All Fintech China Property Financial Sector Other Coverage Weekly Global Tech Biweekly Vol.33 Oct 19, 2020 NVIDIA – computing for the age of AI Global Fintech Biweekly Vol.19 Oct 05, 2020 Ant Group vs. JD Digits: Different strategies At the Forefront of China Property Sep 29, 2020 A Solid Macro Economy Recovery Global Tech Biweekly Vol.32 Sep 25, 2020 IaaS – product competitiveness of major vendors (3662.HK) Aoyuan Healthy Life Group Sep 22, 2020 Dual Engine To Propel Long Term Growth Global Tech Biweekly Vol.31 Sep 11, 2020 SaaS – outperformed in the downturn (BLCT.US) BlueCity Sep 10, 2020 Initiation report: Leading online LGBTQ community growing with the true demands of loyal customers (302.HK) CMGE Aug 31, 2020 More top hits scheduled to launch in 2H with a big room for valuation expansion, PT to HK$5.0 (1810.HK) Xiaomi Aug 31, 2020 Valuation expansion boosted by strong LT growth potential and index inclusion catalyst, raise PT to HK$30.5 (9983.HK) Central China New Life Limited Aug 31, 2020 Geographical Focus to Drive Outperformance Global Tech Biweekly Vol.30 Aug 28, 2020 Cloud computing (IaaS) – growth and scale Global Fintech Biweekly Vol.18 Aug 28, 2020 Global payment giants 2Q20 results: the pandemic accelerates payment digitalization (1996.HK) Redsun Properties Group Limited Aug 28, 2020 A Year of Harvest, Maintain Buy (832.HK) Central China Real Estate Limited Aug 27, 2020 Solid 1H20 Results, Earnings Growth On Track (1810.HK) Xiaomi Aug 27, 2020 Q2 2020 Results Review (0095.HK) LVGEM (China) Real Estate Investment Company Limited Aug 26, 2020 Asset Injection Propels Stock to New Heights, Upgrade to Buy (0095.HK) LVGEM (China) Real Estate Investment Company Limited Aug 24, 2020 All Eyes On Baishizhou 2H20 Potential Asset Injection (268.HK) Kingdee Aug 21, 2020 1H20 Report (1238.HK) Powerlong Real Estate Holdings Limited Aug 20, 2020 Strong 1H20 results sets the stage for a share price rally, Reiterate Buy (2013.HK) Weimob Aug 18, 2020 Solid execution amidst headwinds, expect further upside from econ recovery, raising PT to HK$13.7 (DUO.US) Fangdd Network Group Aug 18, 2020 A Mispriced SaaS company with Valuation Re-rating Potential (3662.HK) Aoyuan Healthy Life Group Aug 18, 2020 Post-Acquisition Integration to be 2H20 Key Catalyst (3883.HK) China Aoyuan Group Aug 18, 2020 Solid 1H20 Results Despite Unprecedented Challenges Global Tech Biweekly Vol.29 Aug 14, 2020 Global smartphone – recovery could be delayed to late 3Q (9983.HK) Central China New Life Limited Aug 03, 2020 Blossoming on Deep Roots in Henan Province Global Tech Biweekly Vol.28 Jul 31, 2020 6G networks - Expected to achieve commercialization by 2030 At the Forefront of China Property Jul 20, 2020 1H20 Results Preview: Size Matters? Global Tech Biweekly Vol.27 Jul 17, 2020 5G standards – Release 16 (R16) frozen (832.HK) Central China Real Estate Limited Jul 16, 2020 Greentown Listing Paves Way to Unlock Asset-Light Value (35.HK) Far East Consortium Jul 3, 2020 Riding through the Storm, Property Sales offer the Silver Lining Global Tech Biweekly Vol.26 Jul 3, 2020 Apple – continues to sharpen the strength of ecosystem At the Forefront of China Property Jun 23, 2020 Developers Recapitalising Balance Sheets ahead of Interim Results Global Tech Biweekly Vol.25 Jun 22, 2020 China’s smartphone shipment – 5G is becoming the major driver (230.HK) Minmetals Land Limited Jun 5, 2020 An Important Milestone that Transforms Sales Growth Outlook Global Tech Biweekly Vol.24 Jun 5, 2020 Cloud computing (IaaS) – growth, scale, and capex (268.HK) Kingdee May 25, 2020 Rome was not built in a day, but enhanced cash flow heralds a reborn Global Tech Biweekly Vol.23 May 22, 2020 Global smartphone shipment dropped in Q1, but not worse than expected Global Fintech Biweekly Vol.17 May 22, 2020 The Re-rating of Fintech Infrastructure (1810.HK) Xiaomi May 