Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>NIO and XPEV intensified promotions during C3Q24 while LI moderated them. But we see LI possibly need to ramp up its promotion to stir up demand in C4Q24;</li>
<li>Trade-In has greatly stimulated EV demand and is possible to extend into 2025. But Huawei-affiliated PHEV makers are gaining share while Tesla is readying another round of innovation-led cost reduction;</li>
<li>Our TOP PICK's of the sector are BYD and Xiaomi. BYD benefits from PHEV and Xiaomi can still benefit from PHEV.</li>
</ul>


NIO and XPEV intensified promotions during C3Q24 while LI moderated them. But we see LI possibly need to ramp up its promotion to stir up demand in C4Q24;
Trade-In has greatly stimulated EV demand and is possible to extend into 2025. But Huawei-affiliated PHEV makers are gaining share while Tesla is readying another round of innovation-led cost reduction;
Our TOP PICK's of the sector are BYD and Xiaomi. BYD benefits from PHEV and Xiaomi can still benefit from PHEV.


Not All EV Makers Are Reaping the Rewards of Macro Stimulus

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Cross Asset Strategy

<ul>
<li>A review of recent events/data impacting our investment themes or outlook</li>
<li>While it may not be what investors are clamouring for - China follows through with its policies.</li>
<li>The broad Japanese indices continue to struggle despite JPY weakness</li>
</ul>


A review of recent events/data impacting our investment themes or outlook
While it may not be what investors are clamouring for - China follows through with its policies.
The broad Japanese indices continue to struggle despite JPY weakness


Overview #11 – China Follows Through While Japan Dithers and India Feeds the Ducks

Equity Bottom-Up

Zai Lab Limited operates as a bio-pharmaceutical company. The Company researches and develops therapeutic technology for antibody-based oncology, autoimmune, and infectious diseases treatments. Zai Lab also manufactures drugs in the form of capsules, injections, and liquids. Zai Lab serves patients worldwide.

<ul>
<li>ZaiLab's (ZLAB) share price rallied 15% on promising data from the Phase I trial of its DLL3 ADC licensed from Chinese startup MediLink. The data is positive but still early;</li>
<li>Besides being early, competitions in DLL3 ADC, B7H3 ADC and DLL3/CD3 BsAb are all fierce, with much bigger rivals at much advanced clinical stages. Thus ZLAB faces an execution challenge;</li>
<li>ZLAB's sourcing from domestic biotech is a major step forward that can fundamentally alter its business model. But to confirm the validity of this transition still needs more evidence.</li>
</ul>


ZaiLab's (ZLAB) share price rallied 15% on promising data from the Phase I trial of its DLL3 ADC licensed from Chinese startup MediLink. The data is positive but still early;
Besides being early, competitions in DLL3 ADC, B7H3 ADC and DLL3/CD3 BsAb are all fierce, with much bigger rivals at much advanced clinical stages. Thus ZLAB faces an execution challenge;
ZLAB's sourcing from domestic biotech is a major step forward that can fundamentally alter its business model. But to confirm the validity of this transition still needs more evidence.


ZaiLab's DLL3 ADC Is a Major Positive, but the Market Over-Reacted to Its Prospects

Co Founder & Head of Engineering and Trading, HarmoniQ Insights

Christopher Rosa

Co Founder & Head of Engineering and Trading

HarmoniQ Insights

At HarmoniQ Insights, we empower investors to enhance their investment strategies by integrating cutting-edge quantitative research processes and technologies. Our solutions provide access to leading quantitative data providers and services, tailored to align with each client’s unique goals. By bridging the gap between traditional investment approaches and advanced data-driven methods, we help clients gain a competitive edge through innovation in both process and technology.

Crypto

Virtual currencies are decentralized, math-based digital assets in which transactions can be performed cryptographically without the need for a central issuing authority. The first specification and proof of concept of Bitcoin, the first widely used virtual currency, was published in 2009 based on a paper published pseudonymously by Satoshi Nakamoto.

<ul>
<li>Blockchain technology provides decentralized, transparent, and immutable digital ledgers, revolutionizing how transactions and data are managed without reliance on centralized authorities or intermediaries.</li>
<li>Tokens enable participation in blockchain ecosystems by providing access to services, governance rights, or value transfers, playing a key role in incentivizing user engagement and network growth.</li>
<li>Foundations and companies shape the development of blockchain projects, issuing tokens to fund innovation, promote decentralization, and drive community-driven governance, supporting the evolution of Web3 technologies.</li>
</ul>


Blockchain technology provides decentralized, transparent, and immutable digital ledgers, revolutionizing how transactions and data are managed without reliance on centralized authorities or intermediaries.
Tokens enable participation in blockchain ecosystems by providing access to services, governance rights, or value transfers, playing a key role in incentivizing user engagement and network growth.
Foundations and companies shape the development of blockchain projects, issuing tokens to fund innovation, promote decentralization, and drive community-driven governance, supporting the evolution of Web3 technologies.


