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

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods ended on Aug 6th.In the past 7 days, the top 3 companies that repurchased the most shares from the market were <a href="https://www.smartkarma.com/entities/xinyi-glass-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11940:1" rel="noopener">Xinyi Glass Holdings (868 HK)</a> (HKD 350.6 million worth of buybacks), <a href="https://www.smartkarma.com/entities/new-world-development" target="_blank" data-smartkarma-citation="entities:7037:1" rel="noopener">New World Development (17 HK)</a> (HKD 195.3 million worth of buybacks), <a href="https://www.smartkarma.com/entities/sino-biopharmaceutical" target="_blank" data-smartkarma-citation="entities:230:1" rel="noopener">Sino Biopharmaceutical (1177 HK)</a> (HKD 49.8 million worth of buybacks).

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods ended on Aug 6th.In the past 7 days, the top 3 companies that repurchased the most shares from the market were Xinyi Glass Holdings (868 HK) (HKD 350.6 million worth of buybacks), New World Development (17 HK) (HKD 195.3 million worth of buybacks), Sino Biopharmaceutical (1177 HK) (HKD 49.8 million worth of buybacks).

Hong Kong Buybacks: HK$350m Buyback by Xinyi Glass

Equity Bottom-Up

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods ended on Jul 30.In the past 7 days, the top 3 companies that repurchased the most shares from the market were  <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> (HKD 196.9 million worth of buybacks), <a href="https://www.smartkarma.com/entities/new-world-development" target="_blank" data-smartkarma-citation="entities:7037:1" rel="noopener">New World Development (17 HK)</a> (HKD 170.2 million worth of buybacks), <a href="https://www.smartkarma.com/entities/china-gas-holdings-ltd" target="_blank" data-smartkarma-citation="entities:14315:1" rel="noopener">China Gas Holdings (384 HK)</a> (HKD 86.6 million worth of buybacks).

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods ended on Jul 30.In the past 7 days, the top 3 companies that repurchased the most shares from the market were  Xiaomi Corp (1810 HK) (HKD 196.9 million worth of buybacks), New World Development (17 HK) (HKD 170.2 million worth of buybacks), China Gas Holdings (384 HK) (HKD 86.6 million worth of buybacks).

Hong Kong Buybacks: HK$200m Buyback by Xiaomi

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods ended on Jul 16.In the past 7 days, the top 3 companies that repurchased the most shares from the market were New World Development Co Ltd (17 HK) (HKD 112.0 million worth of buybacks), Fosun International Limited (656 HK) (HKD 25.2 million worth of buybacks), Want Want China Holdings Limited (151 HK) (HKD 17.4 million worth of buybacks).

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods ended on Jul 16.In the past 7 days, the top 3 companies that repurchased the most shares from the market were New World Development Co Ltd (17 HK) (HKD 112.0 million worth of buybacks), Fosun International Limited (656 HK) (HKD 25.2 million worth of buybacks), Want Want China Holdings Limited (151 HK) (HKD 17.4 million worth of buybacks).

Hong Kong Buybacks: New World Development, Fosun Intl, Want Want

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Henderson Land Development / Equity Bottom-Up

Expropriation.
Not the word Hong Kong property developers, sitting on millions of square feet of farmland, wish to hear. And the newish Bauhinia Party (just) stops short of suggesting such an approach.
But a recent <a href="https://www.thestandnews.com/politics/%E7%B4%AB%E8%8D%8A%E9%BB%A8%E5%85%A7%E9%83%A8%E5%88%8A%E7%89%A9-%E9%A6%99%E6%B8%AF%E6%88%BF%E5%B1%8B%E5%95%8F%E9%A1%8C%E5%A8%81%E8%84%85-%E4%B8%80%E5%9C%8B-%E5%AE%89%E5%85%A8-%E5%80%A1%E4%B8%AD%E5%A4%AE%E5%87%BA%E9%9D%A2%E5%8D%94%E8%AA%BF-%E8%88%89%E4%BE%8B%E5%8F%AF%E5%BC%B7%E5%BE%B5%E5%9C%9F%E5%9C%B0/" target="_blank" rel="noopener">internal discussion paper</a>, authored by an executive committee member of the Bauhinia Party, refers to the housing issue in Hong Kong, wherein the gap between the rich and poor is widening, causing social unrest to the point of "threatening the security of one country". The paper indicates the Central government has the right to coordinate the supply of land in Hong Kong.
The Bauhinia party, established by mainland Chinese executives, is a pro-Beijing political party with close links to Beijing's authorities. I would not be so quick to dismiss such commentary and the potential knock-on effect to local property developers.
More below the fold.
<hr>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/200/251/original/image_16007097821618301158871.png?1618301161" class="editor-image img-responsive" data-smartkarma-image-id="200251"></figure>

Expropriation.
Not the word Hong Kong property developers, sitting on millions of square feet of farmland, wish to hear. And the newish Bauhinia Party (just) stops short of suggesting such an approach.
But a recent internal discussion paper, authored by an executive committee member of the Bauhinia Party, refers to the housing issue in Hong Kong, wherein the gap between the rich and poor is widening, causing social unrest to the point of "threatening the security of one country". The paper indicates the Central government has the right to coordinate the supply of land in Hong Kong.
The Bauhinia party, established by mainland Chinese executives, is a pro-Beijing political party with close links to Beijing's authorities. I would not be so quick to dismiss such commentary and the potential knock-on effect to local property developers.
More below the fold.



