Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>SOUTHBOUND flows showing momentum tendencies this past week on a single-stock basis, still. Hs gave up some ground vs As in Week One.</li>
<li>SOUTHBOUND saw HK$14.4bn of net IN-flows in the 4-day week to 5 Jan 2024. Total flows were HK$96bn.</li>
<li>SOUTHBOUND start the year by buying ETFs, high-div SOEs like China Mobile and CNOOC, coal names, and sports/consumer names.</li>
</ul>


SOUTHBOUND flows showing momentum tendencies this past week on a single-stock basis, still. Hs gave up some ground vs As in Week One.
SOUTHBOUND saw HK$14.4bn of net IN-flows in the 4-day week to 5 Jan 2024. Total flows were HK$96bn.
SOUTHBOUND start the year by buying ETFs, high-div SOEs like China Mobile and CNOOC, coal names, and sports/consumer names.


HK Connect SOUTHBOUND Flows (To 5 Jan 2024); High Div SOEs Still Strongly Bought

<ul>
<li>SOUTHBOUND flows showing momentum tendencies this past week on a single-stock basis. Hs up vs As quite strongly. Liquid Hs even better.</li>
<li>SOUTHBOUND saw HK$1.2bn of net IN-flows in the 3-day week to 29 Dec. Total flows were HK$88bn.</li>
<li>Bullish end to year for SOUTHBOUND owners but they did not mark the close. They were, however, big buyers of high-div SOEs.</li>
</ul>


SOUTHBOUND flows showing momentum tendencies this past week on a single-stock basis. Hs up vs As quite strongly. Liquid Hs even better.
SOUTHBOUND saw HK$1.2bn of net IN-flows in the 3-day week to 29 Dec. Total flows were HK$88bn.
Bullish end to year for SOUTHBOUND owners but they did not mark the close. They were, however, big buyers of high-div SOEs.


HK Connect SOUTHBOUND Flows (To 29Dec23); CNOOC & Telcos to the BUY Side, Tracker Fund Sold Bigly

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Equity Bottom-Up

China Communications Services Corp Ltd. / Equity Bottom-Up

<ul>
<li>Stable, Steady, State-owned Enterprise with upside from policy push on AI</li>
<li>Lowly rated company with a new cyclical growth story in a strategic sector</li>
<li>Good balance sheet with the opportunity to raise payouts and yields.</li>
</ul>


Stable, Steady, State-owned Enterprise with upside from policy push on AI
Lowly rated company with a new cyclical growth story in a strategic sector
Good balance sheet with the opportunity to raise payouts and yields.


China Communications Services Corp. (552.HK)-Riding the AI Wave...

Cross Asset Strategy

<ul>
<li>Minimum correction targets  have been hit for the Hang Seng Index</li>
<li>Some potential catalysts for the resumption of the bull market</li>
<li>We highlight some suggested sector allocations for the next phase </li>
</ul>


Minimum correction targets  have been hit for the Hang Seng Index
Some potential catalysts for the resumption of the bull market
We highlight some suggested sector allocations for the next phase 


<ul>
<li>A week after the State Council issued "Several Opinions" (关于加强监管防范风险推动资本市场高质量发展的若干意见》), the CSRC <a href="http://www.csrc.gov.cn/csrc/c100028/c7474875/content.shtml" target="_blank" rel="noopener">announced</a> Friday five capital market cooperation measures with HK Connect. The goals are to increase cross-border investor flows.</li>
<li>They include: a broader range of ETFs in Connect, including REITs in both directions, include RMB counters in Southbound, improve mutual recognition of funds, increasing China IPOs in Hong Kong.</li>
<li>RMB Dual Counters Southbound-eligible will take time. They have some homework, but it is on the "To Do" list "as soon as possible and smoothly." Watch impact on H/A Pairs.</li>
</ul>


A week after the State Council issued "Several Opinions" (关于加强监管防范风险推动资本市场高质量发展的若干意见》), the CSRC announced Friday five capital market cooperation measures with HK Connect. The goals are to increase cross-border investor flows.
They include: a broader range of ETFs in Connect, including REITs in both directions, include RMB counters in Southbound, improve mutual recognition of funds, increasing China IPOs in Hong Kong.
RMB Dual Counters Southbound-eligible will take time. They have some homework, but it is on the "To Do" list "as soon as possible and smoothly." Watch impact on H/A Pairs.


RMB Dual Counter Trading Is Coming - This Changes AH Relationships

Hong Kong

China Mobile Limited provides telecommunication services. The Company offers wireline voice, broadband, roaming, and other related services. China Mobile serves customers in Hong Kong.

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China Mobile (941 HK)

HK Connect SOUTHBOUND Flows (To 5 Jan 2024); High Div SOEs Still Strongly Bought

Strong net buying in the first week of the year by SOUTHBOUND investors in HK Connect. Big buys in ETFs (they go back and forth every week), China...

Travis Lundy

HK Connect SOUTHBOUND Flows (To 29Dec23); CNOOC & Telcos to the BUY Side, Tracker Fund Sold Bigly

HK Connect SOUTHBOUND Flows this week were light on a shortened 3-day week. High-div SOEs like Energy names and the large telcos were significantly...

Travis Lundy

China Communications Services Corp. (552.HK)-Riding the AI Wave...

State-owned enterprise poised for growth in AI sector with potential for increased dividends and yields due to strong balance sheet.

Rikki Malik

Where Now for the Hong Kong Market?

Hang Seng Index has hit minimum correction targets, potential catalysts for bull market resumption and sector allocation suggestions discussed.

Rikki Malik

RMB Dual Counter Trading Is Coming - This Changes AH Relationships

The CSRC has in principle approved HK-listed RMB Dual Counter stocks for southbound eligibility. There are wrinkles to iron out but they should be...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

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Dividend (Yield)

HK Connect SOUTHBOUND Flows (To 5 Jan 2024); High Div SOEs Still Strongly Bought

Strong net buying in the first week of the year by SOUTHBOUND investors in HK Connect. Big buys in ETFs (they go back and forth every week), China...

Travis Lundy

HK Connect SOUTHBOUND Flows (To 29Dec23); CNOOC & Telcos to the BUY Side, Tracker Fund Sold Bigly

HK Connect SOUTHBOUND Flows this week were light on a shortened 3-day week. High-div SOEs like Energy names and the large telcos were significantly...

Travis Lundy

China Communications Services Corp. (552.HK)-Riding the AI Wave...

​State-owned enterprise poised for growth in AI sector with potential for increased dividends and yields due to strong balance sheet.

Rikki Malik

Where Now for the Hong Kong Market?

​Hang Seng Index has hit minimum correction targets, potential catalysts for bull market resumption and sector allocation suggestions discussed.

Rikki Malik

RMB Dual Counter Trading Is Coming - This Changes AH Relationships

The CSRC has in principle approved HK-listed RMB Dual Counter stocks for southbound eligibility. There are wrinkles to iron out but they should be...

Travis Lundy

State-owned enterprise poised for growth in AI sector with potential for increased dividends and yields due to strong balance sheet.

Hang Seng Index has hit minimum correction targets, potential catalysts for bull market resumption and sector allocation suggestions discussed.