21, 2020 1Q20: 5G and premium strategy started to pay off for smartphone amid the COVID-19 uncertainty (302.HK) CMGE May 6, 2020 High-growth mobile game operator moving upstream to fully tap its IP potential Global Tech Biweekly Vol.22 May 6, 2020 Smartphone – lens sets growth driven by multi-camera adoption China Property May 5, 2020 A Bumpy Ride Ahead, Take Shelter under Dividend Yield (1810.HK) Xiaomi Corporation Apr 2, 2020 Diversification played in macro headwinds, expect smartphone sales bounce back in 2H (0832.HK) Central China Real Estate Limited Apr 2, 2020 Reaping in the Harvest and More is to Come Global Tech Biweekly Vol.21 Apr 2, 2020 China telecom capex cycle – 5G-related investment is picking up (6111.HK) Dafa Properties Group Limited Apr 1, 2020 Project launches in 2Q20 Holds the Key to Full Year Growth Outlook (0095.HK) LVGEM (China) Real Estate Investment Company Limited Mar 31, 2020 Solid Execution on Highly Profitable Urban Redevelopment Land Bank (1996.HK) Redsun Properties Group Limited Mar 27, 2020 Solid Balance Sheet, Stable Growth, Inexpensive Valuations (3662.HK) Aoyuan Healthy Life Group Mar 27, 2020 Profitability Over Scale, Growth Quality Underappreciated (3883.HK) China Aoyuan Group Mar 25, 2020 Execution Strength Shines Through in Times of Adversity Global Tech Biweekly Vol.20 Mar 25, 2020 Smartphone – weaker demand becomes a new concern after supply chain disruption Global FinTech Biweekly Vol.16 Mar 25, 2020 FinTech ambitions of global smartphone giants (2013.HK) Weimob Mar 24, 2020 Solid FY19 results back on healthy operating metrics, softer outlook on FY20, Maintain buy (1238.HK) Powerlong Real Estate Holdings Limited Mar 17, 2020 Growth Trajectory Intact, Reiterate Buy (1810.HK) Xiaomi FY19 earnings preview Mar 10, 2020 Expect solid FY19 results based on smartphone GM recovery and healthy IoT growth Initiate Weimob (2013.HK) with a BUY rating (PT HK$6.2) Mar 10, 2020 A long-term growth story – frontrunner of SMB SaaS vendors chasing new digitalization growth Global Tech Biweekly Vol.19 Mar 6, 2020 5G smartphone growth – powered by chipmaker (35.HK) Far East Consortium International Limited Mar 4, 2020 The Chase for Yield Accelerates, Positive for Overseas Property Sales (17.HK) New World Development Mar 3, 2020 Solid Foundations to Ride out Near Term Challenges Global FinTech Biweekly Vol.15 Feb 26, 2020 Global FinTech Industry at an Inflection Point Global Tech Biweekly Vol.18 Feb 21, 2020 Cloud computing (IaaS) – growth vs scale Global Tech Biweekly Vol.17 Feb 7, 2020 YoYGlobal smartphone shipment – uncertainties at the early stage of a new cycle China Property Feb 7, 2020 Virus Outbreak Tightens Cash Flow, but End-User Demand will remain Intact Global FinTech Weekly Vol.14 Jan 21, 2020 VISA acquires open banking startup Plaid for US$ 5.3bn Global Tech Biweekly Vol.16 Jan 21, 2020 CES – Global stage for innovation 1911.HK China Renaissance Jan 8, 2020 2019 results preview: Growth despite a challenging environment Global Tech Biweekly Vol.15 Jan 8, 2020 Adobe – Strong Q4 results 6111.HK Dafa Properties Group Limited Jan 8, 2020 Rapidly Rising Through the Ranks, beating Market expectations 3662.HK Aoyuan Healthy Life Group Dec 17, 2019 A Major Step in Building a Healthcare and Beauty Business Empire 1931.HK IVD Medical | Initiation of Coverage Dec 17, 2019 A leading IVD product distributor in China Global Tech Biweekly Vol.14 Dec 13, 2019 AWS – re:Invent 2019 key takeaways Global FinTech Weekly Vol.13 Dec 13, 2019 US Neobank Chime quadruples valuation in 9 months (1810.HK) Xiaomi Corporation | Company Update Dec 12, 2019 Redmi K30 5G – the game changer of 5G smartphone competition (1810.HK) Xiaomi Corporation | 3Q19 Earnings Review Dec 3, 2019 Proactive defense strategy with margin expansion; 5G a big driver in 2020 0035.HK Far East Consortium Dec 03, 2019 Hospitality