< The 2015 All-Asia Research Team
Total appearances: 7
Team debut: 2001Deutsche Bank’s five-strong crew with Khoi Le Binh at the helm extends its winning streak to a third year. The 41-year-old analyst and his colleagues work out of Hong Kong and maintain a loyal following. “When I think of quantitative research in Asia, I think first of Deutsche,” cheers one portfolio manager. The team’s analysis, this enthusiast adds, “is innovative and continues to generate new ideas that I find useful.” Currently, Binh says, the group is “focusing on redefining momentum, measuring risk aversion and exploring the China A-share market with quantitative techniques.” As of mid-April, he notes, “we had moved away from the risk-off risk aversion regime. There are still signs of tension in the money market and foreign exchange market, but our risk-aversion proxies for equities — the financial sector and commodities — have decreased significantly.” The market is now generally positive on Asia ex-Japan, he says, thanks largely to enthusiasm about China. Investor sentiment on mainland incorporated and listed companies is slightly above its historical average, he reports, while the attitude toward Hong Kong equities “increased sharply” in late March through mid-April. The Shanghai Shenzhen CSI 300 Index and Hong Kong Hang Seng Index have posted strong performance, rising 120 percent and 27.1 percent during the 12 months through April, while their regional peers gained 14.6 percent. A “relaxation of monetary policy and capital-account liberalization” have been driving these gains, explains Binh, resulting in “positive liquidity shocks” in both the A-share and Hong Kong markets. He and his colleagues recommend that clients favor Hong Kong–listed Chinese stocks. More generally, investors looking at a long horizon should prefer Chinese and Indian stocks, Deutsche’s researchers believe, while a short portfolio should concentrate on South Korean and Taiwanese names.