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.

China Onshore Credit: Bravo! 2Q20 Default Figure Better than Expected

China Comm Const (1800 HK): Every Dog Has Its Day

China Infrastructure REITs: First Look on H-Share Toll Road Sector

China's Rmb25trn Infrastructure Spending: Bond Issuance, Infrastructure Machinery and Construction

China Construction Machinery: April Excavator Sales up 59.9%

China Real Estate: China Might Finally Be Getting Its Own REITs

Thematic (Sector/Industry)

China Machinery / Thematic (Sector/Industry)

<p>China's issuance of special purpose bonds (SPB) reached a record of Rmb2.4trn in 1H20, an overwhelming 73% YoY growth. At least 59% of the proceeds are to be invested in infrastructure and related sectors, with transport infrastructure being the largest category with a 26% share. In our view, such massive investment will support the earnings of the construction related companies in 2H20 when such funds filter through to the real economy in the form of end-product demand.</p><p>We expect the construction materials, infrastruture construction companies and construction machinery sectors to benefit from such investments. Many of these stocks have underperformed the market sharply YTD and are trading at depressed valuations of single-digit or even low single-digit levels. In our view, potential earnings upside will serve as a catalyst for a catch up in their share prices over the next six months. </p>

China's issuance of special purpose bonds (SPB) reached a record of Rmb2.4trn in 1H20, an overwhelming 73% YoY growth. At least 59% of the proceeds are to be invested in infrastructure and related sectors, with transport infrastructure being the largest category with a 26% share. In our view, such massive investment will support the earnings of the construction related companies in 2H20 when such funds filter through to the real economy in the form of end-product demand.We expect the construction materials, infrastruture construction companies and construction machinery sectors to benefit from such investments. Many of these stocks have underperformed the market sharply YTD and are trading at depressed valuations of single-digit or even low single-digit levels. In our view, potential earnings upside will serve as a catalyst for a catch up in their share prices over the next six months. 

China National Building Material (3323 HK)

China Railway Construction Corp (1186 HK)

China Communications Construction (1800 HK)

Metallurgical Corporation of China Ltd (1618 HK)

China Infrastructure: Record Special Purpose Bonds Issuance to Drive Construction Sectors in 2H20