HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

China Three Gorges Renewables / Equity Bottom-Up

<ul>
<li>A "Long <a href="https://www.smartkarma.com/entities/china-three-gorges-renewables" target="_blank" data-smartkarma-citation="entities:28950:1" rel="noopener">China Three Gorges Renewables (600905 CH)</a>, short <a href="https://www.smartkarma.com/entities/huaneng-power-intl-inc-a" target="_blank" data-smartkarma-citation="entities:24739:1" rel="noopener">Huaneng Power Intl Inc-A (600011 CH)</a>" pair trade should generate good return in China's utilities sector given the current industry dynamics.</li>
<li>The key supporting factors are: CTGR has pure exposure to renewable, faster capacity growth and a stronger balance sheet. They should underpin better earnings quality and outlook relative to HPI.</li>
<li>CTGR trades on higher PER and P/B multiples, but these should not be hurdles as they are just reflection of more promising prospects. We expect CTGR's YTD outperformance to continue.</li>
</ul>


A "Long China Three Gorges Renewables (600905 CH), short Huaneng Power Intl Inc-A (600011 CH)" pair trade should generate good return in China's utilities sector given the current industry dynamics.
The key supporting factors are: CTGR has pure exposure to renewable, faster capacity growth and a stronger balance sheet. They should underpin better earnings quality and outlook relative to HPI.
CTGR trades on higher PER and P/B multiples, but these should not be hurdles as they are just reflection of more promising prospects. We expect CTGR's YTD outperformance to continue.


China Utilities: Long China Three Gorges Renewables (600905 CH), Short Huaneng Power Int (600011 CH)

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry.</li>
<li>Overall, the net inflow over the past week was ~US$0.46bn, split (+US$0.36bn) for Shanghai and (+US$0.1bn) for Shenzhen.</li>
<li>The largest inflows were into <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> and <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a>. The largest outflow was in <a href="https://www.smartkarma.com/entities/pop-mart-international-group-limited" target="_blank" data-smartkarma-citation="entities:29016:1" rel="noopener">Pop Mart International Group Limited (9992 HK)</a> and <a href="https://www.smartkarma.com/entities/great-wall-motor-co-ltd-cb302af9-398c-4d2d-ba39-023e43287eef" target="_blank" data-smartkarma-citation="entities:128:1" rel="noopener">Great Wall Motor (2333 HK)</a>.</li>
</ul>


Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry.
Overall, the net inflow over the past week was ~US$0.46bn, split (+US$0.36bn) for Shanghai and (+US$0.1bn) for Shenzhen.
The largest inflows were into Tencent (700 HK) and BYD (1211 HK). The largest outflow was in Pop Mart International Group Limited (9992 HK) and Great Wall Motor (2333 HK).


Shanghai/​​​​​​​​​Shenzhen Southbound Connect: Weekly Moves (22 July 2022)

<ul>
<li>Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry.</li>
<li>Overall, the net outflow over the past week was ~US$0.56bn, split (-US$0.44bn) for Shanghai and (-US$0.12bn) for Shenzhen.</li>
<li>The largest inflows were into <a href="https://www.smartkarma.com/entities/geely-automobile-holdings-ltd" target="_blank" data-smartkarma-citation="entities:127:1" rel="noopener">Geely Auto (175 HK)</a> and <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index-etf" target="_blank" data-smartkarma-citation="entities:25:1" rel="noopener">Hang Seng H Share Index ETF (2828 HK)</a>. The largest outflow was in <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/cnooc-ltd" target="_blank" data-smartkarma-citation="entities:175:1" rel="noopener">CNOOC (883 HK)</a>.</li>
</ul>


Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry.
Overall, the net outflow over the past week was ~US$0.56bn, split (-US$0.44bn) for Shanghai and (-US$0.12bn) for Shenzhen.
The largest inflows were into Geely Auto (175 HK) and Hang Seng H Share Index ETF (2828 HK). The largest outflow was in Meituan (3690 HK) and CNOOC (883 HK).


Shanghai/​​​​​​​​Shenzhen Southbound Connect: Weekly Moves (15 July 2022)

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 monthly Hong Kong Connect flows with our data engine.</li>
<li>We tabulate the top stocks by inflows, outlfows, and holding by mainland investors. There have been 7 months of southbound inflows.</li>
<li>We highlight monthly flows for Li Auto, Kuaishou, HKEx, Xpeng. </li>
</ul>


We analyze the monthly Hong Kong Connect flows with our data engine.
We tabulate the top stocks by inflows, outlfows, and holding by mainland investors. There have been 7 months of southbound inflows.
We highlight monthly flows for Li Auto, Kuaishou, HKEx, Xpeng. 


