Categories
Industry/Sector Analysis
  • Five Stocks on the STI Bench Average 10% Gain over Past 12M

    Source: SGX My Gateway
    Date Submitted: 19 Jun 2018
    Views: 15
    Downloads: 0
    Five Stocks on the STI Bench Average 10% Gain over Past 12M
    • The STI benchmark consists of the 30 largest and most active stocks traded on SGX. The next five largest and most active stocks make up the STI Reserve List. This list is used in the event one or more STI constituents are deleted before the next quarterly review.
    • The current STI Reserve List stocks are Suntec REIT, Sembcorp Marine, Mapletree Commercial Trust, Keppel REIT & Mapletree Logistics Trust. The list has changed completely from the end of2013, with four of the five then STI Reserve stocks since joining the STI.
    • The current five STI Reserve stocks have averaged 10% total returns over the past 12 months, taking their average five year return to 29%. Four of the five stocks are REITS that currently maintain an average indicative dividend yield of 5.7%.
  • Five Stocks with Manufacturing Focus Amongst Biggest Intraday Movers

    Source: SGX My Gateway
    Date Submitted: 19 Jun 2018
    Views: 7
    Downloads: 0
    Five Stocks with Manufacturing Focus Amongst Biggest Intraday Movers
    • For the three months spanning March, April & May, non-STI stocks that consistently ranked amongst the biggest intraday tick ranges, with daily price ranges of more than 2.5%, included AEM Hldgs, Memtech Intl, Creative Technology, Best World Intl & Delong Holdings.
    • The five stocks averaged daily price ranges of 4% and together represent businesses with manufacturing-related activities. Manufacturing businesses span handling & test solutions, component solutions, consumer electronics, health products & HRC Steel.
    • Another manufacturing stock, Hi-P International ranked amongst the 10 non-STI stocks with the biggest intraday tick ranges for two of the months, while generating average daily price ranges of 5%.
  • Capital Market Performance During the Four Years of Narendra Modi's Government

    Source: Ved Malla
    Date Submitted: 13 Jun 2018
    Views: 0
    Downloads: 0
    Over the past four years, the government of Narendra Modi, the 14th Prime Minister of India, has made several landmark policy decisions and initiatives that have had a major impact on the Indian economy.
  • Key Drivers of the Semiconductor Industry in 2018

    Source: SGX My Gateway
    Date Submitted: 13 Jun 2018
    Views: 9
    Downloads: 1
    Key Drivers of the Semiconductor Industry in 2018
    • Following comparatively strong performances in 2017, the 10 largest capitalised stocks that operate in, or maintain a service focus to semiconductor businesses have been more mixed in the 2018 YTD, averaging a 4% decline.
    • This has brought the average 12 month total return of the 10 stocks to 19%, which compares to a 12% gain for Bloomberg Asia Pacific Semiconductors Index. The strongest of the 10 stocks over the past 12 months were AEM Holdings and Micro-Mechanics.
    • Key drivers relevant to the industry include increased memory demand and proliferation of digital technologies. At the same time more complex application, increased industry competition and trends to cut costs provide industry challenges.
  • Five Stocks with Manufacturing Focus Amongst Biggest Intraday Movers

    Source: SGX My Gateway
    Date Submitted: 13 Jun 2018
    Views: 22
    Downloads: 1
    Five Stocks with Manufacturing Focus Amongst Biggest Intraday Movers
    • For the three months spanning March, April & May, non-STI stocks that consistently ranked amongst the biggest intraday tick ranges, with daily price ranges of more than 2.5%, included AEM Hldgs, Memtech Intl, Creative Technology, Best World Intl & Delong Holdings.
    • The five stocks averaged daily price ranges of 4% and together represent businesses with manufacturing-related activities. Manufacturing businesses span handling & test solutions, component solutions, consumer electronics, health products & HRC Steel.
    • Another manufacturing stock, Hi-P International ranked amongst the 10 non-STI stocks with the biggest intraday tick ranges for two of the months, while generating average daily price ranges of 5%.
  • Bangladesh National Budget Review 2018-19

    Source: EBL Securities Ltd. Research Team
    Date Submitted: 10 Jun 2018
    Views: 343
    Downloads: 20
    The 47th National Budget of Bangladesh and 12th by Finance Minister AMA Muhith has been proposed on 7th June, 2017. Proposed budget size for FY ’18 is BDT 4,645.7 bn which is 18.6% of GDP. This is the largest budget in the history of Bangladesh. Target Revenue is BDT 3,392.8 bn caused a deficit amounting to BDT 1,252.9 bn which will be financed through domestic sources (BDT 712.3 bn) and External Borrowings (BDT 540.7 bn).
  • Asia’s Largest Global REIT Hub

    Source: SGX My Gateway
    Date Submitted: 05 Jun 2018
    Views: 369
    Downloads: 6
    Asia’s Largest Global REIT Hub
    • More than 75% of Singapore REITs & Property Trusts own and manage overseas assets across Asia Pacific, Europe and the United States. This growing trend within the REIT Sector has seen trusts with Singapore and overseas exposure rise from 18 in 2012 to 33 in 2018.
    • Of Singapore’s 10 most recent REIT Sector listings, nine are exclusively managing properties located outside of Singapore. These nine REITs maintain a combined market capitalisation of S$8.3 billion and have averaged 13.8% total returns since their IPO.
    • REITs with international property assets bring diversification benefits to investors, in addition to increased risks which include foreign exchange exposures. REITs generally seek to borrow in the same currency as the underlying assets, hence mitigating some of the currency risk.
  • A Closer Look at Indices Country Classifications

    Source: Alka Banerjee
    Date Submitted: 31 May 2018
    Views: 19
    Downloads: 0
    As large sums of global money flows now follow global indices, it is important to understand how global index providers decide on country classifications and country weightages.
  • SGX Real Estate Index’s Five Best Performers Average 7% YTD Gain

    Source: SGX My Gateway
    Date Submitted: 30 May 2018
    Views: 43
    Downloads: 0
    SGX Real Estate Index’s Five Best Performers Average 7% YTD Gain
    • In the 2018 YTD, the five best-performing constituents of SGX’s Real Estate Index were Yanlord Land (+11.1%), United Engineers (+8.4%), Ho Bee Land (+6.0%), Hongkong Land (+4.9%), and Ocean Sky (+4.3%).
    • The SGX Real Estate Developers & Operators Index comprises 25 constituents with a combined market cap of over S$70 billion. The component stocks with the five biggest weights are Hongkong Land (10.6%), UOL Group (9.8%), CapitaLand (9.8%), City Developments (9.2%) and Yanlord Land (9.0%).
    • This year, Singapore's property market is expected to extend its recovery. In 1Q18, private residential property prices jumped 3.9% QoQ, surging the most since 2010, and building on the previous quarter’s 0.8% rise, URA data showed. Analysts are forecasting a 5%-10% recovery in domestic home prices in 2018.
  • Understanding the Investment Fundamentals of the Banking Sector. A part of the series "Sector Analysis: A Framework for Investors"

    Source: Alan Lok, CFA, Eunice Chu, Guruprasad Jambunathan
    Date Submitted: 28 May 2018
    Views: 503
    Downloads: 34
    INTRODUCTION TO SECTOR ANALYSIS: A FRAMEWORK FOR INVESTORS

    The key to a company’s success depends on how well it executes its business model. This calls for optimising the allocation of limited resources to generate sustainable cash flows, for investing in new products, technologies, and services in responding to the wider competitive landscape or societal changes and mega trends, as well as for devising appropriate responses in the face of an evolving macroeconomic, regulatory, and political environment.  

    Different industries often require very different business models; and even within the same industry, the model that does add value to the business may vary somewhat from company to company.  

    To help investors undertake proper due diligence on a company, we have generated a framework of analysis designed to tease out the following: (1) whether the pertinent factors favour the firm in question; and (2) whether management is effective in executing its business model or value-generating strategies, while responding appropriately to its external environment.

    This framework is customised to specific sectors and incorporates interviews with professionals within those sectors. 
     
    THE BANKING SECTOR

    In earlier editions of the Sector Analysis series, we explored the Real Estate Investment Trust (REIT) business model and the Telecommunications sector. In this article, we examine banks and highlight the various factors and lines of enquiry that will help you make informed investment decisions.

    SPHERES OF OPERATION

    The role banks play in our lives is vital. Their activities underpin the efficient working of an economy – indeed, they are often among the most significant constituents of a country’s stock market. When we talk about banks, we are not just referring to the familiar branches we occasionally visit to deposit funds or withdraw cash. Banks is an umbrella term that describes an industry subdivided into several segments, including, but not restricted to Consumer Banking & Wealth Management (also known as retail banking), Wholesale (also known as institutional banking) and Treasury.

    To read more, download the full sector analysis for the Banking Sector with accompanying question bank below.

    This publication qualifies for 1.0 CE credits under the guidelines of the CFA Institute Continuing Education Program.
  • 中興的啟示--中國自主研發的前世今生

    Source: Isaac Wong, research analyst of eFusion Capital
    Date Submitted: 24 May 2018
    Views: 28
    Downloads: 0
    最近, 中興因涉及作出虛假陳述, 被美國當局施以制裁, 勒令所有美國公司不得供應產品予中興.
    隨即, 中興發表聲明, 指公司進入休克狀態. 在中國大陸的各個平台, 中興手機陸續下架, 更傳出售後服務中斷的信息.作為全球四大電信設備製造商之一, 卻在中美貿易前哨戰中被一擊即潰. 我們不禁懷疑, 中國的其他科技廠商, 是否也如同中興般倚賴外國, 以致被攻擊後亦毫無還手之力?
     
    本文將分作兩個部分, 以時空作劃分, 剖析中國科技產業自主研發的歷程, 以及對中國自研發展方向的一些預測.
     
    1. 以往
     
    中國早已洞悉自主研發硬件及軟件的重要性, 但卻心有餘而力不足. 早在1986年, 國務院已提出著名的863計劃, 要求在信息, 生物等不同範疇作出重要技術突破, 以期縮減與國際水平的差距. 在國策的扶持下, 一個改變中國科技產業的晶片橫空出世. 既帶給旭日初升的中國無限希冀, 亦換來了後來舉國上下沉重的歎息.
     
    1999年, 倪光南院士聯同加拿大華人李德磊, 開始研發名為方舟一號的自研晶片. 這代表著中國對西方制霸的高端信息產業所發起的凌厲挑戰. 然而, 在剛開始之時, 便因美國方面的對手--Wintel 聯盟(Windows+Intel)而遭遇重重困難. 英特爾透過龐大的法律團隊, 圍繞其X86指令集架構布下嚴密的專利屏障. 指令集架構作為定義晶片的最基礎部分, 專利屏障的建立迫使倪光南團隊在未能取得英特爾授權的情況下, 只能繞過X86架構, 改為採用精簡指令集架構. 如此過了兩年, 總算在2001年流片成功, 製造出方舟一號, 有了自研的硬件.
     
    一波未平, 一波又起. 繞開Wintel聯盟的代價, 便是沒有配套軟件可用. 情況宛如空有身軀, 卻缺乏靈魂,未能形成完整的軟硬件體系. 於是, 另一名關鍵人物, 任北京科委副主任的俞慈聲女士及時介入, 發起了"揚帆計劃". 計劃聚焦於解決Linux桌面系統, 即用以取代Windows桌面系統的工具, 的既有問題. 計劃最終失敗, 原因正在於為Linux開發的Office辦公軟件, 如永中, 會與Windows Word產生格式兼容性問題,令用家不能用永中打開Windows Word文件. 後來, 為補救漏洞, 俞女士又發起了"啟航計劃", 解決兼容性問題. 但草率形成軟件產品, 導致用戶體驗極差, 以致國產軟件無人願意使用. 於是, 運行國產軟件的方舟一號, 亦由此走向衰敗. 方舟一號的停止開發, 標誌著第一次突破技術封鎖的嘗試完全失敗.
     
    2. 現今及未來
     
    在電腦逐漸被智能手機取代為主要運算平台的今天, Wintel 勢力自是有所縮減, 但卻迎來新的霸主. 英國公司ARM透過建立了與公司名稱重名的ARM指令集, 以兩種手段幾近完全控制了智能手機中央處理器市場. 對研發能力較薄弱的企業, 它們可以直接採購ARM的現成方案, 即所謂的公版架構. 企業只須決定採購哪一種內核及其數量, 便能做出CPU的部分, 並結合其他部件(GPU/ISP等)形成手機用的SoC(System on Chip).中國的華為便是利用公版架構做出了麒麟系列的SoC. 而對研發能力較強的企業, 則可以只採購指令集(如ARM的A64), 並自行研發出內核(即所謂的自研架構), 如蘋果便採用了這種做法. 當然, 就性能及成本而言,公版架構絕非必然較差. 但毫無疑問, 蘋果正是借此做法製造出領先於對手的SoC, 以致產品在市場上更具競爭力. 管中窺豹, 大部分中國公司在現今皆傾向直接採購外國技術, 以致自研的難度與日俱增. 儘管中國的
    創投行業日漸興盛, 他們亦明言基於商業考慮, 很少會投入到半導體這類高資本投入, 回本週期長, 成功機率低的產業. 馬太定律在高新科技極為流行, 形成自然的資本及技術壟斷, 故中國公司往往有潛在機會受制於人.
     
    未來中國的自研發展方向主要有下列兩個:
     
    A. 併購
    以紫光集團為例, 其一向積極參與於半導體企業併購交易, 如早前買下了展訊通訊. 但隨著美國日益提防中國的科技能力提升, 相信會不斷透過CFIUS, 即美國政府規限外國公司併購美國公司的機構, 防止中國買下本土科技企業, 如在2017年叫停了FPGA製造商萊迪思半導體的交易. 同時, 亦有機會擴充"瓦森納條約"的內容, 禁止更多高技術含量的機器被售予中國. 因此, 併購之路只會越加崎嶇.
     
    B. 人才
    易方資本投資總監王華提及自身的台灣半導體企業從業經歷, 指出台灣公司普遍較豪爽. 它們往往發放紅股, 而非期權, 予旗下工程師. 王華認為如此做法方才是中國企業應該採取的行動, 從而令更多海外的高質素工程師受吸引而回流中國大陸, 建設本土的產業. 同時, 在內部而言, 他認為應鼓勵更多大學生選擇理論科學, 而非應用為主的工程學科, 從而加強基礎科學研發能力. 正如20世紀初譽享全球的貝爾實驗室, 亦是由於有大量不追求短期回報的項目進行, 方才研發出創造了半導體產業的基石--電晶體, 令美國在上世紀50年代率先進入半導體行業, 形成先行者優勢, 並以此建立強大的技術積累. 
     
    3. 結語
     
    科技行業有別於其他行業, 其發展不能完全仰賴資本, 而是要投入大量時間研發自身專利. 中國現今的集成電路基金明顯意識到整個行業普遍資金不足的問題, 但更應戒急棄躁, 不要急於求成, 而是要專注投入到長期發展之用. 否則, 再多的資金, 也未必能改變現今的困境. 



    易方資本(eFusion Capital)投資總監王華同時亦是多部作品的作者, 包括血型, AI及投資相關書籍 Bloody AI Alchemist. 以下是 Bloody AI Alchemist 的簡介:
     
    Everyone's behaviour is dictated by some factors, with blood type being the most pivotal one. By using different models, such as jungle digest, the book aims to vividly demonstrate how thoughts are generated and origin of such thoughts. Readers can use blood type model to better manage family and career relationships. Meanwhile, authors of the book have discovered astounding similarities amid artificial intelligence and blood types. It is extrapolated that AI networks adopt training and inference patterns alike humans, which acts as another perspective to understand how decisions are driven by blood types. As the author of the book and also the fund manager of eFusion, a hedge fund specializes in technology stock investment, Fred employs the blood type theory to predict corporation officials' decision and market sentiment. Combining his in depth analysis of hardware and semiconductor industry, Fred holds long or short position of global technology stocks, including trending AI or robotics related companies. Active risk management ensures that the portfolio will not undergo substantial retreat in return, even when global markets are plummeting, so as to deliver stable wealth growth services for eFusion's clients. The book visualizes how authors find out correlation between blood types and AI, then convert the knowledge into monetary return, just like how alchemist turn raw materials into valuable objects.
     
  • Requests for Comments: Chinese Local Government Rating Criteria

    Source: Liang Zhong
    Date Submitted: 24 May 2018
    Views: 24
    Downloads: 3

    HONG KONG, 23 May 2018. Pengyuan International has today released its Chinese Local Government Rating Criteria for public consultation. These criteria will be effective immediately on the date of final publication, and we intend to complete the review of all affected ratings, if any, within six months thereafter. We expect no impact on our current rating portfolio.

    We would appreciate comments on these draft criteria from investors and other market participants. The request-for-comment version of the Criteria and analyst contact details are available via the following link:

    Chinese Local Government Rating Criteria: http://www.pyrating.com/Methodology/Index/10008.html

    Our Chinese Local Government Rating Criteria describe our top-down approach to assessing the credit risks of all local governments (LGs) and assigning issuer credit ratings (ICRs) and issuance credit ratings to LGs in China. We explain how we assess the key rating factors (namely a LG’s economic strength, budgetary strength, debt burden, liquidity, and governance and financial management) that together drive a LG’s relative credit strength compared to peer LGs reporting directly to the same higher-level government. We combine the relative strength score of the LG with the rating on its higher-level government and our other analytical considerations to determine ICR on the LG. 

     

     

    ANALYST CONTACTS MEDIA CONTACT OTHER ENQUIRIES
    Chief Analytics Officer
    Tony Tang

    tony.tang@pyrating.com
    +852 3615 8278
    media@pyrating.com contact@pyrating.com

    Sovereign and Public Finance
    Liang Zhong
    liang.zhong@pyrating.com
    +852 3615 8341

     
  • Shariah in a Fast-Changing

    Source: Alka Banerjee
    Date Submitted: 23 May 2018
    Views: 34
    Downloads: 5
    2017 was a strong year for equity markets globally, but we saw even stronger performance from Shariah equity markets.
  • Most S&P and Dow Jones Islamic Indices Outperformed Conventional Benchmarks in Q1 Driven by Strength in the Technology Sector

    Source: Michael Orzano
    Date Submitted: 05 Jun 2018
    Views: 387
    Downloads: 0
    Most S&P and Dow Jones Shariah-compliant benchmarks outperformed their conventional counterparts in Q1 2018, as the information technology sector led the market by a wide margin, and financials matched the returns of the broad market.
  • Revenue Exposure of the S&P/ASX 200

    Source: Utkarsh Agrawal
    Date Submitted: 18 May 2018
    Views: 60
    Downloads: 0
    As of year-end 2017, only 60 companies in the S&P/ASX 200 derived their revenue solely from the domestic market, while the rest of the companies had exposure to foreign markets. Hence, it is worthwhile to review the global revenue exposure of the index.
  • 做实"金稳会",有效防控系统性风

    Source: 王 刚, 颜 苏, 王 洋
    Date Submitted: 17 May 2018
    Views: 70
    Downloads: 0
    习近平总书记在第五次全国金融工作会议上宣布设立国务院金融稳定发展委员会(以下简称“金稳会”),这标志着我国现行“一行三会”的监管架构开始按照“统筹协调监管、有力有效”的要求进行方向性调整。2017年11月8日金稳会首次会议召开,明确五项主要职责。下一步,应立足我国国情、借鉴国际经验尽快做实金稳会,使其有序运转,依法履职,有效防控系统性金融风险。具体看,一是在厘清定位的基础上明确金稳会的权限;二是确定人员组成,细化金稳会下设日常支持型组织的具体架构和运转机制;三是优化运作机制。包括确立定期会议和不定期会议相结合的工作机制,信息收集、保密和透明度安排,问责机制等;四是尽快启动与金稳会相关的立法修法工作;五是按照急用先行原则,以加强资管产品监管协调和提升金融数据标准作为下一步金稳会的工作重点。
  • Do Earnings Revision Matter in India?

