NOAH - Noah Holdings: Camsing's Fraud Poses Concerns On Risk Control
Investment Thesis
Camsing’s fraud shows NOAH is not performing sufficient due diligence on their credit investments. The risk from single obligor is also too high. We expect NOAH’s revenue and future growth to slow down.
Camsing’s Fraud and Impact on NOAH
On July 8, Noah Holdings Ltd. (NYSE: NOAH), filed a lawsuit and reported Camsing International (a Hong Kong-listed company with businesses spanning entertainment and health care) to regulators in relation to a 3.4 billion yuan ($490 million) asset management product that’s in danger of default.
Camsing’ 47-year old founder Lo Ching was “currently