Daily Brief Financials: Kotak Mahindra Bank, Citigroup Inc, Freedom Acquisition I, Times China, Sino-Ocean Group and more

• Kotak Mahindra Bank (KMB IN) was added to the MSCI India Index at the November 2020 SAIR. However, a LIF of 0.5 was applied due to the low foreign room.
• The latest shareholding pattern as of end-March shows a foreign room higher than 25%. That should result in a removal of the LIF at the May QCIR.
• The increase in foreign room is a result of FPIs selling the stock despite the inclusion of Kotak Mahindra Bank (KMB IN) in a global index in March.

• Despite fears of a banking crisis, Citibank’s held-for-sale and trading securities are likely to be marked higher amid a favorable 3-month liquid bond and equity market environment.
• Citi’s ex-market debt portfolio is at risk of lower recoveries and heightened cyclical exposure.
• Citigroup Inc. (NYSE:C) is due to release its first-quarter earnings report before the market opens on Friday, April 14th.

• In the wake of soaring energy prices and heightened concerns over energy security following the Russia-Ukraine conflict, residential demand for solar power has skyrocketed.
• This surge in interest is further fueled by a combination of factors: the reduced cost of solar panels thanks to increased manufacturing scale and the Inflation Reduction Act that extends the 30% solar tax credit, making solar more accessible to a broader segment of society.
• Amidst this solar boom, Complete Solaria is gearing up to go public through a SPAC merger later this year.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• China Vanke
• Lenovo
• Sunny Optical
• Times China
• Yanlord Land

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Sino-Ocean’s ESG as “Weak”, in line with its “Weak” Governance score. That said, the company has an “Adequate” Environmental score and a “Strong” score for the Social pillar. Controversies are “Material”, but Disclosure is “Strong”.