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 analyzed the latest HK SFC report for aggregate short position as of Jun 14th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short changes in Baba, Kuaishou, Lenovo, CCB, Yankuang Energy, AIA.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Jun 14th.
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short changes in Baba, Kuaishou, Lenovo, CCB, Yankuang Energy, AIA.


HK Short Interest Weekly: Baba, Kuaishou, Lenovo, CCB, Yankuang Energy, AIA

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>SOUTHBOUND was again a net buyer, for HK$24.1bn this week, on smallish two-way volumes. Banks, Tech, Energy, and Materials all saw inflows.</li>
<li>It is not clear how much of this is H/A discounts, expected dividend tax removal, shareholder return KPIs for SOE CEOs, upcoming Third Plenum policy, or national team buying...</li>
<li>But valuations are acceptable. Flows are good. Policy changes are afoot. SOUTHBOUND may continue to see inflows - national team and otherwise.</li>
</ul>


SOUTHBOUND was again a net buyer, for HK$24.1bn this week, on smallish two-way volumes. Banks, Tech, Energy, and Materials all saw inflows.
It is not clear how much of this is H/A discounts, expected dividend tax removal, shareholder return KPIs for SOE CEOs, upcoming Third Plenum policy, or national team buying...
But valuations are acceptable. Flows are good. Policy changes are afoot. SOUTHBOUND may continue to see inflows - national team and otherwise.


HK Connect SOUTHBOUND Flows (To 21 June 2024); Every Day A Net Buy; Banks, Energy, and Utes

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of June 14th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for China Mobile, BOC, CNOOC, China Shenhua Energy, CCB.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of June 14th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for China Mobile, BOC, CNOOC, China Shenhua Energy, CCB.


Hong Kong Connect Flows (Jun 14th): China Mobile, BOC, CNOOC, China Shenhua Energy, CCB

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>The best-of-the-breed constituents are those that outperformed HSI YTD, rallied more than the Index in the Apr-May rebound, and retreated less than the Index in the May-Jun retreat. </li>
<li>Only 4 out of the 82 HSI members made it - <a href="https://www.smartkarma.com/entities/china-hongqiao-group-ltd" target="_blank" data-smartkarma-citation="entities:1909:1" rel="noopener">China Hongqiao (1378 HK)</a>, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>, <a href="https://www.smartkarma.com/entities/china-construction-bank-h" target="_blank" data-smartkarma-citation="entities:45:1" rel="noopener">China Construction Bank (939 HK)</a>, and <a href="https://www.smartkarma.com/entities/orient-overseas-international" target="_blank" data-smartkarma-citation="entities:801:1" rel="noopener">Orient Overseas International (316 HK)</a>. </li>
<li>Their fundamentals look to stay strong, while both valuation and dividend yield appear to remain undemanding despite share price strengths. </li>
</ul>


The best-of-the-breed constituents are those that outperformed HSI YTD, rallied more than the Index in the Apr-May rebound, and retreated less than the Index in the May-Jun retreat. 
Only 4 out of the 82 HSI members made it - China Hongqiao (1378 HK), Tencent (700 HK), China Construction Bank (939 HK), and Orient Overseas International (316 HK). 
Their fundamentals look to stay strong, while both valuation and dividend yield appear to remain undemanding despite share price strengths. 


HK Strategy: What Are the Best-Of-The-Breed Stocks?

Event-Driven

<ul>
<li>SOUTHBOUND was again a net buyer for HK$18.6bn on strong two-way volumes. The top three net buys of the week were SOE banks. Some may be Central Huijin.</li>
<li>Some of this may be driven by the dividend w/h tax cancellation on H divs and by significant H-share discounts, but high-div CNOOC was the biggest net sell.</li>
<li>No end to the inflows, and HK valuations are not at a place where they would hamper continued flows. Alibaba making HK a Primary will spur more inflows over time.</li>
</ul>


SOUTHBOUND was again a net buyer for HK$18.6bn on strong two-way volumes. The top three net buys of the week were SOE banks. Some may be Central Huijin.
Some of this may be driven by the dividend w/h tax cancellation on H divs and by significant H-share discounts, but high-div CNOOC was the biggest net sell.
No end to the inflows, and HK valuations are not at a place where they would hamper continued flows. Alibaba making HK a Primary will spur more inflows over time.


HK Connect SOUTHBOUND Flows (To 24 May 2024); Strong Bank Buying and Tech Selling Continues

China

China Construction Bank Corporation provides banking services. The Company offers deposits, loans, fund management, foreign exchange, and other services. China Construction Bank provides its services to individuals, enterprises, and other clients.

Price Gauge
52-week Range	0.00 - 0.00
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China Construction Bank (601939 CH)

HK Short Interest Weekly: Baba, Kuaishou, Lenovo, CCB, Yankuang Energy, AIA

We analyzed the latest HK SFC report for aggregate short position as of Jun 14th and highlight short interest changes in Baba, Kuaishou, Lenovo,...

Ke Yan, CFA, FRM

HK Connect SOUTHBOUND Flows (To 21 June 2024); Every Day A Net Buy; Banks, Energy, and Utes

SOUTHBOUND HK Connect saw its 20th straight week of net inflows. Net vs Gross flows continue to be big. Banks, Energy, Materials, and Utilities all...

Travis Lundy

Hong Kong Connect Flows (Jun 14th): China Mobile, BOC, CNOOC, China Shenhua Energy, CCB

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for China Mobile, BOC, CNOOC, China Shenhua Energy, CCB.

Ke Yan, CFA, FRM

HK Strategy: What Are the Best-Of-The-Breed Stocks?

Only 4 HSI members have outperformed YTD, in the Apr-May rally, and in the May-Jun retreat: China Hongqiao, Tencent, China Construction Bank, and...

Osbert Tang, CFA

HK Connect SOUTHBOUND Flows (To 24 May 2024); Strong Bank Buying and Tech Selling Continues

SOUTHBOUND flows continue to be strong. This week saw nearly HK$8bn bought on Banks and banks were top inflows. Some of this may be National Team...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HK Short Interest Weekly: Baba, Kuaishou, Lenovo, CCB, Yankuang Energy, AIA

We analyzed the latest HK SFC report for aggregate short position as of Jun 14th and highlight short interest changes in Baba, Kuaishou, Lenovo,...

Ke Yan, CFA, FRM

HK Connect SOUTHBOUND Flows (To 21 June 2024); Every Day A Net Buy; Banks, Energy, and Utes

SOUTHBOUND HK Connect saw its 20th straight week of net inflows. Net vs Gross flows continue to be big. Banks, Energy, Materials, and Utilities all...

Travis Lundy

Hong Kong Connect Flows (Jun 14th): China Mobile, BOC, CNOOC, China Shenhua Energy, CCB

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for China Mobile, BOC, CNOOC, China Shenhua Energy, CCB.

Ke Yan, CFA, FRM

HK Strategy: What Are the Best-Of-The-Breed Stocks?

​Only 4 HSI members have outperformed YTD, in the Apr-May rally, and in the May-Jun retreat: China Hongqiao, Tencent, China Construction Bank, and...

Osbert Tang, CFA

HK Connect SOUTHBOUND Flows (To 24 May 2024); Strong Bank Buying and Tech Selling Continues

SOUTHBOUND flows continue to be strong. This week saw nearly HK$8bn bought on Banks and banks were top inflows. Some of this may be National Team...

Travis Lundy

Only 4 HSI members have outperformed YTD, in the Apr-May rally, and in the May-Jun retreat: China Hongqiao, Tencent, China Construction Bank, and...