Hong Kong Property Developers: Eminent Domain

Thematic (Sector/Industry)

On the 6 January 2010, the SGX issued a <a href="https://api2.sgx.com/sites/default/files/2018-09/Consultation%2BPaper%2Bon%2BProposed%2BRevisions%2Bto%2BMainboard%2BAdmission%2BCriteria%2Band%2Bthe%2BIntroduction%2Bof%2BSPAC.pdf" target="_blank" rel="noopener">consultation paper</a> on the "Proposed Revisions to Mainboard Admission Criteria and the Introduction of SPAC".  Following the feedback at that time, SGX determined that it was not an opportune time to introduce SPACs.
In <a href="https://skr.ma/5UGLq" target="_blank" rel="noopener">Virtual IPOs/Direct Listings: Uninhibited Price Discovery</a> on the 29 November last year, I mentioned a white paper on special purpose acquisition company (SPAC) may be issued by the SGX in the first half of the following year.
In January, the Business Times <a href="https://www.businesstimes.com.sg/companies-markets/sgx-looking-into-listing-of-special-purpose-acquisition-companies" target="_blank" rel="noopener">reported</a> that a consultation could be launched by the SGX as early as this quarter - see <a href="https://skr.ma/u7S36" target="_blank" rel="noopener">Singapore Exchange: Asia's Future SPAC Hub</a>. The SGX did sound out the Listings Advisory Committee (“LAC”) for advice on SPACs in January, and after consideration, the LAC advised that it was in favour of SPAC listings, subject to the appropriate safeguards.
The Singapore Exchange <a href="https://api2.sgx.com/sites/default/files/2021-03/Consultation%20Paper%20on%20Proposed%20Listing%20Framework%20for%20Special%20Purpose%20Acquisition%20Companies.pdf" target="_blank" rel="noopener">announced</a> last week a regulatory framework for SPACs to list on the SGX and asked the market for feedback.
Subsequent to the feedback phase ending on the 28 April, the framework may be finalised in the middle of this year. 
The SGX makes it clear SPACs are susceptible to execution risks where the SPAC is unable to identify a suitable target company or successfully consummate the business combination within the pre-determined period. But given the clear demand for such instruments, the SGX evidently sees the benefits outweigh the risks.

On the 6 January 2010, the SGX issued a consultation paper on the "Proposed Revisions to Mainboard Admission Criteria and the Introduction of SPAC".  Following the feedback at that time, SGX determined that it was not an opportune time to introduce SPACs.
In Virtual IPOs/Direct Listings: Uninhibited Price Discovery on the 29 November last year, I mentioned a white paper on special purpose acquisition company (SPAC) may be issued by the SGX in the first half of the following year.
In January, the Business Times reported that a consultation could be launched by the SGX as early as this quarter - see Singapore Exchange: Asia's Future SPAC Hub. The SGX did sound out the Listings Advisory Committee (“LAC”) for advice on SPACs in January, and after consideration, the LAC advised that it was in favour of SPAC listings, subject to the appropriate safeguards.
The Singapore Exchange announced last week a regulatory framework for SPACs to list on the SGX and asked the market for feedback.
Subsequent to the feedback phase ending on the 28 April, the framework may be finalised in the middle of this year. 
The SGX makes it clear SPACs are susceptible to execution risks where the SPAC is unable to identify a suitable target company or successfully consummate the business combination within the pre-determined period. But given the clear demand for such instruments, the SGX evidently sees the benefits outweigh the risks.

Singaporean SPACs: Democratizing Access To High Growth

Hong Kong

New World Development Company Limited, through its subsidiaries, develops and invests in properties, provides contracting services, property management, and transportation services.  The Company also operates infrastructure business, telecommunication services, department stores, hotels and restaurants, and media and technology business.

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

New World Development (17 HK)

Hong Kong Buybacks: HK$350m Buyback by Xinyi Glass

We highlight the top 3 companies that repurchased the most shares from the market were Xinyi Glass (868 HK), New World Development (17 HK), and...

Ke Yan, CFA, FRM

Hong Kong Buybacks: HK$200m Buyback by Xiaomi

We highlight the top 3 companies that repurchased the most shares from the market this week were Xiaomi (1810 HK), New World Development (17 HK),...

Ke Yan, CFA, FRM

Hong Kong Buybacks: New World Development, Fosun Intl, Want Want

We highlight that the top 3 companies that repurchased the most shares from the market were New World Development (17 HK), Fosun Intl(656 HK), and...

Ke Yan, CFA, FRM

Hong Kong Property Developers: Eminent Domain

Henderson has the most to lose from any authoritative land resumption, followed by NWD. Perhaps more land donations are forthcoming, and fiduciary...

David Blennerhassett

Singaporean SPACs: Democratizing Access To High Growth

This move/initiative from Singapore was simply inevitable given the demand for an alternative to the old method of going public.

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)