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.

Thoughts on Amazon –What Does Its Valuation Tells Us?

Netflix & Amazon Expand in Korea – Not a Coincidence

Okja: The Fight Between Netflix Vs. CJ CGV

Equity Bottom-Up

China Southern Airlines / Equity Bottom-Up

<p>We advocate a pair trade of long <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>, short <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> based on three thesis: 1.) Air China's high proportion of international traffic to lag behind domestic recovery; 2.) Higher unit cost at Air China is an added burden; and 3.) Air China's holding in <a href="https://www.smartkarma.com/entities/cathay-pacific-airways" target="_blank" data-smartkarma-citation="entities:243:1" rel="noopener">Cathay Pacific Airways (293 HK)</a> will be a drag on its rebound.</p><p>In terms of valuation, CSA's 0.78x P/B is 58% down from the peak of 1.86x in the last five years, which is more attractive than Air China's 0.95x, down just 47% from its five-year peak of 1.79x.</p>

We advocate a pair trade of long China Southern Airlines (1055 HK), short Air China Ltd (H) (753 HK) based on three thesis: 1.) Air China's high proportion of international traffic to lag behind domestic recovery; 2.) Higher unit cost at Air China is an added burden; and 3.) Air China's holding in Cathay Pacific Airways (293 HK) will be a drag on its rebound.In terms of valuation, CSA's 0.78x P/B is 58% down from the peak of 1.86x in the last five years, which is more attractive than Air China's 0.95x, down just 47% from its five-year peak of 1.79x.

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