< The 2016 All-Asia Research Team
Huaxiang (Edward) Xu & team
Morgan Stanley
First-Place Appearances: 3
Total Appearances: 17
Team Debut: 1996
In 2013, the last year that Transportation was a stand-alone sector, Huaxiang (Edward) Xu led his Morgan Stanley squad to second place. Coverage of these shares was rolled into the broader Industrials category, and the researchers, directed by Xu and Kevin Luo, slipped to No. 3 in 2014 then leaped to the top. The firm headlines both rosters this year. In addition, Xu, with Ran (Richard) Xu, oversees the top-ranked crew on the China lineup. (Only one other person appears in three winner’s circles this year. Young-Ah Han guides Bank of America Merrill Lynch’s crews to top finishes in South Korea, with Bryan Song, and on the two Consumer lists: with Chen Luo in Discretionary and with Yuanyuan [Tina] Long in Staples.) Hong Kong–based Xu’s six-member team in this space reports on more than 60 regional companies. Despite continuing low fuel costs, the researchers’ overall outlook is neutral, based in part on currency fluctuations and a slowdown in China’s economic growth. They do, though, expect Chinese airlines to perform well this year, “given the positive supply-demand outlook, supported by a strong outbound travel trend amid sustained low oil prices,” advises Xu. 40. “However, we note renminbi depreciation against the dollar will remain as an industry overhang. We also like the theme of the Shanghai Disneyland project, which should directly benefit” China Eastern Airlines Corp., Shanghai International Airport Co. and Spring Airlines Co. Xu and his colleagues “provide contrarian and realistic views of the industry,” says one admirer, and “up-to-date research.” Other investors hail their responsiveness to client requests, diligence and expert, comprehensive coverage.