Deputy Chief Economist

Sharmila Whelan

Independent and original Asian investment research

Aletheia Capital

Aletheia Capital (HK) Ltd. (previously known as Asianomics) combines the extensive knowledge of its experienced team with technology and regulatory changes to disrupt Global Markets business in Asia. The firm is completely independent with no conflicts of interest either on Investment Banking advisory or Capital Markets execution.

Thematic (Sector/Industry)

Asia Pacific No.5 Ship Investment (082240 KS)

<p>We are underweight Korean equities this year and it would seem increasingly with good reason. Growth might have revived in 2Q19 but the underlying economic story is weakening. Exports continue to fall hard and fast. Manufacturing is in the doldrums. Companies already under pressure due to rising labour costs are losing export pricing power which is filtering through in a broader slowdown in corporate profitability. Household spending remains lacklustre despite numerous fiscal hand-outs.</p>

We are underweight Korean equities this year and it would seem increasingly with good reason. Growth might have revived in 2Q19 but the underlying economic story is weakening. Exports continue to fall hard and fast. Manufacturing is in the doldrums. Companies already under pressure due to rising labour costs are losing export pricing power which is filtering through in a broader slowdown in corporate profitability. Household spending remains lacklustre despite numerous fiscal hand-outs.

Amorepacific Corp (Preferred) (090435 KS)

Korea - Underweight