Paul Schulte launches research house in Hong Kong
11 September 2013
News, Asia, Hong Kong
By Asia Asset Management
Schulte Research International, an independent research house focused on banks and corporate credit in emerging markets, has opened in Hong Kong. Founded by industry veteran Paul Schulte, the firm’s research integrates analysis of banks and liquidity with corporate credit to get its views on the equity markets.
“No other research firm in Asia is providing this type of research,” said Mr. Schulte, CEO of the new firm. “We look at how bank liquidity drives economics – not the other way around.
“Credit creation drives all asset prices: equities, currencies and real estate. Get the banks wrong and the strategy is wrong. So, strategy and asset allocation is derived from liquidity provided by financial institutions.”
The firm produces fortnightly research that is designed to provide clients with insights into Asia’s equity markets by reviewing bank liquidity and solvency. The firm’s current client list includes sovereign wealth funds, hedge funds, mutual funds and pension funds.
Launched in April, Schulte’s research has recently advocated buying Japanese and US banks and selling Indian, Thai and Indonesian banks. Mr. Schulte was among the first to warn investors about the coming problems in ASEAN back in April.
“Having worked in sell-side research for more than 20 years, the independent, research niche provides a greater degree of freedom and intellectual latitude,” Mr. Schulte added.
Mr. Schulte has covered Asian and emerging markets on both the buy and sell sides and has five years of government policy experience in emerging markets.
Most recently, Mr. Schulte was the global head of financial strategy and Asia banks research at China Construction Bank International Limited. He has also held senior positions at Nomura, Lehman Brothers and Barings. He was part of the team that established the equity research department at Credit Suisse (then called CSFB) in Hong Kong in 1992.
Mr. Schulte is an adjunct professor of finance in the MBA programmes at both Hong Kong University and the Hong Kong University of Science and Technology.
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