HK/China Equity Long-Short

Osbert Tang, CFA

Osbert Tang is an equity analyst with over 20 years of experience with focuses on China transport, infrastructure, industrials and utilities sectors. He has been based in Shanghai since 2003, accumulated nearly 20 years of on-ground knowledge on the Chinese economy and financial markets, and has a wealth of contacts with China corporates and government entities. 

Osbert has received votes from top-tier institutional investors and has been a highly-ranked transport and infrastructure analyst in the Asiamoney, Institutional Investors and Greenwich surveys. In addition to his extensive experience with international investment banks including RBS, ABN AMRO (both served as Shanghai Chief Representative), Paribas Asia Equity, Maybank Kim Eng and DBS Securities, he has been a senior analyst with Moody’s Investors Service with focus on ratings of China infrastructure and related LGFV issuers. He has also worked in the area of strategic development at Sun Hung Kai Properties Limited. 

Osbert holds a BBA from the Chinese University of Hong Kong, an MBA from the University of Texas at Austin and a MSSc in Applied Psychology from the City University of Hong Kong. He was accredited with the CFA charter in 1997, and is a member of both British Psychological Society and Hong Kong Psychological Society.

Travelsky (696): Recovery and Undervalued Vs Airlines

Samsonite (1910): Channel Checks Recovery

Chinese Airlines: China Southern (1055 HK) Seeing More Pressure than Air China (753 HK)

2021 High Conviction: Pair Trade - Long Air China (753 HK), Short China Southern (1055 HK)

2021 High Conviction Update: Chinese Airlines Pair Trade - Almost Getting to the Inflection Point

Air China (753 HK): Further Evidences of Improving Against China Southern (1055 HK)

Chinese Airlines: A Reversal of Relative Performance Between the Airlines Gets Closer

Equity Bottom-Up

<p>Apr is a good month for <a href="https://www.smartkarma.com/entities/air-china-ltd-h" target="_blank" data-smartkarma-citation="entities:8239:1" rel="noopener">Air China Ltd (H) (753 HK)</a> as it marks the first month since COVID-19 outbreak that its passenger growth outpaced that for <a href="https://www.smartkarma.com/entities/china-southern-airlines-co-ltd" target="_blank" data-smartkarma-citation="entities:1078:1" rel="noopener">China Southern Airlines (1055 HK)</a> - its growth rate is 10.5pp ahead of CSA. In addition, freight traffic growth is also higher, and we think this send out stronger signal for narrower gap between the two going forward.</p><p>Load factor performance in the month also pointed to a catch-up at Air China, which is a trend that we have been expecting. We believe the increase in vaccination rates, more border openings and resumption of direct international flights will be the major drivers for Air China - the resumption of operations of US Visa offices in China is a clear evidence for the gradual return to business as usual, in our view.</p>

Apr is a good month for Air China Ltd (H) (753 HK) as it marks the first month since COVID-19 outbreak that its passenger growth outpaced that for China Southern Airlines (1055 HK) - its growth rate is 10.5pp ahead of CSA. In addition, freight traffic growth is also higher, and we think this send out stronger signal for narrower gap between the two going forward.Load factor performance in the month also pointed to a catch-up at Air China, which is a trend that we have been expecting. We believe the increase in vaccination rates, more border openings and resumption of direct international flights will be the major drivers for Air China - the resumption of operations of US Visa offices in China is a clear evidence for the gradual return to business as usual, in our view.

Shanghai International Airport (600009 CH)

Beijing Capital International Airport (BCIA) (694 HK)

Beijing Capital International Airport (BCIA)

Guangzhou Baiyun International Airport (600004 CH)

Air China (753 HK): Sending Out Stronger Signals