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.

Equity Bottom-Up

<ul class="">
<li>Internet users increased 9.5% in China in 2020.</li>
<li>Shanghai Police prosecuted 14 Renren (RENN) employees for piracy of TV series.</li>
<li>Tiktok indicted Tencent (700 HK) for monopoly.</li>
<li>Bilibili has invested in 33 cartoon producers in the past 12 months.</li>
</ul>


Internet users increased 9.5% in China in 2020.
Shanghai Police prosecuted 14 Renren (RENN) employees for piracy of TV series.
Tiktok indicted Tencent (700 HK) for monopoly.
Bilibili has invested in 33 cartoon producers in the past 12 months.


China Internet Weekly (8Feb21): TikTok Sued Tencent, Tencent Believed to Be Behind Renren Arrest

IPO and L/S equity, 2015 Starmine top stock picker, Global Equity Research Ltd

Rickin Thakrar

IPO and L/S equity, 2015 Starmine top stock picker

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Alibaba Group Holding  / Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> shares have made a robust recovery from their December low and its recent results have provided grist for bullish prognosticators. However, looking under the hood, we believe there may be some potential concern for erstwhile stalwart bulls on the name. More details below</p>

Alibaba Group (9988 HK) shares have made a robust recovery from their December low and its recent results have provided grist for bullish prognosticators. However, looking under the hood, we believe there may be some potential concern for erstwhile stalwart bulls on the name. More details below

Alibaba – Is There a Problem in Core-Commerce?

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Event-Driven

<div><p>Kuaishou Technology (KT) raised around US$6.2bn in its Hong Kong IPO and ended its first day up 161%. Key dates for index inclusion are 17th Feb, 22nd Feb and 1st March.</p></div><div><p>I have covered various aspects of the company’s performance in my previous notes: </p></div><div><ul style="list-style-type: disc;">
<li> <a href="https://www.smartkarma.com/insights/kuaishou-technology-pre-ipo-the-positives-hot-segment-fast-growth" target="_blank" rel="noopener">Kuaishou Technology Pre-IPO - The Positives - Hot Segment, fast growth</a>
</li>
<li><a href="https://www.smartkarma.com/insights/kuaishou-technology-pre-ipo-the-negatives-ample-doubts-remain" target="_blank" rel="noopener">Kuaishou Technology Pre-IPO - The Negatives - Ample Doubts Remain</a></li>
<li><a href="https://www.smartkarma.com/insights/kuaishou-technology-pre-ipo-peer-comparison-and-thoughts-on-valuation" target="_blank" rel="noopener">Kuaishou Technology Pre-IPO - Peer Comparison and Thoughts on Valuation</a></li>
<li><a href="https://www.smartkarma.com/insights/kuaishou-technology-pre-ipo-phip-updates-user-growth-has-been-slowing-down-post-covid" target="_blank" rel="noopener">Kuaishou Technology Pre-IPO - PHIP Updates - User Growth Has Been Slowing Down Post COVID</a></li>
<li><a href="https://www.smartkarma.com/insights/kuaishou-technology-pre-ipo-updated-forecasts-and-valuation" target="_blank" rel="noopener">Kuaishou Technology Pre-IPO - Updated Forecasts and Valuation</a></li>
<li><a href="https://www.smartkarma.com/insights/kuaishou-technology-pre-ipo-index-implications-msci-ftse-and-hsi-indices" target="_blank" rel="noopener">Kuaishou Technology Pre-IPO - Index Implications, MSCI, FTSE and HSI Indices</a></li>
<li><a href="https://www.smartkarma.com/insights/kuaishou-technology-ipo-blue-chip-cornerstones-sober-valuations-going-into-ftse-and-msci-index" target="_blank" rel="noopener">Kuaishou Technology IPO - Blue Chip Cornerstones, Sober Valuations, Going into FTSE and MSCI Index</a></li>
<li><a href="https://www.smartkarma.com/insights/kuaishou-technology-ipo-trading-might-be-doubling-but-still-not-near-bubbling" target="_blank" rel="noopener">Kuaishou Technology IPO Trading - Might Be Doubling but Still Not near Bubbling</a></li>
</ul></div><div><p>In this note, I’ll talk about valuation and index inclusion timeline.</p></div>

