A Beijing-based value investor specializing in China's State-Owned Enterprises (SOEs). Translating SASAC reforms and dividend mandates into actionable, defensive equity strategies.
Valuation
Four Chinese SOE industries trade at PB discounts above 20% versus private peers: petrochemicals, steel, construction, and transportation — also the highest-yielding sectors. This installment maps where the discount concentrates and what the geography reveals about policy-mandate pricing.
Valuation
China's central SOEs generate higher ROE than private peers, yet the PB-ROE valuation framework completely fails on them. This installment examines why traditional fundamentals-based pricing breaks down on state firms — and what the 2023 reform does and does not change about governance risk pricing.
Valuation
Conventional wisdom holds that Chinese state-owned enterprises are unreliable dividend payers. The data shows the opposite: central SOEs delivered a 55.17% three-year cumulative payout ratio against 49.59% for private firms — alongside higher ROE and stronger profit resilience.
Valuation
In 2023, SASAC introduced a new SOE performance framework linking management evaluation to ROE and cash flow quality. This is what changed — and what it signals for valuation.
Valuation
China’s state-owned enterprises trade near 10x earnings, versus about 40x for the S&P 500. A data-driven analysis of the structural valuation gap.