Contrary to many pundits’ predictions, Jason Hsu is confident that Beijing’s deleveraging efforts will avoid a housing crash in China. The much bigger issue, from both a social welfare and economic perspective, is housing affordability—a crisis he’s seen firsthand during his recent stay in China. This article explains more.
What Can Evergrande’s Unraveling Teach Us About China’s Credit Market, Real Estate Prices and Policy Making?
Headlines in the West have been implying Evergrande’s predicted collapse could cripple Chinese banks and create a run on financial institutions. Rayliant Chairman and CIO Jason Hsu explains why differences in China’s real estate development financing make this very unlikely.
Beijing’s announcement of a 3rd new stock exchange may have been surprising, but actually makes sense when viewing from a local perspective.
Philanthropy, taxes, and government assistance programs are new concepts that are top of mind for the Chinese government, signaling a willingness to adopt a more Western approach towards achieving common prosperity.
China’s regulators are focused on those industries and companies with the greatest potential to hurt Chinese society. This means ESG investors who tailor their approach to local social issues —which are often different from “western issues”—can avoid regulatory black swan events and earn better returns.
Rayliant’s Head of Research, Vish Viswanathan, explains why recent market activity suggests that A-shares have less regulatory risk than H-shares and ADRs.
The latest policy decree from Beijing is a likely death sentence for the for-profit education sector in China … but it may be a win for Chinese society. Global investors are sometimes uncomfortable with China’s interventionist approach to address social issues. But if they want to invest successfully in Chinese companies, they’d better understand it.
Is this the end of the road for Chinese ADRs? China may be tightening the VIE loophole that previously permitted U.S. listings of Chinese companies. This article explains why ADRs and VIEs present an especially complicated issue for regulators in China.
Much has happened this week in the Chinese tech and ADR space. Here are my thoughts in response to some of the questions I’ve been receiving from investors and others.
I’ve been getting questions about the Ant Financial IPO, and it was validating to see Charlie Munger’s recent interview on the topic. The brief article below shares my thoughts on the topic, and on China’s regulatory approach more generally.