Kuaishou Technology (KT) raised around US$6.2bn in its Hong Kong IPO and ended its first day up 161%. Key dates for index inclusion are 17th Feb, 22nd Feb and 1st March.I have covered various aspects of the company’s performance in my previous notes: 
 Kuaishou Technology Pre-IPO - The Positives - Hot Segment, fast growth

Kuaishou Technology Pre-IPO - The Negatives - Ample Doubts Remain
Kuaishou Technology Pre-IPO - Peer Comparison and Thoughts on Valuation
Kuaishou Technology Pre-IPO - PHIP Updates - User Growth Has Been Slowing Down Post COVID
Kuaishou Technology Pre-IPO - Updated Forecasts and Valuation
Kuaishou Technology Pre-IPO - Index Implications, MSCI, FTSE and HSI Indices
Kuaishou Technology IPO - Blue Chip Cornerstones, Sober Valuations, Going into FTSE and MSCI Index
Kuaishou Technology IPO Trading - Might Be Doubling but Still Not near Bubbling
In this note, I’ll talk about valuation and index inclusion timeline.

Kuaishou IPO Trading - Bubbling Now, Spread Out Index Inclusion Might Keep It Going for a Bit

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div><p>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</p></div><div><p>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/cathay-pacific-airways-ltd" target="_blank" data-smartkarma-citation="entities:243:1" rel="noopener">Cathay Pacific Airways (293 HK)</a>, <a href="https://www.smartkarma.com/entities/postal-savings-bank-of-china" target="_blank" data-smartkarma-citation="entities:22848:1" rel="noopener">Postal Savings Bank of China (1658 HK)</a>, <a href="https://www.smartkarma.com/entities/china-international-capital-corporation-ltd" target="_blank" data-smartkarma-citation="entities:1071:1" rel="noopener">China International Capital Corporation (3908 HK)</a>, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a> and <a href="https://www.smartkarma.com/entities/citic-securities-h" target="_blank" data-smartkarma-citation="entities:463:1" rel="noopener">Citic Securities (H) (6030 HK)</a> while there was short covering on <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>, <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>, <a href="https://www.smartkarma.com/entities/cnooc-ltd" target="_blank" data-smartkarma-citation="entities:175:1" rel="noopener">CNOOC Ltd (883 HK)</a>, <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> and <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 HK)</a>. Shorts increased on Financials, while decreasing on Consumer Discretionary, Health Care, Information Technology, Consumer Staples and Energy.</p></div><div><p>In Japan, stocks that saw the most shorts were <a href="https://www.smartkarma.com/entities/net-one-systems-co-ltd" target="_blank" data-smartkarma-citation="entities:1279:1" rel="noopener">Net One Systems (7518 JP)</a>, <a href="https://www.smartkarma.com/entities/freee-kk" target="_blank" data-smartkarma-citation="entities:28424:1" rel="noopener">freee (4478 JP)</a>, <a href="https://www.smartkarma.com/entities/canon-inc" target="_blank" data-smartkarma-citation="entities:1:1" rel="noopener">Canon Inc (7751 JP)</a> and <a href="https://www.smartkarma.com/entities/monotaro-co-ltd" target="_blank" data-smartkarma-citation="entities:15441:1" rel="noopener">MonotaRO Co Ltd (3064 JP)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/bandai-namco-holdings-inc" target="_blank" data-smartkarma-citation="entities:13435:1" rel="noopener">Bandai Namco Holdings (7832 JP)</a>, <a href="https://www.smartkarma.com/entities/anritsu-corp" target="_blank" data-smartkarma-citation="entities:3700:1" rel="noopener">Anritsu Corp (6754 JP)</a>, <a href="https://www.smartkarma.com/entities/square-enix-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15003:1" rel="noopener">Square Enix Holdings (9684 JP)</a> and <a href="https://www.smartkarma.com/entities/yamato-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:2:1" rel="noopener">Yamato Holdings (9064 JP)</a>. Sectorally, shorts decreased in almost all sectors led by Consumer Discretionary, Financials and Information Technology.