Trust spin-off will drive Share Price Re-rating, Reiterate Buy Global Tech Biweekly Vol.13 Nov 29, 2019 We believe the rapid growth of IoT market is expected to be driven by 5G deployment, which will further improve the performance of IoT device and expand its applications. Global FinTech Weekly Vol.12 Nov 27, 2019 PayPal to acquire shopping and rewards platform Honey for US$ 4bn and this would mark PayPal’s largest acquisition ever. PayPal’s press release explains this move as “to reach consumers at the beginning of their shopping journeys”. Global Tech Biweekly Vol.12 Nov 18, 2019 According to IDC, worldwide smartphone shipment was 358.3mn units in 3Q19, up 0.8% YoY after 7 consecutive quarters of decline. Despite the meager growth in this quarter, we still saw a clear recovery trend and believe global smartphone has been back on growth track again as a new round of smartphone replacement is coming soon. 0832.HK Central China Real Estate Limited Nov 12, 2019 All Set to be the next Shining Star in the Sector, Initiate with Buy Special Focus: Victoria Dockside Nov 5, 2019 A Key Milestone that marks The Dawn of a New World Global Tech Biweekly Vol.11 Nov 1, 2019 In this issue, we will look into Kingdee’s cloud transition, which performs differently in different market segments, as a result benefits of cloud transition have yet fully come. 0095.HK LVGEM (China) Real Estate Investment Company Limited Oct 30, 2019 Crown Jewel acquired at a minimal cost, a Positive Surprise Global FinTech Weekly Vol.11 Oct 25, 2019 WeChat quietly launched a new function “Bank Deposit” in its main portal. What’s unusual about this function is that for the first time, Wechat connects users to a bank’s deposit product, and it starts with one of the largest SOE banks in the country. Global Tech Biweekly Vol.10 Oct 18, 2019 In this issue, we will look into Yonyou’s cloud business development. 1238.HK Powerlong Real Estate Holdings Limited Oct 16, 2019 Recapitalised Balance Sheet for Value Accretive Opportunities China Online Advertising Chartbook 2Q19 Oct 10, 2019 Meituan, Pinduoduo , and Qutoutiao continued to outperform Global FinTech Weekly Vol.10 Oct 10, 2019 While majority of FinTech activities target consumer market, SME FinTech may become the next wave of focus. Lack of historical data, high servicing costs and difficulty in underwriting and pricing and high failure rates are the key reasons that traditional financial institutions are unable to serve SMEs. China Property Oct 8, 2019 Time to ditch Stock Picking methodology based on Tier-1, 2, 3 exposure Global Tech Biweekly Vol.9 Oct 4, 2019 In this issue, we will discuss the changes that cloud transition brought to traditional software company from a financial and valuation perspective. Global FinTech Weekly Vol.9 Sep 27, 2019 From Tech to Fin vs from Fin to Tech; the line between Tech and Financials is blurred Global Tech Biweekly Vol.8 Sep 19, 2019 In this issue, we will discuss the main characteristics of cloud native SaaS companies. Global FinTech Weekly Sep 13, 2019 HKEx invests in a multi-party computation (MPC) startup founded by Professor Andrew Chi-Chih Yao, the guru of MPC technology Global Tech Biweekly Vol.7 Sep 5, 2019 In this issue, we will discuss the relationship between revenue growth and the corresponding Capex of major cloud (IaaS) vendors and how they build their product competitiveness. Global Tech Biweekly Vol.6 Aug 22, 2019 Smartphone (shipment forecast, product strategy, 5G implication, and CCM) Global FinTech Weekly Aug 22, 2019 Digital RMB ready for launch? On Aug 10, at the China Financial 40 Forum(CF40), Mu Changchun, Deputy Director of the People's Bank of China's (PBOC) Payment Department, confirmed the potential launch of digital Rmb, which has been studied for five years. Global Tech Biweekly Vol.5 Aug 8, 2019 Cloud computing Global FinTech