APAC IPOs & Placements

Zhen Zhou, Toh

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.

Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/ant-financial-services-group" target="_blank" data-smartkarma-citation="entities:24240:1" rel="noopener">Ant Financial (1051260D CH)</a> aims to raise around USD35bn via a dual listing on both Hong Kong Exchange and Shanghai STAR board. </p></div><div><p>We have covered various aspects of the deal in our earlier notes, link to which are below.</p></div><div><p>In this note, we will look at past STAR market IPOs, their trading performance, and the A/H premium, to understand how Ant Group may trade on its debut.</p></div><div><div><h3>Our previous coverage on Ant Group</h3></div></div><div><ul>
<li><a href="https://www.smartkarma.com/insights/ant-financial-ipo-early-thought-what-s-new-about-the-listing-news" target="_blank" rel="noopener">Ant Financial IPO Early Thought: Understand the Fintech Empire, Growth and Risk Factors</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-financial-ipo-early-thought-understand-the-fintech-empire-growth-and-risk-factors" target="_blank" rel="noopener">Ant Financial (蚂蚁金服) IPO Early Thought: What’s New About the Listing News</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-ipo-first-take-no-1-fintech-from-all-angles" target="_blank" rel="noopener">Ant Group (蚂蚁集团) IPO First-Take: No. 1 Fintech from All Angles</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-ipo-numbers-suggest-it-s-more-tech-than-financials" target="_blank" rel="noopener">Ant Group (蚂蚁集团) IPO: Numbers Suggest It’s More Tech than Financials</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-things-to-clarify-questions-to-ask-falling-fees-margins-cash-flow" target="_blank" rel="noopener">Ant Group (蚂蚁集团) Pre-IPO: Things to Clarify/​Questions to Ask - Falling Fees, Margins, Cash Flow</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-dual-listing-makes-early-index-inclusion-tricky" target="_blank" rel="noopener">Ant Group (蚂蚁集团) Pre-IPO: Dual Listing Makes Early Index Inclusion Tricky</a></li>
<li><a href="https://www.smartkarma.com/insights/alipay-s-advantage-over-wechat-pay-in-physical-stores" target="_blank" rel="noopener">AliPay’s Advantage over WeChat Pay in Physical Stores</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-running-neck-and-neck-with-tencent-in-direct-financial-services" target="_blank" rel="noopener">Ant Group (蚂蚁集团) Running Neck and Neck with Tencent in Direct Financial Services</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-impact-assessment-of-the-new-rule-for-financial-holding-companies" target="_blank" rel="noopener">Ant Group (蚂蚁集团) Pre-IPO: Impact Assessment of the New Rule for Financial Holding Companies</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-peer-comparison-payments-baffling-scale-small-tweaks-for-large-profits" target="_blank" rel="noopener">Ant Group Pre-IPO: Peer Comparison - Payments - Baffling Scale, Small Tweaks for Large Profits</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-peer-comparison-credittech-larger-scale-similar-growth-lower-credit-risk" target="_blank" rel="noopener">Ant Group Pre-IPO: Peer Comparison - CreditTech - Larger Scale, Similar Growth, Lower Credit Risk</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-first-stab-at-valuation" target="_blank" rel="noopener">Ant Group Pre-IPO: First Stab at Valuation</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-quick-take-on-ftse-and-msci-s-clearer-guidelines" target="_blank" rel="noopener">Ant Group Pre-IPO: Quick Take on FTSE and MSCI’s Clearer Guidelines</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-deal-structure-phip-updates-short-term-trades" target="_blank" rel="noopener">Ant Group Pre-IPO: Deal Structure, PHIP Updates, Short-Term Trades</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-updated-valuation-it-s-going-higher" target="_blank" rel="noopener">Ant Group Pre-IPO: Updated Valuation. It’s Going Higher.</a></li>
</ul></div>

Ant Financial (1051260D CH) aims to raise around USD35bn via a dual listing on both Hong Kong Exchange and Shanghai STAR board. We have covered various aspects of the deal in our earlier notes, link to which are below.In this note, we will look at past STAR market IPOs, their trading performance, and the A/H premium, to understand how Ant Group may trade on its debut.Our previous coverage on Ant Group
Ant Financial IPO Early Thought: Understand the Fintech Empire, Growth and Risk Factors
Ant Financial (蚂蚁金服) IPO Early Thought: What’s New About the Listing News
Ant Group (蚂蚁集团) IPO First-Take: No. 1 Fintech from All Angles
Ant Group (蚂蚁集团) IPO: Numbers Suggest It’s More Tech than Financials
Ant Group (蚂蚁集团) Pre-IPO: Things to Clarify/​Questions to Ask - Falling Fees, Margins, Cash Flow
Ant Group (蚂蚁集团) Pre-IPO: Dual Listing Makes Early Index Inclusion Tricky
AliPay’s Advantage over WeChat Pay in Physical Stores
Ant Group (蚂蚁集团) Running Neck and Neck with Tencent in Direct Financial Services
Ant Group (蚂蚁集团) Pre-IPO: Impact Assessment of the New Rule for Financial Holding Companies
Ant Group Pre-IPO: Peer Comparison - Payments - Baffling Scale, Small Tweaks for Large Profits
Ant Group Pre-IPO: Peer Comparison - CreditTech - Larger Scale, Similar Growth, Lower Credit Risk
Ant Group Pre-IPO: First Stab at Valuation
Ant Group Pre-IPO: Quick Take on FTSE and MSCI’s Clearer Guidelines
Ant Group Pre-IPO: Deal Structure, PHIP Updates, Short-Term Trades
Ant Group Pre-IPO: Updated Valuation. It’s Going Higher.


