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 Bottom-Up

<ul>
<li>On 10th July, SAMR published 28 administrative penalties for violating anti-monopoly law related to disclosing past transactions on firms including Tencent, Alibaba, Didi, Weibo and Bilibili.</li>
<li>A fine of RMB17.2m (US$2.56m) was imposed in total and were fined for not properly reporting past deals between March 2011 to July 2021.</li>
<li>The market has come to believe that the anti-monopoly investigation in China is easing off, however, the recent development suggests that the anti-monopoly normalisation will continue.</li>
</ul>


On 10th July, SAMR published 28 administrative penalties for violating anti-monopoly law related to disclosing past transactions on firms including Tencent, Alibaba, Didi, Weibo and Bilibili.
A fine of RMB17.2m (US$2.56m) was imposed in total and were fined for not properly reporting past deals between March 2011 to July 2021.
The market has come to believe that the anti-monopoly investigation in China is easing off, however, the recent development suggests that the anti-monopoly normalisation will continue.


Tencent Fined for Violating Disclosure on Past Transactions; Anti-Monopoly Probe Is Far From Over

Oshadhi Kumarasiri

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>Just as investors were starting to get comfortable investing in Chinese big tech, the Government has imposed new fines on a range of tech companies.</li>
<li>Meanwhile, the June ending quarter could yet again be a disspointment with growth curtailed through lack of funding for loss making businesses.</li>
<li>Having gained around 50% in June 2022 through signs of easing the tech crackdown, these new fines and a weak June-ending quarter could resend tech valuations to March-2022 lows.    </li>
</ul>


Just as investors were starting to get comfortable investing in Chinese big tech, the Government has imposed new fines on a range of tech companies.
Meanwhile, the June ending quarter could yet again be a disspointment with growth curtailed through lack of funding for loss making businesses.
Having gained around 50% in June 2022 through signs of easing the tech crackdown, these new fines and a weak June-ending quarter could resend tech valuations to March-2022 lows.    


China’s Crackdown on Big Tech: Not Over by Any Means

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

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.

<ul>
<li>JD.com opened a physical shopping mall and we believe it is following Alibaba.</li>
<li>JD.com signed contract with a state-owned power company for two reasons.</li>
<li>Two suppliers applied for the liquidation of Suning.com to the court.</li>
</ul>


JD.com opened a physical shopping mall and we believe it is following Alibaba.
JD.com signed contract with a state-owned power company for two reasons.
Two suppliers applied for the liquidation of Suning.com to the court.


China Internet Weekly (11Jul2022): JD.com, Alibaba, Suning.com, GoGoX

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Jun 30th. </li>
<li>Top short increases and decreases were tabulated for one week and four week period.</li>
<li>We highlight changes in short interests for AIA, Li Ning, and Li Auto.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Jun 30th. 
Top short increases and decreases were tabulated for one week and four week period.
We highlight changes in short interests for AIA, Li Ning, and Li Auto.


Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Equity Capital Markets

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>Tianqi managed to pull off the largest HK IPO so far this year, a good listing could see a pickup in other large deals.</li>
<li>For placements, SK IE couldn't hold on to its deal price, while Ming Yang kicked off what might be a busy GDR season.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
Tianqi managed to pull off the largest HK IPO so far this year, a good listing could see a pickup in other large deals.
For placements, SK IE couldn't hold on to its deal price, while Ming Yang kicked off what might be a busy GDR season.


ECM Weekly (10th Jul 2022) -Tianqi, Thai Life, TPG, SK IE, Weilong, Emperador, Soosan, SoCar, Deewin

China

Alibaba Group Holding Limited provides online sales services. The Company provides internet infrastructure, electronic commerce, online financial, and internet content services through its subsidiaries. Alibaba Group Holding offers its products and services worldwide.

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Alibaba Group Holding (BABA US)

Tencent Fined for Violating Disclosure on Past Transactions; Anti-Monopoly Probe Is Far From Over

Tencent was fined for failing to make timely disclosures regarding past deals. Though the fine is not significant given the size of Tencent, it is...

Shifara Samsudeen, ACMA, CGMA

China’s Crackdown on Big Tech: Not Over by Any Means

The market turned positive in June-2022, through signs of easing the tech crackdown. However, these new fines and a weak June-ending quarter could...

Oshadhi Kumarasiri

China Internet Weekly (11Jul2022): JD.com, Alibaba, Suning.com, GoGoX

JD.com opened a physical shopping mall and we believe it is following Alibaba. JD.com signed contract with a state-owned power company. Two...

Ming Lu

HK Short Interest: AIA, Li Ning, Li Auto

We highlight week on week changes in short interests for AIA, Li Ning, and Li Auto based on the latest Hong Kong SFC short aggregate report.

Ke Yan, CFA, FRM

ECM Weekly (10th Jul 2022) -Tianqi, Thai Life, TPG, SK IE, Weilong, Emperador, Soosan, SoCar, Deewin

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

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