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 Intl Travel Service (601888 CH): Excellent Exposure to Hainan Free Trade Port Policies

Chinese Airlines and Airports: Ban on Flying US No Big Deal

Guangzhou Baiyun Intl Airport (600004 CH): A Strong Show in Last Month

Chinese Airlines Vs. Airports: Three Pair Trades Under Rmb Depreciation

Chinese Airlines: Our Read Beyond the 1Q20 Headline Losses

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

Shanghai International Airport (600009 CH): Solid Apr Freight Added to Aircraft Movement Recovery

Thematic (Sector/Industry)

China Airlines / Thematic (Sector/Industry)

The pace of recovery in the passenger traffic on Chinese airlines has ACCELERATED in May, reflecting very positive traffic performance MoM. Average daily passenger traffic has rose 49% MoM, and is way better than 14% MoM in Apr. On 29 May, total air passenger reached 974,500, almost crossed the 1m mark, and represented the least YoY drop (-41.3%) in a day since the COVID-19 outbreak. <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> has increased its scheduled flight on the top 5 domestic routes by 81% MoM to 87 on 1 Jun (only 48 on 1 May), the highest level since the outbreak. Moreover, average one way fare on these routes is up 17.3% MoM in May. All these numbers suggested solid recovery in the domestic traffic and these should pave the way for the Chinese airlines to officially report strong May figures in mid-Jun. In our view, the Chinese airlines are clear alternative plays on China consumption.

The pace of recovery in the passenger traffic on Chinese airlines has ACCELERATED in May, reflecting very positive traffic performance MoM. Average daily passenger traffic has rose 49% MoM, and is way better than 14% MoM in Apr. On 29 May, total air passenger reached 974,500, almost crossed the 1m mark, and represented the least YoY drop (-41.3%) in a day since the COVID-19 outbreak. China Southern Airlines (1055 HK) has increased its scheduled flight on the top 5 domestic routes by 81% MoM to 87 on 1 Jun (only 48 on 1 May), the highest level since the outbreak. Moreover, average one way fare on these routes is up 17.3% MoM in May. All these numbers suggested solid recovery in the domestic traffic and these should pave the way for the Chinese airlines to officially report strong May figures in mid-Jun. In our view, the Chinese airlines are clear alternative plays on China consumption. 

Shanghai International Airport (600009 CH)

Beijing Capital International Airport (BCIA) (694 HK)

Beijing Capital International Airport (BCIA)

Guangzhou Baiyun International Airport (600004 CH)

Chinese Airlines: ACCELERATED Recovery in May - Average Daily Traffic up 49% MoM