HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>The appreciation of Rmb will bring benefits to some companies. With a lower USD rate and an inflow of funds to China, this trend is expected to continue into 2026.</li>
<li>
<a href="https://www.smartkarma.com/entities/h-world-group-ltd" target="_blank" data-smartkarma-citation="entities:33487:1" rel="noopener">H World Group (1179 HK)</a>, <a href="https://www.smartkarma.com/entities/china-everbright-environment-group-limited" target="_blank" data-smartkarma-citation="entities:15946:1" rel="noopener">China Everbright Environment (257 HK)</a>, and <a href="https://www.smartkarma.com/entities/china-national-building-ma-h" target="_blank" data-smartkarma-citation="entities:184:1" rel="noopener">China National Building Material (3323 HK)</a> are the most likely ones to gain the most.</li>
<li>The newly listed companies in Hong Kong are exposed due to the translation of massive HKD proceeds to Rmb, with the impact on <a href="https://www.smartkarma.com/entities/sicc-co-ltd-e5b2bacc-ed46-4d8e-bfb1-ff952e730eae" target="_blank" data-smartkarma-citation="entities:45752:1" rel="noopener">SICC (2631 HK)</a> being the heaviest. </li>
</ul>


The appreciation of Rmb will bring benefits to some companies. With a lower USD rate and an inflow of funds to China, this trend is expected to continue into 2026.

H World Group (1179 HK), China Everbright Environment (257 HK), and China National Building Material (3323 HK) are the most likely ones to gain the most.
The newly listed companies in Hong Kong are exposed due to the translation of massive HKD proceeds to Rmb, with the impact on SICC (2631 HK) being the heaviest. 


China Strategy: Revisiting the Rmb Appreciation Story

Japan Specialist

Mark Chadwick

<ul>
<li>US equities rebounded on Friday, snapping a recent losing streak as easing inflation concerns and renewed confidence in the AI trade lifted sentiment late in a volatile week.</li>
<li>Sony Group will acquire an additional 41% of Peanuts Holdings for about $460m, lifting ownership to 80%, consolidating the unit and booking a remeasurement gain in operating profit.</li>
<li>Nike’s earnings slump highlights China weakness and margin pressure, creating share-gain opportunities for ASICS, whose improving China margins and exposure to a healthy global running market position it favorably.</li>
</ul>


US equities rebounded on Friday, snapping a recent losing streak as easing inflation concerns and renewed confidence in the AI trade lifted sentiment late in a volatile week.
Sony Group will acquire an additional 41% of Peanuts Holdings for about $460m, lifting ownership to 80%, consolidating the unit and booking a remeasurement gain in operating profit.
Nike’s earnings slump highlights China weakness and margin pressure, creating share-gain opportunities for ASICS, whose improving China margins and exposure to a healthy global running market position it favorably.


External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>We believe 2026 will be a pivotal year for competing for user mindshare in the AI era, with key focuses on lowering AI adoption thresholds, improving decision-making efficiency, and creating real value.</li><li>Among traditional internet businesses, companies that possess these three characteristics are expected to have higher long-term investment value: 1) stable cash flow to support AIrelated investment and exploration; 2) rich application scenarios to accumulate data and reach users; and 3) outstanding supply chain capabilities and operational excellence to drive overseas expansion for incremental growth.</li><li>We still recommend adopting a barbell investment strategy, while focusing on both the certainty of profit growth and new increments brought by AI. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We believe 2026 will be a pivotal year for competing for user mindshare in the AI era, with key focuses on lowering AI adoption thresholds, improving decision-making efficiency, and creating real value.Among traditional internet businesses, companies that possess these three characteristics are expected to have higher long-term investment value: 1) stable cash flow to support AIrelated investment and exploration; 2) rich application scenarios to accumulate data and reach users; and 3) outstanding supply chain capabilities and operational excellence to drive overseas expansion for incremental growth.We still recommend adopting a barbell investment strategy, while focusing on both the certainty of profit growth and new increments brought by AI. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Internet - 2026 Outlook- Bridging legacy and future: A pivotal year

Independent Investment Research, The IDEA!

The IDEA!

Independent Investment Research

The Idea-Driven Equities Analyses company (the IDEA!) is an employee-owned boutique providing independent investment research and financial consultancy services with a clear focus on the Benelux countries. The company was founded in the summer of 2007 by Henk Slotboom and Maarten Verbeek, both with more than 35 years of professional experience in the financial sector. The IDEA! differentiates itself by focusing on adding value through self-initiated in-depth, idea-driven investment research, as well as by bespoke research assignments for institutional investors, hedge funds and private equity. In addition, we provide market intelligence, strategic research and – together with our business partners – consultancy services to businesses. In case you are interested in receiving more information, a sample of our products or an introductory meeting, please send a message to info@theidea.nl.