    Source: Akash Jain, Bed Malla
    Date Submitted: 16 May 2018
    Views: 34
    Downloads: 0
    Akash Jain, Associate Director - Research & Design in conversation with Ved Malla, Associate Director at S&P BSE Indices on recent research paper.
  • Shariah Report 2018 Q1

    Source: John Welling, Michael Orzano
    Date Submitted: 11 May 2018
    Views: 65
    Downloads: 4
    Take a look at how the Shariah Indices performed in the 2018 Q1.
  • TOP 9 Mistakes in Valuation. #8 Choosing an unreasonable cost of equity - Video 8/9

    Source: Andrew Stotz PhD, CFA
    Date Submitted: 11 May 2018
    Views: 11
    Downloads: 0
    Mistake #8: Choosing an unreasonable cost of equity

    A very common mistake made by analysts is discounting future cash flows at an unreasonable cost of equity (COE). Don’t get lost in the components of COE, focus on the end result. Too high or too low COE can significantly change your estimate of a firm’s fair value. Based on our study we consider COE ranging between 8% and 13% to be reasonable.

    Check out the video to learn more about Mistake #8 and how to avoid it.
  • TOP 9 Mistakes in Valuation. #7 Valuing a stock using the calculated Beta - Video 7/9

    Source: Andrew Stotz PhD, CFA
    Date Submitted: 11 May 2018
    Views: 9
    Downloads: 0
    Mistake #7: Valuing a stock using the calculated Beta

    A common mistake is valuing a stock just using whatever historical beta you find in Bloomberg or your data provider. Also failing to realize that valuation is made to infinity, hence, your beta is a forecasted beta and that forecast is to infinity. Past betas tend to regress towards 1.00x. The Beta you use for valuation is to infinity. To avoid error we use three betas: High risk: 1.25x, Average risk: 1.00x, low risk: 0.75x. If you use a beta outside of this range you have a higher obligation to justify.

    Check out the video to learn more about Mistake #7 and how to avoid it.
  • TOP 9 Mistakes in Valuation. #6 Underestimating working capital investment - Video 6/9

    Source: Andrew Stotz PhD, CFA
    Date Submitted: 11 May 2018
    Views: 11
    Downloads: 0
    Mistake #6: Underestimating working capital investment

    Net working capital (NWC) is difficult to forecast because it’s a result of five separate forecasts: accounts receivable; inventory; other current assets; accounts payable; and other current liabilities. Unlike in accounting, in valuation we exclude cash and short-term borrowing from net working capital. Changes in NWC are volatile because that change results from five separate forecasts. NWC is a small but volatile investment item. Large deviations from past trends usually are a mistake, so explain them carefully.

    Check out the video to learn more about Mistake #6 and how to avoid it.
  • TOP 9 Mistakes in Valuation. #5 Forecasting drastic changes in cash conversion cycle - Video 5/9

    Source: Andrew Stotz PhD, CFA
    Date Submitted: 11 May 2018
    Views: 26
    Downloads: 0
    Mistake #5: Forecasting drastic changes in cash conversion cycle

    I've analyzed 17,414 companies across the world to try to understand how assets break down. Avoid huge changes in working capital items, except in rare cases of product mix or management policy. Focus much of your attention on inventory. If you forecast big changes, explain your reasons.

    Check out the video to learn more about Mistake #5 and how to avoid it.
  • TOP 9 Mistakes in Valuation. #4 Confusing growth CAPEX with maintenance CAPEX - Video 4/9

    Source: Andrew Stotz PhD, CFA
    Date Submitted: 11 May 2018
    Views: 715
    Downloads: 0
    Mistake #4: Confusing growth CAPEX with maintenance CAPEX

    I've looked at the largest 500 companies in Asia and their CAPEX spending in their cash flow statement. CAPEX should be roughly the same as depreciation. The starting point for overall CAPEX forecasting is 100% of annual depreciation charge and that additional growth CAPEX depends on how fast you expect the firm to grow.

    Check out the video to learn more about Mistake #4 and how to avoid it.
  • TOP 9 Mistakes in Valuation. #3 Growing fixed assets slower than revenue - Video 3/9

    Source: Andrew Stotz PhD, CFA
    Date Submitted: 11 May 2018
    Views: 51
    Downloads: 0
    Mistake #3: Growing fixed assets slower than revenue

    Analysts often underestimate fixed asset growth. A rule of thumb is that fixed asset growth should roughly match revenue. Use the asset turnover ratio to prevent this error. It can help you see when you're unrealistic.

    Check out the video to learn more about Mistake #3 and how to avoid it.
  • TOP 9 Mistakes in Valuation. #2 Underestimating expenses causing unrealistic profit - Video 2/9

    Source: Andrew Stotz PhD, CFA
    Date Submitted: 25 May 2018
    Views: 344
    Downloads: 0
    Mistake #2

    In this video, Dr. Andrew Stotz, CFA talks about how underestimating expenses, causing unrealistic profit as one of the most common valuation mistakes.

    It covers:
    - Analyzing and forecasting 17,000 companies around the world over a 15-year period.
    - Defining the value of the gross profit margin in forecasting.
    - Providing real examples based on his own coffee business, CoffeeWORKS, and IKEA, etc.
    - Giving other sound advice, including the idea from the fantastic book: Understanding Michael Porter.
    - The idea is that to forecast changes in gross profit margin, an analyst should study the supply chain.
    - Looking at some common valuation mistakes in the academic-style research.
    - ABC analysis and valuation.
    - Evaluating the accuracy of net profit and net profit margin forecast analysts in Asia, based on the result of 540 of the largest companies in Asia.
    - Presenting expenses with the highest variability in the net profit margin.


  • ​TOP 9 Mistakes in Valuation. #1 Overly optimistic revenue forecasts - Video 1/9

    Source: Andrew Stotz PhD, CFA
    Date Submitted: 25 May 2018
    Views: 501
    Downloads: 0

    In the first of a series of nine videos examining valuation mistakes, award-winning equity analyst and former President of CFA Society Thailand Dr. Andrew Stotz, CFA, looks at why investors should be wary of overly optimistic revenue forecasts. 

     

    From this video you will learn: 

     

    • Questions to ask when forecasting a company’srevenue, for example, can it increase both profit and growth margins over time?

     

    • How to understand a company’s marketing, branding, products, and services – in addition to its sales process, delivery, and after-sales service

     

    • That if revenue forecasts are wrong, valuations will be too 

     

    • How to curb your enthusiasm.

     

    Watch Andrew Stotz here:https://youtu.be/9jkfAPcDomY

     
  • China in Brief: Some Debts Good, Some Debts Bad

    Source: Sandra Chow, CFA, Ang Ben You, Cheong Yin Chin, CFA
    Date Submitted: 07 May 2018
    Views: 82
    Downloads: 0
    • Chinese banks and corporates have now released their full FY17 financial statements, following preliminary results in March.  The reports revealed how China's clampdown on leverage is starting to affect individual issuers in different ways.
    • Chinese banks' FY17 operating metrics showed the larger banks (the big six and larger joint stock banks) emerging stronger than the smaller banks from the government's deleveraging campaign, in terms of profitability and asset quality.   Because larger banks have been net interbank lenders, profitability has benefited from higher interbank rates. Asset quality also showed positive trends with special mention loan ratios falling and NPL (non-performing loan) classification actually becoming more conservative. On the other hand, the weaker joint stock and city commercial banks have seen profitability take a hit due to more expensive interbank funding costs. Their deteriorating asset quality shows them as being disproportionately affected by China's deleveraging campaign. 
    • Asset growth showed broad moderation at the banks in FY17, though growth rates were still higher at the smaller ones. The big six banks reported broadly lower asset growth rates compared to FY16. This trend can be extrapolated to the joint stock and city commercial banks, though here the picture was more mixed, with a few still seeing expansion. Slower asset growth was driven mainly by investment receivables, which fell as a % of assets at many banks. Banks' exposure to shadow loans should continue to shrink this year given the emphasis on fighting financial risks; we expect more regulations targeted at these items. 
    • Chinese real estate firms' liquidity weakened during FY17, despite robust contracted sales.  Slower mortgage approvals amid China's credit tightening delayed the companies' cash collections.  Undeterred, the developers continued heavy land acquisitions and most surpassed their FY17 land purchase budgets. All of the developers we cover aside from Greenland Hong Kong posted negative free cash flow last year. We see more bond supply risk from the China property sector as the developers plug their funding gaps with fresh onshore and offshore debt. The authorities do not seem to be clamping down heavily on developers' funding sources: onshore bond issuance among the Chinese high yield developers we track soared by 76% up to 20 April this year, compared to the same period in 2017. Offshore bond issuance has also remained steady, although rising risk aversion among $ bond investors is crimping appetite for Chinese property bonds and prompting more issuance of short-dated paper.
    • The Chinese industrial companies we track posted solid FY17 results overall, with companies ranging from car maker Geely Auto, piped gas provider China Oil & Gas and infant formula provider Health & Happiness reporting improving operations and stable or stronger credit metrics. With more prudent capex plans than the property developers, funding needs are generally lower. But regulatory approval for bond issuance seems to be on a case-by-case basis and issuers from overcapacity industries may find it harder to gain approval. Aluminium producer China Hongqiao, for instance, issued a 363-day bond in April, suggesting that investors were taking a cautious view of Hongqiao's long-term credit outlook, or that the company struggled to obtain an issuance quota from China's National Development and Reform Commission (deals of under 1 year maturity are not subject to NDRC approval). Yet the authorities are also supporting new funding channels selectively, presumably to ease the impact of credit tightening. West China Cement reported that it enjoys tax-free income from its new finance lease business, for instance.
    • We expect China will continue to tweak credit restrictions selectively, in order to rein in excessive leverage without causing a credit crunch.  Regulatory approval can be forthcoming to fund projects that are in line with government policies. For example, despite the general credit tightening, Chinese developers can obtain large quotas for China's new 'Rental Apartment Special Bonds' (长租公寓REIT), as the government tries to tackle the problem of housing affordability.  Amid the deleveraging campaign, it seems that not all debt is bad after all.
  • Carbon Risk Integration: Interaction Between Carbon Risk and Traditional Risk Factors

    Source: Kelly Tang
    Date Submitted: 07 May 2018
    Views: 320
    Downloads: 0
    We argue that a pure, unconstrained, carbon-efficient portfolio outperformed a carbon-inefficient portfolio, as well as the underlying benchmark, on an absolute return basis, but underperformed on a risk-adjusted basis due to the portfolio having higher volatility.
  • Request for Comments: Sovereign Rating Criteria

    Source: Liang Zhong
    Date Submitted: 25 Apr 2018
    Views: 323
    Downloads: 5

    HONG KONG, 25 Apr 2018. Pengyuan International has today released its Sovereign Rating Criteria for public consultation. These criteria will be effective immediately on the date of final publication, and we intend to complete the review of all affected ratings, if any, within six months thereafter. We expect no impact on our current rating portfolio. 

     

    We would appreciate comments on these draft criteria from investors and other market participants. The request-for-comment version of the Criteria and analyst contact details are available via the following link:

     

    Sovereign Rating Criteria: http://www.pyrating.com/Methodology/Index/10008.html 

     

    Our Sovereign Rating Criteria describe our analytical approach to assessing the credit risks of all sovereigns and assigning issuer credit ratings (ICRs) and issuance credit ratings to sovereigns. We explain in detail how we assess the key rating factors (namely a sovereign issuer’s debt burden, stage of economic development, economic fundamentals, institutions and policies and distinctive movers of underlying liquidity risk) that together drive a sovereign’s indicative credit score (ICS). We also outline our other analytical considerations, which, together with the ICS, will determine an entity’s Issuer Credit Rating.  

    For these criteria, we define a sovereign as a member state of United Nations or a state that runs its own government, enjoys fiscal independence and determines its own monetary regime.

    MEDIA CONTACT
    media@pyrating.com
     
    OTHER ENQUIRIES
    contact@pyrating.com

  • Regional Healthcare Stocks Leading the World in 2018 YTD

    Source: SGX My Gateway
    Date Submitted: 24 Apr 2018
    Views: 4134
    Downloads: 5
    Regional Healthcare Stocks Leading the World in 2018 YTD​
    • The SGX All Healthcare Index has gained 4.6% in the 2018 YTD, similar to the MSCI AC Asia Pacific Health Care Index returns of 4.7%, and higher than the MSCI World Health Care Index decline of 2.1.
    • The five largest capitalised stocks of the SGX All Healthcare Index include IHH Healthcare Bhd, Top Glove Corp Bhd, Haw Par Corp, Raffles Medical Group and Tianjin Zhong Xin Pharm Group. All five stocks have gained in the YTD, with average total returns of 11.6% and median total returns of 5.7%.
    • Of these five stocks, the strongest two stocks both in the 2018 YTD and past 12M maintain a strong product focus – Top Glove Corp, with a product presence in virtually every corner of the globe, and Haw Par Corp, with a global consumer base for its Tiger Balm products.
  • The Impact of the Global Economy on the S&P 500®

    Source: Phillip Brzenk
    Date Submitted: 18 Apr 2018
    Views: 376
    Downloads: 9
    In this paper, we examine the geographic revenue distribution of the S&P 500 and see what, if any, impact foreign economies and geographically driven market events may have on overall index performance. 
  • SGX-Listed Stocks & ETFs with Exposure to Fast-Growing Malaysia

    Source: SGX MY Gateway
    Date Submitted: 10 Apr 2018
    Views: 116
    Downloads: 19
    SGX-Listed Stocks & ETFs with Exposure to Fast-Growing Malaysia
    • Malaysia’s economy is expected to grow by 5.3% in 2018, with BNM citing favourable income and labour market conditions, spending on new and ongoing infrastructure projects and sustained capital investment by firms in manufacturing and services sectors.
    • Singapore’s 10 largest capitalised stocks that report the majority of their revenue to Malaysia have averaged a 4% gain in the 2018 YTD. The 10 stocks span six Sectors, with the 2018 YTD gains taking their average 12M average total return to 20%.
    • Over the past 12M, Sunright led the performances of the 10 stocks, with a 136% total return. As one of the world’s largest independent providers of burn-in and test services, it reported 1HFY18 (ending 31 Jan) PBT YoY growth of 25%, building on PBT YoY growth of 75% in FY17.
  • The Next Gold Medal 

    Source: CAPER
    Date Submitted: 09 Apr 2018
    Views: 617
    Downloads: 17
    Key Points 

    The 2018 Winter Olympics sheds light on the changes taking place in South Korea where geopolitical forces have been unpredictable

    South Korea, as an export nation, is searching for its next export, with its shipbuilding industry having gone through a period of brutal consolidation 

    Private equity investment trends, especially by non-domestic investors, are hinting that those in Non-Heavy Industries could be South Korea’s next winning industry, based on their commitments and performance results of deals in this sector
  • AsianFA Economic Depreciation in the Property Value: Cross-Sectional Variations and Their Implications on Investments

    Source: Jiro Yoshida,
    Date Submitted: 02 Apr 2018
    Views: 64
    Downloads: 4
    CFA Institute Asia-Pacific Research Exchange Best Paper Award:
    I would like my accepted AsianFA paper considered for the CFA Institute Asia-Pacific Research Exchange Award, 
  • Equity Valuation Report on LafargeHolcim Bangladesh Limited

    Source: Md. Nazmus Sakib
    Date Submitted: 29 Mar 2018
    Views: 137
    Downloads: 43
    LafargeHolcim Bangladesh Limited (LHBL), previously known as Lafarge Surma Cement Limited (LSCL) produces clinker and cement in its plant located in Chhatak, Sunamganj which is the only fully integrated dry process cement plant in Bangladesh. It sources its primary raw material, limestone from its own quarry in Meghalaya, India which is brought to the plant using 17 Kilometer long conveyor belt. Currently it has 3 subsidiaries - Lafarge Umiam Mining Private Limited (100% Holding), Lum Mawshun Minerals Private Limited (74% Holding), and Holcim Bangladesh Limited (100% Holding).

    We conducted a valuation on LHBL based on Discounted Cash Flow method and relative valuation. Currently, LHBL is traded at BDT 56.9 (as on 29th March, 2018). In our valuation, the target price for LHBL based on DCF and Relative Valuation is determined at BDT 58.7 per share for 1 year holding period.

     
  • Uptake of ESG commitments and policies in the palm oil sector: focus on NDPE

    Source: Clara Melot
    Date Submitted: 27 Mar 2018
    Views: 916
    Downloads: 19
    Are palm oil companies responding to increased scrutiny of their efforts to address the most pressing Environmental, Social and Governance (ESG) issues facing the industry? How many companies have adopted robust No Deforestation, No Peat, No Exploitation (NDPE) policies? How do they compare on human rights and labour issues? This briefing provides an overview of the results of transparency assessments of 50 of the main players in the palm oil industry (37 of which are publicly listed), carried out by ZSL and accessible on the open-access SPOTT.org platform.
  • Understanding the Investment Fundamentals of the Telecommunications Sector. A part of the series "Sector Analysis: A Framework for Investors"

    Source: Alan Lok, CFA, Eunice Chu, Guruprasad Jambunathan
    Date Submitted: 10 Apr 2018
    Views: 26521
    Downloads: 119
    For investors exploring the telecommunications sector, it is important to be aware of the key economic, operational and regulatory factors influencing these firms. These not only vary from country to country but also from company to company, depending on the kind of service that is being provided – fixed line, mobile or a combination of the two. Common to all are the opportunities afforded by the growth in data and the proliferation of online services. For operators in developing markets, lower penetration rates offer long-term opportunities. Meanwhile for operators in the  developed world, staying relevant by keeping pace with technological advancements is vital. In general, the sector is marked by intense competition, hefty capital expenditure requirements (at least historically) and rigorous regulatory intrusion.

    There are three listed telecommunication stocks in the FTSE ST All-Share index, with a net market capitalisation of S$28.6 billion, and they accounted for 7.5% of the index as at 31 Jan 2018*. Of the three, SingTel is the largest constituent  company, representing about 90% of the Singapore telecommunication sector by market capitalisation.

    The sector analysis for REITs can be found on ARX here: https://www.arx.cfa/post/Understanding-Real-Estate-Investment-Trusts-REITS-Sector-Analysis-A-Framework-for-Investors-5166.html 

    To read more, download the full sector analysis for the telecommunications sector with accompanying question bank below. 

    This publication qualifies for 0.5 CE credits under the guidelines of the CFA Institute Continuing Education Program.
     
  • Weekly Market Update (18 Feb-22 Feb 2018)

    Source: EBLSL Research
    Date Submitted: 26 Mar 2018
    Views: 52
    Downloads: 9
    The prime bourse of the country extended the losing streak for the fifth straight week as investors continued their selling binge amid pessimism. Investors remained cautious as political tension along with prevailing liquidity crisis and also uncertainty over the Dhaka bourse share sales to strategic partner and followed a see-saw strategy ahead of dividend declaration.
  • Global Applications of the S&P 500® Sectors

    Source: Tim Edwards, Craig J. Lazzara, Hamish Preston, Francesca Bruna Pipino
    Date Submitted: 21 Mar 2018
    Views: 92
    Downloads: 2
    This paper examines the applications of U.S. sector indices in a portfolio context, from the perspective of both international and domestic investors. 
  • Understanding the Investment Fundamentals of Real Estate Investment Trusts (REITS). A part of the series "Sector Analysis: A Framework for Investors"

    Source: Alan Lok, CFA, Eunice Chu, Guruprasad Jambunathan
    Date Submitted: 13 Jun 2018
    Views: 16615
    Downloads: 296
    INTRODUCTION TO SECTOR ANALYSIS: A FRAMEWORK FOR INVESTORS

    The key to a company’s success depends on how well it executes its business model. This calls for optimising the allocation of limited resources to generate sustainable cash flows, for investing in new products, technologies, and services in responding to the wider competitive landscape or societal changes and mega trends, as well as for devising appropriate responses in the face of an evolving macroeconomic, regulatory, and political environment.  

    Different industries often require very different business models; and even within the same industry, the model that does add value to the business may vary somewhat from company to company.  

    To help investors undertake proper due diligence on a company, we have generated a framework of analysis designed to tease out the following: (1) whether the pertinent factors favour the firm in question; and (2) whether management is effective in executing its business model or value-generating strategies, while responding appropriately to its external environment.

    This framework is customised to specific sectors and incorporates interviews with professionals within those sectors. 
     
