China and US Equity Analyst

Roger Xie

10 year investment experience on public and private equity. Deep-dive fundamental research. Specialize in China and US market.

RMB/ Huarong/ US-China/ Xi Jinping/ Xinjiang

The Asian ‘Euro’ (¥¥): Does It Already Exist?

Rates 10y Dashboard: Regional Correlations Within EM Break Down

Digital Currency: Still Remember Facebook Libra/Diem ?

China A-Share Strategy: Leading the Race for Digital Currency

China A-Share Strategy: Strong Fundamental Recovery and Decelerated Liquidity Growth

Thematic (Sector/Industry)

China Consumer finance / Thematic (Sector/Industry)

<ul>
<li>China digital Yuan has made a splash to expand its pioneer program to 10 cities since the initial launch in May 2020. So far, more than 750,000 early recipients have already spent digital Yuan and total transaction has exceed RMB 1 billion. China digital Yuan will likely form a disruptive payment system given its advantage over other app-based payments such as Alipay and WeChat. It is widely believed that China government will raise the amount of digital currency in the future and lower physical cash in circulation. </li>
<li>Compared with cryptocurrency, China digital Yuan has a couple of distinctions: 1) China Digital Currency/Electronic Payment (DC/EP) system will feature two-tier issuance, with the PBOC issuing digital currency for both commercial banks and customers; (2) controllable anonymity, with DC/EP wallets independent of bank accounts for smaller transactions; and (3) centralized processing instead of a distributed ledger.</li>
<li>Digital economy has accounted 36% in China and pandemic has accelerated its acceptance. The rising of China Digital Currency/Electronic Payment (DC/EP) system could be disruptive to financial system. We believe it will lead the changes in payment, risk control, user data and credit history etc. in financial system.  Not only tech giant such as <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a> and <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK), </a>but Chinese banks need to renovate their infrastructure for digital transformation. </li>
</ul>


China digital Yuan has made a splash to expand its pioneer program to 10 cities since the initial launch in May 2020. So far, more than 750,000 early recipients have already spent digital Yuan and total transaction has exceed RMB 1 billion. China digital Yuan will likely form a disruptive payment system given its advantage over other app-based payments such as Alipay and WeChat. It is widely believed that China government will raise the amount of digital currency in the future and lower physical cash in circulation. 
Compared with cryptocurrency, China digital Yuan has a couple of distinctions: 1) China Digital Currency/Electronic Payment (DC/EP) system will feature two-tier issuance, with the PBOC issuing digital currency for both commercial banks and customers; (2) controllable anonymity, with DC/EP wallets independent of bank accounts for smaller transactions; and (3) centralized processing instead of a distributed ledger.
Digital economy has accounted 36% in China and pandemic has accelerated its acceptance. The rising of China Digital Currency/Electronic Payment (DC/EP) system could be disruptive to financial system. We believe it will lead the changes in payment, risk control, user data and credit history etc. in financial system.  Not only tech giant such as Alibaba Group (BABA US) and Tencent Holdings (700 HK), but Chinese banks need to renovate their infrastructure for digital transformation. 


China Digital Currency: Leading the Innovation in Financial System