Asian Fixed Income/Frontier Market Research

Bondcritic

Bondcritic, established in 2009, is designed to be an independent credit research voice that helps investors gain insights and unbiased analyses on Asian fixed income market. Our mission is to discover deep-value Asian high-yield and distressed bonds with a bottom-up approach, together with the help of our proprietary ESG (Environmental, Social Development, and Governance) model. At the same time, we focus on bringing investment cases of unrated and unloved issuers to the general public.

Who Is Kim Jong-Un's Ultimate Role Model? Kim Jong-Il or Xi Jinping?

Korea Stock Market Monthly Recap #24 (April 2018)

Kim Jong-Un Wants to Be the DPRK's Deng Xiaoping

China Economist

Kerry Liu

Macroeconomics

<p>We examine the issue of whether the Chinese economy will be better off under President Xi Jinping, who has recently been labeled by the market as the “Emperor of China” and regarded as arguably one of the most powerful persons in the world. In our view, the basic idea is that the whole Chinese economy can be regarded as a single corporation: China Inc. The objective of China Inc. as a firm and China as a country can be regarded as the same. We view China Inc. as a family-run firm founded and controlled by the founding families of modern China and their descendants, accordingly. Our findings are based on studies on family-run firms which can be directly applied to the case of China Inc. We believe family-run firms can outperform non-family-run firms. When a family member is a CEO, he/she is incentivized to deliver economic performance. That said, China Inc. under Emperor Xi, who is both the owner and manager of the China Inc., may not be that bad.  We note that China’s GDP grew 6.8% p.a. in 1Q, 2018, higher than government’s annual goal of 6.5%. Chinese economy again shows its resilience and outperformance.</p>

We examine the issue of whether the Chinese economy will be better off under President Xi Jinping, who has recently been labeled by the market as the “Emperor of China” and regarded as arguably one of the most powerful persons in the world. In our view, the basic idea is that the whole Chinese economy can be regarded as a single corporation: China Inc. The objective of China Inc. as a firm and China as a country can be regarded as the same. We view China Inc. as a family-run firm founded and controlled by the founding families of modern China and their descendants, accordingly. Our findings are based on studies on family-run firms which can be directly applied to the case of China Inc. We believe family-run firms can outperform non-family-run firms. When a family member is a CEO, he/she is incentivized to deliver economic performance. That said, China Inc. under Emperor Xi, who is both the owner and manager of the China Inc., may not be that bad.  We note that China’s GDP grew 6.8% p.a. in 1Q, 2018, higher than government’s annual goal of 6.5%. Chinese economy again shows its resilience and outperformance.

MSCI AC Asia ex Japan Index (MXASJ INDEX)

The Shining of Emperor Xi Jinping