to 0.92% of Shinhan's total outstanding shares. This will be a clean up trade for POSCO.The deal scores marginally positive on our framework due to its strong earnings momentum which partly offset by valuation. Korean bank stocks have performed well in the past few months due to the expected easing of bank regulation. Shinhan is expected to…

Shinhan Financial Placement - Industry Tailwinds and Strong Fundamentals

<p>Friday saw the release of the Monthly Chinese monetary aggregates. M2 rose 11.6% year-over-year. Although this is one the lowest percentage growth rates in the past 20 years, the money stock is now so huge that the incremental growth remains outsized relative to both GDP and (form an FX point of view ) the equivalent growth in the USA. </p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/016/341/original/China-M2-growth-YoY-Last-Price_chartbuilder.png?1479113085" class="editor-image img-responsive" data-smartkarma-image-id="16341"></figure><p>Over the past 12 months China's money stock has risen from RMB136tr to RMB152tr (USD22.3tr at current fx rates) a growth of RMB16tr (USD2.35tr) in an economy that…</p>

Friday saw the release of the Monthly Chinese monetary aggregates. M2 rose 11.6% year-over-year. Although this is one the lowest percentage growth rates in the past 20 years, the money stock is now so huge that the incremental growth remains outsized relative to both GDP and (form an FX point of view ) the equivalent growth in the USA. Over the past 12 months China's money stock has risen from RMB136tr to RMB152tr (USD22.3tr at current fx rates) a growth of RMB16tr (USD2.35tr) in an economy that…

Money Matters: Chinese Monetary Aggregates Point to Accelerating RMB Weakness.

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Event-Driven

<p>Following is the list of the successful bidders for Woori Bank.</p><table class="table table-striped"><tbody>
<tr>
<td>Successful Buyer</td>
<td>Stake</td>
</tr>
<tr>
<td>1. IMM Private Equity</td>
<td>6%</td>
</tr>
<tr>
<td>2. Korea Investment &amp; Securities</td>
<td>4%</td>
</tr>
<tr>
<td>3. Tong Yang Life Insurance</td>
<td>4%</td>
</tr>
<tr>
<td>4. Kiwoom Securities</td>
<td>4%</td>
</tr>
<tr>
<td>5. Hanwha Life Insurance</td>
<td>4%</td>
</tr>
<tr>
<td>6. Eugene Asset Management</td>
<td>4%</td>
</tr>
<tr>
<td>7. Mirae Asset Global Investments </td>
<td>3.7%</td>
</tr>
</tbody></table><p>Korea Deposit Insurance Corp. is currently Woori Bank's largest shareholder with a 51.1% stake. It will sell 29.7% of Woori Bank stake to these seven buyers, and it will try to sell the remaining 21.4% stake as soon…</p>

Following is the list of the successful bidders for Woori Bank.

Successful Buyer
Stake


1. IMM Private Equity
6%


2. Korea Investment &amp; Securities
4%


3. Tong Yang Life Insurance
4%


4. Kiwoom Securities
4%


5. Hanwha Life Insurance
4%


6. Eugene Asset Management
4%


7. Mirae Asset Global Investments 
3.7%

Korea Deposit Insurance Corp. is currently Woori Bank's largest shareholder with a 51.1% stake. It will sell 29.7% of Woori Bank stake to these seven buyers, and it will try to sell the remaining 21.4% stake as soon…

29.7% of Woori Bank Stake Finally Went to 7 Domestic Financial Firms - Implications

Asia focused research insights & advisory, Asia Advisors

Vinay Patel

Asia focused research insights & advisory

Asia Advisors

Asia Advisors is an independent financial advisory and research firm working closely with corporates and institutions to provide consulting solutions & research insights. We provide advisory services including capital solutions, business strategy and investment insights.
Firm is headed by Vinay Patel who has close to two decades of experience in research and business development at large, international investment banks such as HSBC and ICICI Securities. Led research efforts in areas of Macroeconomics, Asset Allocation & Investment Strategy for close to a decade in global & domestic research teams. As a business head in Singapore, advised top global investment management firms & Portfolio managers in Asia for India related investments.
Vinay was recently joined by Swapnil Manish, an investment banker and ex-ecommerce entrepreneur with more than 12 years of experience. Swapnil was the TMT banker at BNP Paribas and was part of several large M&A and ECM transactions (Bharti-Zain, Bharti Infratel IPO, Schneider-Zicom among several others). He's also had a stint as an ecommerce entrepreneur having launched & led Mumbai's first online grocery player.

Thematic (Sector/Industry)

<p>The Indian Government has taken a significant step in curbing the parallel economy by removing Rs500 and Rs1000 notes from circulation and plans to replace it with new notes. People having high-value notes will need to deposit it in a bank and exchange it for new notes until end December'16 ( and in the process, any large volume of cash deposits if undertaken will attract the tax authorities). High-value currency notes have always served as convenient storage points of undeclared and/or illegal…</p>

The Indian Government has taken a significant step in curbing the parallel economy by removing Rs500 and Rs1000 notes from circulation and plans to replace it with new notes. People having high-value notes will need to deposit it in a bank and exchange it for new notes until end December'16 ( and in the process, any large volume of cash deposits if undertaken will attract the tax authorities). High-value currency notes have always served as convenient storage points of undeclared and/or illegal…

Demonetisation in India: High-Value Currency De-Notified; Con.Discretionary to Slow; Rate Cut Likely

South Korea

Shinhan Financial Group Co., Ltd., a holding company, provides a full range of consumer and commercial banking-related financial services.  The company's main businesses include banking, securities brokerage, trust banking, and assets management to individuals, businesses, and other financial institutions.

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Shinhan Financial (055550 KS)

Money Matters: US Bond Yields & USD/RMB - A Paradigm Shift?

Over the past five years or so, since the RMB moved into over-valuation territory, there has been a consistent and inverse relationship between...

Stewart Paterson

Shinhan Financial Placement - Industry Tailwinds and Strong Fundamentals

POSCO (005490 KS) will be raising US$160m by selling 4.36m shares of Shinhan Financial Group Ltd (055550 KS) in a secondary share placement. The...

Zhen Zhou, Toh

Money Matters: Chinese Monetary Aggregates Point to Accelerating RMB Weakness.

Friday saw the release of the Monthly Chinese monetary aggregates. M2 rose 11.6% year-over-year. Although this is one the lowest percentage growth...

Stewart Paterson

29.7% of Woori Bank Stake Finally Went to 7 Domestic Financial Firms - Implications

Following is the list of the successful bidders for Woori Bank.Korea Deposit Insurance Corp. is currently Woori Bank's largest shareholder with a...

Sanghyun Park

Demonetisation in India: High-Value Currency De-Notified; Con.Discretionary to Slow; Rate Cut Likely

The Indian Government has taken a significant step in curbing the parallel economy by removing Rs500 and Rs1000 notes from circulation and plans to...

Asia Advisors

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