</p></div><div><p>In Korea, there was large short covering in <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a>, <a href="https://www.smartkarma.com/entities/hlb-inc" target="_blank" data-smartkarma-citation="entities:16969:1" rel="noopener">HLB Inc (028300 KS)</a>, <a href="https://www.smartkarma.com/entities/celltrion-healthcare" target="_blank" data-smartkarma-citation="entities:23641:1" rel="noopener">Celltrion Healthcare (091990 KS)</a>, <a href="https://www.smartkarma.com/entities/netmarble-corporation" target="_blank" data-smartkarma-citation="entities:22839:1" rel="noopener">Netmarble Corporation (251270 KS)</a>, <a href="https://www.smartkarma.com/entities/pearl-abyss-corp" target="_blank" data-smartkarma-citation="entities:24391:1" rel="noopener">Pearl Abyss (263750 KS)</a> and <a href="https://www.smartkarma.com/entities/kmw-co-ltd" target="_blank" data-smartkarma-citation="entities:2834:1" rel="noopener">KMW Co Ltd (032500 KS)</a> as the most shorted stocks were covered. </p></div><div><p>Stocks in Taiwan that saw the highest increase in shorts were <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a>, <a href="https://www.smartkarma.com/entities/fitipower-integrated-tech" target="_blank" data-smartkarma-citation="entities:8712:1" rel="noopener">Fitipower Integrated Tech (4961 TT)</a>, <a href="https://www.smartkarma.com/entities/chunghwa-telecom-co-ltd" target="_blank" data-smartkarma-citation="entities:9181:1" rel="noopener">Chunghwa Telecom (2412 TT)</a> and <a href="https://www.smartkarma.com/entities/novatek-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:10904:1" rel="noopener">Novatek Microelectronics Corp (3034 TT)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/au-optronics-corp" target="_blank" data-smartkarma-citation="entities:6704:1" rel="noopener">Au Optronics (2409 TT)</a>, <a href="https://www.smartkarma.com/entities/pegatron-corp" target="_blank" data-smartkarma-citation="entities:12852:1" rel="noopener">Pegatron Corp (4938 TT)</a>, <a href="https://www.smartkarma.com/entities/realtek-semiconductor-corp" target="_blank" data-smartkarma-citation="entities:7326:1" rel="noopener">Realtek Semiconductor (2379 TT)</a> and <a href="https://www.smartkarma.com/entities/innolux-corp" target="_blank" data-smartkarma-citation="entities:4509:1" rel="noopener">Innolux Corp (3481 TT)</a>. </p></div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on Cathay Pacific Airways (293 HK), Postal Savings Bank of China (1658 HK), China International Capital Corporation (3908 HK), Tencent Holdings (700 HK) and Citic Securities (H) (6030 HK) while there was short covering on BYD (1211 HK), Meituan (3690 HK), CNOOC Ltd (883 HK), Alibaba Group (9988 HK) and WuXi AppTec Co. Ltd. (2359 HK). Shorts increased on Financials, while decreasing on Consumer Discretionary, Health Care, Information Technology, Consumer Staples and Energy.In Japan, stocks that saw the most shorts were Net One Systems (7518 JP), freee (4478 JP), Canon Inc (7751 JP) and MonotaRO Co Ltd (3064 JP) while shorts decreased on Bandai Namco Holdings (7832 JP), Anritsu Corp (6754 JP), Square Enix Holdings (9684 JP) and Yamato Holdings (9064 JP). Sectorally, shorts decreased in almost all sectors led by Consumer Discretionary, Financials and Information Technology.In Korea, there was large short covering in Celltrion Inc (068270 KS), HLB Inc (028300 KS), Celltrion Healthcare (091990 KS), Netmarble Corporation (251270 KS), Pearl Abyss (263750 KS) and KMW Co Ltd (032500 KS) as the most shorted stocks were covered. Stocks in Taiwan that saw the highest increase in shorts were TSMC (2330 TT), Fitipower Integrated Tech (4961 TT), Chunghwa Telecom (2412 TT) and Novatek Microelectronics Corp (3034 TT) while shorts were covered on Au Optronics (2409 TT), Pegatron Corp (4938 TT), Realtek Semiconductor (2379 TT) and Innolux Corp (3481 TT). 