    REAL ESTATE INVESTMENT TRUST (REIT) SECTOR 

    REITs are vehicles that own and typically operate a portfolio of income-yielding real estate assets. Modelled along the lines of unit trusts, REITs allow for funds to be pooled from a group of investors. Such a structure provides retail investors with several advantages: a low-hurdle of entry and exposure to a diversified pool of real estate assets with a high level of liquidity, which would not otherwise be possible with direct investing. 

    Most REITs are publicly listed, and declare above 90% of their earnings as dividends to fulfil certain benefits accorded to REITs by the local securities regulator. As such, REITs provide a stable source of recurrent income, which serves as a yield play rather than an investment avenue for reaping capital gains. We believe an effective and accurate fundamental analysis can help the retail investor determine if the recurrent income is stable and/or trending upwards over the long term. 

    A REIT generally focuses on a specific category of property for investments.  Some common classifications of REITs include: Office & Commercial REITs, Retail REITs, and Industrial REITs.

    To read more, download the full sector analysis for REITs with accompanying question bank below.

    This publication qualifies for 1.0 CE credits under the guidelines of the CFA Institute Continuing Education Program.
     
  • NZFC - Modeling VXX under jump diffusion with stochastic long-term mean

    Source: Sebastian A. Gehricke, Jin E. Zhang
    Date Submitted: 14 Mar 2018
    Views: 16
    Downloads: 1
    We develop a model for the popular VXX Exchange Traded Note (ETN), using a modified Heston (1993) framework, where the volatility process has jumps and a stochastic long-term mean. We calibrate the model parameters using the VIX term structure data and show that our model provides the theoretical link between the VIX, VIX futures and the VXX ETN. Our model can be used for pricing VIX futures, the VXX ETN and other short-term VIX futures ETPs. Our model could be extended to price options on short-term VIX futures ETPs.
  • China’s Turning To “Tough Gradualism” In Disciplinng Local Government Borrowing Foretells Higher Risk of LGFV Default

    Source: Liang Zhong
    Date Submitted: 27 Feb 2018
    Views: 544
    Downloads: 5
    Creditors to China’s local government financing vehicles (LGFVs) may have some reasons to worry about their investment in these entities. Ministry of Finance in China vowed last month to break decisively the illusion of financial institutions about government bailing them out of hidden debt incurred by local governments (primarily through LGFVs). A central bank official even suggested to resort to a Detroit-type bankruptcy of local government (LGT) to break moral hazard in lending to LGFVs. These developments bring back the memory of the bankruptcy of GITIC (Guangdong International Trust and Investment Company), a high profile LGFV in China in 1999 amid mounting risk of local government hidden borrowing.
     
    However, history progresses in spiral, according to the guiding philosophy of Chinese policymakers. Thus, no wondering China appears to be getting closer to, yet is quite away from point where central government has to resort to default on LGFV bond to instill financial discipline and secure the systemic stability. Pengyuan International believes Chinese government is indeed turning to “tough gradualism” (gradually tightening discipline over LGT borrowing in practice) rather than “shock therapy” (allow LGFV default up-front); Accordingly, the risk that the first LGFV public bond default could strike in 2018 is picking up from very low level, but is still less than 50% in our estimate.  Nevertheless, further scrutiny over LGFV creditworthiness becomes increasingly necessary.
  • Asset-Backed Securitization (ABS) in China: Development and Risk

    Source: Dr. Ke Chen
    Date Submitted: 26 Feb 2018
    Views: 827
    Downloads: 29
    Asset-Backed Securitization (ABS) is relatively new to China’s financial market. It was introduced into China with a pilot securitization program in 2005 and was suspended in 2008 due to the panic of global credit crisis. Later on, the asset securitization was reinstated in 2012. However, China’s ABS market development was very slow until the explosion in 2014 after several policies in favor of asset securitization were issued. The growth was further spurred by the change of the ABS offering system from approval to registration system at the end of 2014. In 2017, the volume of domestic new issuances surged 64.7% to approximately CNY1,495 billion.
     
     
    The tremendous growth in China’s asset securitization market is driven by both government policies and market forces. While the origin, suspension, and development of China’s asset securitization are all initiated by the government, with the relaxation of policy constraints, the market factors start playing an increasingly important role in driving the market developments. On the supply side, banks have incentives to convert illiquid assets into marketable securities and transfer the loans off their balance sheet to release capital. Financially underserved corporates start using securitization as an alternate direct financing tool to diversify their funding sources and lower their funding costs. On the demand side, the developments of securitization are fueled by China households’ high
    saving ratios and the increased demand for safe and liquid assets by the asset management industry.

    While the developments of China’s asset securitization market are encouraging, the rapid expansions were accompanied by potential risks, such as misaligned incentives among the participants in the securitization process, a lack of transparency regarding underlying assets, and reliance on credit ratings and risk models which have not been tested by a stressed credit environment. These problems could possibly impede the potential benefits offered by securitization and hinder the development of China’s asset securitization market.

    Against the background, this report attempts to discuss some key issues in China’s securitization market. We start with a brief review on the history and recent developments of China’s asset securitization market. We also provide our outlook for the developments of major asset classes. We then use marketplace lending securitization and NPL securitization as examples to illustrate the potential issues in China’s securitization market. Finally, we discuss the future of China’s securitization market both from a policy and market perspective.
  • Webinar: China Property-The Significance of the Property Sector to China's Economy

    Source: Cheong Yin Chin, CFA, Luther Chai
    Date Submitted: 25 Feb 2018
    Views: 129
    Downloads: 0
    Residential home prices in China have been kept steady by an onslaught of tightening policy measures across the country since September 2016. With cities such as Lanzhou relaxing some of its restrictive measures at the start of this year, could we be on the cusp of an easing cycle?

    This on-demand 15-minute webcast explains the importance of the Chinese real estate sector and delivers a summary overview of our recent research reports. 
  • No more excuses! Performance of ESG integrated portfolios in Australia

    Source: Darren D. Lee, John Hua Fan, Victor S. H. Wong
    Date Submitted: 23 Feb 2018
    Views: 1016
    Downloads: 45
    We find compelling evidence that integrating ESG (Environment, Social and Governance) into ongoing investment practices in Australia does not harm returns, limit diversification nor adds additional risk to portfolios and investments formed from high ESG rated firms. Portfolios formed from high-rated ESG firms can provide significant outperformance, superior diversification and lower overall portfolio risk when compared to portfolios comprised of low ESG rated firms. The inclusion of ESG into investment strategies in Australia is consistent with maximising shareholder value, minimising risk and is consistent with the fiduciary responsibilities required of professional asset managers and owners. 
  • Impact of GICS Changes to Pan Asian Sectors: BAT Moving Away From Information Technology

    Source: Utkarsh Agrawal
    Date Submitted: 20 Feb 2018
    Views: 25
    Downloads: 0
    S&P Dow Jones Indices and MSCI have announced revisions to the GICS® structure, to be implemented in September 2018, that will affect the consumer discretionary, information technology, and telecommunication services sectors.
  • Updated Equity Valuation report on Square Pharmaceuticals Limited

    Source: Md.Mosavvir Al Ashick
    Date Submitted: 13 Feb 2018
    Views: 157
    Downloads: 29
    The Pharmaceuticals industry of Bangladesh is expected to grow  at  a  CAGR  of  15%  over  the  next  five  years  due  to steady  economic  growth,  population  growth,  growth  of income  level  of  people  and  increased  health  awareness. Being  the  leader  in  the  growing pharmaceuticals  industry; Square Pharmaceuticals Limited is expected to grow at the same pace with the industry.
  • IFA - Does board independence mitigate potential adverse effects of private in-house meetings?

    Source: Robert M. Bowen, Shantanu Dutta, Songlian Tang, Pengcheng Zhu
    Date Submitted: 13 Feb 2018
    Views: 43
    Downloads: 0
    Does board independence mitigate potential adverse effects of private in-house meetings?
  • Sustainable Investment in the Global Space

    Source: Emily Ulrich
    Date Submitted: 09 Feb 2018
    Views: 931
    Downloads: 16
    In recent years, sustainable investing has moved to the forefront of the global agenda.
  • IFA - Electricity Trading Viability in Indian Electricity Exchange: A case of Seasonal Option Strategies

    Source: Neha Chhabra Roy, Sankarshan Basu
    Date Submitted: 07 Feb 2018
    Views: 62
    Downloads: 0
    Electricity Trading Viability in Indian Electricity Exchange: A case of Seasonal Option Strategies
  • Demand-Supply Dynamics of Asia’s Healthcare Sector

    Source: SGX My Gateway, ,
    Date Submitted: 07 Feb 2018
    Views: 180
    Downloads: 13
    Demand-Supply Dynamics of Asia’s Healthcare Sector
    • Asia’s accelerated ageing rates and the rise of lifestyle diseases will likely boost the region’s healthcare spending outlook in coming decades, while in supply terms, the region’s medical facilities, equipment and manpower will continue to trail the per capita averages of the 34 OECD member countries. SGX-listed healthcare plays that derive significant revenues from markets beyond Singapore have exposure to these robust demand-supply dynamics.
       
    • Singapore’s listed healthcare sector, as tracked by the benchmark SGX All-Healthcare Index, consists of 30 companies and related trusts with a combined market capitalisation of more than S$34 billion. Seven of the 10 largest constituents of the Index report more than a third of group revenues to Asia Pacific ex-Singapore, namely Southeast Asia, North Asia and South Asia.
       
    • Healthcare stocks posted a mixed performance in 2017, as funds rotated out of defensives into cyclical plays. However, the tide has turned over the last few weeks, making Healthcare the best-performing sector on a market capitalisation-weighted basis in the month of December, and positive momentum continuing into the New Year.
  • IFA - Impact of Joint Audit on Audit Quality and Earnings Management: A study of Indian Companies

    Source: Leesa Mohanty, Ashok Banerjee
    Date Submitted: 05 Feb 2018
    Views: 2
    Downloads: 0
    Joint audit is a practice where two or more audit firms are appointed by an entity to express an opinion on the financial statements. Joint auditors’ co-ordinate among themselves and mutually divide the area of audit. In respect of undivided work, the joint auditors shall be jointly and severally liable. It is believed that joint audit mechanism would better address the risk of over­stated accounts or masked poor performance of organizations. Joint audits are not unusual. It was practiced in countries like Denmark, Germany, Switzerland, UK, South Africa and France. Though not mandatory, joint audit is not alien to India. The Indian accounting regulator[1] was in favor of ushering a system of ‘joint audits’ for large companies only. But, some experts were of the view that joint audit should be mandated for all listed companies and not only for large companies.[2] However, the Government of India rejected the plea by ICAI for joint audits in large companies stating that it is not a viable option for promoting domestic audit firms. Even if joint audit is mandated, it cannot be guaranteed that one small firm and one big four firm will handle the audit.
    Better audit quality provides a form of assurance to stakeholders that financial statements of the auditee firms reflect true and fair view of their actual state of affairs. Similarly, earnings quality refers to the extent to which a firm’s reported earnings accurately reflect income for that period. We propose a new measure of audit quality. Drawing from the domain of text analytics, we use relevant phrases in audit reports to gauge audit quality. Audit phrases help in detecting errors, breaches and irregularities, if any. Therefore, the language of any audit report should be unambiguous i.e., it should clearly bring out whether the reporting auditor is expressing an opinion (drawing attention, qualifying report, issuing disclaimer of opinion or passing adverse comments) or merely confirming compliance as per law. We measure audit quality by the frequency of relevant phrases used in the report. Example of such phrases includes ‘attention is drawn’; ‘we draw attention’; ‘subject to’; ‘read with’; ‘qualify’; ‘qualified’; and ‘qualification’.
    Our analysis of impact of joint audit on audit quality and earnings quality of listed companies in India is interesting for several reasons. Prior research on audit quality has used several proxies for audit quality. For example, Big N auditor, discretionary accruals, audit fees, accrual quality, going-concern opinions, or meet or beat the quarterly earnings target. Our approach differs from other studies in (a). we use a novel measure of audit quality; (b). we study the effect of joint audit on audit quality; and (c). we separately test the effect of joint audit on earnings quality.
    Based on a sample of 4068 firm-year observations, our findings suggest that joint audit has a positive and significant association with the use of relevant phrases in audit report. We also test the effect of auditor tenure with the firm and percentage of institutional ownership with the ‘new’ proxy for audit quality. We find that auditor tenure does not improve the audit quality, when interacted with joint audit. The negative relationship between JA and Institutional shareholding may be due to the minority status of Institutional shareholding. But, wherever Institutions can force joint audit, it has a positive relationship.
     
    Our study also tests the effect of joint audit on earnings quality separately. Discretionary accrual is considered as a proxy for earnings quality. It’s surprising to see that though joint audit improves the audit quality of the firm, it does not improve the earnings quality. However, when we segregate the financial firms and check the effect; we find that joint audit has a positive effect on the earnings quality. This may be due to the fact that joint audit is often mandated for state-government and financial firms. Similarly, auditor tenure and percentage of institutional ownership does not improve the earnings quality of the firm but our results show that the variables improve the earnings quality of financial firms.
     
    [1] The Institute of Chartered Accountants of India (ICAI), formed under an Act of Parliament in 1949
    [2]http://www.thehindubusinessline.com/companies/ca-institute-recommends-joint-audits-for-large-companies/article9382692.ece
  • Monetary Policy Statement, H2 FY'18 Highlights

    Source: Mohammad Rehan Kabir, Md. Nazmus Sakib
    Date Submitted: 30 Jan 2018
    Views: 168
    Downloads: 21
    Bangladesh Bank is going to pursue a ‘Cautionary’ monetary policy stance for the second half of FY18 with an aim at bringing back monetary aggregates to a sustainable growth trends by ensuring the quality of credit flows rather than restricting it.  Current monetary policy stance is formulated for the second half of FY’18 considering the actual result of H1, FY’18 and the target made for H2, FY’18. Prior to national election, Central Bank of Bangladesh undertakes a growth supportive but cautious monetary policy stance with an aim to bring price stability.
  • Market Outlook for 2018

    Source: Mohammad Rehan Kabir
    Date Submitted: 22 Jan 2018
    Views: 237
    Downloads: 42
    Our market outlook for 2018 is supported by optimism even after some glitches from economy are expected. In 2017, our capital market resembled a robust growth posting an impressive return of 24.0%. During that period, Dow Jones Industrial Average Index provided 24.2% return and SENSEX provided 29.4% return. We expect market return will remain positive in 2018, however market return may be lower than that of in 2017.Market Capitalization to GDP in DSE was 18.35% at the end of December, ’17 which was 23.56% in Colombo SE, 27.59% in Pakistan SE, 88.63% in BSE (India). We anticipate this proportion will increase further in 2018. Unlike 2017, market drivers will be from Fast Moving Consumer Good providers, Pharmaceutical and Construction Sectors. Though financial sector will face few challenges like governance issues, increased default loans, unexpected change in management, financial scams and liquidity crunch etc. but banks with strong financials and  corporate governance along with good dividend payout ratio will do well in 2018.
  • Bangladesh Money Market Scenario and Outlook

    Source: Md. Nazmus Sakib
    Date Submitted: 11 Jan 2018
    Views: 970
    Downloads: 61
    Money market of Bangladesh has gone through some swift changes due to the backlash on the liquidity. Liquidity drag has been mainly occurred due to the extensive private sector credit growth keeping most of the banks’ advance deposit ratio (ADR) close to 85%. At least 12 commercial banks including the public banks have exceeded the existing ADR limit. Private sector credit growth was mainly fuelled by borrowers’ appetite for cheap fund and banks’ opportunity to generate profit. As a drive to squeeze the excessive private sector credit growth, Bangladesh Bank plans to curtail limit on advance-deposit ratio which will persuade banks to seek large deposits in short time. To pursue the objective, deposit rate needs to be attractive for all sorts of potential depositors. The impact is already apparent in the interest rates of banks. According to the industry participants, interest rate has gone up by around 1% already from October, 2017. Upward pressure on USD has also led to a critical scenario for retaining strong liquidity of BDT. Import of consumer goods has surged to a massive level due to shortage of food supply. Furthermore, import of capital machineries has also gone up as construction of large development projects are on the pipeline. Unless strong interference is initiated by Government, USD may escalate further and lead to squeezed liquidity. Interest rate is supposed to go up further in 2018.
  • Indian Banks: 1HFY18 Review and 2018 Outlook

    Source: Ang Ben You, David Marshall
    Date Submitted: 10 Jan 2018
    Views: 270
    Downloads: 0
    • Indian banks reported lower annualized aggregate profitability in 1HFY18 due to weaker net interest revenues and higher provisions related to RBI's two lists of accounts which are slated for insolvency resolution.
    • The government's INR 2.1 tn recapitalization package is a game changer and has largely removed the capital uncertainty banks have been facing.
    • For banks under our coverage, our rough calculation reveals a capital requirement that is ~64% of the total amount pledged (INR 2.1 tn) by the government under our scenario analysis which we think is reasonable but not especially harsh.
    • Asset quality is already showing signs of stabilization and improvement but the recapitalization plan should also help support this picture into 2018 as banks find greater impetus to take haircuts and resolve NPAs on their books.
    • The expectation of a substantial pick up in credit growth due to the capital pledge is logical but we remain skeptical as the plan will be spread over two years and risk aversion will also likely  take some time to abate.
    • Removing capital concerns will help with bank valuations and in tandem with the recently introduced "Alternative Mechanism" (AM), should help with banking consolidation.
    • IFRS 9 implementation should also be easier to swallow with with more capital and a phased implementation of the CET 1 impact. 
  • Steppe Capitalist Equity Research:  APU JSC (MSE: APU)

    Source: Steppe Capitalist
    Date Submitted: 09 Jan 2018
    Views: 176
    Downloads: 21
    8 January 2018, www.steppecapitalist.com
    HOLD Rating with Target Price of MNT 866
    • We are initiating coverage of APU JSC (APU or the Company) a Mongolian Stock Exchange listed alcohol and beverage producer with a HOLD rating and 12 month target price of MNT 866.
    • Merger with Heineken (the Merger): APU is closing a merger transaction with Heineken’s business in Mongolia (Evergreen Investment LLC or Evergreen) publically announced in July 2017 and effectively becoming a near monopoly player with more than 80% share of the local alcoholic beverage market.  The transaction will mark as the largest merger in the country.
    • Immediate value drivers: (i) the Merger expected to create over MNT 13bn cost synergies in 2018-2021; (ii) a vertical integration with the trading business (APU Trading LLC), taking place as part of the Merger is an important value driver for APU public shareholders. It results in immediate 10 percentage point increase in gross margins previously only captured by the shareholders of APU Trading (Shunkhlai Group).
    • Longer term value driver: Having secured a dominant position in the local market APU is strategically focusing on growth through exports, as the market for alcoholic beverages in Mongolia (the largest EBITDA generator) has limited growth potential.
    • Having Heineken as a strategic shareholder will help APU to achieve the immediate and long-term strategic targets through the use of Heineken’s international supply chain network and marketing expertise.
    • As a result of the consolidation in 2017 APU expects to see 65% jump in revenue to MNT 492bn, 10 percentage point increase in gross margins to 39% and an EPS of MNT 68.
    • We conclude that the market has largely priced in the value gain from the Merger as the share price surged 99% since the announcement.
  • Pharmaceuticals Industry of Bangladesh

    Source: MD. Mosavvir Al Ashick
    Date Submitted: 04 Jan 2018
    Views: 200
    Downloads: 23
    Domestic market of Pharmaceutical products in Bangladesh has shown an increasing trend over the past few years and the market size is BDT 187,566 million as on 2017 Q2 (Source: IMS Health Report Q2). According to Bangladesh Bureau of Statistics, the industry has contributed 1.85% to the GDP in 2016-17 . Pharmaceutical industry of Bangladesh is largely protected from external competition, as there is a restriction regarding import of similar drugs that is manufactured locally. This industry is the second largest contributor to national exchequer. At the same time, the industry provides the largest white collar (note) intensive employment.
  • Venture Corporation Scheduled to Join STI on 5 January

