The past ten years can be labeled as the decade of the emerging markets. Based on MSCI World Equity Index, the stock market in emerging markets including China has outperformed that of USA and Japan by far. The best performer is Russian equity market, Continue (继续)
Archive for category Equity China (股市风云)
China Merchant Bank is the best performer in terms of absolute return and relative return to benchmark in the last 12 months, according to a latest study. The share price (H) of CMB has increased about 25% in the last 12 months, and up more than 10% Continue (继续)
China Property companies’ share valuation is at the lower end compared to historical records. Since 2003, China’s property stocks have been trading at a multiple between 9X and 60X. The multiple collapsed in end 2008/early 2009 to touch a low in the last 10 years, Continue (继续)
Does it Matter? (投资无差异)
Jun 5
A look back of the stock market in the last 2 years shows that if one invests some money in the US stock market, he would have got exactly the same return as if he had invested in the China’s stock market (Hang Seng Index). The chart shows that the two stock Continue (继续)
Andy Mantel is the Managing Director of Pacific Sun Investment Management Ltd. During an interview with Bloomberg, Andy reckons that there are still downside potential for China’s property and Banking sector. Continue (继续)
A comparison between China’s equity market and that of Saudi Arab’s shows more potential downside of China’s equity market. Saudi Arab’s equity market started to climb up around 2000 and continues to the top in 2008. During 2008 Saudi’s property bubble burst badly, Continue (继续)
What’s the secret of China’s economic growth in the last two decades? Such is a question that has bothered numerous economists. One of the answers seems to lie in the increase in productivity. Continue (继续)
China’s Property Sector of the stock market has been hit hard during Q1 of 2010. In 2009, MSCI property sector gained about 85%. During Q1 2010, Continue (继续)
A cross section analysis of China’s stock market shows that the Financial sector now is showing the lowest PE compared to the rest. Continue (继续)
Nouriel Roubini has a nickname of ‘Dr Doom’. Recently on the interview with Bloomerg, Dr Roubini opinions that there is significant risk of slowdown in China. Continue (继续)
China’s Equity market (H) went through a decent correction during the last week. This is the second consecutive week of a down market. From a recent high of 22,000 in the first half of April, Hang Seng has corrected almost 10% to 20,000 (See Graph on the top left). Continue (继续)
Above study intends to evaluate the impact of RMB appreciation on equity market in different parts of the world. The chart is the performance of equity market in local currency and USD during 6 months after the RMB appreciation in July 2005. Continue (继续)
The latest stats about China’s QDII (Qualified Domestic Institutional Investor) shows that most of the institutions are heavily exposed to equity market. The total AUM that QDII manages is about 73 billion RMB, with China AMC, Southern, Harvest and China International as the leading institution. Continue (继续)
Since the financial crisis, China’s Insurance companies have been valued at the highest level among the world peers, including Warren Buffet’s Berkshire Hathaway. Continue (继续)
China started to attract foreign interest and capital about 10 years ago. The recent financial crisis only widened the gap of attractiveness between China and Western World, and China continues to entice more and more attention, and money (See Article from Global Times). According to an interview with some foreign Brokerage firm and Fund manager, they inevitably see money making opportunities in the fast growing China. It seems that China is going to be flooded with money manager, institution and research analysts very soon as it is such a big spot so impossible to miss. Normally such situation leads to bubble and excessive competition.
中国快速的经济发展对海外基金和研究机构产生强大的吸引力，同时热钱也继续青睐中国市场。 Continue (继续)
China is the strongest growth machine among BRIC (Brazil, Russia, India and China). However, China’s equity price (Shanghai A Share) is valued lowest among four. B Continue (继续)
According to Mr Tony Tan, the deputy chairman of GIS Group, Asian Banks are seeing a ‘once in life’ opportunity to increase or even take over the dominant market share in international finance (See Article from FT). After the Finance Crisis, the world banking industry has gone through a bottom up change between the Western and Asian peers. Asian Banks, especially banks from China, top the list of world’s biggest banks (See graph from Chinatells). Only ten years ago, it was mainly American banks that top the world. Such a change implies a shift of power from West to East, and the world major financial markets are likely to see an increased influence from Asian banks than their Western peers.