Weekly Aug 8, 2019 Highlight of the week –Time to modernize China Rmb 40trn personal wealth management market: According to CBRC, the outstanding wealth management products (WMPs) reached RMB32trn at YE18. We estimate the personal wealth management market size to be at about RMB40-50trn, which is currently scattered in bank WMPs, mutual funds, insurance, trusts, P2P, etc. China Aoyuan Property - Consensus Earnings Upgrades to Drive Share Price Higher August 2, 2019 We expect consensus to continue to revise their earnings upwards and eventually the share price will reflect the earnings growth potential Global Tech Biweekly Vol.4 Jul 25, 2019 According to Gartner (April 2019), the worldwide public cloud services market size was US$182.4bn in 2018 and projected to grow by 17.5% YoY to US$214.3bn in 2019. In terms of service type, SaaS market accounted for the largest proportion while smaller IaaS market was quite concentrated. In 2018, three big giants, Amazon (AWS), Microsoft (Azure), and Alibaba accounted for 47.8%, 15.5%, and 7.7% of the global IaaS market share, respectively. Global FinTech Weekly July 25, 2019 Highlight of the week – Facebook’s Libra in dilemma: Facebook has 2.7 billion users and Libra claims to serve 1.7 billion people without banking services worldwide. If Libra could use its stable coin feature as a selling point, it will have the potential to cover this large group by offering cross-border micro payments initially, and gradually nibble away US dollar’s international reserve currency status. Global FinTech Weekly Jul 12, 2019 Highlight of the week – China P2P platforms facing regulatory challenge. Since the launch of the Special Campaign against Peer-to-peer Lending Risks, as of Jun-19, the number of operating P2P platforms fell to 863, down 55% from the beginning of 2018; the outstanding loans is down by 48% from the peak in 2018. We expect China’s P2P industry will continue to shrink. Global Tech Biweekly Vol.3 Jul 10, 2019 After being launched by Niantic in 2016, Pokémon Go became very popular and has caught wide market’s attention on AR. Spun out of Alphabet in 2015, Niantic raised a new US$245mn C funding round at a US$4bn valuation in Jan 2019. Game has become a successful way of monetization for new AR technology. Global FinTech Weekly Jul 8, 2019 Highlight of the week – Mutual insurance: healthcare utopia sparks fresh controversy. Mutual insurance/peer-to-peer insurance has gained popularity globally. These insurance schemes would promise that they will pay back any leftover to members. Xiang Hu Bao users have just shared a new batch of cost of RMB0.51 per person, with 150 patients receiving the payouts. The variable cost depending on the real payouts is a big selling point. Far East Consortium FY19 review Jul 3, 2019 FY19 revenue grew by 17.3% yoy with growth across the segments. Development gross margin came back to a more normalized level as expected. As a result, core cash profit grew by 9.6% yoy. Full year DPS was maintained at HK$22 cents, same as FY18. We estimate that FY19 contracted sales slightly declined to HK$5.0bn vs HK$6.3bn in FY18. For FY20 FEC plans a HK$15.4bn worth of new launches. Global FinTech Weekly Jun 28, 2019 Highlight of the week – The challenger bank brand magic. Challenger banks (or Neo banks) became venture capitals’ darling in the past 12 months. These are digital only banks that tend to focus on a few simple but competitive products with ultimate user experience that caters to millennials. 