Our perspectives on trends & issues that are reshaping the industry and the investment community
Perpetual Put vs Recession
As we approach the end of 1H19, it is clear that the market now finds itself in a tug of war between the Fed Put and the potential for recession. We explore this dynamic, discuss Q1 vs future growth across the 4 major economies (US, Europe, Japan and China) and remind investors to stay defensive going forward by tilting toward value and quality where possible.
Jun 12, 2019
As we head toward the G20 meting in Osaka, we take a moment to review the latest status of the trade war between the two largest economies today. Is it about containment or tariffs? How does the current situation compare to Japan in the ‘80s? Do either China or the US actually want to make a deal? What are the possible paths going forward?
Jun 12, 2019
5G: taking off from the runway of growth
The Global Mobile Communication Systems Association estimates that by the end of this year, 5G services will be available in 29 markets around the world, with 10 million connections. What is 5G and where do we see potential investment opportunities from this significant technology upgrade in Asia?
Jun 6, 2019
How factors have performed in China A shares - roller coaster or Ferris wheel?
As the issuer of world’s first two fundamental multifactor China A-shares ETFs, we look closely into the factors. The China A shares market went on a roller coaster ride since late 2018, and how about the factors – are they on the same ride or rotating around a Ferris wheel? In this piece, we re-cap the research on China A fundamental factors and share the recent observations on factor performances.
Jun 3, 2019
Premia China New Economy: an improvement over ChiNext
Investors looking for China’s NASDAQ seem to have settled on ChiNext as the default index to follow. BUT what if there is an even better option in the market, offering a more appropriate China new economy exposure with better performance, higher quality, lower volatility and discounted valuations?! It may sound too good to be true, but it is exactly what the Premia China New Economy ETF (3173.HK) has achieved so far.
May 20, 2019
How easy & cheap are Premia ETFs to trade vs alternatives?
Most investors assume that the more liquid the ETF, the easier and cheaper it is to trade. This is true in markets like the US, where on-screen liquidity is prevalent, but Asia markets are not as straightforward. China A ETFs with on-screen liquidity are easy to trade, but easier does not always mean cheaper to trade. There is market risk in trading on-screen and though it is easier, it can actually be more expensive than trading via the underling liquidity of China A stocks inside the ETF.
May 16, 2019
Making the Case for Localized Quant Investing in Emerging Markets
In this Q&A, Phillip Wool talks about the challenges of EM investing and how a localized, systematic approach can help to unlock a rich source of sustainable alpha.
Mar 7, 2019
Bank of East Asia to Increase Mainland Capital After Profit Warning
Bank of East Asia (BEA) is preparing a capital injection into its Chinese mainland branch to support its capital structure and business operations, a company source told Caixin Monday. The move follows a profit warning for the six months ending June 30 issued by BEA last week, citing a downturn in commercial property markets outside of China's top-tier cities. The Hong Kong-based bank said it expected to write down four loans related to commercial property projects in China with a nominal value
Jun 18, 2019