    Source: SGX My Gateway
    Date Submitted: 03 Jan 2018
    Views: 232
    Downloads: 3
    Venture Corporation Scheduled to Join STI on 5 January
    • Venture Corporation is expected to join the STI effective Friday 5 Jan, with the last trading day of existing STI constituent, Global Logistic Properties, expected to be 4 Jan. Venture was selected as it maintained the highest market capitalisation of the STI Reserve on the 2 Jan close. 
    • Venture generated a 115.4% total return in 2017, with institutional net buying totaling S$133 million. The leading global provider of technology services, products and solutions reported its net profit grew 81.4% YoY for its 9MFY17 ending 30 Sep.          
    • Venture is expected to make up between 1.5% and 2.0% weightage in the STI, based on public free-float information and STI weights as of 29 Sep 2017. The IT Sector will then be represented within the STI and the Real Estate Sector is expected to reduce its weightage in the STI by 3.0% to 15.6%.  
  • SGX’s Indonesia-Focused Coal Plays Average 50.7% Gain YTD

    Source: SGX My Gateway
    Date Submitted: 26 Dec 2017
    Views: 23
    Downloads: 0
    SGX’s Indonesia-Focused Coal Plays Average 50.7% Gain YTD
    • SGX’s three Indonesia-focused coal miners – Golden Energy and Resources, Geo Energy Resources and BlackGold Natural Resources – have averaged a price gain of 50.7% in the 2017 YTD, as Indonesia’s benchmark coal price surged to a 10-month high.
    • In October, Indonesia's reference coal price, known as Harga Batubara Acuan (HBA), jumped 2.1% month-on-month to US$93.99 per metric tonne, after soaring 9.6% month-on-month in September, according to data from the country's Ministry of Energy and Mineral Resources. HBA is now at its highest since December 2016. 
    • Coal is expected to remain a vital source in meeting Indonesia's growing domestic electrification needs. In 2015, Indonesian President Widodo unveiled an ambitious 35,000 MW program to boost the country's electrification ratio to 97% by 2019, with about 25,000 MW of capacity expected to come from coal-fired power plants.
  • Oil & Maritime Indices Veered on Global Growth

    Source: SGX My Gateway
    Date Submitted: 26 Dec 2017
    Views: 637
    Downloads: 8
    Oil & Maritime Indices Veered on Global Growth
    • Two key factors currently driving the price of oil price include an upcoming decision by OPEC on whether to extend production cuts (30 Nov), in addition to continued production growth of shale in the US.
    • While price of WTI Crude Oil rallied +38% from 21 June to 8 Nov, this was largely a price recovery with the current price +3% higher than its end of 2016 level. This has coincided with downstream plays, more sensitive to global growth and trade, outperforming the oil & gas upstream plays.
    • Since 30 June, the more-downstream SGX Maritime Index has gained +24%, led by performances of Cosco Shipping International (+110.9%) and Yangzijiang Shipbuilding (+42.0%), whilst the more-upstream SGX Oil & Gas Index generated a marginal gain.
  • Longer Term Drivers of SGX Agricultural Plays

    Source: SGX My Gateway
    Date Submitted: 26 Dec 2017
    Views: 190
    Downloads: 4
    Longer Term Drivers of SGX Agricultural Plays
    • SGX lists eight Agricultural Products stocks with a combined market capitalisation of S$29 billion. In the 2017 YTD, these stocks averaged a -13.7% price change, compared to +16.7% in 2016. Global Palm Resources Holdings, which registered a price change of +15.4% in the YTD, was the best-performing stock in the sector.
    • Zion Market Research has forecast the global palm oil market to grow at a CAGR of 7.2% between 2016 and 2021. Growth drivers include higher living standards, changing eating habits, growing demand for vegetable oil as a feedstock for biodiesel production as well as low prices compared to soybean and other vegetable oils.
    • Palm oil prices for the rest of 2017 are projected to remain firm, given the seasonally strong fourth quarter, according to Bloomberg Intelligence. A further boost could come from weaker-than-expected output, as well as an anticipated cut in Europe's import tariffs for Indonesia's biodiesel.
  • Highlights of Gold Opportunities on SGX

    Source: SGX My Gateway
    Date Submitted: 26 Dec 2017
    Views: 182
    Downloads: 6
    Highlights of Gold Opportunities on SGX
    • SGX offers investors opportunities to participate in the gold sector through three mining stocks – Wilton Resources, CNMC Goldmine and Anchor Resources – and one Exchange Traded Fund, the SPDR Gold Shares ETF.
    • Spot gold has fallen over 4% since hitting a one-year high of US$1,349.22 on 7 September 2017, which reduces its YTD gain to 12%. Bullion's performance has been impacted by flagging investor interest after the recent surge in US equity markets, the focus on cryptocurrencies like Bitcoin, and as central banks began paring their stimulus policies.
    • The World Gold Council has consistently flagged the diversification role of gold, noting that the commodity fulfils a classic role as a haven asset. A key motivation for including bullion in a portfolio has been the metal’s history of maintaining low correlations to most other asset classes, which helps to reduce overall portfolio risk.
  • Carbon Pricing: The Business Case for Low-Carbon Innovation

    Source: Rochelle March
    Date Submitted: 22 Dec 2017
    Views: 197
    Downloads: 0
    The belief that economic growth is possible without lowering carbon emissions is becoming harder to sell by the minute.
  • Passive Fund Providers Take an Active Approach to Investment Stewardship

    Source: Hortense Bioy, CFA, Alex Bryan, CFA, Jackie Choy, CFA, Jose Garcia-Zarate, Ben Johnson, CFA
    Date Submitted: 11 Dec 2017
    Views: 1253
    Downloads: 8
    As assets continue to flow from actively managed to index-tracking strategies, the largest index asset managers are becoming increasingly influential, often ranking among the largest investors of public companies. Despite this fact, little research has been done to understand how index managers carry out their investment stewardship responsibilities. In this paper, we share our findings and highlight what managers have in common and areas where they differ. We also provide a list of best practices that investors can use to assess how asset managers stack up.
  • A Comparative Analysis on Listed IT Companies of Bangladesh

    Source: Asaduzzaman Ashik
    Date Submitted: 09 Dec 2017
    Views: 189
    Downloads: 20
    IT Industry has been professed as a thrust sector assessing the ability and interests of young populace of the country. In Bangladesh, there are more than 100 software houses, 35 data entry centers, thousands of formal and informal IT Training centers and numerous computer workshops. VAT  has  been  withdrawn  from  locally  developed  Software,  Digital  Data  Network has  been  introduced,  and  VSAT  is deregulated in Bangladesh. Some remarkable events are going on in every sector covering E -commerce, E-governance, Computer Networking, Internet, Web Browsing, Web Applications, Multimedia Product Development and others.

     
  • Changing Landscapes in the Singapore Retail Property Market

    Source: SGX My Gateway
    Date Submitted: 04 Dec 2017
    Views: 1226
    Downloads: 33
    Changing Landscapes in the Singapore Retail Property Market
    • Singapore retail space vacancy rose to 7.7% in 1Q17 despite a 2.9% QoQ decline in price rentals. However, impact of retail headwinds may not be evenly felt across all malls.
    • New supply of retail malls largely located in Outside Central Regions, in line with the government’s plan of decentralised business districts and growth of regional centres.
    • SGX lists 12 Retail REITs & Property Trusts which have retail properties within their asset portfolios with a combined market capitalisation of S$30.9 billion. These 12 trusts have generated a market cap weighted average total return of 16.2% in the YTD and have an average dividend yield of 6.1%.
  • Recent Trends & Moves in Singapore’s Hospitality Trusts

    Source: SGX My Gateway
    Date Submitted: 04 Dec 2017
    Views: 755
    Downloads: 12
    Recent Trends & Moves in Singapore’s Hospitality Trusts
    • Hotel RevPar in 2016 fell 4.7% YoY despite an increase of 7.7% in tourist arrivals, with a slower rate of decline since 2017. Hotel occupancy rates remain at an 8 year average of 86%.
    • New hotel room supply in 2017 stands at 3,400 rooms (URA 1Q17 data), 60% higher YoY, but supply is expected to ease in 2018 due to lack of supply of new land for hotel development.
    • SGX lists one Hospitality REIT and five Hospitality Stapled Trusts with a combined market capitalisation of S$9.1 billion. These six trusts have generated a market cap weighted average total return of 19.0% in the YTD and have an average dividend yield of 6.5%.
  • CROWDFUNDING MALAYSIA'S SHARING ECONOMY - Alternative Financing for Micro, Small and Medium Enterprises

    Source: Dr Raymond Madden, Chief Executive Officer, Asian Institute of Finance, Kee Gek Choo, General Manager, Strategy, Policy Development and Research, Asian Institute of Finance
    Date Submitted: 27 Nov 2017
    Views: 4201
    Downloads: 85
    FOREWORD


    Although a relatively new phenomenon in Malaysia, crowdfunding has been greeted by the government and market alike as a part of disruptive financial technologies (FinTech) that add impetus to Malaysia’s move towards a 21st century digital economy. With the government’s policy commitment, financial assistance, regulatory supervision and other supportive measures, crowdfunding is expected to accelerate in the near future as a critical source of alternative financing for SMEs to create new employment, enhance social participation and help Malaysia adjust to the fast-shifting dynamics of the global economic and social landscape. In spite of its promising prospects, there are gaps in awareness of what crowdfunding is and the opportunities and risks it presents. There is a shortage of actionable information on: • the role of crowdfunding in the policy, business and financing environment for SMEs; • the level of understanding of crowdfunding among the public and small entrepreneurs; • their interest and willingness to participate in crowdfunded projects/activities; and • the effectiveness of the national ecosystem for crowdfunding. This report addresses these gaps to help realise the full potential of crowdfunding in Malaysia. It is based on a two-phase research study. The first consisted of a quantitative survey of the public and small entrepreneurs within the Klang Valley, and the second involved desk research and consultations with crowdfunding platform operators, national agencies/institutions, sophisticated investors and start-up entrepreneurs. The report describes a vibrant crowdfunding environment emerging in Malaysia following Bank Negara Malaysia’s policy support for alternative financing, and the Securities Commission Malaysia’s introduction of regulatory frameworks for equity crowdfunding (ECF) in 2015 and peer-to-peer crowdfunding (P2P) in 2016. Since crowdfunding continues to evolve rapidly around the world and is still at an early stage in the country, the insights offered by this report are an initial but comprehensive snapshot of the local crowdfunding environment and its future growth potential.
  • Asset pricing implications of your mutual fund manager's constraints

    Source: Pratish Patel, Brian Ayash, Ziemowit Bednarek
    Date Submitted: 26 Nov 2017
    Views: 165
    Downloads: 3
    By the end of 2015, U.S. mutual funds managed $15 trillion in assets. These funds control about 25% of the equity and 40% of the commercial paper market. As a result, regulations affecting these funds have asset pricing implications. In this paper, we analyze the liquidity management constraint imposed on these funds by the Investment Company Act of 1940. Due to the Act, some funds do not trade illiquid stocks. The non-tradability of these stocks leads to sub-optimal risk sharing. In a competitive equilibrium, we show that this constraint generates the ``betting against beta'' phenomenon. Moreover, because of this constraint, alpha is non-zero in general. Adding factors to eliminate alpha is therefore a futile exercise. Lastly, we empirically corroborate the theory by offering an alternate explanation of the distress risk anomaly. 
  • AFM - Implications of Buy-Side Analyst Participation in Public Earnings Conference Calls

    Source: Andy Call, Nate Sharp, Tom Shohfi
    Date Submitted: 26 Nov 2017
    Views: 105
    Downloads: 2
    The Q&A session of public earnings conference calls represents a unique opportunity for stakeholders to interact with senior management. We examine buy-side analysts’ participation on these calls and the associated capital-market implications. Using 81,000 transcripts for 3,300 companies from 2007 to 2016, we find that buy-side analysts ask questions on approximately 18% of calls. Management prioritizes buy-side analysts, but discriminates against analysts from hedge funds when short interest is high. Relative to sell-side analysts, buy-side analysts’ interactions with management are shorter and less favorable. Buy-side appearances are also associated with increases in information asymmetry and reductions in sell-side activity.
  • Properties and the Predictive Power of Implied Volatility in Dairy Market

    Source: Adrian Fernandez-Perez, Bart Frijns, Ilnara Ga atullina, Alireza Tourani-Rad
    Date Submitted: 22 Nov 2017
    Views: 132
    Downloads: 7
    We examine the information content and predictive power of implied volatility
    derived from New Zealand Exchange options on whole milk powder futures. We
    first construct a market-based forecast of volatility using the implied volatilities
    from the option pricing approximation of Barone-Adesi and Whaley (1987). To
    construct the implied volatility index for the Dairy market (termed the DVIX) we
    follow the CBOE VXO (old VIX) methodology. The analysis of seasonalities in the
    DVIX reveals month-of-the-year effect with a decrease in the DVIX during April,
    May and June. We also find an inverse return-volatility relationship which exhibits
    asymmetry, implying that positive moves in the WMP futures prices are associated
    with larger absolute changes in the DVIX than negative moves in the WMP Futures
    prices. By estimating several in- and out-of-sample forecasting models, we find
    that both historical and implied volatility contain useful information about future
    realized volatility and that their combination produces the best forecast of the
    subsequent realized volatility.
  • Singapore Office Property Market Stabilising Despite Headwinds

    Source: SGX My Gateway
    Date Submitted: 20 Nov 2017
    Views: 708
    Downloads: 1
    Singapore Office Property Market Stabilising Despite Headwinds
    • 1Q17 office space vacancy rates peaked at 11.6%, highest in five years. Office rental rates continue to decline and Grade A office rents stabilising QoQ, indicating signs of stabilisation in office rental rates.
    • Office space supply is expected to peak in 2017 and taper off in the next few years. CBRE Research believes that sentiment has swung from pessimism to optimism as investors forecast a period of relatively modest supply over the next few years.
    • SGX lists six Office REITs (GICS®) with a combined market capitalisation of S$12.8 billion. These 6 trusts have generated a market cap weighted average total return of 16.9% in the YTD and have an average dividend yield of 5.7%.
  • Green Shoots Emerge Despite Challenging Industrial Property Market

    Source: SGX My Gateway
    Date Submitted: 20 Nov 2017
    Views: 78
    Downloads: 2
    Green Shoots Emerge Despite Challenging Industrial Property Market
    • Singapore’s industrial property market remains challenging as industrial space supply is expected to peak in 2017, before tapering off in the next few years.
    • Green shoots in manufacturing activity data, and the Singapore government’s economic shift, coupled with its focus on higher value-added businesses, bode well for industrial property demand.
    • SGX lists 11 REITs & Property Trusts which have industrial properties within their asset portfolios. These 11 trusts have generated an average year-to-date total return of 19.0%.
  • China Banks 3Q17: Convertible Boost to CET1

    Source: Matthew Phan, CFA
    Date Submitted: 14 Nov 2017
    Views: 246
    Downloads: 0
    • The major Chinese banks generally delivered stronger earnings in 3Q17 with profits up YoY across all banks except for Citic where they were flat. 
    • Net interest margins ticked up QoQ across banks but the drivers are different for the big four versus BoCom and the joint stock banks. For the big four, the NIM levels are higher than the previous year as lending rates especially on interbank assets have picked up. BoCom and the joint stock banks also saw NIM tick up QoQ in 3Q - due to a run off of deposits and a run-up in loan deposit ratios - but levels are still 20-40 bp lower than the previous year. 
    • Gross NPLs and ratios have mostly stabilized, with the exception of Shanghai Pudong where loan quality worsened further in 3Q. Investment receivables, usually shadow loans, declined QoQ across the joint stock banks, though the books are still very large. Provision costs have moderated but the run rate of credit costs is still quite high and banks are rebuilding provision coverage. 
    • Loan growth has slowed slightly among the big banks, due to an easing of mortgage loan growth, while at joint stock banks the loan growth is generally faster and trends are more mixed. 
    • Liquidity remains stretched at BoCom and the joint stock banks where loan to deposit ratios, even when excluding shadow loans, have shot up to 90% or higher, from mostly below 80%, over the last two and a half years. 
    • CET1 ratios are stable and relatively strong at the big banks and Merchants, but some joint stock banks are under pressure and have used convertible bonds or private placements to raise CET1 capital.  For example, Everbright Bank lifted its CET1 ratio slightly by issuing convertible bonds (not the same as AT1 prefs) which are partly accounted for as equity, with this portion also counting as regulatory CET1 capital. Minsheng and Ping An respectively plan RMB 50 bn and RMB 26 bn of similar convertible bond issuance. Separately Shanghai Pudong also improved CET1 via private placement of new shares.  These examples reflect banks finding creative solutions to capital raising while they remain restricted from public equity capital raising as their price/book multiples are still under 1x. 
  • Different Faces of Understanding S&P BSE Sensex using valuation measures

    Source: Apoorva Ramani
    Date Submitted: 13 Nov 2017
    Views: 227
    Downloads: 15
    In India, investors often use to the BSE Sensex index to keep a track of market valuations. Most investors interpret the movement of Sensex in different ways using valuation measures. Price to earnings (P/E) and Price to book value (P/B) ratios are predominantly used to analyse the Sensex movement. When these ratios are used they in fact convey different stories about S&P BSE Sensex. These ratios help the investor to understand whether the market is undervalued or overvalued. The price to earnings ratio is calculated by taking the ratio of Market price of the stock to its Earnings per share (EPS). A high price to earnings ratio indicate that the investors are expecting high earnings growth in the future when compared to low P/E. The price to book value ratio is used to compare a stocks market value to book value. A low P/B ratio could indicate that the market/stock is undervalued. The growth of the equity market in India has been phenomenal in the present decade. Right from early nineties, the stock market witnessed heightened activity in terms of various bull and bear runs. One can identify and understand all the booms and busts of the equity market from the Sensex market. It has indeed emerged itself as one of the most prominent brands in the country.         
     