Asia Short Interest: Cathay, PSBC, BYD, CNOOC, Bandai Namco, Anritsu, Celltrion, HLB, Fitipower

Chief Economist

Diana Choyleva

Enodo Economics

Enodo Economics is an independent macroeconomic forecasting company that untangles complexity, challenges the consensus, and makes sense of the future. Our focus is on China – one of the most misunderstood economies in the world, but one of the most important to figure out.  Enodo’s chief economist, Diana Choyleva, has been analysing China for almost 20 years, while Enodo’s team boasts a combined 140 years’ experience covering China’s economy, politics and markets. 

Macroeconomics

<h2>China News That Matters</h2><ul>
<li>The company that couldn’t stop buying</li>
<li>In rare role reversal, Britain blacks out Chinese TV </li>
<li>Confront, counter and push back: Biden on China</li>
<li>Trading carbon – and burning more coal</li>
<li>China hopes for the best from Myanmar “reshuffle” </li>
</ul><div class="content-remarks"><p>In my weekly digest China News That Matters, I will give you selected summaries, sourced from a variety of local Chinese-language and international news outlets, and highlight why I think the news is significant. These posts are meant to neither be bullish nor bearish, but help you separate the signal from the noise.</p></div>

China News That Matters
The company that couldn’t stop buying
In rare role reversal, Britain blacks out Chinese TV 
Confront, counter and push back: Biden on China
Trading carbon – and burning more coal
China hopes for the best from Myanmar “reshuffle” 
In my weekly digest China News That Matters, I will give you selected summaries, sourced from a variety of local Chinese-language and international news outlets, and highlight why I think the news is significant. These posts are meant to neither be bullish nor bearish, but help you separate the signal from the noise.

HNA/ CGTN/ US-China/ Environment/ Myanmar

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)

China Internet Weekly (8Feb21): TikTok Sued Tencent, Tencent Believed to Be Behind Renren Arrest

Shanghai Police prosecuted 14 employees in Renren for piracy of TV series. Tiktok indicted Tencent for monopoly. Bilibili has invested in 33...

Ming Lu

Alibaba – Is There a Problem in Core-Commerce?

Alibaba Group (9988 HK) shares have made a robust recovery from their December low and its recent results have provided grist for bullish...

Rickin Thakrar

Kuaishou IPO Trading - Bubbling Now, Spread Out Index Inclusion Might Keep It Going for a Bit

Kuaishou Technology (KT) raised around US$6.2bn in its Hong Kong IPO and ended its first day up 161%. Key dates for index inclusion are 17th Feb,...

Sumeet Singh

Asia Short Interest: Cathay, PSBC, BYD, CNOOC, Bandai Namco, Anritsu, Celltrion, HLB, Fitipower

The Insight looks at large short interest movements across HK, Japan, Korea and Taiwan stocks and highlights large increases/decreases in shorts to...

Brian Freitas

HNA/ CGTN/ US-China/ Environment/ Myanmar

In my weekly digest, I will give you selected summaries, sourced from a variety of local Chinese-language and international news outlets, and...

Diana Choyleva

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)