Financial sector veteran, KT Capital Group

Fern Wang

Financial sector veteran

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Equity Bottom-Up

Destiny Tech100 Inc. operates as a closed-end management investment company. The Company invests in a portfolio of venture-backed private technology companies, as well a provides everyday investors access to private market institutional investors. Destiny Tech100 serves customers in the United States.

<ul>
<li>
Market Euphoria and Investment Challenges: Trump’s re-election has fueled excitement in the stock market, especially for Elon Musk-linked companies, but investing in SpaceX remains difficult due to its private status.  </li>
<li>
Proxy Stocks: Investors can access SpaceX indirectly through proxy stocks like Rocket Lab (RKLB) or funds such as Destiny Tech100 Inc. (DXYZ) and the ARK Venture Fund (ARKVX). </li>
<li>
Valuation Concerns on DXYZ: Despite DXYZ’s significant outperformance compared to other proxies, its rapidly expanded market cap/fair value multiple raises concerns about overvaluation and stock price sustainability.</li>
</ul>



Market Euphoria and Investment Challenges: Trump’s re-election has fueled excitement in the stock market, especially for Elon Musk-linked companies, but investing in SpaceX remains difficult due to its private status.  

Proxy Stocks: Investors can access SpaceX indirectly through proxy stocks like Rocket Lab (RKLB) or funds such as Destiny Tech100 Inc. (DXYZ) and the ARK Venture Fund (ARKVX). 

Valuation Concerns on DXYZ: Despite DXYZ’s significant outperformance compared to other proxies, its rapidly expanded market cap/fair value multiple raises concerns about overvaluation and stock price sustainability.


China Vanke Co., Ltd. is a property development company.  The Company develops residential properties in Shenzhen, Shanghai, Beijing, Tianjin, Shenyang, Nanjing, and other big cities in China.

<ul>
<li>China Vanke has caused jitters as it was reported to be closely watched by some insurers as it seeks to rollover some of its debt with insurers.</li>
<li>It is reported that it has sufficient funding to repay its bond due on March 11th and is lining up a HK$1.5 billion syndication loan. </li>
<li>Vanke warrants close monitoring as there is no sign of turning in its reducing contract sales, deteriorating cash position, shrinking financing ability. </li>
</ul>


China Vanke has caused jitters as it was reported to be closely watched by some insurers as it seeks to rollover some of its debt with insurers.
It is reported that it has sufficient funding to repay its bond due on March 11th and is lining up a HK$1.5 billion syndication loan. 
Vanke warrants close monitoring as there is no sign of turning in its reducing contract sales, deteriorating cash position, shrinking financing ability. 


China Vanke: Should Investors Be Worried?

Standard Chartered plc is an international banking group operating principally in Asia, Africa, and the Middle East.  The Company offers its products and services in the personal, consumer, corporate, institutional and treasury areas.

<ul>
<li>StandChart may need to take further impairment hit on China Bohai Bank</li>
<li>VIU model is used to justify the higher carrying value compared to fair value of the holdings.  There is zero headroom between the VIU model and the carrying amount.</li>
<li>We looked at VIU model assumptions for HSBC and StandChart. A declining NIM is likely put further pressure on the VIU model output for StandChart.  </li>
</ul>


StandChart may need to take further impairment hit on China Bohai Bank
VIU model is used to justify the higher carrying value compared to fair value of the holdings.  There is zero headroom between the VIU model and the carrying amount.
We looked at VIU model assumptions for HSBC and StandChart. A declining NIM is likely put further pressure on the VIU model output for StandChart.  


StandChart Is Likely to Have More China Bohai Impairment

China Evergrande Group is an integrated residential property developer. The Company, through its subsidiaries, operates in property development, investment, management, finance, internet, health, culture, and tourism markets.