  • Singapore Private Property Market Shows Signs of Stabilising

    Source: SGX My Gateway
    Date Submitted: 13 Nov 2017
    Views: 321
    Downloads: 4
    Singapore Private Property Market Shows Signs of Stabilising
    • Singapore’s private property market appears to be stabilising as URA’s 2Q17 flash estimates show smallest QoQ price decline of private residential property prices since 4Q13. YTD average monthly primary private home sales volumes are also 74.6% higher YoY.
    • Existing property cooling measures are likely to remain despite recent calibrated adjustments. In the medium term, MAS believes that Singapore’s property prices should be aligned with broader income trends in the local economy.
    • SGX lists six Real Estate Management & Development (GICS®) stocks with market capitalisation above S$1 billion that have substantial exposure to the Singapore property market. These six companies have an average total return of 29.2% in the year thus far.
  • SGX Real Estate Index Returned 19.5% YTD on Positive Indicators

    Source: SGX My Gateway
    Date Submitted: 13 Nov 2017
    Views: 105
    Downloads: 1
    SGX Real Estate Index Returned 19.5% YTD on Positive Indicators
    • The SGX Real Estate Index, a benchmark for Singapore’s Real Estate Sector, has returned 19.5% in the YTD. Domestic private home prices have shown signs of stabilisation in recent months, with a pick-up in primary transaction volumes.
    • There are 104 Real Estate companies (diverse across assets) with a combined market capitalisation of almost S$190 billion listed on the SGX. Some key drivers for the sector include population growth, government cooling measures, land supply and interest rates.
    • Post the YTD rally, sector valuations remain below their long-term historical average. Singapore property developer stocks are trading at PB ratio of 0.75x vs their long-term average of 0.83x.
  • 10 Biggest US Exposure Plays Generated 35.6% YTD Weighted Returns

    Source: SGX My Gateway
    Date Submitted: 07 Nov 2017
    Views: 37
    Downloads: 0
    10 Biggest US Exposure Plays Generated 35.6% YTD Weighted Returns
    • US 3Q GDP will be released on Oct 27 (Fri). Focus will be on economic impact from hurricane Harvey and Irma, President Trump’s push for US tax reforms and decision on the Federal Reserve Chair replacement.
    • The 10 largest capitalized stocks with at least 20% of their revenue from US have averaged a market capitalisation-weighted total return of 35.6% in the year to date. This compares with the Dow Jones Industrial Average and S&P 500 Index’s 13.2% and 9.2% respectively in SGD terms.
    • The six non-inverse US equity ETFs listed on SGX have averaged a total return of 12.5% in the year thus far. There are 10 US ETFs listed on SGX. Seven track equity indices (including one S&P 500 Inverse Daily (-1x), two fixed-income assets, and one that tracks the money market.
  • S-REITs in a Rising Interest Rate Environment

    Source: SGX My Gateway
    Date Submitted: 07 Nov 2017
    Views: 261
    Downloads: 8
    S-REITs in a Rising Interest Rate Environment
    • In the year-to-date, the SGX S-REIT Index has generated a 15.5% price gain and 21.2% total return (inclusive of dividends), compared to the benchmark STI’s 15.6% price gain and 19.0% total return. Singapore’s 3-month SIBOR has gained 16.2% in the same period.
    • In theory, a rise in interest rates will lead to an increase in borrowing costs, which impacts the profitability of REITs and their ability to make acquisitions. However, gradual rate increases are also often associated with improving economic growth, which indirectly boosts REITs’ earnings.
    • The SGX S-REIT Index maintains a median gearing ratio of 34.0%, below the 45.0% limit. In terms of valuation, yield spreads between S-REITs and 10-year government bonds are at 385bps, 39bps above the long term average of 346bps.
  • 20 Largest China Plays Returned 27% in the YTD

    Source: SGX My Gateway
    Date Submitted: 05 Nov 2017
    Views: 82
    Downloads: 5
    20 Largest China Plays Returned 27% in the YTD
    • China’s 2017 GDP forecast was revised higher to 6.7% QoQ. Some of China’s growth drivers for the economy include its OBOR Initiative, supply-side structural reform, SOEs reform, growing middle-income class and domestic consumption, and the “Made in China 2025” new economy programme.
    • Close to a quarter (or 180) of SGX-listed companies generate at least 20% of their revenue from China and 80% of these companies derive half or more of their revenue from China. These companies provide investors with revenue exposure to China’s growth story.
    • Of the 20 largest capitalised stocks with at least 50% of their revenue generated from China, 16 saw positive YTD price returns. The five best performing stocks were Hi-P Intl (+165.7%), Elec & Eltek Intl Co (+66.4%), China Sunsine Chem Hldgs (+59.0%), Global Logistic Properties (+49.1%) and Yanlord Land Group (+25.0%).
  • FTSE ST China Index up 18% in 2017 YTD

    Source: SGX My Gateway
    Date Submitted: 05 Nov 2017
    Views: 61
    Downloads: 2
    FTSE ST China Index up 18% in 2017 YTD
    • In the 2017 YTD, Singapore’s FTSE ST China Index has generated a total return of 17.9%, compared to a 14.9% return for the H-share Index in SGD terms.
    • The FTSE ST China Index consists of FTSE ST All-Share Index constituents that report either at least half of their sales revenues from Mainland China, or report at least half of their operating assets in Mainland China.
    • CWT, Hi-P International, Valuetronics Holdings and Geo Energy Resources will join the FTSE ST China Index on 18 September. This will take the number of constituents in the Index to 21. There are no Index exclusions following the recent review.
    • These four pending FTSE ST China Index entrants have generated average price gains of 72% in the 2017 YTD, ranging from a 8.9% gain for Geo Energy Resources to a 172.6% gain for Hi-P International.
  • Most S&P and Dow Jones Islamic Indices Outperform Conventional Benchmarks in 2017

    Source: Michael Orzano
    Date Submitted: 02 Nov 2017
    Views: 256
    Downloads: 0
    Most S&P and Dow Jones Shariah-compliant benchmarks outperformed their conventional counterparts year-to-date through September 27, 2017.
  • 人工智能风口下的量化投资

    Source: 任瞳,兴业证券研究所,总经理助理、首席定量分析师、定量研究团队负责人
    Date Submitted: 01 Nov 2017
    Views: 280
    Downloads: 8
            在2017年0月18日由CFA中国上海主办的量化金融分会中,来自兴业证券研究所总经理助理、首席定量分析师、定量研究团队负责人任瞳先生在主题为“A股金融工程卖方学术研究漫谈”的圆桌论坛中分享了其对“人工智能时代的大数据投资”的研究。
            任瞳先生首先从人工智能与量化投资的关系、人工智能维度下量化投资的部分成果、人工智能在量化投资领域应用前景几个方面阐述了两者之间的紧密联系。
            随后,任瞳先生重点介绍了其团队针对雪球网在大数据方面进行的研究。根据雪球网的用户大概有三种行为:讨论(用户的发帖行为)、 交易(用户的关注行为)、 调仓(投资组合调整行为) ,总共构建了三个选股因子,分别是关注度因子、价值变动因子和负面情绪因子。其团队根据这三个因子分别构建了一些投资策略(见PPT),证实因子还是非常有效的,包括负面情绪因子如果跟反转因子如果结合起来的话,效应会更强。
            最后,任瞳先生提到了机器学习,其团队是比较早开始相关研究的。首先第一步是做了很多常见算法跟多因子模型的结合,即在常见的机器学习的算法和多因子体系结合的情况。机器学习为量化投资提供了新的工具,初步研究结果显示相比传统方法其更灵活效果更好,应用前景十分广阔,但同时须对过度数据挖掘等问题保持警惕。 
  • China-Focused Materials Stocks Led Sector’s YTD Gains

    Source: SGX My Gateway
    Date Submitted: 01 Nov 2017
    Views: 121
    Downloads: 1
    China-Focused Materials Stocks Led Sector’s YTD Gains
    • The Materials Sector has been Singapore’s second best performing Sector in the 2017 YTD with a market capitalisation-weighted average price gain of 31%. This compared to a 10% gain for the MSCI World Materials Index.
       
    • The YTD median gain of Singapore’s 10 largest capitalised Materials stocks was 5%, with a much higher average gain of 54%. Meanwhile, Singapore’s 10 largest capitalised Materials stocks that report the majority of their revenue to China generated a YTD median gain of 44% and average gain of 87%.
       
    • As many as seven of Singapore’s 10 largest capitalised Materials stocks with a China revenue focus reported 1HFY17 net profit growth. This ranged from +414% YoY net profit growth for Jiutian Chemical Group to +37.7% YoY net profit growth for Tat Seng Packaging Group.
  • ASEAN Plays Poised to Gain from China's Belt & Road Initiative (OBOR)

    Source: SGX My Gateway
    Date Submitted: 30 Oct 2017
    Views: 1849
    Downloads: 61
    ASEAN Plays Poised to Gain from China's Belt & Road Initiative (OBOR)
    • With its geographical proximity and relatively low risk profile, ASEAN is expected to be a key beneficiary and bridgehead of OBOR as it sees more infrastructure developments and improvements, as well as increased trade and regional connectivity in the region.
    • Singapore, being a member state of ASEAN, has significant roles to play in the OBOR initiative through its status as a financial hub. In addition, Singapore has established industries with the expertise to drive and support infrastructure development for OBOR in ASEAN.
    • SGX lists 192 stocks (c.25%) with at least 20% of their revenue generated from ASEAN across the GICS® Industrials, Materials, and Utilities Sectors. Of the 20 largest capitalised stocks, 13 saw positive YTD price returns. The five best-performing stocks were Jardine Strategic (+25.5%), Straits Trading (+25.1%), Riverstone Holdings (+18.7%), SBS Transit (+17.9%) and Keppel Infrastructure Trust (+16.8%).
  • SGX: China Environmental Plays in Spotlight as China Goes Green

    Source: SGX My Gateway
    Date Submitted: 30 Oct 2017
    Views: 845
    Downloads: 19
    SGX: China Environmental Plays in Spotlight as China Goes Green
    • Environmental protection and pollution control are becoming increasingly important in China’s policies, as the country strives to develop an ecological civilisation. During its journey to become a green economy, businesses with a focus on environmental utilities in China will likely play important roles.
    • The Chinese government has stepped up efforts to boost environmental protection in recent years, launching several initiatives to promote a greener and cleaner economy, investing in renewable projects and increasing enforcement on pollution domestically.
    • SGX has a cluster of 15 China environmental stocks with a combined market capitalisation of S$5.8 billion. The five biggest China environmental plays are CITIC Envirotech, SIIC Environment, China Everbright Water, China Jinjiang Environment and Sunpower Group.
  • Bangladesh Power Sector Overview- Oct' 2017

    Source: Mohammad Asrarul Haque
    Date Submitted: 26 Oct 2017
    Views: 791
    Downloads: 73
    Power is the prime mover of any economy. Any big push of the economy would need uninterrupted power supply. The provision of adequate and reliable supply of electricity at a reasonable cost is a pre-requisite to attain the goal of being a middle income country by 2021.The report contains major highlight on ongoing state of power supply in Bangladesh, major steps and new approvals of power supply as well as financial highlights of some listed power producing companies.
     
  • Top 5 Pharma Companies Performance

    Source: Akramul Alam, CIMA part qualified
    Date Submitted: 17 Oct 2017
    Views: 163
    Downloads: 23
    Snapshot of Top Listed Pharmaceutical Companies Performance.
  • Basel 3 Impact of Banks

    Source: Akramul Alam, CIMA part qualified
    Date Submitted: 17 Oct 2017
    Views: 126
    Downloads: 18
    Basel 3 Impact on banks.
  • SGX’s 20 Biggest China-Related Enterprises Returned 39.8% in YTD

    Source: SGX My Gateway
    Date Submitted: 15 Oct 2017
    Views: 2786
    Downloads: 16
    SGX’s 20 Biggest China-Related Enterprises Returned 39.8% in YTD
    • 20 of the biggest and active stocks with a China head office have averaged a market capitalisation-weighted total return of 39.8% in the year to date. This compares with the Shanghai Stock Exchange Composite Index’s (SHCOMP) +8.0% (in SGD terms).
    • The 20 biggest stocks maintain market capitalisation-weighted P/E and P/B ratios of 11.2x and 1.3x respectively, below 17.6x and 1.9x respectively for the SHCOMP. Nine of these stocks maintain higher ROEs than the SHCOMP’s 10.7%.
    • The five best performers among the 20 stocks in the YTD are Delong Holdings, Yangzijiang Shipbuilding, China Sunsine Chemical Holdings, Yanlord Land and China Aviation Oil. They maintain an average ROE of 16.2%.
  • 聚焦中国市场的材料股引领今年板块涨势

    Source: 新交所
    Date Submitted: 10 Oct 2017
    Views: 199
    Downloads: 0
    聚焦中国市场的材料股引领今年板块涨势
    • 材料板块是新加坡 2017 年年初至今表现第二出色的板块,市值加权平均涨幅为 31%。相比之下,MSCI 世界材料指数上涨了 10%。
    • 新加坡市值最大的 10 只材料股年初至今的涨幅中值为 5%,平均涨幅则为 54%。同时,新加坡市值最大且大部分收入来自中国的 10 只材料股年初至今的涨幅中值为 44%,平均涨幅为 87%。
    • 新加坡市值最大且聚焦于中国市场的 10 只材料股中有 7 只股票报告 2017 财年上半年净利润录得增长。这些公司的净利润同比增幅介于九天化工集团 (Jiutian Chemical Group) 的 414% 至达成包装集团 (Tat Seng Packaging Group) 的 37.7% 之间。
     
    材料板块以主要业务是将原材料转化为工业材料用品的股票为代表。这类公司可能涉及勘探、开发或加工活动。根据全球行业分类标准(GICS®),材料板块包括制造化学品、建材、玻璃、纸类产品、木材产品及相关包装产品的公司以及钢铁生产商等金属、矿物和采矿公司。
     
  • A Comparative Analysis on Fuel-Oil Distribution Companies of Bangladesh

    Source: Md. Nazmus Sakib
    Date Submitted: 05 Oct 2017
    Views: 5021
    Downloads: 78
    Petroleum sector is considered the most sensitive sector of economy. Macroeconomic indicators are highly sensitive to the price of petroleum products.  The three  oil  distribution  companies  namely Padma  Oil  Company  Limited,  Jamuna  Oil Company Limited, and Meghna Petroleum Limited  procure,  store,  and  market petroleum  products  all  over  the  country from  their  main  installations.  The  price and  margin  of the  petroleum  products  is fixed by the Government on the basis of quantity sold. According to BPC, the demand  of  petroleum  products  in  our country  stood  at  5.26  million  MT  in  year 2015-16
  • Pharmaceutical Industry Analysis- Abstract

    Source: Akramul Alam, CIMA part qualified, Md. Kamruzzaman
    Date Submitted: 02 Oct 2017
    Views: 218
    Downloads: 29
    Summary of pharmaceuticals industry from global & Bangladesh viewpoint
  • The importance of trust for inter-organizational relationships: A study of interbank market practices in a crisis

    Source: Alexander Rad
    Date Submitted: 28 Sep 2017
    Views: 547
    Downloads: 0
    The paper presents crisis contingent practices relevant for counterparty risk assessments in the interbank market.
  • 3 Industries That Could Change Forever And How Should We Invest

    Source: CS Chong
    Date Submitted: 24 Sep 2017
    Views: 1448
    Downloads: 32

    Disruption seems to be the buzz word nowadays. In last year’s National Day Rally, PM Lee Hsien Loong spoke at length about disruption and how it is the “defining challenge of the economy”. He stressed that Singapore has to embrace changes, raise the level of technology adoption among companies, and train workers to upskill. In essence, disruption should be seen not as a threat, but an opportunity to transform industries to remain relevant and competitive.

    According to the online Cambridge Dictionary, to disrupt means ‘to prevent something, especially a system, process, or event, continuing as usual or as expected’. There is even a specialised definition in the business context: to change the traditional way that an industry operates, especially in a new and effective way.

    Right now, we are seeing the full impact of disruption being played out in Singapore particularly in 3 sectors: taxi, telecommunication, print media.

    Taxi

    Let us first look at taxi segment. The emergence of Grab and Uber have single-handedly revolutionalised the way we consume taxi services and pulling us away from the traditional taxi operators. They started by offering a new channel of taxi booking applications, then moved on to carve out a new avenue of private taxis. Then came throngs of new drivers offering transport services using their private cars, competing directly with taxi drivers. Now we are seeing Grab implementing a new electronic payment system which could pay for daily purchases. Essentially they are creating a whole new commercial ecosystem anchored by taxi services with a complementary offering in e payment that brings about consumer stickiness.

    ComfortDelgro Corporation Limited (SGX:C52) has been adversely affected by Grab and Uber. In the most recent quarter, its revenue and operating profit dropped 3.4% and 9% respectively. The taxi segment saw its revenue dropped 11%. The market has responded by pushing its share price down to around $2.2 which is at a multi-year low.

    Telecommunication

    Telecommunication is another sector that is facing disruption. However, it is not caused by a new business model offering alternative services, but instead the entrance of a new player into an oligopolistic industry that has remained status quo for a long time. TPG Telecom, an Australia fixed network company, has successfully bidded to be the fourth mobile telecommunication company in Singapore, muscling its way into the field occupied by Singapore Telecommunications Ltd (SGX:Z74), Starhub Ltd (SGX:CC3) and M1 Ltd (SGX:B2F). Under regulations, it is required to roll out nationwide 4G services by Oct 2018.

    When there is a new player entering an industry with matured players and stable dynamics, chances are the new player will resort to aggressive price tactics to wrestle customers away and gain market share. It is highly probable for Singapore with a small market and a mobile penetration of 150%. Existing telcos, to defend their market share, would need to up their offerings with innovative products and attractive pricing to retain customers. A case in point: the return of unlimited-data mobile plans recently.

    Arguably, M1 as the smallest telco would be the worst affected. It is heavily dependent on Singapore’s mobile market, with less diversified operations and smallest customer base. Expenses will rise in marketing, recruitment, handsets subsidies to retain customers. In its latest quarterly results, its handset cost of sales rose by 17%, while its EBITDA margin for service revenue shrank from 40.3% Q2 last year to 35.9% this year.

    It’s share price? Currently trading at around $1.80, also a multi-year low unseen since the Global Financial Crisis.

  • Apple iPhone X And Its 7 Asia-Listed Suppliers

    Source: Stanley Lim
    Date Submitted: 24 Sep 2017
    Views: 375
    Downloads: 16

    And here are some of the Asia-listed suppliers of Apple Inc that might be impacted by its new product ranges.

    The iPhone

    As the largest contract manufacturer in the world, Hon Hai Precision Industry Co. Ltd (TPE:2317), better known as Foxconn is a key assembler for Apple Inc. The company has grown together with Apple and currently employed more than 1.3 million people in its organization.

    Listed in Taiwan, the company is currently trading around 13.4 times its earnings and offering a 3.9% dividend yield.

    The Chip

    Apple products are as much about the hardware as it is about the software. And at the heart of the software is its processing microchip. On this end, Taiwan Semiconductor Manufacturing Company Ltd (TSMC) (TPE:2330), the largest semiconductor foundry in the world is also a key supplier to Apple. TSMC has been one of the performing stocks among the Apple suppliers in the past decade. Even from its peak price of TWD66.00 per share back in 2007, its share price now is more than 3 times at TWD 218.0 per share. Listed in Taiwan, the company is still only trading at 16 times its earnings and offering a 3.2% dividend yield.

    The Camera

    iPhone prided itself as having one of the best imaging cameras for any smartphones available. In iPhone X, there are not just two but four cameras within the phone, with two 12MP back cameras, one 7MP front camera and an infrared camera front camera as well. This means that its camera supplier might have double the order from the same quantity of phone. One of its camera suppliers is Cowell E Holdings Inc (HKG:1415).

    Listed in Hong Kong, Cowell E Holdings is now trading at 11.7 times its earnings and offers a 1.5% dividend yield to investors.

    The Apple Watch

    One of the fastest growing product for Apple is its Apple Watch. According to its keynote event last week, Tim Cook mentioned that Apple Watch is now the largest watch brand in the world, overthrowing the long-term crown, Rolex. It is also growing extremely fast, growing more than 50% in sales since last year. One of Apple Watch assembler is listed in Taiwan. It is Quanta Computer Inc (TPE:2382).

    It is currently trading around 18 times its earnings and offering a 5% dividend yield for investors.

    The Speakers

    Sound quality has been very important for Apple. The iPhone has been focused on making a great sound. This is done with the help from one of its speaker manufacturer, AAC Technologies Holdings Inc (HKG:2018).

    AAC Technologies Holdings Inc is listed in Hong Kong. It is trading around 30 times its earnings and offering a 1.1% dividend yield to its shareholders. Interestingly, the company has also been the target of a short seller attack back in May 2017. Gotham City Research claimed that the company has used “dubious accounting” method to overstate its profits and evade Apple’s labour standards.

    Although nothing was proven from the attack, investors should be aware of this incident before investing in ACC Technologies.

    The Display

    Lastly, the iPhone X has changed its display to the OLED technology. This marks a sharp shift in the future of display technology for Apple. One of the companies that might benefit from it could be LG Display Co Ltd (KRX:034220), a key global leader in the OLED technology.

    LG Display Co is listed in South Korea, with a price to earnings ratio of 5.2 times but only offers a 1.5% dividend yield.

    Value In Focus

    These companies might have a skin in the game for the success of Apple. However, investors have to understand that due to Apple’s enormous pricing power over its suppliers, not all of its suppliers would benefit as Apple grows. Moreover, Apple has a history of switching suppliers when they change their components. The example of changing its display technology to OLED is one such example. If the suppliers are unable to change with Apple, it would be left behind.

