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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Thematic (Sector/Industry)

The National Development and Reform Commission of the China Securities Regulatory Commission (CSRC) released a <a href="http://www.csrc.gov.cn/newsite/zjhxwfb/xwdd/202004/t20200430_374845.html" target="_blank" rel="noopener">notice</a> in April on establishing a pilot program to promote Infrastructure Real Estate Investment Trust Funds (REITs).The focus will be on supporting key areas such as Beijing-Tianjin-Hebei, Yangtze River Economic Belt, Xiong'an New Area, Guangdong, Hong Kong, Macao and The Great Bay Area, Hainan and the Yangtze River Delta and on industries such as warehousing logistics, toll roads and other transportation facilities, water and electrical heating and other municipal projects, urban sewage waste treatment, solid waste and waste treatment and other pollution control projects.In this Insight, following on from <a href="https://www.smartkarma.com/profiles/osbert-tang-cfa" target="_blank" data-smartkarma-citation="accounts:3879" rel="noopener">Osbert Tang, CFA</a>'s <a href="https://www.smartkarma.com/insights/china-infrastructure-reits-first-look-on-h-share-toll-road-sector" target="_blank" rel="noopener">Insight</a>, we put together a tradeable basket on toll road names listed in Hong Kong and China.

The National Development and Reform Commission of the China Securities Regulatory Commission (CSRC) released a notice in April on establishing a pilot program to promote Infrastructure Real Estate Investment Trust Funds (REITs).The focus will be on supporting key areas such as Beijing-Tianjin-Hebei, Yangtze River Economic Belt, Xiong'an New Area, Guangdong, Hong Kong, Macao and The Great Bay Area, Hainan and the Yangtze River Delta and on industries such as warehousing logistics, toll roads and other transportation facilities, water and electrical heating and other municipal projects, urban sewage waste treatment, solid waste and waste treatment and other pollution control projects.In this Insight, following on from Osbert Tang, CFA's Insight, we put together a tradeable basket on toll road names listed in Hong Kong and China.

China Infrastructure REITs: Toll Road Baskets on H-Shares and A-Shares

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

In our Discover SZ/SH Connect series, we aim to help our investors understand the flow of northbound trades via the Shanghai Connect and Shenzhen Connect, as analyzed by our proprietary data engine. We will discuss the stocks that experienced the most inflow and outflow by offshore investors in the past seven days.We split the stocks eligible for the northbound trade into three groups: those with a market capitalization of above USD 5 billion, and those with a market capitalization between USD 1 billion and USD 5 billion.We note that in March, northbound inflows turned more cautious vs strong inflows in February (link to our <a href="https://www.smartkarma.com/insights/shanghai-shenzhen-connect-8-4-bn-inflows-in-february-kweichow-moutai-aier-eye-luxshare" target="_blank">Feb note</a>) and January (link to our <a href="https://www.smartkarma.com/insights/shanghai-shenzhen-connect-8-5-bn-of-inflow-in-january-kweichow-moutai-gree-midea" target="_blank">Jan note</a>). Nevertheless we see strong inflows into Healthcare sector, led by <a href="https://www.smartkarma.com/entities/14128" target="_blank" data-smartkarma-citation="entities:14128:1">Jiangsu Hengrui Medicine Co., (600276 CH)</a>. We also highlight Universal Scientific Industrial Shanghai (601231 CH 环旭电子) in the mid cap space that attracted strong northbound inflows.

In our Discover SZ/SH Connect series, we aim to help our investors understand the flow of northbound trades via the Shanghai Connect and Shenzhen Connect, as analyzed by our proprietary data engine. We will discuss the stocks that experienced the most inflow and outflow by offshore investors in the past seven days.We split the stocks eligible for the northbound trade into three groups: those with a market capitalization of above USD 5 billion, and those with a market capitalization between USD 1 billion and USD 5 billion.We note that in March, northbound inflows turned more cautious vs strong inflows in February (link to our Feb note) and January (link to our Jan note). Nevertheless we see strong inflows into Healthcare sector, led by Jiangsu Hengrui Medicine Co., (600276 CH). We also highlight Universal Scientific Industrial Shanghai (601231 CH 环旭电子) in the mid cap space that attracted strong northbound inflows.

Shanghai/Shenzhen Connect - Inflow Turned Cautious in March but MSCI Adjustment Ahead

China

Shanghai International Airport Co., Ltd. operates Pudong Airport and Hongquiao airport in Shanghai.   The Company provides a full range of services including air traffic control, terminal management, cargo handling, advertising, space rental, and other related services.