7 of them have crossed the US$ 1bn valuation hurdle. Global Tech Biweekly Jun 24, 2019 On 11 Jun, Sunny Optical announced shipment data for May. Handset lens shipment were 107mn, -5.8% MoM/+38.7% YoY. CCM shipment were 39.7mn, +2.1% MoM/+16.6 YoY. The shipment data began to weaken mainly because the Huawei’s order cut impact started to show. Global FinTech Weekly Jun 20, 2019 Highlight of the week – Facebook’s blockchain solution for global payment market. With 2.7 billion Facebook/Whatsapp/messenger/Instagram users, and some very powerful partners to onboard merchants, it could extend to a wider acceptance where even Bitcoin has not been able to reach. Global Tech Biweekly Vol.1 Jun 10, 2019 Telecom investment cycle of China 1Q19: smartphone bottoming out and accelerated monetization in internet services May 24, 2019 Xiaomi reported 1Q19 revenue of Rmb43.8bn, +27.2% YoY/-1.5% QoQ and beating the consensus by 4.9%. 1Q19 gross profit came at Rmb5.2bn, +21.3% YoY/-7.9% QoQ, with gross margin softened at 11.9%. With the strong new product launch including high-end phone Mi9 in 1Q19, we expect a recovery in margin in 2Q19. A leading property management service provider May 24, 2019 Aoyuan Healthy Life provides property management service for residential and non-residential properties and commercial operational service for mid-high end shopping malls in China. Xiaomi Corporation March 21, 2019 Xiaomi reported FY18 full-year revenue of Rmb175bn, +53% YoY, with 4Q revenue at Rmb44.4bn, +26.5% YoY/-12.6% QoQ. The sector-wide sluggish smartphone sales and few new models launched (only two mid/high-end models launched in 4Q) weighed on 4Q result China Renaissance - All eyes on Science and Technology Innovation Board March 21, 2019 China Renaissance is the leading investment bank dedicated to China’s new economy companies and entrepreneurs. We believe China Renaissance’s unmatched ability to engage new economy entrepreneurs, its deep understanding of the new economy companies Greater Bay Area Guideline Comment March 1, 2019 致力于大湾区内要素高效便捷流通，在制度设计、基建、人员流动、跨境投资、医疗、教育、科研领域均有宏大规划。大湾区开放型经济体定位明确，以科技创新和制度创新为依托，打造世界新兴产业、先进制造业和现代服务业基地。与此同时 China Aoyuan Property - Upgrade to Buy rating on valuation and strong sales momentum March 1, 2019 We upgrade Aoyuan to Buy. The company has maintained a faster-than-peer sales momentum on sufficient landbank, strong execution and a strong balance sheet Xiaomi Corporation - The launch of Mi9 and 5G Mix 3 marks the start of a new era February 27, 2019 Xiaomi recently launched two flagship smartphones: the Mi9 and 5G Mix 3. We believe these two new smartphone models and the independent operation of Red Mi brand reflect Xiaomi’s strategy to strengthen its market share in high-performance premium smartphone segment New World Development - A GBA conglomerate dedicated to craftsmanship and unparalleled living experience February 18, 2019 NWD has created a series of products and living concepts with forward-looking ideas and tastes, which reflects its dedication to craftsmanship and provides an unparalleled array of exclusive experience to its customers under the ecosystem of The Artisanal Movement living sphere China Renaissance - A leading investment bank and asset manager dedicated to the new economy December 21, 2018 China Renaissance is the leading investment bank dedicated to China’s new economy companies and entrepreneurs. As of YE17, its clients include 15 of the top 20 Chinese new economy companies and 56% of new economy unicorns as measured by market cap/valuation 35 Far East Consortium - Gaming segment becomes visible November 29, 2018 FEC has strong contracted sales in 1HFY19 and revenue grew by 7% yoy; Interim DPS was maintained at HK$ 4 cents, same as 1HFY18; Gaming sector become increasingly important, for the first time, gaming sector started to contribute to revenue. Trans World Corporation contributed HK$177 million revenue in gaming and hotel operations; Revise up price target to HK$5.86 Xiaomi Corporation - Upbeat results supported by strong growth momentum November 21, 2018 Xiaomi has upbeat revenue growth and profitability despite challenging market condition. In 3Q18, Xiaomi reported a stronger-than-expected set of results；reiterate “BUY”rating and price target of HK$ 22.0 Xiaomi Corporation - Innovation and unique consumer IoT network key to growth Sept 4, 2018 Xiaomi offers a portfolio of award-winning, high-performance smartphones, smart hardware and lifestyle products with “honest price”. The smart devices serve as the gateway to offer internet services to its loyal users. Its price strategy is achieved through highly efficient distribution channels that seamless integrate direct online sales, self-operated Mi Home and offline retail partners China City Commercial Banks - In search for new growth engine July 6, 2018 The regulatory call for financial deleveraging and unwinding of non-standard assets is posing challenges. City commercial banks need to shift their business model from focusing on scale towards innovation and profitability. With larger corporates gradually moving to direct financing, small & micro enterprise and retail business will be the key for them to succeed 35 Far East Consortium - The Value of Diversification June 28, 2018 FEC has a diversified property development portfolio and hotel portfolio in Australia, Singapore, UK&Europe, China, HK and Malaysia and has demonstrated its ability to time different cycles in different markets. In FY18, FEC has turned more bullish in Singapore and UK and increased land purchases in light of potential slowdown in other markets China Macro - Credit spreads likely to stay at elevated levels June 6, 2018 We expect onshore and offshore credit spreads to stay at elevated levels for the rest of 2018. We recommend investors to stick with companies and sectors of manageable debt level, longer debt maturity, strong cash flows, encouraged by policies and have low reliance on shadow credit. A Battle for Survival - Intensified market consolidation & battle for resources May 15, 2018 Tightening on property market comes to the harshest moment. We recommend names with strong access to acquiring lands from M&A, urban redevelopment projects and shanty housing redevelopment. SOE will have advantage in this elimination game: low funding cost, access to land resource and shanty housing redevelopment experience. 2007 HK Country Garden - Sales momentum in lower tier cities continues April 12, 2018 Country Garden's sales momentum remains strong in FY2017 and 1Q18; Revise up price target to HK$17.20, 'HOLD' 3383 HK Agile - Diversifying non-property businesses April 12, 2018 Thanks to the high margin of projects in Hainan and Zhongshan, growth of gross profit improved by 67% YoY to RMB 20.69 bn.Revise up price target to HK$17.80, 'HOLD' 3900 HK Greentown - Uncertainty of profit pattern April 12, 2018 Gross profit margin slightly dropped, low visibility on profit from non-investment projects. 2017 result in line; core net profit increased by 13.5% YoY; Revise up price target to HK$11.62, maintain 'HOLD' 813 HK Shimao - Growth comes back again April 3, 2018 Upgrade to 'BUY', net profit has bottomed out and accelerate its turnover for achievable sales growth. 2017 result in line; core net profit surged by 43.5% YoY Far East Consortium - Strengthening alliance with The Star March 29, 2018 FEC entered share subscription agreement with The Star Entertainment Group (ASX stock code SGR) in which FEC and Chow Tai Fook Group (CTF) each will subscribe for 4.99% of The Star’s new shares; Reiterate “BUY” and Price target of HK$5.34 688 HK COLI - Targeting stable high-quality growth March 27, 2018 Upgrade to 'BUY' on steady growth and revise up price target to HK$33.92revise up price target to HK$33.92, reasonable profitability and low valuation; 2017 results in line 1813 HK KWG Seeking balance between scale and profitability March 27, 2018 Downgrade to 'HOLD' and revise down TP to HK$12.50: 2017 result missed our estimation; core net profit dropped by 19% YoY, expansion execution takes times to testify 