China Economic News

Wonder if any buddy can help spot the companies mentioned ? The only "equivalent" that comes to my mind are Sinopec(0386.HK), SGX listed ISDN, YJZ FH, with my very limited knowledge.

I think for dedicated/aspiring retail investors in the HK/China markets, it may be worthwhile to treat such articles as a test of how deep the investment(companies) knowledge as compared to professional fund managers.

https://www.businesstimes.com.sg/interna...er-10-cent
"...Growth stocks include promising, attractively priced deep-tech stocks that will power the new economy, such as a solar panel equipment maker, a cybersecurity firm, an industrial automation firm and a satellite mapping firm...  Deep-value stocks include telcos, financial leasing companies and an oil and gas company, all selling at a fraction of their underlying intrinsic values, and as low as three to five times ex-cash earnings... "

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In terms of financial optics, I think the big banks stocks can also be considered deep-value, but there could be pain to come in that sector .... 

https://www.thestandard.com.hk/section-n...s-of-banks
"China is embarking on its biggest consolidation in the banking industry by merging hundreds of rural lenders into regional behemoths amid growing signs of financial stress...."

Ping An Insurance - Branching into the Fintech areas

China Mobile- Under the CCP directive, China Mobile has entered the cloud business, they are now the no 3/4 and are uprooting tencent who no longer has a foothold in cloud. They should be the future no 2 or no 3 behind Huawei

(01-02-2024, 04:55 PM)dreamybear Wrote: Wonder if any buddy can help spot the companies mentioned ? The only "equivalent" that comes to my mind are Sinopec(0386.HK), SGX listed ISDN, YJZ FH, with my very limited knowledge.

I think for dedicated/aspiring retail investors in the HK/China markets, it may be worthwhile to treat such articles as a test of how deep the investment(companies) knowledge as compared to professional fund managers.

https://www.businesstimes.com.sg/interna...er-10-cent
"...Growth stocks include promising, attractively priced deep-tech stocks that will power the new economy, such as a solar panel equipment maker, a cybersecurity firm, an industrial automation firm and a satellite mapping firm...  Deep-value stocks include telcos, financial leasing companies and an oil and gas company, all selling at a fraction of their underlying intrinsic values, and as low as three to five times ex-cash earnings... "

--------------

In terms of financial optics, I think the big banks stocks can also be considered deep-value, but there could be pain to come in that sector .... 

https://www.thestandard.com.hk/section-n...s-of-banks
"China is embarking on its biggest consolidation in the banking industry by merging hundreds of rural lenders into regional behemoths amid growing signs of financial stress...."

One of the companies is mentioned at this link below. In this article, the fund manager also explains his investment thesis for shorting JD. https://www.aps.com.sg/qws/slot/u50175/1...%20Off.pdf

First time visiting APS website. Quite a number of reading materials providing good insights. The fund manager is negative on Chinese e-commerce companies, citing intensifying competition. Turns out he is right.

5-8 times range! APS requires a very wide margin of safety!

https://www.businesstimes.com.sg/interna...two-chinas


"First, labelling Internet stocks as tech stocks is arguably the biggest bluff of the past decade because there is nothing highly “technological” about them. Most of these businesses, be it e-commerce, food delivery, video games, car sharing, or fintech, have low entry barriers. Any aspirant with capital can start a new business within a year!"

"The golden period of 2014-2020, where the e-commerce sector took significant market share from the brick-and-mortar retailers, is arguably over. "

"Valuations must reset from growth-stock valuations to matured-stock valuations. A good number of these valuations ought not to exceed that of telco operators or the major banks, whose price-to-earnings multiples are in the 5-8 times range."

I am trading with DBS Vickers. It seems that the platform does not support trading of shares on China's stock exchanges.

Anyone has a way to trade China A-Shares?

(03-02-2024, 06:36 PM)Choon Wrote: I am trading with DBS Vickers. It seems that the platform does not support trading of shares on China's stock exchanges.

Anyone has a way to trade China A-Shares?

UOB KAY HIAN

https://masterleong.substack.com/p/shang...-landlords

A SCMP article: China itself is possible facing a real estate crisis across all its real estate segments. With declining rents now showing in logistics warehouses, retail spaces. Potential investors in China have to be aware of a potential real estate bubble similar to magnitude to the US's commercial real estate. It might not be a good time to invest in any Chinese focus REITs due to the potential valuation write down which causes leverage ratio to breach regulatory limits

The effects of China's deleveraging could be spreading

https://finance.yahoo.com/news/global-tr...00650.html

“Price discovery will improve throughout the year,” Carol Hodgson, head of real estate research for Europe at JPMorgan Asset Management, wrote last month. That’s in part due to “a pick-up in distressed assets coming to market,” she added.

Earlier this month, a luxury development in the heart of Mayfair, an upscale area in west London, collapsed into administration after defaulting on its loans. It’s majority owned by two Chinese investment firms, Citic Capital and Cindat, and the homes will continue to be marketed to potential buyers through the administrators.

Further east in the UK capital, a person with knowledge of the matter sees a housing project planned by distressed Chinese developer Country Garden Holdings Co. drawing bids of less than £100 million. The subsidiary took an impairment charge of £10.3 million in 2022, according to a December filing. A unit of Shanghai-based real estate firm Greenland Holdings Corp., meanwhile, extended a loan for a skyscraper project in east London that technically defaulted last year, a filing shows.

There’s a CCP organization in China’s largest bubble tea chain Mixue Ice Cream & Tea (or Mixue Bingcheng; 蜜雪冰城)… Mixue is also operating in various countries especially in Asia
https://twitter.com/Byron_Wan/status/178...5021447652

In general, policy moves are responsive and have long tails. So when "sweeping measures" appear - it is indicative of how bad things are. But it is also indicative of the market turning. But as usual, Mr Market is more than able to "predict" all these policy moves ahead of time and priced itself accordingly.

China unveils sweeping measures to rescue property market

The People’s Bank of China effectively scrapped the nationwide minimum mortgage interest rate, while cutting the minimum down-payment ratio for first time buyers to 15 per cent and 25 per cent for second homes, according to a statement on Friday (May 17). The previous ratios stood at 20 per cent and 30 per cent respectively.

Beijing also said local governments should acquire, at reasonable prices, commercial homes and turn them into affordable housing, according to state-run Xinhua News Agency, citing Chinese Vice Premier He Lifeng.

“The property sector is related to the interest of the masses and the big issue of economic development,” He said. It’s necessary to ensure “the responsibilities of local government, developers and financial institutions.”

https://www.businesstimes.com.sg/interna...rty-market