From: Gino Yu [ 
Sent: 12/17/2016 2:43:49 AM 
To: jeffrey E. [jeevacation@gmail.com] 
Subject: Fwd: Schulte Research: Deep dives into PRC fin tech ownership and Trump cabinet ownership. (DO NOT FORWARD) 
Attachments: mime-attachment.png; mime-attachment.gif; mime-attachment.jpg 
Importance: High 
See the attached. Let me know if you are interested in meeting him when he's in NYC. 
gino 
Begin forwarded message: 
From: Paul Schulte < 
Subject: Re: Schulte Research: Deep dives into PRC fin tech ownership and Trump cabinet 
ownership. (DO NOT FORWARD) 
Date: 17 December 2016 at 8:35:35 AM HKT 
To: Gino Yu 
Sure. Forward 
Founder and Editor 
Schulte Research 
On 17 Dec 2016, at 3:09 AM, Gino Yu `> wrote: 
I'm Still in HK. Cancelled my India trip. Leaving for Italy on Monday. Can meet this weekend if you are 
around. 
Can I forward this to my benefactor in NYC? You interested in meeting him while you are there? 
gino 
On 16 Dec 2016, at 6:19 PM, Paul Schulte _____ > wrote: 
Founder and Editor 
Schulte Research 
Begin forwarded message: 
HOUSE OVERSIGHT 026036 
From: Paul Schulte <I  
Date: 12 December 2016 at 4:10:08 PM GMT+8 
To: Paul Schulte < 
Subject: Schulte Research: Deep dives into PRC fin tech ownership and Trump cabinet ownership. (DO 
NOT FORWARD) 
SCHULTE RESEARCH REPORT: ED 164 
.41114 
DEEP DIVES INTO PRC FIN TECH OWNERSHIP AND TRUMP 
CABINET OWNERSHIP. (DO NOT FORWARD) 
12 December 2016 
ED 164 
• H SHARES: PING AN, CICC AT CENTER OF ALIBABA, TENCENT 
PHENOMENON. BUY. SELL AIA. 
• TRUMP CHOICES ARE ALL ABOUT KOCH BROS & OIL/GAS 
NETWORK: BUY RUSSIA... ALSO SAUDI BANKS. 
• INVESTOR FEEDBACK: INFLATION COMING. BUY BOMBED 
OUT BANKS HSBC, KB, UNICREDIT? GROWING AGREEMENT ON 
BOOM IN US. BUY CITI, JPM. 
Schulte Research Report, ED 164: Slides 
CONTACT US 
Paul Schulte 
Founder, Schulte Research 
Gavin Liu 
Senior Analyst 
IND-X Advisors Limited 
Kinwick Centre, 8th Floor 
32 Hollywood Road 
Central 
Hong Kong 
1. Ping An & CICC are the 2 H shares that operate in the middle of Alibaba, Tencent, Lufax. 
A. The chart below represents a deep dive we did on the new world of Chinese banking. Companies 
like Zhong An, WeBank and Lufax will grow dramatically and will take advantage of (as well as 
support) the massive worlds of Alibaba and Tencent. Together, Alibaba and Tencent have market cap 
of $500 bn. Popping up in many of these areas of overlap are Ping An and CICC. They are 
strategically placed to make great strides in China. This is slowly being recognized in the case of Ping 
AN (See Page 8 of attached PPT). Ping An's market cap is $97 bn. It is connected to Zhong An.. It 
owns 44% of Lufax. And some if its management were the very ones that started WeBank. It is 
perfectly positioned for the coming boom in new banking. It has the best combined ROA and ROE 
globally and its P/E of 10x is trading on a 50% discount to the global averages. Why is Ping An 
trading at a discount to AIA? BUY PING AN -- SELL AIA.. 
B. The other company which has the best return on capital of any broker dealer -- and is also  
positioned nicely for the coming boom in the new era of banking in China -- is CICC. CICC and CDH 
(a CICC breakaway) both invested in Zhong An and Lufax. CICC has vision and a proven track record. 
HOUSE OVERSIGHT 026037 
Yet it has been a laggard. This is a top pick for H shares for China in 2017. The other bank with great 
vision in this area is CCB, which has invested in Ant Financial. BUY H shares CCB and CICC. (See 
attached PPT for portfolios and China fintech details). 
