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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<ul>
<li>The December rebalance of the HSI, HSCEI and HSTECH indices will use today's closing prices to cap the index constituents at 8%. This will lead to large flows.</li>
<li>The largest passive outflows as a result of capping will be on <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> and <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> due to their weight exceeding 8% in all three indices.</li>
<li>There are large funding outflows (in terms of days of ADV to trade) on quite a few Hong Kong property stocks as well as stocks from the financials sector.</li>
</ul>


The December rebalance of the HSI, HSCEI and HSTECH indices will use today's closing prices to cap the index constituents at 8%. This will lead to large flows.
The largest passive outflows as a result of capping will be on Meituan (3690 HK) and Tencent (700 HK) due to their weight exceeding 8% in all three indices.
There are large funding outflows (in terms of days of ADV to trade) on quite a few Hong Kong property stocks as well as stocks from the financials sector.


HSI, HSCEI, HSTECH: December Rebalance Flows Post Capping

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.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight inflows into Kuaishou, Smoore, and outflows from Tencent and Wuxi Biologics.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight inflows into Kuaishou, Smoore, and outflows from Tencent and Wuxi Biologics.


Hong Kong Connect Flows: Kuaishou, Smoore, Tencent, Wuxi Biologics

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

<ul>
<li>Xiaomi’s revenue grew 8.2% YoY to RMB78.1bn (vs consensus RMB88.7bn) while reported OP decreased 59.2% YoY to RMB2.7bn (vs consensus RMB5.7bn) in 3Q2021. However, adjusted OP increased 45.4% YoY.</li>
<li>Revenue from smartphones increased only 0.5% YoY due to a 5.8% YoY decrease in smartphone shipments that were affected due to the ongoing chip shortage.</li>
<li>Xiaomi has provided an update on its EV initiative where it has currently built a team of over 500 and expects to launch mass production of smart EVs in 1H2024.</li>
</ul>


Xiaomi’s revenue grew 8.2% YoY to RMB78.1bn (vs consensus RMB88.7bn) while reported OP decreased 59.2% YoY to RMB2.7bn (vs consensus RMB5.7bn) in 3Q2021. However, adjusted OP increased 45.4% YoY.
Revenue from smartphones increased only 0.5% YoY due to a 5.8% YoY decrease in smartphone shipments that were affected due to the ongoing chip shortage.
Xiaomi has provided an update on its EV initiative where it has currently built a team of over 500 and expects to launch mass production of smart EVs in 1H2024.


Xiaomi 3Q2021: Chip Shortage Hits Smartphone Shipments; Apple Reclaims No.2 Position

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

Equity Bottom-Up

<ul>
<li>Smartphone revenue stopped growing in 3Q21 and we believe the situation will continue in 2022.</li>
<li>We believe the margin is not a concern, as the company close its sales in rural area.</li>
<li>We believe the stock has a downside of 30% for the end of 2022.</li>
</ul>


Smartphone revenue stopped growing in 3Q21 and we believe the situation will continue in 2022.
We believe the margin is not a concern, as the company close its sales in rural area.
We believe the stock has a downside of 30% for the end of 2022.


Xiaomi (1810 HK): 3Q21, Stagnant Smartphone Sales

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

<ul>
<li>Cloud Village Inc. (CVI), also known as NetEase Music, plans to raise around US$450m in its Hong Kong IPO.</li>
<li>The company has also obtained investments from Baidu and Alibaba, along with other investors.</li>
<li>In this note, we will run the deal through our ECM framework and talk about valuations.</li>
</ul>


Cloud Village Inc. (CVI), also known as NetEase Music, plans to raise around US$450m in its Hong Kong IPO.
The company has also obtained investments from Baidu and Alibaba, along with other investors.
In this note, we will run the deal through our ECM framework and talk about valuations.


Cloud Village (NetEase Music) IPO - Cornered Deal but Offers Limited Upside

China

Xiaomi Corporation manufactures communication equipment and parts. The Company produces and sells mobile phones, smart phone software,  set-top boxes, and related accessories. Xiaomi markets its products worldwide.

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Xiaomi Corp (1810 HK)

HSI, HSCEI, HSTECH: December Rebalance Flows Post Capping

The Dec rebalance of the HK indices will use today's closing prices to cap the stocks at 8%. Meituan and Tencent will see large outflows due to...

Brian Freitas

Hong Kong Connect Flows: Kuaishou, Smoore, Tencent, Wuxi Biologics

We highlight HK Connect inflows into Kuaishou (1024 HK), Smoore (6969 HK), as well as outflows from Tencent (700 HK), Wuxi Biologics (2269 HK).

Ke Yan, CFA, FRM

Xiaomi 3Q2021: Chip Shortage Hits Smartphone Shipments; Apple Reclaims No.2 Position

Xiaomi’s smartphone segment has started seeing the impact of global chip shortage which led to only a marginal YoY increase in smartphone revenues...

Shifara Samsudeen, ACMA, CGMA

Xiaomi (1810 HK): 3Q21, Stagnant Smartphone Sales

Smartphone revenue stopped growing in 3Q21 and we believe the situation will continue in 2022. We believe the margin is not a concern, as the...

Ming Lu

Cloud Village (NetEase Music) IPO - Cornered Deal but Offers Limited Upside

Cloud Village, also known as NetEase Music, plans to raise around US$450m in its Hong Kong IPO. In this note, we run the deal through our ECM...

Sumeet Singh

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