Hong Kong Connect Flows Monthly (June): Li Auto, Kuaishou, HKEx, Xpeng

<ul>
<li>Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry.</li>
<li>Overall, net inflow was ~US$0.6bn, split (roughly) &lt;US$0.1bn for Shanghai and US$0.5bn for Shenzhen.</li>
<li>The largest inflows were into <a href="https://www.smartkarma.com/entities/beijing-kuaishou-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29725:1" rel="noopener">Kuaishou Technology (1024 HK)</a> and <a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a>. The largest outflows were in <a href="https://www.smartkarma.com/entities/cnooc-ltd" target="_blank" data-smartkarma-citation="entities:175:1" rel="noopener">CNOOC Ltd (883 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>.</li>
</ul>


Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry.
Overall, net inflow was ~US$0.6bn, split (roughly) &lt;US$0.1bn for Shanghai and US$0.5bn for Shenzhen.
The largest inflows were into Kuaishou Technology (1024 HK) and Wuxi Biologics (2269 HK). The largest outflows were in CNOOC Ltd (883 HK) and Tencent (700 HK).


Shanghai/​​​Shenzhen Southbound Connect: Weekly Moves (9 June 2022)

China

Huaneng Power International, Inc. develops, constructs, owns and operates coal-fired power plants throughout China. It also builds gas-fired, hydroelectric and wind power generation in China and owns Tuas Power which controls power generation facilities in Singapore.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Huaneng Power Intl Inc H (902 HK)

China Utilities: Long China Three Gorges Renewables (600905 CH), Short Huaneng Power Int (600011 CH)

CTGR's pure exposure to renewable, faster capacity growth and stronger balance sheet are the key merits when compared with HPI. We believe these...

Osbert Tang, CFA

Shanghai/Shenzhen Southbound Connect: Weekly Moves (22 July 2022)

Inside is a recap of movements in the Shanghai/Shenzhen-HK Connect. Overall, the net inflow over the past week was ~US$0.46bn, split (+US$0.36bn)...

David Blennerhassett

Shanghai/Shenzhen Southbound Connect: Weekly Moves (15 July 2022)

Inside is a recap of movements in the Shanghai/Shenzhen-HK Connect. Overall, the net outflow over the past week was ~US$0.56bn, split (-US$0.44bn)...

David Blennerhassett

Hong Kong Connect Flows Monthly (June): Li Auto, Kuaishou, HKEx, Xpeng

We highlight the 7th month of consecutive inflows from mainland to HK and individual stocks with top inflows: Li Auto, Kuaishou, HKEx, Xpeng.

Ke Yan, CFA, FRM

Shanghai/Shenzhen Southbound Connect: Weekly Moves (9 June 2022)

Overall, net inflow was ~US$0.6bn, split (roughly) <US$0.1bn for Shanghai Southbound and US$0.5bn for Shenzhen Southbound.

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China Utilities: Long China Three Gorges Renewables (600905 CH), Short Huaneng Power Int (600011 CH)

CTGR's pure exposure to renewable, faster capacity growth and stronger balance sheet are the key merits when compared with HPI. We believe these...

Osbert Tang, CFA

Shanghai/​​​​​​​​​Shenzhen Southbound Connect: Weekly Moves (22 July 2022)

Inside is a recap of movements in the Shanghai/Shenzhen-HK Connect. Overall, the net inflow over the past week was ~US$0.46bn, split (+US$0.36bn)...

David Blennerhassett

Shanghai/​​​​​​​​Shenzhen Southbound Connect: Weekly Moves (15 July 2022)

Inside is a recap of movements in the Shanghai/Shenzhen-HK Connect. Overall, the net outflow over the past week was ~US$0.56bn, split (-US$0.44bn)...

David Blennerhassett

Hong Kong Connect Flows Monthly (June): Li Auto, Kuaishou, HKEx, Xpeng

We highlight the 7th month of consecutive inflows from mainland to HK and individual stocks with top inflows: Li Auto, Kuaishou, HKEx, Xpeng.

Ke Yan, CFA, FRM

Shanghai/​​​Shenzhen Southbound Connect: Weekly Moves (9 June 2022)

Overall, net inflow was ~US$0.6bn, split (roughly) <US$0.1bn for Shanghai Southbound and US$0.5bn for Shenzhen Southbound.

David Blennerhassett

Shanghai/Shenzhen Southbound Connect: Weekly Moves (22 July 2022)

Shanghai/Shenzhen Southbound Connect: Weekly Moves (15 July 2022)

Shanghai/Shenzhen Southbound Connect: Weekly Moves (9 June 2022)