HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Over 15 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

Beijing Tiantan Biological Products (600161CH)-A Good Defensive Investment Target but May Overvalued

Fu Shou Yuan (1448.HK) - 2022 Results Missed Expectations, but the Outlook Remains Positive

Reform in China's Medical Service Industry: SOE-Run Hospitals Usher in a Critical Turning Point

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Thematic (Sector/Industry)

Hong kong Capital goods / Thematic (Sector/Industry)

<ul>
<li>In most industries, SOEs have valuation discounts compared to non-SOEs, and the degree of PB discount is more obvious than P/E ratio. A prominent problem is the uneven valuation structure.</li>
<li>Valuation reflects expectations for future fundamentals. The improvement in SOE performance with limited valuation boost may be due to investors' consideration of growth potential, governance mechanisms, and information asymmetry.</li>
<li>With the further deepening of SOE reform and the formation of the concept of building a modern capital market with Chinese characteristics, it’s expected to see improvement in SOE’s valuation.</li>
</ul>


In most industries, SOEs have valuation discounts compared to non-SOEs, and the degree of PB discount is more obvious than P/E ratio. A prominent problem is the uneven valuation structure.
Valuation reflects expectations for future fundamentals. The improvement in SOE performance with limited valuation boost may be due to investors' consideration of growth potential, governance mechanisms, and information asymmetry.
With the further deepening of SOE reform and the formation of the concept of building a modern capital market with Chinese characteristics, it’s expected to see improvement in SOE’s valuation.


China SOEs - Waiting for Core Asset Valuation to Take Off