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 note inflows into Tencent, Xiaomi, CNOOC, and Kuaishou before the Christmas holiday. </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 note inflows into Tencent, Xiaomi, CNOOC, and Kuaishou before the Christmas holiday. 


Hong Kong Connect Flows: Chinese Buying Tencent, Xiaomi, CNOOC and Kuaishou Before Xmas

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

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 Bottom-Up

<ul>
<li>With the recent announcement of Tencent’s distribution of its JD.com shares to shareholders its other stakes have come under scrutiny. </li>
<li>We have been speculating for some time about whether a split from Tencent was on the cards for Epic. </li>
<li>In the case of Riot we had not expected a sale but it may not be impossible.</li>
</ul>


With the recent announcement of Tencent’s distribution of its JD.com shares to shareholders its other stakes have come under scrutiny. 
We have been speculating for some time about whether a split from Tencent was on the cards for Epic. 
In the case of Riot we had not expected a sale but it may not be impossible.


Tencent – Do Epic Games and Riot Get Sold?

Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

<ul>
<li>
Special Dividend: On December 23, 2021, Tencent Holdings (700.HK) [Tencent] announced that it is planning to distribute USD 16.3 bn in JD.com (JD.US) [JD] Class A shares; </li>
<li>
Not A Surprise:Given mainland China’s crackdown on the country’s largest internet companies, Tencent’s disposal of JD shares is not a surprise; and</li>
<li>
Other Stake Sales To Follow: Further divestitures of major stakes are likely if Tencent wishes to remain on the right side of mainland China’s Communist Party.  </li>
</ul>



Special Dividend: On December 23, 2021, Tencent Holdings (700.HK) [Tencent] announced that it is planning to distribute USD 16.3 bn in JD.com (JD.US) [JD] Class A shares; 

Not A Surprise:Given mainland China’s crackdown on the country’s largest internet companies, Tencent’s disposal of JD shares is not a surprise; and

Other Stake Sales To Follow: Further divestitures of major stakes are likely if Tencent wishes to remain on the right side of mainland China’s Communist Party.  


Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> declared an interim dividend by way of in-specie distribution of JD.com.  That interim dividend is ~ 3.0%. Not phenomenally large, but hints at possibilities to come. </li>
<li>Dye &amp; Durham come over the top with an all-cash bid for <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration Holdings (LNK AU)</a> as Carlyle remains silent after five weeks of due diligence.</li>
<li>
<a href="https://www.smartkarma.com/entities/china-mobile-ltd" target="_blank" data-smartkarma-citation="entities:27:1" rel="noopener">China Mobile (941 HK)</a> has priced its A-share IPO at RMB 57.58/share which is slightly disappointing in terms of premium to the H-share.  The "reasoning" is basically hogwash. </li>
</ul>



Tencent (700 HK) declared an interim dividend by way of in-specie distribution of JD.com.  That interim dividend is ~ 3.0%. Not phenomenally large, but hints at possibilities to come. 
Dye &amp; Durham come over the top with an all-cash bid for Link Administration Holdings (LNK AU) as Carlyle remains silent after five weeks of due diligence.

China Mobile (941 HK) has priced its A-share IPO at RMB 57.58/share which is slightly disappointing in terms of premium to the H-share.  The "reasoning" is basically hogwash. 


Last Week in Event SPACE: Tencent /JD.com, Link Admin, China Mobile, Sydney Airport, Katakura

Forensic Analyst

Jason Yap, CFA

<ul>
<li>On 23 December 2021, Tencent announced that it will shed most of its stake in JD, which takes place through the in-specie dividend distribution of JD shares to Tencent's shareholders. </li>
<li>There is prevailing debate that Tencent's latest disposals are in anticipation of regulatory pressure for China's tech giants to bring down their walled gardens. We do not disagree. </li>
<li>However, in this Insight, we argue a case that new walled gardens are being erected and not torn down, at least with respect to Tencent's ecosystem. </li>
</ul>


On 23 December 2021, Tencent announced that it will shed most of its stake in JD, which takes place through the in-specie dividend distribution of JD shares to Tencent's shareholders. 
There is prevailing debate that Tencent's latest disposals are in anticipation of regulatory pressure for China's tech giants to bring down their walled gardens. We do not disagree. 
However, in this Insight, we argue a case that new walled gardens are being erected and not torn down, at least with respect to Tencent's ecosystem. 


Tencent (700 HK) - New Walled Gardens Are Being Erected, Not Torn Down?

China

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

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Tencent (700 HK)

Hong Kong Connect Flows: Chinese Buying Tencent, Xiaomi, CNOOC and Kuaishou Before Xmas

We highlight Hong Kong Connect inflows into Tencent (700 HK), Xiaomi (1810 HK), Cnooc (883 HK) and Kuaishou (1024 HK), as well as outflows from...

Ke Yan, CFA, FRM

Tencent – Do Epic Games and Riot Get Sold?

With the recent announcement of Tencent’s distribution of its JD.com shares to shareholders we consider the different implications for the industry...

Mio Kato

Tencent Holdings – Bottom Ticking

TENCENT: Tencent announced that it is planning to distribute USD 16.3 bn in JD shares. Given mainland China’s crackdown on Tencent, the disposal is...

Thomas J. Monaco

Last Week in Event SPACE: Tencent /JD.com, Link Admin, China Mobile, Sydney Airport, Katakura

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Tencent (700 HK) - New Walled Gardens Are Being Erected, Not Torn Down?

Tencent announced that it will shed most of its stake in JD. In this Insight, we argue a case that new walled gardens are being erected and not...

Jason Yap, CFA

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