C. IPOs in 2017. I think Zhong An will be a surprise for 2017 in the Hong Kong market. Its market 
cap is expected to be $10 bn and it has interesting potential in so many areas of insurance. It 
remains an insurance company whose marginal cost of a new customer is zero. It has a talented 
team of 900 engineers and has new Al and blockchain divisions. It is rolling out an impressive array 
of products including corporate solutions for insurance and investment plans. Lufax CEO Greg Gibb 
made a big splash at the Finnovasia (Schulte Research co-sponsored it) in Hong Kong last month. 
The company is a diversified financial conglomerate akin to "Schwab meets etrade and Fidelity" --
only 25 years ago. It needs an IPO north of $25 bn in order for the private equity partners to make 
money. Lastly, Ant Financial will come to the market for a $60 bn IPO in 2017 -- also in Hong Kong. 
This is a mothership company that goes to the heart of China's system. Its early investors are CIC, 
CDB, CCB, China Life and other vital organs of the system. It will not be allowed to fail. There are 
some questions about whether to own this through Alibaba, since Alibaba will own 33% of Ant post 
IPO. I'm in this camp. Buy Alibaba on this pullback. (See attached PPT for the full China Fintech 
Report). 
2. Koch Industries saturates both the offices of Trump as well as Pence. Mega bullish for Russia, oil 
and gas companies. Mega bearish for alternative energy. 
A. The Koch Brothers are not just two grumpy men -- they are a political party. Koch Industries is the 
second biggest private company in the US after Cargill. They operate public and secretive political 
entities in 32 states and dole out more than $500 million each political cycle to various entities in the 
strongest places. The political entities employ more than 1,200 people and the amount of donations 
available to right wing causes varies dramatically but is as high as $750 million per cycle. It is the 
third largest party in the US after the Democratic and Republican party. It controls the Libre Alliance, 
Americans for Prosperity, Freedom Partners, Institute for Energy Research, American Energy Alliance 
and Concerned Veterans. 
B. What do they do with their money? They support right wing Republican candidates for all 
organizations -- attorneys general, Senate, House and state political figures. This is where it gets 
interesting. Freedom Partners is thought of as the "Koch bank". Guess who ran this? Marc Short. It 
controls about $250 mn in funds for political activity. Guess who employed Marc Short as chief of 
staff? Indiana Governor Mike Pence. Guess who then employed him as chief of staff? President-elect 
Trump. Matt Lloyd is in charge of communications and strategy for VP-elect Pence -- he came from 
Koch Industries. Governor Pence was a frequent attendee of the secretive semi-annual meetings of 
the Koch Brothers. Guess who raised more than $100 million for Freedom Partners? Don McGahn. 
Guess who is the new White House Counsel for President-elect Trump? Don McGahn. (McGahn was 
embroiled in the Tom Delay scandal in the 2000s). Guess who had two companies which had Koch 
Brothers as investors and whose chief of staff (Chenowith) came from the Koch world? The new CIA-
designate chief Mike Pompeo. (Pompeo's Kansas campaign received a $900,000 donation from Koch). 
Guess who gave $1 mn to Americans for Prosperity? Education secretary designate Betsy Devos. 
Guess who has written the strategy paper for the Department of Energy transition? Tom Pyle -- He is 
affiliated with the Koch Industries Office of federal Affairs and the Institute for Energy Research. 
Guess who was caught up in a Koch Industries scandal for a petrochemical port project (with a Koch 
affiliated Messr. Henneberry)? Governor Nikki Haley who is UN Ambassador designate. 
HOUSE OVERSIGHT 026038 
C. Advisors are ALL Koch-related. Here is where it gets fun. Former campaign advisor Corey 
Lewandowski came from KochLand. Rebekah Mercer is part of Koch and and gave $2.5 mn to 
Freedom Partners. Kellyanne Conway has connections to Pence from way back and is connected to 
Steve Bannon through the Center for National Policy. Trump deputy campaign manager David Bossie 
came from Citizens United. The Director of Coalitions for Trump is named Alan Cobb -- he came from 
Americans for Prosperity. Daren Se!nick is a transition advisor and he came from Concerned 
Veterans. Others on the Trump team who came from Kochland include Stuart Jolly, Eli Miller, Scott 
Hagerstrom and Matt Ciepielowski. 
