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: How Has Foreign Investors' Position Changed and What Is the Outlook?

Investing into China's Growing Onshore Bond Market

China Onshore Credit: Update on the China Government Bond Market

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

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

Credit

iShares China CNY Bond UCITS ETF / Credit

iShares China CNY Bond UCITS ETF (CNYB NA)

<p>Amounting to Rmb17.8trn based on the outstanding value, China's policy bank bond represent a material portion of the country's onshore bond market as it accounted for a 16% share.  Over the last twenty years, their total outstanding value has leaped by 17.5x, or a CAGR of 15.7%. YTD, a total of Rmb4.4trn of policy bank bonds have been issued, only 10% less than government bonds.</p><p>We believe policy bank bond is an interesting alternative for government bond and expect more fund flow into this bond category in the future. Foreign investors currently own 4.6% of these bonds but their total holdings have surged a whopping 60% YTD. With comparable creditworthiness with that for China sovereign, on average, their 10-year bonds are yielding 64bps higher than government bonds since 2016, making it an attractive option for foreign investors.</p>

Amounting to Rmb17.8trn based on the outstanding value, China's policy bank bond represent a material portion of the country's onshore bond market as it accounted for a 16% share.  Over the last twenty years, their total outstanding value has leaped by 17.5x, or a CAGR of 15.7%. YTD, a total of Rmb4.4trn of policy bank bonds have been issued, only 10% less than government bonds.We believe policy bank bond is an interesting alternative for government bond and expect more fund flow into this bond category in the future. Foreign investors currently own 4.6% of these bonds but their total holdings have surged a whopping 60% YTD. With comparable creditworthiness with that for China sovereign, on average, their 10-year bonds are yielding 64bps higher than government bonds since 2016, making it an attractive option for foreign investors.

China Onshore Credit: Policy Bank Bond as an Interesting Alternative to Government Bond