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.

Chinese Airlines and Airports: March Traffic Showed Stark Differentiation

Chinese Airlines: Our Read Beyond the 1Q20 Headline Losses

Chinese Airlines: Encouraging Traffic And (More Importantly) Yield Uptick in May After a Solid Apr

China Southern Airlines (1055 HK): Most Benefited from Government Supportive Measures

Chinese Airlines: Pair Trade - Long China Southern (1055 HK), Short Air China (753 HK)

Shanghai International Airport (600009 CH): Best of the Breed

China Southern Airlines: No Right Way to Price Risk

Equity Bottom-Up

China Southern Airlines / Equity Bottom-Up

<p>We believe the FY19 results of <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> and <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> are supportive to our pair trade idea as laid out in <a href="https://www.smartkarma.com/insights/chinese-airlines-pair-trade-long-china-southern-1055-hk-short-air-china-753-hk" target="_blank" data-smartkarma-citation="insights:36640" rel="noopener">Chinese Airlines: Pair Trade - Long China Southern (1055 HK), Short Air China (753 HK)</a>. In our view, CSA has outperformed Air China in most operating and financial aspects in both 4Q19 and FY19.</p><p>The market should now refocus back to the gradual recovery in domestic traffic, as reflected by an increase in CSA's domestic flight schedule and improved forward demand indicated by booking. Share price performance for CSA has caught up with Air China starting the second half of March, and we think this trend should continue going forward.  </p>

We believe the FY19 results of China Southern Airlines (1055 HK) and Air China Ltd (H) (753 HK) are supportive to our pair trade idea as laid out in Chinese Airlines: Pair Trade - Long China Southern (1055 HK), Short Air China (753 HK). In our view, CSA has outperformed Air China in most operating and financial aspects in both 4Q19 and FY19.The market should now refocus back to the gradual recovery in domestic traffic, as reflected by an increase in CSA's domestic flight schedule and improved forward demand indicated by booking. Share price performance for CSA has caught up with Air China starting the second half of March, and we think this trend should continue going forward.  

China Southern Airlines (1055 HK): Better Fortunes than Air China (753 HK)