Digital Asset Primer: Part 2 - Foundations, Companies, and Tokens: Strategic Insights for Investors

William Mann

Independent Insight Provider

Quantitative Analysis

<ul>
<li>This report outlines a Quality-Control step: comparing output recommendations from two AIs: ChatGPT 4.o and o1-preview, to identify and analyze inconsistencies between the AI’s interpretation of the same Inputs/Prompts. </li>
<li>
<a href="https://skr.ma/KGAZA" target="_blank" rel="noopener">The report from Primer 2</a> is uploaded to each AI with the same prompts: to compare and analyze the outputs and settle on a portfolio weighted with relative ETF convictions.</li>
<li>We analyze and adjust the merged AI-driven portfolio where we disagree with the AI's conclusions. Our logic is shared with the AI to derive a final conviction-weighted market-neutral portfolio.  </li>
</ul>


This report outlines a Quality-Control step: comparing output recommendations from two AIs: ChatGPT 4.o and o1-preview, to identify and analyze inconsistencies between the AI’s interpretation of the same Inputs/Prompts. 

The report from Primer 2 is uploaded to each AI with the same prompts: to compare and analyze the outputs and settle on a portfolio weighted with relative ETF convictions.
We analyze and adjust the merged AI-driven portfolio where we disagree with the AI's conclusions. Our logic is shared with the AI to derive a final conviction-weighted market-neutral portfolio.  


Quantamental LLM Primer 3: Quality-Control 2 AI-designed Portfolios to Devise a Final Portfolio

Smorgasbord of free to read Insights on Smartkarma

Unpaywalled Insights
Smorgasbord of free to read Insights on Smartkarma

Not All EV Makers Are Reaping the Rewards of Macro Stimulus

NIO and XPEV intensified promotions during C3Q24 while LI moderated them. But we see LI possibly ramping up its promotion to stir up demand in...

Blue Lotus Research Institute

Overview #11 – China Follows Through While Japan Dithers and India Feeds the Ducks

A review of recent events/data impacting our investment themes and outlook. We look at the big kahunas in Asia - China, Japan and India

Rikki Malik

ZaiLab's DLL3 ADC Is a Major Positive, but the Market Over-Reacted to Its Prospects

ZaiLab surged 15% on positive Ph I data for its DLL3 ADC from MediLink, but faces tough competition and execution challenges. Transition to...

Blue Lotus Research Institute

Digital Asset Primer: Part 2 - Foundations, Companies, and Tokens: Strategic Insights for Investors

Understand the basics of digital assets and their role in blockchain. Learn how to segment digital assets to compare them effectively and create a...

Christopher Rosa

Quantamental LLM Primer 3: Quality-Control 2 AI-designed Portfolios to Devise a Final Portfolio

Step 3 produces the GPT Quality Control Report, comparing outputs of ChatGPT 4.0 and o1-preview AIs to identify inconsistencies and adjust the...

William Mann

Not All EV Makers Are Reaping the Rewards of Macro Stimulus

NIO and XPEV intensified promotions during C3Q24 while LI moderated them. But we see LI possibly ramping up its promotion to stir up demand in...

Blue Lotus Research Institute

Overview #11 – China Follows Through While Japan Dithers and India Feeds the Ducks

A review of recent events/data impacting our investment themes and outlook. We look at the big kahunas in Asia - China, Japan and India

Rikki Malik

ZaiLab's DLL3 ADC Is a Major Positive, but the Market Over-Reacted to Its Prospects

​ZaiLab surged 15% on positive Ph I data for its DLL3 ADC from MediLink, but faces tough competition and execution challenges. Transition to...

Blue Lotus Research Institute

Digital Asset Primer: Part 2 - Foundations, Companies, and Tokens: Strategic Insights for Investors

Understand the basics of digital assets and their role in blockchain. Learn how to segment digital assets to compare them effectively and create a...

Christopher Rosa

Quantamental LLM Primer 3: Quality-Control 2 AI-designed Portfolios to Devise a Final Portfolio

Step 3 produces the GPT Quality Control ​Report, comparing outputs of ChatGPT 4.0 and o1-preview AIs to identify inconsistencies and adjust the...

William Mann

ZaiLab surged 15% on positive Ph I data for its DLL3 ADC from MediLink, but faces tough competition and execution challenges. Transition to...

Step 3 produces the GPT Quality Control Report, comparing outputs of ChatGPT 4.0 and o1-preview AIs to identify inconsistencies and adjust the...