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's Rmb25trn Infrastructure Spending: Bond Issuance, Infrastructure Machinery and Construction

Lonking (3339 HK): Wow! It Is Yielding 11.6%!!!

Lonking (3339 HK): A Cheap and Quality Pick for China's Infrastructure Spending

China Construction Machinery: Buy Zoomlion, Sell Sany Heavy

Zoomlion – Consensus Appears to Be Underestimating the Operating Leverage of This Late-Cycle Play

Equity Bottom-Up

<p>We believe the Chinese government will boost fixed asset investment (FAI) after the Wuhan coronavirus outbreak is contained. In our view, FAI is the best measure that the government can control for supporting economic recovery post the negative effect of the epidemic, based on historical pattern in the time after SARS was contained.</p><p>The Chinese construction machinery sector is best positioned to capture a potential escalation of infrastructure spending in 2H2020. We highlight <a href="https://www.smartkarma.com/entities/lonking-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3944:1" rel="noopener">Lonking Holdings (3339 HK)</a> as an excellent candidate due to its high dividend yield (12% for FY19), net cash position and minimal capex needs. Other candidates include <a href="https://www.smartkarma.com/entities/sany-heavy-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:20183:1" rel="noopener">Sany Heavy Industry Co., (600031 CH)</a> and <a href="https://www.smartkarma.com/entities/zoomlion-heavy-industry-s-a" target="_blank" data-smartkarma-citation="entities:425:1" rel="noopener">Zoomlion Heavy Industry S A (000157 CH)</a>. </p>

We believe the Chinese government will boost fixed asset investment (FAI) after the Wuhan coronavirus outbreak is contained. In our view, FAI is the best measure that the government can control for supporting economic recovery post the negative effect of the epidemic, based on historical pattern in the time after SARS was contained.The Chinese construction machinery sector is best positioned to capture a potential escalation of infrastructure spending in 2H2020. We highlight Lonking Holdings (3339 HK) as an excellent candidate due to its high dividend yield (12% for FY19), net cash position and minimal capex needs. Other candidates include Sany Heavy Industry Co., (600031 CH) and Zoomlion Heavy Industry S A (000157 CH). 

Lonking (3339 HK): Position for China's Post-Outbreak FAI Drive?