  • Chinese Growth Concerns Weigh Heavy on Metals

    Source: Jodie Gunzberg, CFA
    Date Submitted: 18 Sep 2017
    Views: 187
    Downloads: 0
    Industrial metals hit multi-year highs last month with the S&P GSCI Industrial Metals Index up off its bottom nearly 60%.  This was mainly due to strong Chinese demand growth and a falling US dollar.  While the dollar has continued its fall in September, there is some concern over slowing growth in China. 
  • A Global Guide to Strategic-Beta Exchange-Traded Products

    Source: Jackie Choy, CFA, Anshula Venkataraman, Dimitar Boyadzhiev, Alex Bryan, CFA, Ben Johnson, CFA
    Date Submitted: 12 Sep 2017
    Views: 5284
    Downloads: 69
    Three years ago, we introduced our naming convention and taxonomy for the fast-growing universe of strategic-beta exchange-traded products, or ETPs. In this year’s guide, we provide an update on the state of the global strategic-beta ETP landscape.
  • Cinematic Journey of Southeast Asia's Venture Ecosystem

    Source: Victor Chua Kok Hoe (https://www.linkedin.com/in/victor4chua/)
    Date Submitted: 07 Sep 2017
    Views: 1333
    Downloads: 37
    Southeast Asia's venture investing scene is booming, but not without its long history and influence by other regions in Asia. We are seeing a rush of investors from North Asia coming down to Southeast Asia, pushing the ecosystem to a more mature state and enhancing exit opportunities.
  • A Comprehensive Review on the Cement Industry

    Source: Mohammad Asrarul Haque, Md. Nazmus Sakib
    Date Submitted: 07 Sep 2017
    Views: 1628
    Downloads: 127
    Owing to the urbanization, improved living standard and increasing purchasing power, the construction sector of Bangladesh is passing a shining period. The installed capacity of the local manufacturers far outstrips domestic demand. Although the growth in the demand of cement has been increasing in Bangladesh, it is far below than that of many developing countries. Currently there are seven listed cement manufacturing companies in Bangladesh capital market.
  • The Role of Real Assets in Portfolio Construction

    Source: Jodie Gunzberg
    Date Submitted: 03 Sep 2017
    Views: 1067
    Downloads: 0
    How can real asset combinations contribute to inflation protection, diversification, and volatility reduction when used as portfolio building blocks? S&P DJI’s Jodie Gunzberg takes a closer look at the characteristics influencing the growing global appetite for real assets.

    Video interview with Jodie Gunzberg, CFA at the link below:
    http://www.spdji.com/multimedia-center/the-role-of-real-assets-in-portfolio-construction
  • Prevent Valuation Mistake #1: Building Up too Much Cash

    Source: Dr. Andrew Stotz, CFA
    Date Submitted: 31 Aug 2017
    Views: 4685
    Downloads: 0
    In this research, I aggregate the financial statements of more than 17,000 companies across the world to then calculate the amount of cash that is held on the balance sheet of various countries across the world. From this, I then look at current cash levels at all markets across Asia, from Developed to Frontier.
    The benefit of this research is that it can help us to better forecast the balance sheets of companies in Asia. This is especially critical for free cash flow valuation.
  • AAM-CAMRI-CFA Institute Prize - What Are the Actual Effects of Cash Holdings? Evidence from the Mutual Fund Industry      

    Source: Vikas Agarwal, Haibei Zhao
    Date Submitted: 29 Aug 2017
    Views: 120
    Downloads: 0
    Paper Submission for AAM-CAMRI-CFA Institute Prize in Asset Management
     
  • AAM-CAMRI-CFA Institute Prize - The Case of T-Mobile USA, Inc. & AT&T (2010-2014): Financial Stability, Corporate Governance and Failed Business Processes

    Source: Michael C. I. Nwogugu
    Date Submitted: 29 Aug 2017
    Views: 132
    Downloads: 0
    Paper Submission for AAM-CAMRI-CFA Institute Prize in Asset Management
     
  • Asian Link

    Source: Dr Raymond Madden, FRSA, Neil Smith
    Date Submitted: 20 Aug 2017
    Views: 563
    Downloads: 0
    "Ethical issues in the financial services industry affect everyone, as almost all of society are consumers of its products and services.  Given the vital role that financial institutions play, moral hazards may be more acute and it is therefore unsurprising that the industry should be subject to the highest ethical standards.  Ethical dimensions create an environment based on trust and make economic transactions more predictable for producers and consumers".
  • The Belt and Road Initiative: Reshaping the global value chain

    Source: ACCA + SSE Research Team
    Date Submitted: 08 Aug 2017
    Views: 7643
    Downloads: 110

    The B&R research project was conceived in August 2016. It explores the opportunities and challenges for B&R countries (including China) in politics, economics, society and culture through desk research, roundtable conferences and workshops.

    This approach considers local experiences and international vision, historical achievements and future development.

    The report is divided into three areas:

    • Desk research - an exhaustive review of B&R-related policies 
    • Case studies - based on interviews with seven enterprises that are deeply engaged with B&R: China Communications Construction, Power China, Bank of China, Sany, Shanghai Electric, Conch Cement and Changjiang Electronics Technology
    • The third are explores the integration and innovation of B&R. These findings are based on roundtable and workshop discussion with those who are working close to the B&R Initiative.
  • Frontier Research - Hospital Insights - Dec 2016 Quarterly Performance

    Source: Frontier Research
    Date Submitted: 07 Aug 2017
    Views: 261
    Downloads: 9
    This report is a quarterly performance analysis of the listed Hospitals in Sri Lanka. The Analysis is based on the quarter ended December 2016 performance. 
  • Frontier Research - Tourism Insights - December 2016 quarterly performance

    Source: Frontier Research
    Date Submitted: 07 Aug 2017
    Views: 471
    Downloads: 9
    Key Takeaways

    •With the exception of the Western province, revenue growth in December 2016 slows on a QoQ basis despite continued tourist arrivals growth.
     
    • In contrast, the cost pressures on hotels were more constrained leading to most hotel segments to record improved operating margins over the same period.
     
    • Returns were lower on a Return on Equity (ROE) and Return on Total Assets (ROTA) basis across most regions while City Hotels recorded improved returns. 
  • RMBI Newsletter Issue 13 (Financial Crime Risk: Anti-Money Laundering and The Rise of Text Mining in Financial Markets)

    Source: Tsang Chiu Yu, Derek, Wong Ching Ip, Venice, Chiu Hok He, Angus, Li Chin Wa, Chin
    Date Submitted: 26 Jul 2017
    Views: 628
    Downloads: 0
    In the latest issue (Issue 13 – August 2017), it covers the stories of:
     
    Financial Crime Risk : Anti-Money Laundering Practices in Banking
    To understand anti-money laundering, we have to understand what money laundering is. Money Laundering is the process of converting illegal funds into seemingly legitimate assets with the purpose of concealing the ownership or original source of these funds. This makes it difficult for the authorities to trace the origins of the funds. To counter this, the banking sector has established a set of internal regulations and system known as anti-money laundering. These are legal controls taken by financial institutions to investigate suspicious transactions to help prevent money laundering activities within the banking sector.
     
    The Rise of Text Mining in Financial Markets
    The world is awash in data. Financial markets are awash in data. We are generating around 2.5 quintillion (2.5×1018) bytes of information every day, and there is an average of 4,000 brokerage reports a day comprising around 36,000 pages in 53 languages. As market participants try to maximize their competitive edge from the growing mountain of information, the nancial world increasingly feels there is a need to harness the power of big data and it has been shaping the way they acquire, analyze and utilize data. The recent development is the rapid expansion of text mining. Hence, this article will focus on the development of Text Mining technology as well as Text Mining technique.
  • LTG [NOT-RATED]- Cultivate Future Gains - Pre-Listing Notes - 19 July 2017

    Source: My Tran, Thien Viet Securities JSC
    Date Submitted: 19 Jul 2017
    Views: 268
    Downloads: 16
    We attended Loc Troi Group’s (LTG) Roadshow on July 12th, 2017 with a number of key points noted as per attachment.
  • China Property Trip Notes May 2017: Tug-of-War

    Source: Cheong Yin Chin, CFA, Luther Chai
    Date Submitted: 10 Jul 2017
    Views: 191
    Downloads: 0
    • We visited 4 'hot' cities last month, namely, Wuhan, Hefei, Nanjing and Shanghai. These cities are classified as 'hot' property markets by the Chinese government. Why? The average price of a newly constructed homes jumped ~31.4%, ~48.1%, ~51.4% and ~56.0% from January 2015 to April 2017 in Wuhan, Hefei, Nanjing and Shanghai, respectively. The respective local governments tried to rein the runaway home prices by implementing tighter housing measures. However, our recent trip indicates that these restrictive measures have not been very effective. The sales volume did decline after the introduction of tighter measures, but the average home prices remained relatively resilient.
    • Most of the projects in Shanghai (Tier-1 city) and Nanjing (upper Tier-2 city) were able to achieve high gross profit margins ("GPMs") of ~50% or above, while those in Wuhan (mid Tier-2 city) were in excess of 30%. Projects in Hefei were also at a decent GPM of above 25%, despite being a lower Tier-2 city. Given the decent to high GPMs, we can understand why many developers want to operate in these 4 cities.
    • The Chinese developers and the local governments seem to be engaged in a game of 'tug-of-war'. The local governments are delaying or suspending fresh pre-sales permits for projects with high average selling prices ("ASPs"). On the other hand, Chinese developers are not willing to lower their ASPs to meet the price caps imposed by the local governments. Most local governments' revenues are dependent on business/sales tax on property transactions, land sales, and income and land appreciation taxes from the developers. Developers are dependent on the sale of properties to generate cash flow to fund their operations. Who will cave in eventually? We think it depends which party has deeper pockets.
    • The supply-demand mismatch has led to an inventory shortage especially in the larger cities. On one hand, developers want to delay the launches of their projects in hopes of higher ASPs. On the other hand, home buyers are bringing forward the purchases in view that ASPs may increase after restrictions are lifted and borrowing might become more expensive in the future. Aggravated by the influx of migrants, entire phases of projects are sold out in a matter of days. Please refer to the body of this report for the common themes across the property markets for all 4 cities.
  • Outlook 2017

    Source: Dr Raymond Madden, FRSA, Neil Smith
    Date Submitted: 29 Jun 2017
    Views: 185
    Downloads: 0
    AIF, working with the Financial Services Professional Board (FSPB), conducted a study into the ethical climate in the financial services industry in Malaysia, including what safeguards are in place and what more needs to be done to retain the public’s trust.
  • CFA Institute Research Challenge - Super Dragon Technology Co., Ltd.

    Source: National Chengchi University
    Date Submitted: 19 Jun 2017
    Views: 349
    Downloads: 29
    The research analysis report is conducted by students from National Chengchi University in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - Sunshine Holdings PLC

    Source: Royal Institute of Colombo
    Date Submitted: 19 Jun 2017
    Views: 289
    Downloads: 25
    The research analysis report is conducted by students from Royal Institute of Colombo in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - Austal Shipping Limited

    Source: Curtin University
    Date Submitted: 19 Jun 2017
    Views: 277
    Downloads: 32
    The research analysis report is conducted by students from Curtin University in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - PVR Limited

    Source: Narsee Monjee Institute of Management Studies, Mumbai
    Date Submitted: 19 Jun 2017
    Views: 454
    Downloads: 66
    The research analysis report is conducted by students from Narsee Monjee Institute of Management Studies, Mumbai in preparation for CFA Institute Research Challenge.  
     
  • CFA Institute Research Challenge - Grameenphone

    Source: Bangladesh Institute of Business Administration
    Date Submitted: 19 Jun 2017
    Views: 357
    Downloads: 49
    The research analysis report is conducted by students from Bangladesh Institute of Business Administration in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - Thyrocare Technologies

    Source: Indian Institute of Management, Bangalore
    Date Submitted: 19 Jun 2017
    Views: 365
    Downloads: 54
    The research analysis report is conducted by students from Indian Institute of Management, Bangalore in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - MERIDIAN ENERGY

    Source: University of Otago
    Date Submitted: 19 Jun 2017
    Views: 249
    Downloads: 14
    The research analysis report is conducted by students from University of Otago in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - CJ Korea Express

    Source: Sungkyunkwan University
    Date Submitted: 18 Jun 2017
    Views: 325
    Downloads: 19
    The research analysis report is conducted by students from Sungkyunkwan University in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - Havells India Limited

    Source: Indian Institute of Foreign Trade, New Delhi
    Date Submitted: 18 Jun 2017
    Views: 364
    Downloads: 47
    The research analysis report is conducted by students from Indian Institute of Foreign Trade, New Delhi in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - APU Joint Stock Company

    Source: National University of Mongolia
    Date Submitted: 18 Jun 2017
    Views: 260
    Downloads: 19
    The research analysis report is conducted by students from National University in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - Bank Alfalah Limited

    Source: Karachi School of Business and Leadership
    Date Submitted: 18 Jun 2017
    Views: 296
    Downloads: 35
    The research analysis report is conducted by students from Karachi School of Business and Leadership in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - Beijing Tongrentang Co., Ltd.

    Source: Peking University
    Date Submitted: 18 Jun 2017
    Views: 303
    Downloads: 22
    The research analysis report is conducted by students from Peking University in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - Nine Dragons Paper (Holdings) Limited

    Source: Hong Kong Baptist University
    Date Submitted: 18 Jun 2017
    Views: 273
    Downloads: 13
    The research analysis report is conducted by students from Hong Kong Baptist University in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - Westports ​Holdings Berhad

    Source: Sunway University
    Date Submitted: 18 Jun 2017
    Views: 313
    Downloads: 37
    The research analysis report is conducted by students from Sunway University in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - Temp Holdings Co., Ltd​

    Source: Kyoto University
    Date Submitted: 14 Jun 2017
    Views: 259
    Downloads: 13
    The research analysis report is conducted by students from Kyoto University in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - Century Pacific Food, Inc.

    Source: Ateneo de Manila University
    Date Submitted: 14 Jun 2017
    Views: 281
    Downloads: 20
    The research analysis report is conducted by students from Ateneo de Manila University in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - Nufarm Limited

    Source: Monash University
    Date Submitted: 14 Jun 2017
    Views: 328
    Downloads: 18
    The research analysis report is conducted by students from Monash University in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - Cordlife Group Limited

    Source: Singapore Management University
    Date Submitted: 14 Jun 2017
    Views: 300
    Downloads: 34
    The research analysis report is conducted by students from Singapore Management University in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - Flight Centre Travel Group Limited

    Source: Griffin University
    Date Submitted: 14 Jun 2017
    Views: 277
    Downloads: 17
    The research analysis report is conducted by students from Griffith University in preparation for CFA Institute Research Challenge. 
     
  • Two insightful reports on Fintech and Distributed Ledger Technology (DLT) by Financial Services Development Council (FSDC)

    Source: Financial Services Development Council (FSDC)
    Date Submitted: 13 Jun 2017
    Views: 1690
    Downloads: 0
    Given most of the FinTech innovations, in particular the DLT, are developed for providing services directly to consumers, FinTech has initially been regarded as disruptive to the established financial institutions. However, a more recent development is that increasingly FinTech innovations are developed by, and in collaboration with, the well established incumbents in the financial sector. There are two very insightful reports on FinTech and DLT published by the FSDC in May 2017; which covers extensively the following areas including cybersecurity, payment and securities settlement, digital ID and KYC utility, WealthTech and InsurTech (including data analytics, automation and artificial intelligence), RegTech as well as Distributed Ledger Technology.  

    Attached are the two links to these two reports by FSDC.  

    http://www.fsdc.org.hk/sites/default/files/FSDC%20Paper_FinTech_E.pdf

    http://www.fsdc.org.hk/sites/default/files/FSDC%20Paper_DLT_E.pdf
     
  • CFA Institute Research Challenge - BYD Company Limited

    Source: Southwest University for Nationalities
    Date Submitted: 11 Jun 2017
    Views: 283
    Downloads: 25
    The research analysis report is conducted by students from Southwest University for Nationalities in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - THAI UNION GROUP PUBLIC COMPANY LIMITED

    Source: Thammasat University
    Date Submitted: 11 Jun 2017
    Views: 315
    Downloads: 17
    The research analysis report is conducted by students from The Chinese University of Hong Kong, Shenzhen in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - PT Indosat Tbk.

    Source: Institut Teknologi Bandung
    Date Submitted: 11 Jun 2017
    Views: 289
    Downloads: 31
    The research analysis report is conducted by students from The Chinese University of Hong Kong, Shenzhen in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - Spring Airlines

    Source: Shanghai Jiao Tong University
    Date Submitted: 11 Jun 2017
    Views: 267
    Downloads: 16
    The research analysis report is conducted by students from Shanghai Jiao Tong University in preparation for CFA Institute Research Challenge. 
  • CFA Institute Research Challenge - PHU NHUAN JEWELRY JOINT STOCK COMPANY

    Source: Foreign Trade University Ho Chi Minh City Campus
    Date Submitted: 11 Jun 2017
    Views: 736
    Downloads: 155
    The research analysis report is conducted by students from Foreign Trade University Ho Chi Minh City Campus in preparation for CFA Institute Research Challenge. 
     
  • CFA Institute Research Challenge - Ali Health Information Technology Limited

    Source: The Chinese University of Hong Kong, Shenzhen
    Date Submitted: 11 Jun 2017
    Views: 263
    Downloads: 14
    The research analysis report is conducted by students from The Chinese University of Hong Kong, Shenzhen in preparation for CFA Institute Research Challenge.
  • Bangladesh National Budget Review FY'18

    Source: EBLSL Research Team
    Date Submitted: 04 Jun 2017
    Views: 1032
    Downloads: 136
    The 46th National Budget of Bangladesh and 11th by Finance Minister AMA Muhith has been proposed on 1st June, 2017. Proposed budget size for FY ’18 is BDT 4002.66 bn which is 18.0% of GDP. This is the largest budget in the history of Bangladesh. Target Revenue is BDT 2879.91 bn caused a deficit amounting to BDT 1122.75 bn which will be financed through domestic sources (BDT 603.52 bn) and External Borrowings (BDT 519.24 bn).
     
  • Indonesian Capital Market Development and Challenges

    Source: Kahlil Rowter
    Date Submitted: 04 Jun 2017
    Views: 281
    Downloads: 15
    This article elucidates development in the Indonesian capital market until recently. Included are developments in the equity and bond markets, why they are still at a nascent stage in comparison with other South East Asian countries.
  • Stock Market Market Crash of 2008: an empirical study of the deviation of share prices from company fundamentals

    Source: Taisei Kaizoji, MIchiko Miyano,
    Date Submitted: 06 May 2017
    Views: 322
    Downloads: 32
    The aim of this study is to investigate quantitatively whether share prices deviated from company fundamentals in the stock market crash of 2008. For this purpose, we use a large database containing the balance sheets and share prices of 7,796 worldwide companies for the period 2004 through 2013. We develop a panel regression model using three financial indicators–dividends per share, cash flow per share, and book value per share–as explanatory variables for share price. We then estimate individual company fundamentals for each year by removing the time fixed effects from the two-way fixed effects model, which we identified as the best of the panel regression models. One merit of our model is that we are able to extract unobservable factors of company fundamentals by using the individual fixed effects. Based on these results, we analyze the market anomaly quantitatively using the 
    divergence rate–the rate of the deviation of share price from a company’s fundamentals. We find that share prices on average were overvalued in the period from 2005 to 2007, and were undervalued significantly in 2008, when the global financial crisis occurred. Share prices were equivalent to the fundamentals on average in the subsequent period. Our empirical results clearly demonstrate that the worldwide stock market fluctuated excessively in the time period before and just after the global financial crisis of 2008. 
  • CFA Research Challenge - COTEC CONSTRUCTION JSC

    Source: Foreign Trade University
    Date Submitted: 28 Apr 2017
    Views: 402
    Downloads: 43
    This is the candidate's award-winning research challenge prepared by Foreign Trade University.
  • CFA Research Challenge - Novatek

    Source: National Chengchi University
    Date Submitted: 28 Apr 2017
    Views: 258
    Downloads: 11
    This is the candidate's award-winning research challenge prepared by National Chengchi University.
  • CFA Research Challenge - Sydney Airport Holdings Ltd.

    Source: University of Sydney
    Date Submitted: 28 Apr 2017
    Views: 268
    Downloads: 18
    This is the candidate's award-winning research challenge prepared by the University of Sydney.
  • CFA Research Challenge - textured jersey

    Source: University of Colombo
    Date Submitted: 27 Apr 2017
    Views: 254
    Downloads: 16
    This is the candidate's award-winning research challenge prepared by University of Colombo.
  • CFA Research Challenge - StauHub

    Source: National University of Singapore
    Date Submitted: 27 Apr 2017
    Views: 283
    Downloads: 16
    This is the candidate's award-winning research challenge prepared by National University of Singapore.
  • CFA Research Challenge - Suning Commerce Group

    Source: Shanghai Jiao Tong University
    Date Submitted: 27 Apr 2017
    Views: 246
    Downloads: 9
    This is the candidate's award-winning research challenge prepared by Shanghai Jiao Tong University
  • CFA Research Challenge - Navitas

    Source: Curtin University
    Date Submitted: 27 Apr 2017
    Views: 273
    Downloads: 6
    This is the candidate's award-winning research challenge prepared by Curtin University.
     
