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

Chinese Airlines and Airports: March Traffic Showed Stark Differentiation

Chinese Airlines: Our Read Beyond the 1Q20 Headline Losses

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

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

China Southern Airlines: No Right Way to Price Risk

Equity Bottom-Up

China Southern Airlines / Equity Bottom-Up

<p>Yesterday, the Civil Aviation Administration of China announced 16 supportive measures for the aviation industry in China, covering both the financial and administrative areas. While all Chinese airlines will be benefited, we believe <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> will reap the most from these measures given its higher total landing expenses. CSA will also benefit the most from the drop in crude oil price, in our view.</p><p>We also see that CSA has gradually resumed its flights on key domestic routes in March, though the average fare is still posting limited improvement. Despite so, we take the increase in flights as an indication of a pick-up in passenger demand, which should bode well for CSA given its high share of domestic traffic.</p>

Yesterday, the Civil Aviation Administration of China announced 16 supportive measures for the aviation industry in China, covering both the financial and administrative areas. While all Chinese airlines will be benefited, we believe China Southern Airlines (1055 HK) will reap the most from these measures given its higher total landing expenses. CSA will also benefit the most from the drop in crude oil price, in our view.We also see that CSA has gradually resumed its flights on key domestic routes in March, though the average fare is still posting limited improvement. Despite so, we take the increase in flights as an indication of a pick-up in passenger demand, which should bode well for CSA given its high share of domestic traffic.

Shanghai International Airport (600009 CH)

Beijing Capital International Airport (BCIA) (694 HK)

Beijing Capital International Airport (BCIA)

Guangzhou Baiyun International Airport (600004 CH)

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