China Evergrande Group and China’s real estate sector had been on China’s headlines. In this report, we have summarized what has happened and the impact on China’s property sector. More importantly, we presented a solution to the listed company shareholders of Evergrande / other China real estate.

To dispel the perception that share pledge transactions have a negative impact on share prices for underlying securities, EquitiesFirst provides price performance data for all the transactions completed by EquitiesFirst in Asia up to April 2021. Our results were positive and remain in line with our previous findings.

Companies often use ESOP to align interests with their employees. Many early employees of listed companies have accumulated the majority of their wealth through stock rewards. When short-term capital needs arise, rather than selling those shares in the market (which creates share price pressure), pledging the shares to EquitiesFirst is an alternative for upside retention and alignment of interests.

The EquitiesFirst financing model requires a temporary title transfer of shares during the term of the loan transaction. We analyzed the share price performance of transactions completed by EquitiesFirst in Asia, address concerns about short interest, the cost of capital compared to margin lending and the benefits of our lending model.

Fundraising activities in small-cap companies underperformed large-cap companies in 2020 - May 2021 in Asia as they strive to survive through COVID-19. Given the non-purpose feature of our financing solution, this piece looks at how substantial shareholders of small-cap companies could make use of EquitiesFirst’s competitive financing to unlock capital for their companies.

Private banks and traditional lenders are under increasing pressure from macroeconomic and regulatory forces. With an established risk-management system, EquitiesFirst’s single-stock financing solution complements traditional private banks and their client offerings. This piece decodes how private banks benefit from collaborating with EquitiesFirst to solve client needs.