In today’s briefing:
- Korea’s Short Selling Ban to Stay, Likely Until EquiLend-Korean Version Launch
- PICC’s (1339 HK)’s Implied Stub Plumbs New Lows As Interest Rate Cuts Bite
- Bajaj Finance: Q3FY24 Preview
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Korea’s Short Selling Ban to Stay, Likely Until EquiLend-Korean Version Launch
- Local market information indicates potential collaboration between KRX, FSS, and KSD to create a Korean EquiLend, aiming to centralize the stock lending channel.
- Unprecedented globally, President Yoon aims to centralize short selling. The challenge lies in mandating foreign investors to use Korea’s platform, necessitating a complex legal framework.
- Despite the difficulty, local authorities are compelled to pursue this initiative, raising the likelihood of a Korean EquiLend. Developing strategic plans in response is imperative.
PICC’s (1339 HK)’s Implied Stub Plumbs New Lows As Interest Rate Cuts Bite
- Back in October, I wrote in PICC’s (1339 HK) Lifetime Low Implied Stub that People’s Insurance (1339 HK) was trading at an all-time low implied stub. It’s widened further since.
- Over the past 12-months, excluding PICC’s 68.98% stake in PICC Property & Casualty (2328 HK), the market has assigned HK$42.6bn less for PICC’s steady and profitable life/health insurance stub ops.
- What gives? Falling interest rates is one. EV insurance in another. Yet this bifurcation is extreme.
Bajaj Finance: Q3FY24 Preview
- Bajaj Finance Ltd (“BAF”) reported key performance metrics for Q3FY24. It reported strong growth, particularly in AUM which grew 7%+ QoQ and 35% YoY to reach INR 311,000cr.
- Customer franchise grew 5%+ QoQ to reach 80.41mm, surpassing the 80mm mark. New loans booked grew to 9.86mm, a growth of 26% YoY and 15%+ QoQ.
- The liability book also did well with deposits growing at around 6% QoQ and 35% YoY to reach INR 58,000cr.