960 HK Longfor property Stable growth as always March 27, 2018 Upgrade to 'Buy' and revise up TP to HK$ 25.34: 39% YoY growth of core net profit, GPM enhanced to 34% 3380 HK Logan Property - The best proxy in Great Bay area March 23, 2018 87% YoY growth of core net profit, GPM enhanced to 35%; Revise up price target to HK$12.32, 'HOLD' 1109 HK CR Lands - Winner of next 5 years, BUY March 21, 2018 2017 result: slow growth, but high profitability; CR Lands' multi-channel of land acquisition is irreproducible competitiveness to scale pursuer with high land cost.Upgrade to 'BUY' Revise up price target to HK$34.74 2777 HK R&F properties - High growth but higher gearing March 21, 2018 Solid 2017 result, core net profit grew by 107% YoY; RMB 300 bn of sales target in 2020 implying 54% CAGR in 2017-2020; Revise up price target to HK$23.89, 'HOLD' 3883 HK China Aoyuan - All eyes on scale - targeting RMB 73bn contracted sales in 2018 March 16, 2018 Solid 2017 result, robust growth in net profit, but GPM missed; Execution will be the key to achieve RMB 73bn of 2018 sales target; Revise up price target to HK$8.10, 'HOLD' The market may underestimate a potential trade war March 7, 2018 On March 1, 2018, President Trump proposed that the US would impose 25% import tariffs on steel and 10% on aluminum.Although a trade war may end up in a lose-lose situation for China and the US, we are concerned that the stock market may have underestimated such possibility 35 HK FEC - Acquiring a small casino & hospitality group in Europe March 6, 2018 FEC has announced that it had entered merger agreement with Trans World Corporation, which is engaged in hospitality and gaming business in Germany, Austria and Czech. Reiterate “BUY” and Price target of HK$5.34 Comment on US market plunge February 6, 2018 De-risking mode on; HK stocks may see good entry point on volatility; The global stock selloff may trigger US and Europe investors to take profit on the liquid HK stock market, given the rally in 2017. On the other hand, southbound inflows through Stock Connect program may come to offset this 1813 HK KWG - Shifting to fast track February 5, 2018 Contract sales in Jan. surged 155% YoY to Rmb 5.56 bn. Rmb 100 bn of saleable resource support fastgrowth of contracted sales in 2018 China Macro - Where are we in the financial sector deleveraging process? February 2, 2018 Since end of 2016, the regulators started to roll out a series of regulations aiming at reducing systemic financial risks. We believe this deleveraging process will last throughout 2018 until interbank liability, conduit type of asset management business and non-standard credit have significantly come down. 3380 HK Logan Property - Abundant resource supports rapid growth January 26, 2018 Logan targets 50% growth of contracted sales in 2018; Upgrade PT to HK$12.11; maintain 'HOLD' Land supply reform to support multi land supplies in future January 18, 2018 Minister of Ministry of Land and Resource: Exploring separation of ownership, qualification and use right of rural homestead; government will not be the only land supplier in future 3883 HK China Aoyuan - Targeting RMB 100bn of sales by 2020 January 15, 2018 Positive profit alert for 2017, at least up 75% YoY; Looking forward, the company has strong confidence and targets a RMB 50-60bn of contracted sales in 2018 and RMB 70-80bn of contracted sales in 2019. Reiterate Buy and price target of HK$6.94 Fixed income - Ronshine China - Capex Expansion & Refinancing Pressure in Next 2 Years January 10, 2018 High Capex for expansion ahead and gearing ratio should increase; Marketperform on RONXIN 19, still 180 bps value over MOLAND 19 China Online Consumer Finance Industry December 19, 2017 The online consumer lending industry in China has played an indispensable role in providing consumer finance to the underbanked population. However, recently the fast-rising untamed payday loan lenders have caught regulators’ attention. In this report, we try to have a deep looking on the China consumer finance industry’s competitive landscape. 