Partner

Patrick Eng

Sparkill & Co

Equity Bottom-Up

Yangzijiang Shipbuilding / Equity Bottom-Up

1. Why Is Beijing Allowing Defaults To Occur? Perhaps New Debt Narrative.
2. What is Yi Gang Of The PBOC Signaling To The Market? Perhaps A New Risk Paradigm Among     Debt Investors
3. How Does All This Benefit Yangzijiang?

1. Why Is Beijing Allowing Defaults To Occur? Perhaps New Debt Narrative.
2. What is Yi Gang Of The PBOC Signaling To The Market? Perhaps A New Risk Paradigm Among     Debt Investors
3. How Does All This Benefit Yangzijiang?

Yangzijiang–China’s Private Credit/Shadow Banker: Beijing New Risk Paradigm & Debt Default Tailwind

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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Yesterday, MSCI <a href="https://www.smartkarma.com/insights/The%20changes%20will%20be%20effective%20after%20the%20close%20of%20trading%20on%2030%20November." target="_blank" rel="noopener">announced</a> its November 2020 Semi-Annual Index Review.  As widely anticipated, <a href="https://www.smartkarma.com/entities/jardine-cycle-carriage-ltd" target="_blank" data-smartkarma-citation="entities:347:1" rel="noopener">Jardine Cycle &amp; Carriage (JCNC SP)</a> and <a href="https://www.smartkarma.com/entities/yangzijiang-shipbuilding-holdings-limited" target="_blank" data-smartkarma-citation="entities:660:1" rel="noopener">Yangzijiang Shipbuilding (YZJSGD SP)</a> are shown the exit, reducing the number of index constituents to 19. The changes will be effective after the close of trading on 30 November.
In <a href="https://skr.ma/N64Lw" target="_blank" rel="noopener">MSCI Singapore Index Rebalance Nov20: Shrinking Number of Constituents</a>, <a href="https://www.smartkarma.com/profiles/brian-freitas" target="_blank" data-smartkarma-citation="accounts:4091" rel="noopener">Brian Freitas</a> reckons 8.9 days of ADV to sell of JCNC from passive funds. JCNC is down ~3% today as I type, against +3% for ASII.
I see JCNC's discount to NAV at ~36% against a 12-month average of ~17%, having recently moved off its all-time low of ~38%.
As JCNC is all-but a proxy into Astra, this appears a straight-forward mean reversion play. 
</div>
More below the fold.


Yesterday, MSCI announced its November 2020 Semi-Annual Index Review.  As widely anticipated, Jardine Cycle &amp; Carriage (JCNC SP) and Yangzijiang Shipbuilding (YZJSGD SP) are shown the exit, reducing the number of index constituents to 19. The changes will be effective after the close of trading on 30 November.
In MSCI Singapore Index Rebalance Nov20: Shrinking Number of Constituents, Brian Freitas reckons 8.9 days of ADV to sell of JCNC from passive funds. JCNC is down ~3% today as I type, against +3% for ASII.
I see JCNC's discount to NAV at ~36% against a 12-month average of ~17%, having recently moved off its all-time low of ~38%.
As JCNC is all-but a proxy into Astra, this appears a straight-forward mean reversion play. 

More below the fold.

Jardine Cycle & Carriage: "Buy The Fact" On MSCI Deletion

What Is The Current State Of Shadow Banking (“SB”) In China?What Should We Pay For A Short Term Private Debt Business Earning High-Mid Teen Returns?Or What Should The Valuation Be If Yangzijiang IPOed Their Lending Business?This Is The 5th Chapter In Our Yangzijiang Series. Please Refer To Chapters 1-4 For The Rest Of The Story.

What Is The Current State Of Shadow Banking (“SB”) In China?What Should We Pay For A Short Term Private Debt Business Earning High-Mid Teen Returns?Or What Should The Valuation Be If Yangzijiang IPOed Their Lending Business?This Is The 5th Chapter In Our Yangzijiang Series. Please Refer To Chapters 1-4 For The Rest Of The Story.

