Asia biased macro & technical analysis, Untying The Gordian Knot

Untying The Gordian Knot

Asia biased macro & technical analysis

A differentiated process with a primary focus on Asia. Technical Analysis as core and Macro drivers that could bring the view to fruition & changes that could make the idea fall apart. The objective is to be the best in class, hence corner shop.

Technical Analysis

<ul><li>The market pivoted late last week from there will be no PBOC rates cut to there being much more Monetary Policy support needed.</li><li>The pivot was the sharp slowdown in Aggregate Financing, Industrial Production, Real estate, and Retail Sales. All it took was a 10-bps cut in one-year MLF.</li><li>Meanwhile, Hong Kong saw HIBOR continue to rise even with currency strength.</li></ul>

The market pivoted late last week from there will be no PBOC rates cut to there being much more Monetary Policy support needed.The pivot was the sharp slowdown in Aggregate Financing, Industrial Production, Real estate, and Retail Sales. All it took was a 10-bps cut in one-year MLF.Meanwhile, Hong Kong saw HIBOR continue to rise even with currency strength.

HSI Index, HSITECH Index, Hong Kong Stock Exchange, and China Unicom

<ul><li>The carnage in China and some Hong Kong real estate and property management companies and financials went largely unnoticed.</li><li>The five-day decline in Longfor was 18%, Country Garden by 15.50%, Hang Seng Mainland Properties Index fell 6.75%, and HSI Properties Index fell 2.75%.</li><li>It has had zero impact on the rest of the world (ROW) markets.</li></ul>

The carnage in China and some Hong Kong real estate and property management companies and financials went largely unnoticed.The five-day decline in Longfor was 18%, Country Garden by 15.50%, Hang Seng Mainland Properties Index fell 6.75%, and HSI Properties Index fell 2.75%.It has had zero impact on the rest of the world (ROW) markets.

HSI Index: Longfor, Alibaba, Ping An, and Tencent

<ul><li>Markets are treacherous, but none more than Hong Kong listed stocks.</li><li>The vicious short-covering rallies and an impulse selloff have become a hallmark of the last few weeks.</li><li>First, it was technology on news of ease in regulations, agreements with the US on accounting on a tiered classification of companies by Beijing or in case of Alibaba announcing making Hong Kong it's primary listing to make stock eligible for South Bound inflows.</li></ul>

Markets are treacherous, but none more than Hong Kong listed stocks.The vicious short-covering rallies and an impulse selloff have become a hallmark of the last few weeks.First, it was technology on news of ease in regulations, agreements with the US on accounting on a tiered classification of companies by Beijing or in case of Alibaba announcing making Hong Kong it's primary listing to make stock eligible for South Bound inflows.

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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 Capital Markets

<ul>
<li>Onewo Space-Tech (OST) aims to raise around US$2bn in its Hong Kong IPO. OST is a property management service provider primarily owned by <a href="https://www.smartkarma.com/entities/china-vanke-co-ltd-h" target="_blank" data-smartkarma-citation="entities:18368:1" rel="noopener">China Vanke Co Ltd (H) (2202 HK)</a>.</li>
<li>As per Frost &amp; Sullivan, amongst the residential community service providers in China, OST ranked first. It also ranked first in the commercial space integrated services market in China.</li>
<li>In this note, we will talk about the positive aspects of the deal.</li>
</ul>


Onewo Space-Tech (OST) aims to raise around US$2bn in its Hong Kong IPO. OST is a property management service provider primarily owned by China Vanke Co Ltd (H) (2202 HK).
As per Frost &amp; Sullivan, amongst the residential community service providers in China, OST ranked first. It also ranked first in the commercial space integrated services market in China.
In this note, we will talk about the positive aspects of the deal.


Onewo Space-Tech Pre-IPO - The Positives - One of the Largest and Still Growing Fast

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<ul>
<li>Short notional in Hong Kong is HK$488bn and has been falling mainly as a result of a falling market. Short interest has increased substantially from end January.</li>
<li>From 31 January to 4 March, the largest shorts have been built on Tencent, China Merchants Bank, AIA Group Ltd, Alibaba, JD.com, Meituan, Xiaomi, JD Health and Xinyi Solar.</li>
<li>Over the same period, shorts have covered on COSCO Shipping Holdings, HKEX, Longfor Properties, China Construction Bank, Ping An Insurance, Yanzhou Coal Mining Company and HSBC Holdings.</li>
</ul>


Short notional in Hong Kong is HK$488bn and has been falling mainly as a result of a falling market. Short interest has increased substantially from end January.
From 31 January to 4 March, the largest shorts have been built on Tencent, China Merchants Bank, AIA Group Ltd, Alibaba, JD.com, Meituan, Xiaomi, JD Health and Xinyi Solar.
Over the same period, shorts have covered on COSCO Shipping Holdings, HKEX, Longfor Properties, China Construction Bank, Ping An Insurance, Yanzhou Coal Mining Company and HSBC Holdings.


Hong Kong: Where Have Shorts Increased & Decreased?

China

Longfor Properties Co. Ltd. operates in the property development, property investment and property management businesses in China.

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Longfor Properties (960 HK)

HSI Index, HSITECH Index, Hong Kong Stock Exchange, and China Unicom

The market pivoted late last week from there will be no PBOC rates cut to there being much more Monetary Policy support needed.

Untying The Gordian Knot

HSI Index: Longfor, Alibaba, Ping An, and Tencent

The carnage in China and some Hong Kong real estate and property management companies and financials went largely unnoticed.

Untying The Gordian Knot

Longfor, AAC Technology, Ping An

Markets are treacherous, but none more than Hong Kong listed stocks. The vicious short-covering rallies and an impulse selloff have become a...

Untying The Gordian Knot

Onewo Space-Tech Pre-IPO - The Positives - One of the Largest and Still Growing Fast

Onewo Space-Tech aims to raise around US$2bn in its Hong Kong IPO. OST is a property management service provider primarily owned by China Vanke Co...

Sumeet Singh

Hong Kong: Where Have Shorts Increased & Decreased?

From 31 Jan to 4 March, most shorted stocks are Tencent, China Merchants Bank, AIA Group, Alibaba, JD.com, Meituan, Xiaomi, JD Health and Xinyi...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)