根据新加坡政府投资公司副主席最近的发言，亚洲银行可能在未来成为主导世界金融体系的主要力量之一。 Continue (继续)
Hongkong Stock Exchange is the IPO Champion of 2009: bigger than NYSE. At the same time, however, Hongkong stock exchange is under serious threat from Shanghai and Shenzhen stock exchange. To walk out of the competition, HKSE is looking into expanding on an international horizon by attracting more foreign companies to get listed (See Article from Economist). Recently HKSE is working on a potential IPO deal for Rusal – A Russian mining company. The success of Rusal’s IPO is likely to be followed by six to seven other Russian companies to go to the HK bourse. In addition, several German companies have been floated in this year as well.
香港证券交易所高度警惕，时刻保持危机感。由于感觉到上海和深圳证券交易所对中国公司上市的竞争力， Continue (继续)
Shenzhen Development Bank is the most agressive and leveraged bank in China to promote their loans. According to the latest estimate, several other banks also rank high in terms of their loan/deposit ratio, such as MingSheng Bank, Continue (继续)
Based on historical records, Hang Seng Index has a median rally of about 3.7% in January. The highest monthly rally occured in July (4%+), while historically Mar, Aug and Sep are pretty bad months for Hang Seng. Continue (继续)
China’s Conglomerates listed on Hongkong Stock exchange had a great year fighting back in 2009. This is in sharp contrast to what happened to them in 2008. In 2008 on average, China’s conglomerates lost about 55% in share price. Continue (继续)
ChiNext is China’s Nasdaq with an aim to let high tech companies have access to capitals. So far 30+ companies have been successfully listed on ChiNext, and the domestic VCs and PEs value ChiNext as an important exit for their seed investment. With the growth of a capital market for high tech companies, Funds denominated in RMB also prosper with some advantages that USD Funds can not beat (See Article from Beijing Review). Some of these players are young and inexperienced, but their potential to grow can not be underestimated. Due to the imbalance between supply and demand, the 30+ stocks listed on ChiNext trade at 100+ PE, which is way over a fair value of around 30-50 PE perceived by institutional investors. On the other hand, such a market offers extremely high return to the VCs and PEs who have bet right on the lucky idols. Continue (继续)
China’s stock market could be still undervalued if compared to other emerging economies. This is mainly due to a high expectation of China’s GDP growth for 2010. It seems that there is a market consensus to believe that China could achieve 10% GDP growth in 2010. Continue (继续)
HSBC is planning a $5 Billion IPO on Shanghai Stock Exchange (See Article from Guadian). The bank claims that they don’t need additional capital for the moment. However, they see the floatation in China’s domestic stock market a great marketing exercise. HSBC already generated 40% of their revenue from China including Hong Kong, and this ratio is expected to surpass 50% within the next few years. Therefore HSBC has decided to relocate its CEO to Hong Kong (See Article from Chinatells). Obviously HSBC has shifted its focus of long term strategy from Europe/US to China. HSBC is already listed in Hong Kong, but seems that there is a big ambition from China government to develop Shanghai into a financial hub, firstly regional, and eventually global to rival New York and London. Continue (继续)
In which country can a noodle company’s stock be chased by en mass investors? China! Recently the big two noodle makers, Wang Want and Tingyi, started to list their depository receipts on Taiwan stock market, and the listing has been chased hard by Taiwanese investors (See Article from Times Online). Apparently Taiwanese investors are banking heavily on the stomach and pocket of Chinese consumers. Due to the fast economic development in the early 80s, Taiwan has become a relatively mature market for food processors. Therefore they fight hard to seek a life line abroad. China becomes the natural choice for leading Taiwan food manufacturers such as Tingyi and Want Want. It is estimated that the continual relaxation of capital flow between mainland and Taiwan will boost great confidence and energy into the Taiwan financial market. Continue (继续)
Are you a China Bull? (您对中国有信心么)
Is there a bubble in China property (中国房产有泡沫么)
Secret for China's Growth (中国经济增长原因探讨)
1421: the year China discovered the World
China's Environmental Crisis (中国的环境威胁)
China's Unfinished Revolution (未完成的革命)
The Chinese Century (中国世纪)
The State of China Atlas (中华新地图)
To live (活着)
Who will Feed China: Wake Up Call for a Small Planet (谁来养活中国)
Apr 10 (四月)
Aug 09 (八月)
Dec 09 (十二月)
Feb 10 (二月)
Jan 10 (一月)
July 09 (七月)
June 09 (六月)
March 10 (三月)
May 10 (五月)
Nov 09 (十一月)
Oct 09 (十月)
Sep 09 (九月)
Asia Hotel
Chinatells (主页)