3. BUY the hell out of Russia -- Exxon Rex is a cabinet trifecta for Koch Brothers. 
A. And there's Exxon Rex. Any contribution from Exxon received money from Koch -- and vice versa. 
Rex Tillerson is worth $151 million and is leaving Exxon next year. He seems to have accepted 
secretary of state position. He inked a deal worth $300 billion in oil and gas exploration in 2012. (For 
that, he received the highest civilian honour bestowed by Russia). This will be a boom for Koch 
Industries as the sanctions against Russia are lifted. (Thank you Uncle Vlad for interfering in the 
elections). This will be a boom for Russia -- for equities, FX and bonds. It is clear that sanctions 
against Russia will be lifted regardless of whether Russia interfered in the elections. (Clinton made 
this a campaign issue and still lost!). 
B. Anyone who thinks this will be reversed by Greenpeace or other green organization is kidding  
themselves. The Senate and House is Republican. Majority parties control all committees so they 
control the agenda. The agenda is set. These guys are geniuses with the news cycle. And the vast 
array of think tanks controlled by the Koch Brothers (most of them) allows them to control the news 
cycle as well as the opinion pages of newspapers. The web on control on public opinion from the 
Koch Brothers reaches every newspaper through a large array of think tanks like the AEI and Cato 
Institute, not to mention the vast array of Koch think tanks. 
C. If you don't like this, tough luck. Life is not fair. This is not going to be reversed. Think of it as 
watching a science experiment. Bush lost the popular vote to Gore in 2001 and completely reversed 
policies on tax, environment, Middle East, energy, fracking, birth control, and LGBT issues. Trump, 
Pence, Bannon and Koch will make a deal which will be a hybrid of religious right on moral issues and 
"zero intrusion from government" in commerce. Republicans already control the Senate, the House, a 
majority of governorships as well as a majority of attorneys general. It will be very hard to reverse 
this. And if Trump can deliver jobs to the midwest red states, more senate seats will turn red. Tom 
Pyle's list of things to for the Department of Energy's transition team is expressly designed to do this. 
This includes new oil and gas leasing projects, more fracking, more coal, more LNG projects -- and a 
green light for both the Keystone and Dakota pipelines. The working paper reneges on the Paris pact, 
the Clean Power Plan and the carbon tax. And it is expressly a climate change denial policy. States 
like North Dakota, South Dakota, Oklahoma, Iowa, Texas, Louisiana, West Virginia, Kansas and 
others will come to life again.. Most of these states have small populations but each gets a governor 
and two senators. 
HOUSE OVERSIGHT 026039 
This report is published and distributed by IND-X Advisors Limited ("IND-X"). IND-X is 
regulated by the Hong Kong Securities and Futures Commission and is a registered 
investment advisor with the U.S. Securities and Exchange Commission. This message is 
intended for the addressee only and may contain private and confidential information or 
material which may be privileged. If it has come to you in error you must delete it immediately 
and should not copy it or show it to any other person. IND-X and its affiliates make no 
representation that the contents of this e-mail are accurate or complete nor shall they have 
any liability for any loss of profit, indirect or other consequential losses or other economic loss 
suffered by any person arising from reliance upon such contents. 
This e-mail is confidential and subject to IND-X Advisors Limited's electronic communication policy, which can be viewed at: 
http://www.indxadvisors.com/qo/legal  
<mime-attachment.png><mime-attachment.gif><mime-attachment.jpg> 
This e-mail is confidential and subject to IND-X Advisors Limited's electronic communication policy, which can be viewed at: 
http://www.indxadvisors.com/qo/lecial  
Schulte-Research 
China Fintech Map 
Tencent 
$231 bn 
SZ 
30% 
WeBank 
$5bn 
SZ 
Tencent 30% 
12% 
WeBank management 
team from Ping An 
Zhong An 
sn bn 
SH 
Ant 16% 
Ping An 12% 
Tencent 12% 
Ping An 
CDH (ex-CICC)* 
CICC 
Lufax 
525bn 
SH 
Ping An 44% 
BOC, Guotai Junani 
*CDH: set up by Wu Shangzhi. who brought a team from CICC 
Alibaba/Ant 
libaba will own 33% of Ant post IPO 
$233 bn/$60 bn 
HZ 
(CC, CDB, CCB, China Life, China 
Pacific insurance) 
private 
Ping An 
$97 bn 
SZ 
CITIC Sec. 
Zhong An 
HOUSE OVERSIGHT 026040