Yangzijiang – 16 Billion Of Shadow Banking Loans – A Premier China “BDC / Private Lender”

Thematic (Sector/Industry)

<ol>
<li>When has China ever done “an about quick pivot” from their long term game?</li>
<li>What would it take for China critics to have empathy? And see the world through their lens?</li>
<li>What do China M&amp;A and private equity flows tell us?</li>
</ol>


When has China ever done “an about quick pivot” from their long term game?
What would it take for China critics to have empathy? And see the world through their lens?
What do China M&amp;A and private equity flows tell us?


Xi’s Answers To Trump - New PR Campaign – Dual Circulation: What Is It? – Nothing Really.

What happens when major events or actions are either overlooked or misunderstood? In today’s enlightening geo-political news coverage, one may not have time to contemplate or meditate on big transactions that can alter an industry which may lead to a transformation or secular change.  
For example, what happened when Softbank announced their $100Billion Vision Fund? They became the Whale in the venture capital world. The domino effect for many investors and valuations for many companies in their universe skyrocketed. But how many investors realized and profited from this unprecedented event. This phenomenon was quite unreal.  What if this phenomenon occurred in another industry?
Due to the COVID pandemic and various projections from experts, we believe many misunderstood a “Whale”  phenomenon that recently occurred in LNG vessels.
Furthermore, is it crazy to think that the future of infrastructure and industrial policies pulls forward?

What happens when major events or actions are either overlooked or misunderstood? In today’s enlightening geo-political news coverage, one may not have time to contemplate or meditate on big transactions that can alter an industry which may lead to a transformation or secular change.  
For example, what happened when Softbank announced their $100Billion Vision Fund? They became the Whale in the venture capital world. The domino effect for many investors and valuations for many companies in their universe skyrocketed. But how many investors realized and profited from this unprecedented event. This phenomenon was quite unreal.  What if this phenomenon occurred in another industry?
Due to the COVID pandemic and various projections from experts, we believe many misunderstood a “Whale”  phenomenon that recently occurred in LNG vessels.
Furthermore, is it crazy to think that the future of infrastructure and industrial policies pulls forward?

The “Softbank LNG Whale” – Big Game Changer For Yangzijiang Shipbuilding

Singapore

Yangzijiang Shipbuilding (Holdings) Limited builds a wide range of ships. The Company produces a wide range of commercial vessels, mini bulk carriers, multi-purpose cargo vessels, containerships, chemical tankers, offshore supply vessels, rescue and salvage vessels, and lifting vessels.

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Yangzijiang Shipbuilding (YZJSGD SP)

Yangzijiang–China’s Private Credit/Shadow Banker: Beijing New Risk Paradigm & Debt Default Tailwind

Yangzijiang, One of China's oldest & largest shadow bank financiers receiving industry developmental assistance from Beijing - In a crisis, shake...

Patrick Eng

Jardine Cycle & Carriage: "Buy The Fact" On MSCI Deletion

As Jardine Cycle & Carriage (JCNC SP) is all-but a proxy into Astra International (ASII IJ), this appears a straight-forward mean reversion play.

David Blennerhassett

Yangzijiang – 16 Billion Of Shadow Banking Loans – A Premier China “BDC / Private Lender”

Yangzijiang: A Veteran Shadow Bank Financier Capitalizing On China's SME Need For Capital - A True Private Debt Investor & Secured High Yield Investor

Patrick Eng

Xi’s Answers To Trump - New PR Campaign – Dual Circulation: What Is It? – Nothing Really.

When has China ever done “an about quick pivot” from their long term game? What would it take for China critics to have empathy? And see the world...

Patrick Eng

The “Softbank LNG Whale” – Big Game Changer For Yangzijiang Shipbuilding

What happens when major events or actions are either overlooked or misunderstood? In today’s enlightening geo-political news coverage, one may not...

Patrick Eng

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52-week Range

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