  • CFA Research Challenge - Pakistan State Oil

    Source: Institute of Business Administration Karachi
    Date Submitted: 27 Apr 2017
    Views: 269
    Downloads: 25
    This is the candidate's award-winning research challenge prepared by the Institute of Business Administration Karachi.
  • CFA Research Challenge - The Warehouse Group

    Source: Auckland University of Technology
    Date Submitted: 27 Apr 2017
    Views: 279
    Downloads: 9
    This is the candidate's award-winning research challenge prepared by the Auckland University of Technology.
  • CFA Research Challenge - Tassal Group Limited

    Source: The University of Melbourne
    Date Submitted: 27 Apr 2017
    Views: 260
    Downloads: 11
    This is the candidate's award-winning research challenge prepared by the University of Melbourne.
     
     
  • Will Investors in China A-Share ETFs Benefit From the Migration Towards Physical Replication?

    Source: Jackie Choy, Ben Johnson
    Date Submitted: 23 Apr 2017
    Views: 1578
    Downloads: 14
    Many ETFs offering exposure to onshore Chinese equities have begun to shift from synthetic replication to physical replication. Will this shift yield better results for investors? Is physical or synthetic replication a better approach to investing in the China A-share market? 
  • CFA Research Challenge - Chip in a rising star

    Source: University of Malaya
    Date Submitted: 18 Apr 2017
    Views: 329
    Downloads: 14
    This is the candidate's award-winning research challenge prepared by the University of Malaya.
     
  • CFA Institute Research Challenge - Romansion

    Source: Korea University
    Date Submitted: 11 Apr 2017
    Views: 242
    Downloads: 13
    This is the candidate's award-winning research challenge prepared by Korea University.
  • CFA Institute Research Challenge - Rakuten

    Source: Kyoto University
    Date Submitted: 11 Apr 2017
    Views: 219
    Downloads: 12
    This is the candidate's award-winning research challenge prepared by Kyoto University.
  • Research Challenge: Building Up Ahead of Steam

    Source: Universitas Indonesia
    Date Submitted: 11 Apr 2017
    Views: 274
    Downloads: 15
    This is the candidate's award-winning research challenge prepared by Universitas Indonesia.
  • Research Challenge - Whirlpool of India Limited

    Source: Symbiosis Centre for Management and Human Resource Development, India
    Date Submitted: 11 Apr 2017
    Views: 285
    Downloads: 19
    This is the candidate's award-winning research challenge prepared by Symbiosis Centre for Management and Human Resource Development.
  • Initial Coverage Equity Research Presentation

    Source: Team LATINUS
    Date Submitted: 11 Apr 2017
    Views: 251
    Downloads: 36
    This is the candidate's award-winning research challenge prepared by Team LATINUS.
  • Is the New Acquisition a Game Changer?

    Source: The Hong Kong University of Science and Technology
    Date Submitted: 10 Apr 2017
    Views: 255
    Downloads: 14
    This is the candidate's award-winning research challenge prepared by The Hong Kong University of Science and Technology.
  • Research Challenge - JianTong Survey Company

    Source: GuangzhouPeking University HSBC Graduate School of Business
    Date Submitted: 10 Apr 2017
    Views: 133
    Downloads: 2
    This is candidate's award-winning research challenge prepared by GuangzhouPeking University HSBC Graduate School of Business.
  • CFA Institute Research Challenge 2015 - 2016 - China UNICOM (Hong Kong) Limited

    Source: Southwest University of Political Science and Law
    Date Submitted: 10 Apr 2017
    Views: 146
    Downloads: 5
    This is the candidate's award-winning research challenge 2015 - 2016 prepared by Southwest University of Political Science and Law.
  • Qingdao Haier: The Falling Angel

    Source: Peking University
    Date Submitted: 10 Apr 2017
    Views: 234
    Downloads: 9
    This is the candidate's award-winning research challenge prepared by Peking University.
  • Equity Insight on Golden Harvest Agro Industries Ltd

    Source: Mohammad Asrarul Haque, Tajkera Rahman
    Date Submitted: 06 Apr 2017
    Views: 302
    Downloads: 22
    EBLSL prepares Equity Insight Report on regular basis that provides brief company insights based on fundamental analysis along with a preview of respective industry in which the company operates. Besides, factors affecting stock prices i.e. investment positives and negatives are also presented in the report.
  • Social Media and Stock Returns: Is There Value in Cyberspace?

    Source: David Pope, CFA, Temi Oyeniyi, CFA, , Vivian Ning, CFA, Kirk Wang, Richard Tortoriello, Frank Zhao, Paul Fruin, CFA, Li Ma
    Date Submitted: 28 Mar 2017
    Views: 196
    Downloads: 1
    This is a Quantamental Research published by S&P Global Market Intelligence in June 2016.
  • Analyst Report - Best World International Ltd

    Source: Charles Phan Zhong Wei, Jeremy Liang Jinrong, Ai Xin
    Date Submitted: 27 Mar 2017
    Views: 340
    Downloads: 38
    Sell-side research report on Best World International Ltd. Initiate a Buy Call with upside of 47.7%. Includes: - detailed report of analysis - slide deck to pitch the stock recommendation - financial model with detailed accounting adjustments, performance analysis, forecasts and valuations
  • Bond market boom? Hong Kong's latest trading link set to spur $10 trillion market

    Source:
    Date Submitted: 24 Mar 2017
    Views: 502
    Downloads: 0
    WiC's latest review of the key business stories from China
  • APEI LBO Case Competition 2017 - LBO of AmorePacific Corporation

    Source: Charles Phan Zhong Wei, Chua Kian Chong, Chan Jun Hao, Sylvester Yeo Kai Ren
    Date Submitted: 20 Mar 2017
    Views: 578
    Downloads: 66
    Advisory for the AmorePacific Group's leveraged buyout of AmorePacific Corporation (target). The following key points are addressed: - Executive summary - Recent financial / operating performance of AmorePacific Group - Industry overview - Strategic alternatives to an LBO - Recommendations to restruture the combined firm - Deal structure and financing - Valuation summary - Returns Analysis - Risk(s) related to the deal
  • PLAYING WITH A STRAIGHT BAT - A Concise Report on brand values in the Indian Premier League

    Source: Varun Gupta
    Date Submitted: 16 Mar 2017
    Views: 1022
    Downloads: 24
    Duff & Phelps has published the third edition of our annual* study of Brand Values in the Indian Premier League (IPL). The report ranks the franchise brand values for six teams in the IPL based upon a relief from royalty analysis coupled with an assessment of six other factors; including management strength and on-field performance, marketing strategy, celebrity influence and marquee players, geographical location, governance and transparency and social media engagement. Key findings include: Total value of the IPL has grown by 19% over the last five quarters to reach US$ 4.2 billion. Mumbai Indians had the highest brand value in the IPL Royal Challengers Bangalore were the biggest gainers with brand value increasing by 31%, while Kings XI Punjab were the biggest losers.
  • APER Dataroom - Food & Beverage report (Part I)

    Source: Asia Private Equity Review (APER)
    Date Submitted: 12 Mar 2017
    Views: 1841
    Downloads: 19
    Asia is now home to 4.5 billion people, or 60% of the world’s population. Its food and beverage (‘F&B’) industry, according to Asia Pacific Food Industry, a trade publication, would have reached US$3.23 trillion in 2016. The sheer population size in this region, along with improved living standards, has propelled the F&B sector to be a main investment theme for private equity investors.
  • Hospital Insights: Financial insights of listed hospitals in Sri Lanka - Sept'16

    Source: Frontier Research
    Date Submitted: 05 Mar 2017
    Views: 189
    Downloads: 10
    Quarterly insights report on the performance of listed hospitals in Sri Lanka. The report also includes a summary of key developments that took place in the healthcare sector in Sri Lanka over the period.
  • Judgement day for the 'other' Donald, dangerous drones, and tumbling taxes

    Source: Week in China
    Date Submitted: 24 Feb 2017
    Views: 263
    Downloads: 0
    Exclusively for CFA members, a flavour of our weekly round up of the key stories coming out of China. Catch up on why Hong Kong's former leader has been sent to jail; hear how changes in tax collection has been piling the pain on some of China's poorer provinces; and discover how dangerous flyers are prompting a rethink on drone regulations Go to: http://www.weekinchina.com/cfa-page/
  • Equity Insight Report- IFAD Autos Ltd.

    Source: Tajkera Rahman
    Date Submitted: 18 Feb 2017
    Views: 528
    Downloads: 70
    EBLSL prepares Equity Insight Report on regular basis that provides brief company insights based on fundamental analysis along with a preview of respective industry in which the company operates. Besides, factors affecting stock prices i.e. investment positives and negatives are also presented in the report.
  • Viet Nam: Financial Sector Assessment, Strategy, and Road Map

    Source: Asian Development Bank
    Date Submitted: 16 Feb 2017
    Views: 528
    Downloads: 15
    Asian Development Bank | July 2014
  • Impact of elections on stock price graph: a case of US elections

    Source: Shreya Sethi, Shreya Sethi
    Date Submitted: 09 Feb 2017
    Views: 213
    Downloads: 5
    This paper focuses on the impact of US presidential elections on stock market. Thus, this paper aims to analyse the impact of the US presidential elections that have taken place from 1980 to 2010, on the stock market performance for eight different industries. The paper puts special emphasis on studying the abnormality of return related to stock prices and evaluating the uncertainty between the firm’s tax policy and stock market, around the time of upcoming presidential elections. This is a comparative study wherein the effects of pre- and post-election have been assessed. The empirical analysis undertaken relies on secondary data collected from various online sources. The results of the papers highlight; industry return data churn out ambiguous results when compared for winning election party. Also, the rate of reaction tends to differ grossly with respect to different industries. Democratic victory impacts the stock return negatively but in case of Republican victory the result is insignificant. A positive correlation exists between abnormal stock price and firms’ marginal tax rate around the day of the election. The paper proves there is a transitional effect of election, felt in the stock market irrespective of the anticipated outcome of the election.
  • The Pragmatic Governance of Chinese P2P Chaos: Improvement in Supervision Philosophy and Legal Arrangement

    Source: Fan Zhang
    Date Submitted: 06 Feb 2017
    Views: 110
    Downloads: 7
    As developments in Internet finance coupled with deregulation and the growth of the financial media have tended to reduce transaction costs and informational asymmetries, the significance and exclusivity of China’s traditional financial institutions as financial intermediaries have been identified as factors in the country’s rapid economic development. In this context, peer-to-peer lending (P2P) has emerged as a type of Internet financing that creates a direct linkage between borrowers and investors via online platforms that is replacing traditional financial intermediaries and effectively bridging the gap between formal and informal finance. Although the Chinese P2P industry provides financial services, it also brings disorder and chaos, particularly in the context of the “dualistic model” of the Chinese financial system. In this context, this article reviews the history, development and advantages/disadvantages of three P2P modes and then recommends changes to the regulatory philosophy and legal arrangements for the P2P industry by constructing internal risk controls and strong regulations in the external environment.
  • Equity Insight- Olympic Accessories Limited

    Source: Mohammad Asrarul Haque, Salman Rahman
    Date Submitted: 06 Feb 2017
    Views: 429
    Downloads: 21
    Equity insight report is part of a regular product from EBLSL Research Portfolio. The attached report contains brief analysis and investment insight on Olympic Accessories Limited.
  • Bangladesh Steel Industry Review

    Source: Mohammad Asrarul Haque
    Date Submitted: 04 Feb 2017
    Views: 588
    Downloads: 69
    Industry analysis is a part of EBLSL research product basket. The attached report contains the current market condition and competitive structure of the steel industry in Bangladesh. Besides, the report also contains a comparative review on the listed steel manufacturing companies in the capital market of Bangladesh.
  • Financial Soundness Indicators for Financial Sector Stability in Georgia

    Source: Asian Development Bank
    Date Submitted: 04 Feb 2017
    Views: 170
    Downloads: 1
    Asian Development Bank | September 2015
  • Financial Soundness Indicators for Financial Sector Stability in Bangladesh

    Source: Raihan, Selim
    Date Submitted: 04 Feb 2017
    Views: 397
    Downloads: 29
    Raihan, Selim | September 2015
  • South Asia Project Brief: Nepal Rural Finance Sector Development Cluster Program

    Source: Asian Development Bank
    Date Submitted: 04 Feb 2017
    Views: 368
    Downloads: 5
    Asian Development Bank | May 2015
  • Financial Inclusion Newsletter - Issue No. 5

    Source: Ozaki, Mayumi, Rodriguez, Daniel Anne N.
    Date Submitted: 03 Feb 2017
    Views: 234
    Downloads: 1
    Ozaki, Mayumi; Rodriguez, Daniel Anne N. | December 2015
  • Tourism Insights - September 2016 performance review

    Source: Frontier Research
    Date Submitted: 03 Feb 2017
    Views: 273
    Downloads: 5
    Analysis of the September 2016 quarterly performance of the listed hotels in Sri Lanka. The report provides analysis of key sector developments of the tourism sector in Sri Lanka based on a number of key metrics
  • Housing Policy in the Republic of Korea

    Source: Kim, Kyung-Hwan, Park, Miseon
    Date Submitted: 02 Feb 2017
    Views: 392
    Downloads: 2
    Kim, Kyung-Hwan; Park, Miseon | April 2016
  • The Impact of Finance on the Performance of Thai Manufacturing Small and Medium-Sized Enterprises

    Source: Amornkitvikai, Yot, Harvie, Charles
    Date Submitted: 02 Feb 2017
    Views: 216
    Downloads: 1
    Amornkitvikai, Yot; Harvie, Charles | June 2016
  • Financial Sector Legislative Reforms Commission (FSLRC) & Financial Sector Regulation in India

    Source: Bhagwati, Jaimini, Khan, M. Shuheb, Bogathi, Ramakrishna Reddy
    Date Submitted: 02 Feb 2017
    Views: 1807
    Downloads: 6
    Bhagwati, Jaimini; Khan, M. Shuheb; Bogathi, Ramakrishna Reddy | June 2016
  • Housing Policies in the United Kingdom, Switzerland, and the United States: Lessons Learned

    Source: Hilber, Christian A. L., Schöni, Olivier
    Date Submitted: 01 Feb 2017
    Views: 283
    Downloads: 1
    Hilber, Christian A. L.; Schöni, Olivier | April 2016
  • 2015年我国上市银行基本情况分析

    Source:
    Date Submitted: 31 Jan 2017
    Views: 257
    Downloads: 10
    本报告选取26家上市银行为样本,以2013年至2015年经审计的年报为数据来源,从资产负债规模、收入结构、风险、机构改革、新技术应用等方面对上市银行基本情况进行分析。
  • Backing Innovators and Disruptors: Private Equity with a Difference

    Source: QIC
    Date Submitted: 27 Dec 2016
    Views: 341
    Downloads: 0
    Irritating as they are, stereotypes can be useful. They are a starting point for challenging and ultimately overturning entrenched but inaccurate perceptions. Some widely held views about private equity are a case in point.
  • 我国民营银行试点现状、面临问题 与政策建议

    Source: 王刚
    Date Submitted: 18 Dec 2016
    Views: 507
    Downloads: 9
    国务院发展研究中心招标课题 《我国新型民营银行稳健发展与有效监管研究》课题组 课题负责人:王刚 课题组成员:王刚、陈宁、薄岩、张伟 王刚、陈宁、薄岩 执笔
  • Demographics - Key developments in Sri Lanka

    Source: Frontier Research
    Date Submitted: 27 Nov 2016
    Views: 352
    Downloads: 6
    An overview of the Key demographic developments that have taken place in Sri Lanka in the past few decades. The report also includes key challenges faced by the issue of an aging population as well as short term forecasts relating to growth of the different cohorts
  • PACRA Real Estate Research

    Source: The Pakistan Credit Rating Agency Limited
    Date Submitted: 24 Nov 2016
    Views: 283
    Downloads: 18
    Real Estate Research
  • Sector Update - Hotels

    Source: JCR-VIS Credit Rating Company Limited
    Date Submitted: 24 Nov 2016
    Views: 468
    Downloads: 8
    The Hospitality industry primarily provides lodging services to customers along with a variety of other supplementary services such as transportation...
  • Sector Update: Commercial Banks

    Source: JCR-VIS Credit Rating Company Limited
    Date Submitted: 24 Nov 2016
    Views: 409
    Downloads: 11
    The JCR-VIS Banking Sector Overview covers 26 local commercial banks and has been developed given the current industry stratification whereby top 6 banks account for 59.8%...
  • Sector Update: Oil Marketing Companies

    Source: JCR-VIS Credit Rating Company Limited
    Date Submitted: 24 Nov 2016
    Views: 317
    Downloads: 9
    The Oil and Gas industry is divided into two major sectors, namely, upstream and downstream. The upstream oil sector is also known as the ‘Exploration and Production’ (E&P) sector...
  • Sector Update - Textile Industry

    Source: JCR-VIS Credit Rating Company Limited
    Date Submitted: 24 Nov 2016
    Views: 330
    Downloads: 10
    The textile sector of Pakistan plays a pivotal role in the country 's economy - its significance stemming mainly from its very large cotton production capacity...
  • Pakistan Cement Sector

    Source: The Pakistan Credit Rating Agency Limited (PACRA)
    Date Submitted: 18 Nov 2016
    Views: 317
    Downloads: 17
    Pakistan Cement Sector Review
  • AFBC-Information asymmetry and credit rating? A quasi-natural experiment from China.

