From: Paul Schulte <
Date: 12 December 2016 at 4:10:08 PM GMT+8
To: Paul Schulte <3 iT
Subject: Schulte Research: Deep dives into PRC fin tech ownership and Trump cabinet ownership. (DO NOT FORWARD)
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CONTACT US
Paul Schulte Founder, Schulte Research
DEEP DIVES INTO PRC FIN TECH OWNERSHIP AND TRUMP CABINET OWNERSHIP. (DO NOT FORWARD)
Gavin Liu Senior Analyst
¢ H SHARES: PING AN, CICC AT CENTER OF ALIBABA, TENCENT
PHENOMENON. BUY. SELL AIA. IND-X Advisors Limited Kinwick Centre, 8°" Floor ¢ TRUMP CHOICES ARE ALL ABOUT KOCH BROS & OIL/GAS a se ai Road entra
NETWORK: BUY RUSSIA... ALSO SAUDI BANKS. Hong Kong
e INVESTOR FEEDBACK: INFLATION COMING. BUY BOMBED
OUT BANKS HSBC, KB, UNICREDIT? GROWING AGREEMENT ON BOOM IN US. BUY CITI, JPM.
Schulte Research Report, ED 164: Slides
1. Ping An & CICC are the 2 H shares that operate in the middle of Alibaba, Tencent, Lufax.
A. The chart below represents a deep dive we did on the new world of Chinese banking. Companies like Zhong An, WeBank and Lufax will grow dramatically and will take advantage of (as well as support) the massive worlds of Alibaba and Tencent. Together, Alibaba and Tencent have market cap of $500 bn. Popping up in many of these areas of overlap are Ping An and CICC. They are strategically placed to make great strides in China. This is slowly being recognized in the case of Ping AN (See Page 8 of attached PPT). Ping An's market cap is $97 bn. It is connected to Zhong An.. It owns 44% of Lufax. And some if its management were the very ones that started WeBank. It is perfectly positioned for the coming boom in new banking. It has the best combined ROA and ROE globally and its P/E of 10x is trading on a 50% discount to the global averages. Why is Ping An trading at a discount to AIA? BUY PING AN -- SELL AIA..
B. The other company which has the best return on capital of any broker dealer -- and is also
positioned nicely for the coming boom in the new era of banking in China -- is CICC. CICC and CDH (a CICC breakaway) both invested in Zhong An and Lufax. CICC has vision and a proven track record.
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