Shanghai International Airport (600009 CH)

Jiangsu Expressway Company Ltd. constructs, operates, manages and maintains expressways in China.  The Company also provides passenger transportation and other ancillary services along including fueling stations, restaurants, car maintenance and repair and advertising.

Ningbo Port Company Limited primarily provides container, iron ore, crude oil and other cargo handling and related services. The Company also provides integrated logistics and other businesses.

Shandong Hi-speed Co Ltd. operates and maintains toll roads, bridges, tunnels, and other infrastructure facilities.  The Company operates the Jiqing Highway, the Taiqu Road, the Jinan-Huanghe Bridge, the Pingyin Bridge, and the Binzhou Bridge. Shandong Hi-speed also retails petroleum products.

Tangshan Port Group Co., Ltd. provides bulk cargo handling, transport, warehousing and other logistics business.  The Company also offers utilities, port information and other professional port services.

Qingdao Port International Co., Ltd. engages in providing a wide range of port related services, ranging from basic port services, such as stevedoring and  storage services, to ancillary and extended services such  as logistics service sand financing-related services.

Shenzhen Expressway Company Limited offers toll expressway and road construction and investment services. The Company provides expressway operation, maintenance, and service station leasing services. Shenzhen Expressway also conducts real estate development, advertising, and engineering consulting businesses.

Zhejiang Expressway Co., Ltd., through its subsidiaries, designs, constructs, operates, and manages high grade roads, as well as develops and operates certain ancillary services, such as technical consultation, advertising, automobile servicing, and fuel facilities.

Guangzhou Baiyun International Airport Co., Ltd. operates the Guangzhou Baiyun International Airport and provides related transportation services, including ground, passenger, storage, airplane maintenance and repair, and other services.  The Company also provides food, space rental, and advertising services.

Guangzhou Baiyun International Airport (600004 CH)

Shanghai International Port (Group) Co., Ltd is a holding company that owns interests in container and port service companies.

Shanghai International Port Group (600018 CH)

Auckland International Airport Limited owns and operates the Auckland International Airport.  The Airport includes a single runway, an international terminal and two domestic terminals.  The Airport also has commercial facilities which includes airfreight operations, car rental services, commercial banking center and office buildings.

International Container Terminal Services, Inc. provides containerized cargo handling services. The Company also manages and operates the Manila International Container Terminal and port.

Aeroports de Paris (ADP) manages all the civil airports in the Paris area.  The Company also develops and operates light aircraft aerodromes.  ADP offers air transport related services, and business services such as office rental.

Getlink S.E. provides transport support services. The Company operates mobility infrastructures such as cross-channel transport networks, rail freight, and tunnels. Getlink serves customers in France and the United Kingdom.

Flughafen Zuerich AG operates the Zurich Airport.  The Company constructs, leases, and maintains airport structures and equipment.

Grupo Aeroportuario del Sureste S.A.B. de C.V. operates airports in Mexico.  The Company holds 50 year concessions, beginning in 1998, to manage airports in Cancun, Cozumel, Merida, Oaxaca, Veracruz, Huatulco, Tapachula, Minatitlan, and Villahermosa.

Grupo Aeroportuario del Pacifico SAB de CV operates and maintains airports in the Pacific and central regions of Mexico.

Qube Holdings Ltd. is a logistics company. The Group operates in divisions covering Automotive, Bulk and General Stevedoring, Landside Logistics and Strategic Development Assets.

Taiwan High Speed Rail Corporation operates the high speed railway system (HSR) in Taiwan, running 345 KM from Taipei to Kaohsiung.

China Merchants Expressway Network & Technology Holdings Co., Ltd. offers transportation infrastructure construction services. The Company constructs roads, bridges, ports, waterway infrastructures, and other projects. China Merchants Expressway Network & Technology Holdings also operates investment management businesses.

China Merchants Expressway Net (001965 CH)

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China Merchants Expressway Net (001965 CH)

China Infrastructure REITs: Toll Road Baskets on H-Shares and A-Shares

The National Development and Reform Commission of the China Securities Regulatory Commission (CSRC) released a notice in April on establishing a...

Brian Freitas

Shanghai/Shenzhen Connect - Inflow Turned Cautious in March but MSCI Adjustment Ahead

In our Discover SZ/SH Connect series, we aim to help our investors understand the flow of northbound trades via the Shanghai Connect and Shenzhen...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)