35 HK FEC - 1H18 review November 28, 2017 1HFY18 net profit surged by 52% yoy to HK$1.0bn (+52% yoy); interim DPS raised to 4 HK$ cents from 3.5 HK$ cents in 1HFY17; Price target upgrade to HK$5.34; hidden gem with deep NAV discount Chinese High Yield Properties November 3, 2017 The story in 2017 is playing safely & holding for carry. Asian bond market continued to enjoy abundant liquidity while Chinese funding contributing increasing shares. Supplies from property sector dominate the Chinese HY names due to depressed onshore bond issuance and a strong physical property market in China. Blockchain, Cryptocurrency and ICO 101 October 2017 Blockchain and cryptocurrency has been a hot topic for a long time while people's interest in it surges again since 2017 along with ICO. We will cut through the hype and see how blockchain, cryptocurrency and ICO really work. China Property Sector 1H17 Results Review September 15, 2017 Majority of developers in 1H2017 delivered improved GPM, lower net gearing and lower borrowing costs. Some companies even showed ambition of further fast growth in next 4-5 years, which we think may look challenging in light of future tightening policies. Global FinTech Survey Report August 20, 2017 Global FinTech industry is entering an era of globalization, driven by FinTech players’ ambition of going global through overseas investments and partnership. In this report, we try to identify important trends investors should pay attention to through conversations with global FinTech leaders and surveys with Asian FinTech investors. 2H17 China Property Sector Outlook - Bubble Burst? Nope! Just Slow Down! June 30, 2017 We expect the property sector valuation to de-rate in 2H17. We selectively overweigh developers with achievable presales growth, less share price gain YTD, and relatively low valuation. China Aoyuan (3883.HK; Buy) - Continuous growth supported by strong execution April 7, 2017 Initiate with Buy rating: High earnings visibility; low valuation; industry consolidation provides growth opportunity. Asia corporate insurance brokers sector - Niche and beautiful March 29, 2017 Asia’s corporate insurance brokerage industry has tremendous growth potential, driven by the growth prospects of the underlying economy and further deepening of insurance penetration rate, in our view. Canvest Environmental Protection Group – Star on the rise February 21, 2017 Canvest Environmental Protection Group is the largest non-state-owned waste-to-energy (WTE) incineration treatment provider in Guangdong Province, by municipal solid waste (MSW) treatment capacity. It is a star on the rise, with ROE expansion and we Initiate with Buy rating. China Rural Banks: New urbanization, new growth engine January 13, 2017 In this report, we look at the macro level data as well as bottom-up financial data of rural banks, in an attempt to provide better insight on their performance trends, challenges they are facing and future opportunities. Wonderful Sky Financial Group - No.1 market leader stepping up the game December 22, 2016 We initiate coverage on?Wonderful Sky (WSFG, 1260.HK) with Buy rating. We identify it as a growth stock with good defensive value. We see deep valuation discount to its peers with dividend yield at 7.0%, and FY17 PE at 8.6x. Initiation of Coverage: Far East Consortium (FEC, 35.HK) October 25, 2016 Far East Consortium International Limited (FEC) is a medium-sized property conglomerate. It has a geographically diversified portfolio with a balanced revenue mix in property development, hotel, car park management and property investment. We initiate coverage on Far East Consortium with a Buy rating.