    Source: Xiaolu Hu, Jing Shi, Jing Shi
    Date Submitted: 16 Nov 2016
    Views: 256
    Downloads: 3
    This paper examines how the incumbent issuer-pay credit rating agencies in China change their ratings’ strategy as a response to the entry of an independent rating agency, China Credit Rating (CCR), which utilizes a combination of public utility and investor-pay business models. By investigating the rating inflation change after CCR’s entrant using difference in difference method and market reaction of the rating change announcements issued by the incumbents before and after CCR’s coverage initiation by event study, we find that the incumbent issuer-pay rating agencies significantly change their rating behaviour, which reflect the reduction of information asymmetry of the bond market. This result adds empirical evidence on literature documenting the influence of introducing a new rating agency with alternative business models other than issuer-pay rating agencies. We further show that the scopes of information asymmetry reduction are different associated with different information scenarios and reputation of the rating assigners.
  • AFBC Share purchase plans and bank risk

    Source: Xiping Li, Chirs Malone
    Date Submitted: 16 Nov 2016
    Views: 184
    Downloads: 0
    This study examines how capital raising (CR) initiatives in the form of conjoint IPP/SPPs by the four major banks in Australia impacted on their collective market based risk. It is seen that the banks were successful in implementing the CR programmes with relatively minor negative impacts in terms of immediate announcement wealth effects, but they were followed by a period of significantly elevated risk and uncertainty.
  • Contact less Payments and It's Prospects in Indian Economy

    Source: Lahak Banka, Suraj Ambre, Dipasha Sharma
    Date Submitted: 13 Nov 2016
    Views: 2574
    Downloads: 44
    Present study aims to address the future of contact less payments in emerging economies like India. This study is based on a primary survey and secondary data analysis. The study identifies the major issues and future prospects of contact less payments in Indian economy.
  • Frontier Insights - LFC Update - June 2016

    Source: Frontier Research
    Date Submitted: 13 Nov 2016
    Views: 308
    Downloads: 2
    A quarterly performance review of the listed Finance companies in Sri Lanka
  • HKUST Risk Management and Business Intellegence (RMBI) Newsletter Issue 8

    Source: Wong Yuen Man, Wong Cheuk Fun
    Date Submitted: 07 Nov 2016
    Views: 440
    Downloads: 0
    Humans always learn from history and our students should also learn from the past. This is the first time a case study is used as the main topic in the RMBI Newsletter series.London Whale Risk in 2012 is chosen as the topic of this chapter. This issue mainly focuses on the risks involved, including operational risks, analysis of VAR modeling aswell asthe influence of the Basel regulatory stan­ dard.
  • Emerging market equities: an Australian perspective

    Source: Daniel Radcliffe, Geoff Warren
    Date Submitted: 07 Nov 2016
    Views: 504
    Downloads: 6
    Examines investing in emerging markets from an Australian perspective; noting how currency relationships reduce risk for Australian investors.
  • Interviews with Institutional Investors: The How and Why of Active Investing

    Source: Doug Foster, Geoff Warren
    Date Submitted: 07 Nov 2016
    Views: 345
    Downloads: 5
    Australian institutional investors are interviewed to learn how they choose between active and passive management, select active equity managers and construct multi-manager portfolios.
  • Equity home bias in Australian superannuation funds

    Source: Geoff Warren
    Date Submitted: 07 Nov 2016
    Views: 485
    Downloads: 4
    Equity home bias for Australian super funds is modelled as a 2-asset choice under the influence of legacy, a trade-off between expected returns against portfolio risk and peer risk, and adaptive expectations, and taxation differences.
  • The Impact of Broker Market Structure on Stock Liquidity

    Source: Wai-man (Raymond) Liu, Joshua Soo, Geoff Warren
    Date Submitted: 07 Nov 2016
    Views: 182
    Downloads: 0
    Investigates the extent to which the liquidity of Australian stocks is affected by the market structure under which stockbrokers provide a combination of stock trading, research, and investment banking services.
  • MySuper: A New Landscape for Default Superannuation Funds

    Source: Warren Chant, Mano Mohankumar, Geoff Warren
    Date Submitted: 07 Nov 2016
    Views: 389
    Downloads: 1
    This report examines the Australian superannuation default fund landscape following the introduction of MySuper at the beginning of 2014.
  • HKUST Risk Management and Business Intellegence (RMBI) Newsletter Issue 9

    Source: Wong Yuen Man, Kwong Wing Man, Chan Ling Fung, Lo Ka Chun, Ng Wing Leong, Tam Kiu Fai, Lee Tung Kiu, Lee Kwok Ho
    Date Submitted: 02 Nov 2016
    Views: 668
    Downloads: 0
    In this issue, we discuss about the current situation of Hong Kong's Logistics Industry, including ogictics business cycle and its embbeded risk, big data and new technologies, as well as the future development and suggestions to the logistics industry. Basel III, the histroy and its evolution, impact on locan banks and lessons leanred from overseas.
  • Frontier Insights - Banking sector update - June 2016

    Source: Frontier Research
    Date Submitted: 29 Oct 2016
    Views: 331
    Downloads: 12
    A in depth analysis of the June 2016 quarterly performance of the Banking sector in Sri Lanka.
  • HKUST Risk Management and Business Intellegence (RMBI) Newsletter Issue 10

    Source: LEUNG Chung Wai , HAN Tianwei , CHEUNG Ngan Yeung , NG Wing Leong , SIU Hon San
    Date Submitted: 27 Oct 2016
    Views: 681
    Downloads: 0
    Shanghai-Hong Kong Stock Connect Review: How to Apply Big Data Analytics to Risk Management? Shanghai-Hong Kong Stock Connect is a pilot program launched on 17 November 2014 which links the stock markets in Shanghai and Hong Kong. Under the program, investors in Hong Kong and Mainland China can trade and settle shares listed on the other market via the exchange and clearing house in their home market. Under this arrangement, Hong Kong and foreign investors can trade stocks listed on the Shanghai Stock Exchange (SSE) through Northbound trading while Mainland investors can trade stocks listed on the Hong Kong Stock Exchange (SEHK) through Southbound trading. How to Solve the Problem of China’s “Ghost Towns”? In recent years, China's economy has taken off and there is a boom in the financial industry, so the government has shifted the core of reform to urbanization. Investors have invested money in the property market. The real estate industry, which many have been optimistic about, should have bloomed under the current reforms in China, but the result is the widely-known term "Ghost Town".
  • Hospital Insights - June '16

    Source: Frontier Research
    Date Submitted: 23 Oct 2016
    Views: 468
    Downloads: 6
    A Quarterly Update on the Hospital Sector in Sri Lanka. The Analysis includes a financial analysis of the listed Hospital stocks in Sri Lanka. The Update also includes a summary of the key news developments that took place during the quarter,
  • Sustainable healthcare systems: an international study

    Source: Malcolm Prowle, Don Harradine
    Date Submitted: 14 Oct 2016
    Views: 449
    Downloads: 0
    This report reveals how well the existing healthcare systems in 11 countries are coping with the challenges of changing demographics and technological and economic change.
  • Analyst Report - Sheng Siong Group - Oct 15

    Source: Sylvester Yeo, Nicholas Han, Darren Toh
    Date Submitted: 11 Oct 2016
    Views: 372
    Downloads: 26
    Research report on Sheng Siong Group Ltd dated Oct 2015 initiating a hold call
  • Myopic View of The Indian Mutual Fund Industry in India

    Source: Rajesh Manjrekar, Pankaj Sinha
    Date Submitted: 04 Oct 2016
    Views: 545
    Downloads: 28
    The research article depicts the "churn" in the Investment portfolio in the Mutual Fund Industry of India. The article compares two period of six months each. The article also hints at the "herding" tendency among the Mutual Funds in India.
  • Frontier Insights - Banking sector update - March 2016

    Source: Frontier Research
    Date Submitted: 02 Oct 2016
    Views: 325
    Downloads: 4
    An analysis of the March 2016 quarterly performance of the listed Banking stocks in Sri Lanka.
  • AFBC - Dynamic conditional correlation between Chinese sector returns and the S&P500 index: An interpretation based on investment shocks

    Source: Lingxia Sun, Myeong Hyeon Kim
    Date Submitted: 30 Sep 2016
    Views: 525
    Downloads: 4
    This paper examines the dynamic conditional correlations between the Chinese sector returns and the S&P500 index returns and o ffers an interpretation for the heterogeneity of sector-level return correlations. Using a sample of 12 Chinese sectors for the period of 2006-2014, we first observe that their conditional correlations with the S&P500 index vary signi cantly across sectors and across the two crises, namely, the 2008-2009 Global Financial Crisis and the 2010-2011 European Debt Crisis. We then interpret the heterogeneity of sector-level conditional correlations as arising from their heterogeneous sensitivities to investment shocks. We finally verify our interpretation. Our main finding is that sector-level investment opportunities, as proxied by book-to-market ratio, capital expenditure, long-term debt ratio, growth rate of industry size, and Tobin's Q, are signifi cantly associated with the magnitude of their dynamic conditional correlations. This paper thereby advances our understanding of sectoral heterogeneities from the perspective of their responses to an outer investment shock.
  • AFBC - The Value Relevance of Regulatory Capital Components

    Source: Martien Lubberink, Roger Willett
    Date Submitted: 21 Sep 2016
    Views: 511
    Downloads: 12
    Our paper examines how investors value regulatory bank capital components, e,g. Tier 1 Hybrids, deduction of Goodwill, etc.
  • AFBC - Learning and Contractual Evolution: The Case of Leveraged Loans

    Source: Edison Yu, Mitchell Berlin, Gregory Nini
    Date Submitted: 21 Sep 2016
    Views: 273
    Downloads: 6
    A working paper to be presented at the 29th Australian Finance and Banking Conference
  • Sector Update: Industrial Gases

    Source: Muniba Khan, Narendar Shankar Lal,
    Date Submitted: 18 Sep 2016
    Views: 425
    Downloads: 11
    Industrial gases refer to a group of gases which are considered as an essential input in various industrial processes. Major industrial gases include hydrogen, oxygen, helium, nitrogen, carbon dioxide, argon and acetylene. These gases are used either for their physical or chemical properties such as coldness, inertness, and reactivity.
  • Sector Update: Pakistan Aviation Industry

    Source: Talha Iqbal, Moiz Badshah,
    Date Submitted: 18 Sep 2016
    Views: 355
    Downloads: 4
    The aviation industry is characterized by high competition arising from soft barriers to entry, cyclicality, and vulnerability to economic shocks...
  • Environmental Protection Funds Recommendation

    Source:
    Date Submitted: 18 Sep 2016
    Views: 220
    Downloads: 2
    Environmental Protection Funds Recommendation
  • CNMC Goldmine - Debunking the myth that investing in gold does not yield dividends

    Source: Joshua Wu
    Date Submitted: 10 Sep 2016
    Views: 212
    Downloads: 5
    In my view, Gold should always have a place in one's portfolio and the shiny metal's recent recovery off the lows has investors sitting up and taking notice of it again. There are several ways to invest in gold. 1) Physical – Probably the easiest and most direct way to invest in gold is through ownership of the metal itself although investors must keep certain considerations in mind such as storage costs and wide bid/ask spreads quoted by gold traders. 2) Gold ETFs – An ETF is a type of mutual fund that tracks gold prices closely and trades on a stock exchange like an ordinary stock. This remains the recommended option for most retail investors 3) Gold stocks – shares of gold mining companies are a risky way to profit from the direction of gold prices and require thorough analysis. Correlation and idiosyncratic risks are also present here as you are subject to changes affecting the specific company and not just the gold industry as a whole. 4) Gold futures & options – the riskiest way to invest in gold, this option is normally not open to retail investors as they have to pass a test or demonstrate sound investment knowledge before being allowed to participate. As an avid investor in equities, option no. 3 appealed to me the most as it allows me to hedge my portfolio exposure on the same platform. (gold is commonly seen as a safe haven asset when equities are underperforming). Today we will have a look at one such undervalued and profitable gold mining company.
  • Sector Update - Sugar

    Source: JCR-VIS Credit Rating Company Limited
    Date Submitted: 24 Aug 2016
    Views: 526
    Downloads: 14
    Detailed report on sugar sector in Pakistan
  • Sector Update - Life Insurance

    Source: JCR-VIS Credit Rating Company Limited
    Date Submitted: 23 Aug 2016
    Views: 350
    Downloads: 3
    Detailed report on life insurance providers in Pakistan
  • Sector Update - Rice Sector

    Source: JCR-VIS Credit Rating Company Limited
    Date Submitted: 23 Aug 2016
    Views: 369
    Downloads: 3
    Sector update on Rice Sector in Pakistan
  • Sector Update - Brokerage Firms

    Source: JCR-VIS Credit Rating Company Limited
    Date Submitted: 23 Aug 2016
    Views: 390
    Downloads: 7
    Detailed report on performance of Brokerage Firms in Pakistan
  • Sector Update - Caustic Soda

    Source: JCR-VIS Credit Rating Company Limited
    Date Submitted: 23 Aug 2016
    Views: 372
    Downloads: 3
    Detailed report on Caustic Soda industry and major players in Pakistan
  • Sector Update - Cement Industry

    Source: JCR-VIS Credit Rating Company Limited
    Date Submitted: 23 Aug 2016
    Views: 380
    Downloads: 7
    Detailed report on cement industry in Pakistan
  • Sector Update - Fertilizer Sector

    Source: JCR-VIS Credit Rating Company Ltd.
    Date Submitted: 23 Aug 2016
    Views: 390
    Downloads: 7
    Detailed report on fertilizer sector in Pakistan
  • Sector Update - Microfinance Sector

    Source: JCR-VIS Credit Rating Company Limited
    Date Submitted: 23 Aug 2016
    Views: 452
    Downloads: 9
    Detailed report covering the microfinance sector in Pakistan
  • FTSE Russell China Bond Research Report - June

    Source: FTSE Russell
    Date Submitted: 18 Aug 2016
    Views: 500
    Downloads: 0
    FTSE Russell's China Fixed Income Research Paper on the market overview, development of the onshore bond market, regulatory updates, onshore/offshore convergence and other related topics.
  • Preparing for China’s inclusion in global benchmarks - A flexible approach to managing the transition

    Source: FTSE Russell
    Date Submitted: 15 Aug 2016
    Views: 690
    Downloads: 0
    China has shown strong indications that it is willing to open its market to international investors. The approval of QFII/RQFII licenses and quota has been increasing at a tremendous pace since 2011. The launch of the Shanghai-Hong Kong Stock Connect programme last year and the recent confirmation of a stocktrading link between Shenzhen and Hong Kong by the China’s State Council, has shown clear evidence that the Chinese regulators and stock exchanges are making significant efforts to improve the regulatory environment and trading mechanisms. An increasing number of investors are asking questions such as: When will China be included in global benchmarks? What can investors do to prepare for a possible inclusion? This paper aims to answer these questions and is intended for market participants as they prepare for China inclusion in FTSE’s global benchmarks. Section 1 and 2 describe the development of the China A-shares market and the milestones towards its globalization. The FTSE country classification system and the assessment results on China are discussed in Section 3. Section 4 outlines FTSE Russell’s solution to the China A-shares market changes. Conclusions can be found in Section 5.
  • Pakistan Market Update - 2016

    Source: Saad Hashemy
    Date Submitted: 12 Aug 2016
    Views: 411
    Downloads: 13
    Pakistan equity market performance in 2016 and expectations. Focus on impact of continuous foreign selling.
  • Pakistan Market - 2015 Performance

    Source: Saad Hashemy
    Date Submitted: 12 Aug 2016
    Views: 366
    Downloads: 8
    Overview of the Pakistan capital market performance in 2015, and the underlying reasons for the performance.
  • Wealth Effect of Mergers & Acquisitions in an Emerging Market: A Case Study of Pakistan’s Banking Sector

    Source: Sana Tauseef, Dr. Mohammad Nishat
    Date Submitted: 10 Aug 2016
    Views: 454
    Downloads: 9
    Original research by author
  • Effect of Debt Financing on Corporate Financial Performance: Evidence from Textile Firms in Pakistan

    Source: Sana Tauseef, Dr. Heman Das Lohano, Sara Ashfaq
    Date Submitted: 10 Aug 2016
    Views: 392
    Downloads: 12
    Original research by author based on statistical analysis
  • Impact of Pakistan Market Upgradation by MSCI

    Source: Saad Hashemy
    Date Submitted: 05 Aug 2016
    Views: 464
    Downloads: 34
    Pakistan Market has been upgraded from Frontier Markets to Emerging Market status by MSCI with significant positive impact.
  • Pakistan Investment Strategy 2016

    Source: Saad Hashemy
    Date Submitted: 05 Aug 2016
    Views: 467
    Downloads: 23
    Briefly describes the author's recommendations for pursuing investment strategy in Pakistan
  • Federal Budget FY17 - Focusing on Growth

    Source: Saad Hashemy
    Date Submitted: 05 Aug 2016
    Views: 391
    Downloads: 4
    Commentary on FY17 budget as growth stimulator in Pakistan
  • CPEC - Implications for Pakistan's Economy

    Source: Saad Hashemy
    Date Submitted: 05 Aug 2016
    Views: 530
    Downloads: 15
    Impact of the proposed Pak China Corridor on economic growth and specific sectors in Pakistan
  • Frontier Research Spotlight - Hospital Insights Dec '15

    Source: Frontier Research
    Date Submitted: 29 Jul 2016
    Views: 412
    Downloads: 5
    A Quarterly report of the Financial Performance of Listed Hospital Counters in Sri Lanka.
  • CIBT Education Group Inc. (TSX: MBA) – Q3 Update: Positioning to Capitalize on the Tight Vancouver Rental Market

    Source: Sid Rajeev, CFA
    Date Submitted: 28 Jul 2016
    Views: 260
    Downloads: 3
    Fundamental Research Corp is issuing an update “CIBT Education Group Inc. (TSX: MBA) – Q3 Update: Positioning to Capitalize on the Tight Vancouver Rental Market ” in a report dated July 21, 2016. The full report is now at www.researchfrc.com. MBA is an FRC Top Pick
  • Medical Tourism: What’s Next for Asia?

    Source: Piyumi Kapugeekiyana, Ph.D., Kumudu Gunasekera, Ph.D., Mark Bremer
    Date Submitted: 26 Jul 2016
    Views: 387
    Downloads: 10
    The Asian medical tourism market is booming, but capitalizing on it will require providers to develop clear strategies for patient outreach, both within the region and outside.
  • Examining the Growing Healthcare Investment Opportunity in Asia

    Source: Sanda Wijeratne, Natalie de Fazio
    Date Submitted: 26 Jul 2016
    Views: 443
    Downloads: 6
    There is rising demand in Asia for sophisticated healthcare products and services—driven by an aging and increasingly affluent population, as well as the high prevalence of chronic diseases in the region. Further, in many Asian countries there is a limited supply of such products and services, with government investment in healthcare being insufficient to keep up with demand. These market dynamics will lead to attractive private sector investment opportunities opening up in the region. Healthcare spending in Asia is expected grow from $1.3t in 2012 to ~$2.2tin 2018 at a CAGR of 9.2%—compared to the forecasted growth of 5.6% in the U.S. over the same period. However, there is low M&A activity in the healthcare space in Asia—a combination of factors that signal untapped potential to investors.
  • A Review of Activities and Trends in China's Wealth Management and Mutual Fund Industry

    Source: Shanghai Vstone Asset Management Co. Ltd
    Date Submitted: 22 Jul 2016
    Views: 582
    Downloads: 9
    A Review of Activities and Trends in China's Wealth Management and Mutual Fund Industry
  • Frontier Insights: Finance Company Sector Update December 2015

    Source: Frontier Research
    Date Submitted: 17 Jul 2016
    Views: 284
    Downloads: 4
    This report contains a comprehensive analysis of the quarterly financial performance of Licensed Finance Companies (LFC) and the Finance Industry in Sri Lanka as a whole.
  • Frontier Insights - Baning Sector Update Dec 2015

    Source: Frontier Research
    Date Submitted: 17 Jul 2016
    Views: 368
    Downloads: 6
    This report contains a comprehensive analysis of the quarterly financial performance of Banks and the Banking industry in Sri Lanka
  • 环境市场的崛起

    Source: Nathan Jaye, CFA
    Date Submitted: 16 Jun 2016
    Views: 269
    Downloads: 0
    This article appears on CFA Institute hedge fund journal 2015 issue, season 1.
  • 助推新能源发展̶̶ 加速新能源发展的 不是直接补贴政策, 而是资本市场

    Source: Osman Ghani, CFA
    Date Submitted: 14 Jun 2016
    Views: 385
    Downloads: 1
    This article appears on CFA Institute hedge fund journal 2013 issue, season 2.
  • 泛资产管理的展望

    Source: 王峰, 万云
    Date Submitted: 14 Jun 2016
    Views: 423
    Downloads: 3
    This article appears on CFA Institute hedge fund journal 2013 issue, season 2.
  • 资产管理的前景 标志性的趋势预示着未来

    Source: Maha Khan Phillips
    Date Submitted: 14 Jun 2016
    Views: 370
    Downloads: 2
    This article appears on CFA Institute hedge fund journal 2013 issue, season 1.
  • China's Next 100 Global Giants

    Source: Hunag Q.H., Atherton, A., Zhan, G.
    Date Submitted: 09 Jun 2016
    Views: 446
    Downloads: 7
    A growing number of Chinese businesses are moving from dominance of domestic markets to global growth. This report identifies 100 emerging businesses that are not yet well known outside China but will be competing globally over the next three to five years.
  • Wanted: Asian Institutional Investors to Curb Short-Termism

    Source: Paul Smith, CFA
    Date Submitted: 07 Jun 2016
    Views: 239
    Downloads: 1
    This is a blog posted on CFA Institute's website on 14 January 2014.
  • Bumi PLC: Corporate Governance Concerns Give Investors “Coal” Feet

    Source: Lee Kha Loon
    Date Submitted: 06 Jun 2016
    Views: 390
    Downloads: 3
    This is a blog posted on CFA Institute's website on 25 October 2012.
  • How Service Sector Needs and Shadow Banking Are Reshaping Chinese Capital Markets

    Source: Alan Lok
    Date Submitted: 05 Jun 2016
    Views: 288
    Downloads: 2
    This is a blog posted on CFA Institute's website on 6 February 2015.