<ul>
<li>Temporary implications of Evergrande's court ruling on property sector sentiment and other troubled property developers' restructuring plans</li>
<li>Evergrande's situation is more complicated than that of other troubled developers, as its founder is still under arrest and the company is unable to issue new debts.</li>
<li>Cross-Border bankruptcy cases for Chinese companies are still relatively rare, making the recognition and enforcement of Hong Kong bankruptcy judgments by the PRC court uncertain</li>
</ul>


Temporary implications of Evergrande's court ruling on property sector sentiment and other troubled property developers' restructuring plans
Evergrande's situation is more complicated than that of other troubled developers, as its founder is still under arrest and the company is unable to issue new debts.
Cross-Border bankruptcy cases for Chinese companies are still relatively rare, making the recognition and enforcement of Hong Kong bankruptcy judgments by the PRC court uncertain


Alibaba Group Holding  / Equity Bottom-Up

Alibaba Group Holding Limited provides online sales services. The Company provides internet infrastructure, electronic commerce, online financial, and internet content services through its subsidiaries. Alibaba Group Holding offers its products and services worldwide.

<ul>
<li>Investor confidence toward the Chinese tech sector remains fragile after the government crackdown, and Alibaba Group was particularly hard hit due to Jack Ma's previous conflicts with Chinese regulators.</li>
<li>Growth of its main eCommerce business is in question given the softening Chinese economy and intense competitions. Additionally, the growth of its cloud computing unit is also slowing down. </li>
<li>China's stock market stabilization fund is not likely to benefit Alibaba directly as it will be used to buy onshore stocks only. </li>
</ul>


Investor confidence toward the Chinese tech sector remains fragile after the government crackdown, and Alibaba Group was particularly hard hit due to Jack Ma's previous conflicts with Chinese regulators.
Growth of its main eCommerce business is in question given the softening Chinese economy and intense competitions. Additionally, the growth of its cloud computing unit is also slowing down. 
China's stock market stabilization fund is not likely to benefit Alibaba directly as it will be used to buy onshore stocks only. 


Alibaba's Share Prices Are Lacking Further Catalysts After Jack Ma and Joe Tsai's Stock Acquisition

Extensive experience in the financial market covering multiple sectors and products in Moody's, BoA, and Barclays, and a fintech company in China. Work experiences covered Hong Kong, Shanghai and New York.  Last position was a Director at S&P covering financial institutions.

Fern Wang
Financial sector veteran
• KT Capital Group

Destiny XYZ Is Destined to Crash

Investors excited about SpaceX's potential through proxy stocks like RKLB and DXYZ, but valuation concerns linger over DXYZ's market cap.

Fern Wang

China Vanke: Should Investors Be Worried?

China Vanke jitters as insurers raised concerns for the company. Vanke warrants close monitoring due to declining contract sales, cash position,...

Fern Wang

StandChart Is Likely to Have More China Bohai Impairment

StandChart is likely to take more impairment hit on China Bohai with continue NIM decline of the latter. We reviewed both of HSBC and StandChart's...

Fern Wang

Evergrande's Wind-Up Ruling Implications

Evergrande's wind-up ruling offers limited relief to investors. It will not, however, preclude other developers to reach a deal with their creditors.

Fern Wang

Destiny XYZ Is Destined to Crash

​Investors excited about SpaceX's potential through proxy stocks like RKLB and DXYZ, but valuation concerns linger over DXYZ's market cap.

Fern Wang

China Vanke: Should Investors Be Worried?

China Vanke jitters as insurers raised concerns for the company. Vanke warrants close monitoring due to declining contract sales, cash position,...

Fern Wang

StandChart Is Likely to Have More China Bohai Impairment

StandChart is likely to take more impairment hit on China Bohai with continue NIM decline of the latter. We reviewed both of HSBC and StandChart's...

Fern Wang

Evergrande's Wind-Up Ruling Implications

Evergrande's wind-up ruling offers limited relief to investors. It will not, however, preclude other developers to reach a deal with their creditors.

Fern Wang

Alibaba's Share Prices Are Lacking Further Catalysts After Jack Ma and Joe Tsai's Stock Acquisition

For Alibaba to unlock its value, China needs to provide clear and consistent support to its tech sector. At the same time, Alibaba also need to...

Fern Wang

Investors excited about SpaceX's potential through proxy stocks like RKLB and DXYZ, but valuation concerns linger over DXYZ's market cap.