In today’s briefing:
- Noah Holdings: A Solid Takeout Candidate as the Largest Independent Wealth Mgmt Provider in China
- JAPAN ACTIVISM: Silchester Target Shiga Bank Dings the Div Proposal Badly
- Shanghai/Shenzhen Northbound Connect: Weekly Moves (8 July 2022)
- Shanghai/Shenzhen Southbound Connect: Weekly Moves (8 July 2022)
Noah Holdings: A Solid Takeout Candidate as the Largest Independent Wealth Mgmt Provider in China
- In our view, Noah Holdings is a solid acquisition candidate as the largest independent wealth management services provider in China.
- The Chinese regulators made a change to the ETF market to overseas investors via Hong Kong called ETF Connect and this is likely to benefit companies such as Noah.
- As China’s financial markets become larger and more liberalized, there will be a premium on companies such as Noah Holdings with leading market share in China’s wealth management services.
JAPAN ACTIVISM: Silchester Target Shiga Bank Dings the Div Proposal Badly
- In April, Silchester went after Shiga Bank (8366 JP)(JAPAN ACTIVISM: Silchester Goes After Shiga Bank), with an open letter decrying destruction of shareholder value, asking for a special dividend.
- They said Shiga Bank had excess cross-holdings and perennially low ROE (it does). Silchester asked for a minimal special div as a signal. Shareholders dinged their request at the AGM.
- Shiga Bank had a decent runup in the last several months – far outstripping its peers. Now it is rich. Time to take the trade off.
Shanghai/Shenzhen Northbound Connect: Weekly Moves (8 July 2022)
- Inside is a recap of movements in the last week relating to the Hong Kong Stock Exchange -Shanghai and Shenzhen Northbound Connect facilities, broken down by company and industry.
- Overall, net inflow over the past week was ~US$1bn, split between Shanghai (-US$0.2bn) and Shenzhen (+US$1.0bn).
- The largest inflows were into Ganfeng Lithium (002460 SZ) and China Tourism Group (601888 CH). The largest outflows were in Wuxi Lead Intelligent (300450 CH) and Zijin Mining (601899 CH).
Shanghai/Shenzhen Southbound Connect: Weekly Moves (8 July 2022)
- Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry.
- Overall, the net inflow over the past week was ~US$1.3bn, split US$0.7bn for Shanghai and US$0.6bn for Shenzhen.
- The largest inflows were into Tencent (700 HK) and Li Auto (2015 HK). The largest outflow was in Meituan (3690 HK) and Great Wall Motor (2333 HK).
Before it’s here, it’s on Smartkarma
