HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Event-Driven

Beijing Tiantan Biological Products / Event-Driven

<ul>
<li>Guangming District State-owned Assets Supervision and Administration Bureau reached a cooperation agreement with China National Biotec to establish a joint venture, which will become the new controlling shareholder of Weiguang.</li>
<li>Since Tiantan is already Sinopharm’s subsidiary, there will be horizontal competition issue in the field of blood product business between Tiantan and Weiguang, mainly due to significant business overlap.</li>
<li>Some spin-offs and integrations are expected between Tiantan and Weiguang. As the reform of SOE enters a new stage, the two companies could end up very different.</li>
</ul>


Guangming District State-owned Assets Supervision and Administration Bureau reached a cooperation agreement with China National Biotec to establish a joint venture, which will become the new controlling shareholder of Weiguang.
Since Tiantan is already Sinopharm’s subsidiary, there will be horizontal competition issue in the field of blood product business between Tiantan and Weiguang, mainly due to significant business overlap.
Some spin-offs and integrations are expected between Tiantan and Weiguang. As the reform of SOE enters a new stage, the two companies could end up very different.


Tiantan (600161CH) To Acquire Weiguang (002880CH)- New King Rises in China's Blood Products Industry

Equity Bottom-Up

Beijing Tiantan Biological Products / Equity Bottom-Up

<ul>
<li>Even good enterprises could be neglected by the market, leading to low valuation. Many people wonder when is the best buying point for pharmaceutical companies. We shared our views.</li>
<li>If PD-1 sold in China can still achieve a certain scale, the situation of PD-L1 is not the same. In fact, we’re pessimistic about all companies selling PD-L1 in China.</li>
<li>
<a href="https://www.smartkarma.com/entities/beijing-tiantan-biological-products-corp" target="_blank" data-smartkarma-citation="entities:5190:1" rel="noopener">Beijing Tiantan Biological Products (600161 CH) </a>is a good defensive target in unfriendly external environment. The reasonable market value is RMB45-50 billion. We think Tiantan will maintain stable growth ahead.</li>
</ul>


Even good enterprises could be neglected by the market, leading to low valuation. Many people wonder when is the best buying point for pharmaceutical companies. We shared our views.
If PD-1 sold in China can still achieve a certain scale, the situation of PD-L1 is not the same. In fact, we’re pessimistic about all companies selling PD-L1 in China.

Beijing Tiantan Biological Products (600161 CH) is a good defensive target in unfriendly external environment. The reasonable market value is RMB45-50 billion. We think Tiantan will maintain stable growth ahead.


China Healthcare Weekly (Jan.26)- Stocks Best Buying Point, Tragic PD-L1, Tiantan Biological Product

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

<ul>
<li>There are 12 changes for the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-inde" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI 300 Index (SHSZ300 INDEX)</a> and 50 changes for the <a href="https://www.smartkarma.com/entities/csi-smallcap-500-index-shang" target="_blank" data-smartkarma-citation="entities:35347:1" rel="noopener">CSI Smallcap 500 Index (SH000905 INDEX)</a> in June. Most changes were expected.</li>
<li>There are a lot of stocks with over 1 day of ADV to trade. The round-trip trade in June is estimated to be US$5bn.</li>
<li>The adds have outperformed the deletes for both indices but the return profile of a long adds/ short deletes trade for the CSI500 Index is a lot smoother.</li>
</ul>


There are 12 changes for the CSI 300 Index (SHSZ300 INDEX) and 50 changes for the CSI Smallcap 500 Index (SH000905 INDEX) in June. Most changes were expected.
There are a lot of stocks with over 1 day of ADV to trade. The round-trip trade in June is estimated to be US$5bn.
The adds have outperformed the deletes for both indices but the return profile of a long adds/ short deletes trade for the CSI500 Index is a lot smoother.


CSI300/CSI500 Index Rebalance: Big Flows and US$5bn Round-Trip Trade

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

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of June 7th.</li>
<li>We estimate the weekly inflows to be US$946.1 million, led by information technology, health care, utilities sectors, and offset by consumer staples, financials, energy.</li>
<li>We highlight flows for China Yangtze Power, Jinko Solar, Naura Technology, Will Semiconductor, China National Nuclear Power, Midea, Moutai, Bank Of Jiangsu, Wuliangye, Inovance.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of June 7th.
We estimate the weekly inflows to be US$946.1 million, led by information technology, health care, utilities sectors, and offset by consumer staples, financials, energy.
We highlight flows for China Yangtze Power, Jinko Solar, Naura Technology, Will Semiconductor, China National Nuclear Power, Midea, Moutai, Bank Of Jiangsu, Wuliangye, Inovance.


Northbound Flows (Jun 7th): China Yangtze Power, Jinko Solar, Naura Technology, CNNP

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

China Northern Rare Earth Group High-Tech / Event-Driven

China Northern Rare Earth Group High-Tech

<ul>
<li>The June 2024 index review results for the SSE 50 and SSE 180 indices were announced after market close on Friday 31st May 2024.</li>
<li>There will be 5 changes for the SSE 50 index and 18 changes for the SSE 180 index.</li>
<li>These changes could collectively cause one-way index flows of ~US$1.8bn during the June 2024 index rebal event. In this insight, we take a look at our final flow expectations.</li>
</ul>


The June 2024 index review results for the SSE 50 and SSE 180 indices were announced after market close on Friday 31st May 2024.
There will be 5 changes for the SSE 50 index and 18 changes for the SSE 180 index.
These changes could collectively cause one-way index flows of ~US$1.8bn during the June 2024 index rebal event. In this insight, we take a look at our final flow expectations.


Quiddity SSE50/180 Jun 24 Rebalance: US$1.8bn One-Way Flow; LONGs up 8.6% Vs SHORTs in a Month

China

Beijing Tiantan Biological Products Corporation Limited researches, develops, and commercializes biological products.  The Company provides treatment for hepatitis and offers a line of vaccine products including hepatitis vaccines and rubella vaccines.

Beijing Tiantan Biological Products (600161 CH)

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Beijing Tiantan Biological Products (600161 CH)

Tiantan (600161CH) To Acquire Weiguang (002880CH)- New King Rises in China's Blood Products Industry

The change of Weiguang's actual controller will bring about a series of restructuring.As SOE reform enters new stage, investors will have good...

Xinyao (Criss) Wang

China Healthcare Weekly (Jan.26)- Stocks Best Buying Point, Tragic PD-L1, Tiantan Biological Product

Here're views on the best buying point for pharmaceutical companies.Different from PD-1, we’re pessimistic about all companies selling PD-L1 in...

Xinyao (Criss) Wang

CSI300/CSI500 Index Rebalance: Big Flows and US$5bn Round-Trip Trade

The CSI300/CSI500 indices rebalance at the close tomorrow. Since announcement, the inclusions to the CSI300 index have outperformed the deletes by...

Brian Freitas

Northbound Flows (Jun 7th): China Yangtze Power, Jinko Solar, Naura Technology, CNNP

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for China Yangtze Power, Jinko Solar, Naura Technology,...

Ke Yan, CFA, FRM

Quiddity SSE50/180 Jun 24 Rebalance: US$1.8bn One-Way Flow; LONGs up 8.6% Vs SHORTs in a Month

On average, the LONGs are up 5.6% and the SHORTs are down 3.0% since the pair trades were suggested (on 6th May 2024). Some of these have to be...

Janaghan Jeyakumar, CFA

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