SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

<ul><li>Hong Kong Singapore Depository Receipts provide a strategic and efficient means for investors to access Hong Kong’s leading companies.</li><li>Five top quintile Hang Seng Index stocks by weight—Tencent, Alibaba, Bank of China, HSBC, and BYD—are now tradable on SGX via HK SDRs, representing key sectors like Information Technology, Financials, and Consumer Discretionary, and offering a microcosm of the Index, with varied China exposure.</li><li>All five stocks are now available for trading on Singapore Exchange (SGX) through Hong Kong Singapore Depository Receipts (HK SDRs).</li></ul>

Hong Kong Singapore Depository Receipts provide a strategic and efficient means for investors to access Hong Kong’s leading companies.Five top quintile Hang Seng Index stocks by weight—Tencent, Alibaba, Bank of China, HSBC, and BYD—are now tradable on SGX via HK SDRs, representing key sectors like Information Technology, Financials, and Consumer Discretionary, and offering a microcosm of the Index, with varied China exposure.All five stocks are now available for trading on Singapore Exchange (SGX) through Hong Kong Singapore Depository Receipts (HK SDRs).

New Flexible and Convenient Access to Hong Kong Stocks

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

<ul><li>Global smartphone shipments expected to increase beyond 2025, with OLED technology gaining popularity in tablets and notebooks while Mini LED becomes less preferred.</li><li>Uncertainty over whether Trump will end TSMC's subsidies for Arizona factory, impacting material suppliers benefiting from TSMC's growth in 3Q24.</li><li>PSMC chairman shifts from cautious approach towards India to optimism with new partnership with Tata, while Horizon Robotics' Hong Kong IPO supported by Alibaba, Baidu, and TSMC for manufacturing.</li></ul>

Global smartphone shipments expected to increase beyond 2025, with OLED technology gaining popularity in tablets and notebooks while Mini LED becomes less preferred.Uncertainty over whether Trump will end TSMC's subsidies for Arizona factory, impacting material suppliers benefiting from TSMC's growth in 3Q24.PSMC chairman shifts from cautious approach towards India to optimism with new partnership with Tata, while Horizon Robotics' Hong Kong IPO supported by Alibaba, Baidu, and TSMC for manufacturing.

Tech Supply Chain Tracker (24-Oct-2024): 2025+ global smartphone forecast.

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>Alibaba is selling Sun Art, a listed supermarket subsidiary, as Sun Art’s revenue is shrinking.</li>
<li>Alibaba gained 6 million new retailers on its Taobao Tmall platform year to date.</li>
<li>In September Tesla’s sales volume increased by 66% YoY and all major Chinese NEV grew strongly.</li>
</ul>


Alibaba is selling Sun Art, a listed supermarket subsidiary, as Sun Art’s revenue is shrinking.
Alibaba gained 6 million new retailers on its Taobao Tmall platform year to date.
In September Tesla’s sales volume increased by 66% YoY and all major Chinese NEV grew strongly.


China Consumption Weekly (21 Oct 2024): Sun Art, Alibaba, Tesla, JD.com

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>We expect Alibaba to deliver in-line-with-consensus revenue growth and nonGAAP net income for 2QFY25.</li><li>Management remains committed to making investment to enhance the user experience for the core 88VIP user base amid tapering consumption sentiment, which should help at least maintain market share and lay a solid foundation for long-term monetization improvement, in our view.</li><li>Pace of monetization improvement in Taobao and Tmall (T&amp;T) Group in 2QFY25 is likely already better than our expectation driven by better-thanexpected merchant adoption, and should ramp up more quickly with further increase in merchant penetration and with potential improvement in consumer sentiment. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

We expect Alibaba to deliver in-line-with-consensus revenue growth and nonGAAP net income for 2QFY25.Management remains committed to making investment to enhance the user experience for the core 88VIP user base amid tapering consumption sentiment, which should help at least maintain market share and lay a solid foundation for long-term monetization improvement, in our view.Pace of monetization improvement in Taobao and Tmall (T&amp;T) Group in 2QFY25 is likely already better than our expectation driven by better-thanexpected merchant adoption, and should ramp up more quickly with further increase in merchant penetration and with potential improvement in consumer sentiment. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Alibaba (BABA US) - Increasing Monetization

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>The review period for the December rebalance of the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng TECH Index (HSTECH INDEX)</a> ended on 30 September.</li>
<li>We do not forecast any constituent changes for the index. Capping changes will lead to a one-way turnover of 2.15% and a round-trip trade of HK$6.1bn (US$785m).</li>
<li>If any stocks have outsized moves on expectations of being added to or deleted from the index, there could be opportunities to enter trades.</li>
</ul>


The review period for the December rebalance of the Hang Seng TECH Index (HSTECH INDEX) ended on 30 September.
We do not forecast any constituent changes for the index. Capping changes will lead to a one-way turnover of 2.15% and a round-trip trade of HK$6.1bn (US$785m).
If any stocks have outsized moves on expectations of being added to or deleted from the index, there could be opportunities to enter trades.


HSTECH Index Rebalance Preview: $800m Round-Trip Trade

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 (9988 HK)

New Flexible and Convenient Access to Hong Kong Stocks

Hong Kong Singapore Depository Receipts provide a strategic and efficient means for investors to access Hong Kong’s leading companies. Five top...

Singapore Exchange Ltd (SGX)

Tech Supply Chain Tracker (24-Oct-2024): 2025+ global smartphone forecast.

Global smartphone market forecasts beyond 2025, OLED gaining popularity in tablets and notebooks while Mini LED fades; uncertainties around Trump's...

Tech Supply Chain Tracker

China Consumption Weekly (21 Oct 2024): Sun Art, Alibaba, Tesla, JD.com

Alibaba is selling Sun Art, a listed supermarket subsidiary. Alibaba gained 6 million new retailers on its Taobao Tmall platform year to date. In...

Ming Lu

Alibaba (BABA US) - Increasing Monetization

The stable and predictable shareholder return plan and incremental fund flow from southbound investors post stock connect inclusion both serve as...

CMB International

HSTECH Index Rebalance Preview: $800m Round-Trip Trade

We do not forecast any constituent changes for the HSTECH index in December. Capping changes will lead to a one-way turnover of 2.15% and a round...

Brian Freitas

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52-week Range

Market Cap (USDm)

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