Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Bottom-Up

<ul>
<li>China announced game approval for the October batch. The number of games approved remained at a higher level than 2023.</li>
<li>The pace of China game approval appears to have accelerated to the same level as pre-tightening.</li>
<li>None of the companies that we are tracking got any approval for October batch.</li>
</ul>


China announced game approval for the October batch. The number of games approved remained at a higher level than 2023.
The pace of China game approval appears to have accelerated to the same level as pre-tightening.
None of the companies that we are tracking got any approval for October batch.


Tencent/Netease: Zeroed Again After Three Months

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet 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>700 HK: Tencent Timi L1 Studio General Manager Huang Lanxiao Steps Down, Will Fully Oversee &lt;Honor of Kings&gt; Global Esports Development (/)</li>
<li>700 HK/300027 CH: &lt;Black Myth: Wukong&gt; DLC Development May Have Started (+/+)</li>
<li>700 HK: Tencent Extends Partnership with NBA Until 2027 as “NBA China’s Exclusive Digital Media Partner” (+)</li>
</ul>


700 HK: Tencent Timi L1 Studio General Manager Huang Lanxiao Steps Down, Will Fully Oversee &lt;Honor of Kings&gt; Global Esports Development (/)
700 HK/300027 CH: &lt;Black Myth: Wukong&gt; DLC Development May Have Started (+/+)
700 HK: Tencent Extends Partnership with NBA Until 2027 as “NBA China’s Exclusive Digital Media Partner” (+)


[Blue Lotus Daily-TMT Update]:700 HK/300027 CH/NTES US/TCOM US

<ul>
<li>700 HK: Tencent’s &lt;Delta Force&gt; Global Version Launch Scheduled for December 5 (+)</li>
<li>700 HK: Tencent Meeting Announces Free Meeting Time Limit Reduced to 40 Minutes (+)</li>
<li>BABA US/700 HK: New user installs reach new high in September (+/+)</li>
</ul>


700 HK: Tencent’s &lt;Delta Force&gt; Global Version Launch Scheduled for December 5 (+)
700 HK: Tencent Meeting Announces Free Meeting Time Limit Reduced to 40 Minutes (+)
BABA US/700 HK: New user installs reach new high in September (+/+)


[Blue Lotus Daily-TMT Update]:BABA US/700 HK/NTES US/JD US/PDD US/BABA US/VIPS US/1024 HK

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>The December rebalance for the HSIII Index only involves capping to limit stocks to 12% of the index weight. There will not be any constituent changes.</li>
<li>Estimated one-way turnover at the rebalance is 4.4% resulting in a round-trip trade of HK$2.9bn (US$378m).</li>
<li>The largest outflows are expected to be from <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> and <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com (9618 HK)</a> with inflows spread across the other index constituents.</li>
</ul>


The December rebalance for the HSIII Index only involves capping to limit stocks to 12% of the index weight. There will not be any constituent changes.
Estimated one-way turnover at the rebalance is 4.4% resulting in a round-trip trade of HK$2.9bn (US$378m).
The largest outflows are expected to be from Meituan (3690 HK) and JD.com (9618 HK) with inflows spread across the other index constituents.


Hang Seng Internet & IT Index (HSIII) Rebalance Preview: Capping Flows in December

<ul>
<li>JD US/BABA US/1810 HK: Jiangsu Province adds seven new products to the list of appliances eligible for subsidies(+/+/+)</li>
<li>700 HK: Tencent's MOBA Game &lt;Pokémon Unite&gt; Mobile Version Set for Release on November 7(+)</li>
<li>700 HK: Tencent-owned Riot Games Announces Layoffs, Offering Severance of at Least Six Months' Salary, Aiming to Keep &lt;League of Legends&gt; Thriving for 15 More Years(/)</li>
</ul>


JD US/BABA US/1810 HK: Jiangsu Province adds seven new products to the list of appliances eligible for subsidies(+/+/+)
700 HK: Tencent's MOBA Game &lt;Pokémon Unite&gt; Mobile Version Set for Release on November 7(+)
700 HK: Tencent-owned Riot Games Announces Layoffs, Offering Severance of at Least Six Months' Salary, Aiming to Keep &lt;League of Legends&gt; Thriving for 15 More Years(/)


[Blue Lotus Daily-TMT Update]:JD US/BABA US/1810 HK/700 HK/NTES US/3690 HK

China

NetEase, Inc. is an Internet technology company that develops applications, services and other Internet technologies in China. The Company's core businesses consist of email service, web portal and online entertainment, including online gaming services. NetEase also offers online advertising, search, mobile applications and e-commerce.

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NetEase Inc (NTES US)

Tencent/Netease: Zeroed Again After Three Months

We analyzed the game approval issued by NPPA for Chinese online game players for the month of October. None of the stocks we are tracking got any...

Ke Yan, CFA, FRM

[Blue Lotus Daily-TMT Update]:700 HK/300027 CH/NTES US/TCOM US

Tencent makes strategic moves in esports and digital media partnerships, with leadership changes and new developments in gaming.

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:BABA US/700 HK/NTES US/JD US/PDD US/BABA US/VIPS US/1024 HK

Tencent's global launch of set for December 5, free meeting time limit reduced to 40 minutes, and Alibaba's new user installs hit record high in...

Blue Lotus Research Institute

Hang Seng Internet & IT Index (HSIII) Rebalance Preview: Capping Flows in December

No constituent changes but there will be capping flows. Estimated one-way turnover at the rebalance is 4.4% resulting in a round-trip trade of...

Brian Freitas

[Blue Lotus Daily-TMT Update]:JD US/BABA US/1810 HK/700 HK/NTES US/3690 HK

Jiangsu Province adds new products to subsidy list; Tencent to release Pokémon Unite mobile game; Riot Games announces layoffs to support League...

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Tencent/Netease: Zeroed Again After Three Months

We analyzed the game approval issued by NPPA for Chinese online game players for the month of October. None of the stocks we are tracking got any...

Ke Yan, CFA, FRM

[Blue Lotus Daily-TMT Update]:700 HK/300027 CH/NTES US/TCOM US

​Tencent makes strategic moves in esports and digital media partnerships, with leadership changes and new developments in gaming.

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:BABA US/700 HK/NTES US/JD US/PDD US/BABA US/VIPS US/1024 HK

​Tencent's global launch of set for December 5, free meeting time limit reduced to 40 minutes, and Alibaba's new user installs hit record high in...

Blue Lotus Research Institute

Hang Seng Internet & IT Index (HSIII) Rebalance Preview: Capping Flows in December

No constituent changes but there will be capping flows. Estimated one-way turnover at the rebalance is 4.4% resulting in a round-trip trade of...

Brian Freitas

[Blue Lotus Daily-TMT Update]:JD US/BABA US/1810 HK/700 HK/NTES US/3690 HK

​Jiangsu Province adds new products to subsidy list; Tencent to release Pokémon Unite mobile game; Riot Games announces layoffs to support League...

Blue Lotus Research Institute

Tencent makes strategic moves in esports and digital media partnerships, with leadership changes and new developments in gaming.

Tencent's global launch of set for December 5, free meeting time limit reduced to 40 minutes, and Alibaba's new user installs hit record high in...

Jiangsu Province adds new products to subsidy list; Tencent to release Pokémon Unite mobile game; Riot Games announces layoffs to support League...