<ul>
<li>The District Court of The Hague has refused to block a proposed Dutch handling surcharge on ecommerce parcels with a value of less that EUR 150 imported from outside the European Union.</li>
<li>The court is of the opinion that intervening would amount to interference in political decision-making.</li>
<li>The case was brought by logistics service provider ViaEurope, which argued that the planned surcharge violates EU customs law and was announced with too little notice, threatening the company’s survival. </li>
</ul>


The District Court of The Hague has refused to block a proposed Dutch handling surcharge on ecommerce parcels with a value of less that EUR 150 imported from outside the European Union.
The court is of the opinion that intervening would amount to interference in political decision-making.
The case was brought by logistics service provider ViaEurope, which argued that the planned surcharge violates EU customs law and was announced with too little notice, threatening the company’s survival. 


External broker reports(aggregated public sources), BRI Danareksa Research

BRI Danareksa Research

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor.

<ul><li>We expect govt fiscal expansion to boost gradual demand recovery, while store expansion remains the key growth driver for retailers in FY26F.</li><li>We project sector’s rev. growth of +8.7% yoy in FY26F driven by store expansion and gradual SSSG recovery, with modest margin improvement.</li><li>Maintain Overweight on the sector; preferred picks are MIDI (Buy, TP Rp550) and MAPA (Buy, TP Rp800). Govt fiscal expansion to support gradual</li></ul>Content is an external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We expect govt fiscal expansion to boost gradual demand recovery, while store expansion remains the key growth driver for retailers in FY26F.We project sector’s rev. growth of +8.7% yoy in FY26F driven by store expansion and gradual SSSG recovery, with modest margin improvement.Maintain Overweight on the sector; preferred picks are MIDI (Buy, TP Rp550) and MAPA (Buy, TP Rp800). Govt fiscal expansion to support gradualContent is an external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Retail: FY26 Outlook: Fiscal Boost and Store Expansion Drive Steady Growth in FY26F (OVERWEIGHT)

Thematic (Sector/Industry)
Thematic (Sector/Industry) Insights

China Strategy: Revisiting the Rmb Appreciation Story

Appreciation of Rmb benefits companies include H World Group, China Everbright Environment, and CNBM. Newly listed companies in Hong Kong are...

Osbert Tang, CFA

Ohayo Japan | Tech Leads Late-Week Rally

US equities rebounded on Friday due to easing inflation concerns and renewed confidence in the AI trade.Nike's earnings slump in China creates...

Mark Chadwick

Internet - 2026 Outlook- Bridging legacy and future: A pivotal year

We believe 2026 will be a pivotal year for competing for user mindshare in the AI era, with key focuses on lowering AI adoption thresholds,...

CMB International

What's News in Amsterdam

The District Court of The Hague has refused to block a proposed Dutch handling surcharge on ecommerce parcels with a value of less that EUR 150...

The IDEA!

Retail: FY26 Outlook: Fiscal Boost and Store Expansion Drive Steady Growth in FY26F (OVERWEIGHT)

We expect govt fiscal expansion to boost gradual demand recovery, while store expansion remains the key growth driver for retailers in FY26F.

BRI Danareksa Research

China Strategy: Revisiting the Rmb Appreciation Story

​Appreciation of Rmb benefits companies include H World Group, China Everbright Environment, and CNBM. Newly listed companies in Hong Kong are...

Osbert Tang, CFA

Ohayo Japan | Tech Leads Late-Week Rally

​US equities rebounded on Friday due to easing inflation concerns and renewed confidence in the AI trade.Nike's earnings slump in China creates...

Mark Chadwick

Internet - 2026 Outlook- Bridging legacy and future: A pivotal year

We believe 2026 will be a pivotal year for competing for user mindshare in the AI era, with key focuses on lowering AI adoption thresholds,...

CMB International

What's News in Amsterdam

The District Court of The Hague has refused to block a proposed Dutch handling surcharge on ecommerce parcels with a value of less that EUR 150...

The IDEA!

Retail: FY26 Outlook: Fiscal Boost and Store Expansion Drive Steady Growth in FY26F (OVERWEIGHT)

We expect govt fiscal expansion to boost gradual demand recovery, while store expansion remains the key growth driver for retailers in FY26F.

BRI Danareksa Research

Appreciation of Rmb benefits companies include H World Group, China Everbright Environment, and CNBM. Newly listed companies in Hong Kong are...

US equities rebounded on Friday due to easing inflation concerns and renewed confidence in the AI trade.Nike's earnings slump in China creates...