CLSA positive on Consumption, eCommerce, Healthcare and opportunities presented by OBOR
Tianjin – Monday, 15 May 2017: CLSA, Asia’s leading and longest-running brokerage and investment group opens the 22nd CLSA China Forum today in Tianjin, China. The three-day event is one of the longest running investor conferences of its kind in China and brings together China-based corporate executives and around 150 international fund managers from 19 countries.
As China steers its economy from fixed-asset investment towards services, investors have become concerned over the induced slowdown. Political reshuffling is adding to uncertainties. At the 22nd CLSA China Forum, with support from our parent company CITICS we strive to assist investors in navigating this complex investment landscape.
The CLSA China Forum provides views from over 50 China commentators including CLSA analysts, strategists & economists, industry specialists and China thought-leaders. Macro topics include China GDP, political and economic reforms, Sino-US relations and China’s One Belt One Road initiative. Sector presentations cover consumer and consumption trends, power and energy reforms, as well as updates on the auto, banking, education, healthcare, infrastructure and property sectors.
CLSA has written extensively about China’s One Belt One Road (OBOR) initiative and Alexious Lee, Head of China Industrial research at CLSA offers investors several lenses through which to look at OBOR, including emerging trends and the impact on key countries and companies. This is a timely presentation following China’s One Belt, One Road summit ; one of the most important milestones for the country’s leadership, that took place last week in Beijing.
China consumption is in a cyclical recovery supported by supply-side reform and policies that re-shore purchases. Francis Cheung, CLSA Head of China/HK strategy argues that the savings rate will fall 5ppts by 2020, driving 10.5% consumption growth per year. CLSA Head of China Consumer research, Dawei Feng turns positive on the sector in 2017, thanks to the stronger economy (Li Keqiang index) and the end of channel destocking, while the Insurance sector remains underweight, according to CLSA analyst Lloyd Xu.
China has already surpassed the USA as the world’s largest eGrocery market. According to CLSA Head of Asia Telecom & Internet, Elinor Leung it is likely to widen its lead with US$1.4tn sales by 2021. E-grocery and rural will be new drivers while the rebound in consumption and product premiumisation will continue to fuel growth.
Among our keynote speakers at the CLSA China Forum this year is China expert Jonathan Anderson of Emerging Advisors Group, who debates the Chinese financial bubble. With bears calling for a looming disaster within 6-12 months and bulls arguing that rising debt levels really don’t matter at all, Jonathan argues that neither view is correct, revealing where the true fracture points lie and how long it will take to get there.
Also speaking at the Forum are veteran China commentators Gabriel Wildau, Shanghai bureau chief for the Financial Times and Mike Chinoy, former CNN Asia Correspondent . Both provide independent views on President Trump’s impact on Sino US relations, addressing the continuing uncertainty surrounding trade as well as regional security. Chinoy also addresses the growing anxiety about what Trump might do if and when an “inevitable crisis erupts in the region”, while Wildau questions whether China is heading for a “Minsky moment” or a “Japan scenario”.
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About CLSA Limited
CLSA is Asia’s leading and longest running brokerage and investment group. The company provides equity broking, corporate finance & capital markets and asset management services to global corporate and institutional clients.
Renowned for service excellence, product innovation and award-winning market intelligence CLSA has provided independent equity research, sales and trading since 1986. CLSA is one of the largest brokerages in Asia and with exchange membership in every developed market in the region, plus Australia and the Americas, CLSA provides best execution across a range of products and services.
Through CITIC CLSA Securities, the group’s corporate finance and capital markets team leads equity public offerings (primary and secondary), debt issuances and M&A advisory. Direct investment is offered through diversified, alternative investment vehicles by CLSA Capital Partners.
Headquartered in Hong Kong, CLSA’s 1,500 dedicated professionals operate from 20 cities across Asia, Australia, the Americas and Europe. CLSA’s parent company CITIC Securities is China’s leading investment bank.
For further information, please contact:
Simone Wheeler, Global Head of Group Communications
+852 2600 8196