Ant Group IPO:  STAR Market Trading Stats, A/H Spread

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Thematic (Sector/Industry)

<div>
<p>The China STAR market (or the Science and Technology Innovation Board, or China's reply to the NASDAQ) started trading on 22 July 2019 with 25 stocks listed. Currently, there are 123 stocks listed on the STAR Board.</p>
</div>
<div>
<p>Turnover has picked up over the last few months as the market moves higher and tries to reach the highs that it did in August 2019.</p>
<p>To celebrate its first anniversary, there have been a number of announcements made on inclusion eligibility of STAR Board stocks in the Shanghai Stock Exchange Composite index, potential inclusion of STAR Board stocks in the Stock Connect program, and the launch of the STAR 50 index. Put together, this should increase the visibility of the stocks listed on the STAR Board by improving accessibility and bringing passive index flow in to the market.</p>
</div>


The China STAR market (or the Science and Technology Innovation Board, or China's reply to the NASDAQ) started trading on 22 July 2019 with 25 stocks listed. Currently, there are 123 stocks listed on the STAR Board.


Turnover has picked up over the last few months as the market moves higher and tries to reach the highs that it did in August 2019.
To celebrate its first anniversary, there have been a number of announcements made on inclusion eligibility of STAR Board stocks in the Shanghai Stock Exchange Composite index, potential inclusion of STAR Board stocks in the Stock Connect program, and the launch of the STAR 50 index. Put together, this should increase the visibility of the stocks listed on the STAR Board by improving accessibility and bringing passive index flow in to the market.


STAR Board: Launch of STAR50 Index and Inclusion in SSE Composite Indices

China Specialist, Auto and Industrial Specialist

Victoria Li

<p><strong>With the boost on New Infrastructure from Central Government, rail sector, power T&amp;D (transmission and distribution) sector, automation &amp; robot sector would have their new investment opportunities in the next few years. </strong></p><p><strong>China's national rail investment 2020E is revised up to Rmb815bn lately, vs. guided Rmb800bn at end-2019and would go up further. Inter-city high speed rail lines would gain the most investment. Moreover, a total of 2639km new urban rail lines be delivered in 2020-2021E, vs. 969km in 2019. CRRC (1766.HK) and CRSC(3969.HK) are the key players</strong></p><p><strong>2020E investment budget for UHV power T&amp;D projects is Rmb181bn now, from initial Rmb33bn at beginning of this year. According to latest plans, 3 UHV AC lines and 3 HUV DC lines  would be completed in 2020-2021, 5 AC lines and 2 DC lines would be completed in 2021-2023. Additional 3 DC line projects are pending on approval. In this area, we favor Pinggao (600312.CH) as the leader of 800-1000kV GIS supplier, NARI(600406.CH) as the leader of converter valve supplier for UHV DC projects. High voltage transformer suppliers, TEBA (600089.CH),Baoding Tianwei (600550.CH) and XD Electric(601179.CH) would also be the key beneficiaries. </strong></p><p><strong>According to IFR, China's industrial robot density is below the world average. Recent Covid-19 crisis and related stimulus is encouraging increasing use of industrial robot and automation equipments.  Key beneficiaries in this area include: Estun (002747.CH) and Siasun (300024.CH) as leading local manufacturer of industrial robots, Haitian (1882.HK) as industrial automation leader with advantage on import substitution.</strong></p>

With the boost on New Infrastructure from Central Government, rail sector, power T&amp;D (transmission and distribution) sector, automation &amp; robot sector would have their new investment opportunities in the next few years. China's national rail investment 2020E is revised up to Rmb815bn lately, vs. guided Rmb800bn at end-2019and would go up further. Inter-city high speed rail lines would gain the most investment. Moreover, a total of 2639km new urban rail lines be delivered in 2020-2021E, vs. 969km in 2019. CRRC (1766.HK) and CRSC(3969.HK) are the key players2020E investment budget for UHV power T&amp;D projects is Rmb181bn now, from initial Rmb33bn at beginning of this year. According to latest plans, 3 UHV AC lines and 3 HUV DC lines  would be completed in 2020-2021, 5 AC lines and 2 DC lines would be completed in 2021-2023. Additional 3 DC line projects are pending on approval. In this area, we favor Pinggao (600312.CH) as the leader of 800-1000kV GIS supplier, NARI(600406.CH) as the leader of converter valve supplier for UHV DC projects. High voltage transformer suppliers, TEBA (600089.CH),Baoding Tianwei (600550.CH) and XD Electric(601179.CH) would also be the key beneficiaries. According to IFR, China's industrial robot density is below the world average. Recent Covid-19 crisis and related stimulus is encouraging increasing use of industrial robot and automation equipments.  Key beneficiaries in this area include: Estun (002747.CH) and Siasun (300024.CH) as leading local manufacturer of industrial robots, Haitian (1882.HK) as industrial automation leader with advantage on import substitution.

China Capital Goods: New Infrastructure, New Opportunities!

Quantitative Analysis

<p>The China STAR market (or the Science and Technology Innovation Board, or China's reply to the NASDAQ) started trading on Monday, 22 July with 25 stocks listed.</p>
<p>With two months having passed since the launch of China's STAR market, we take a look at how the stocks have performed, check turnover on the STAR board, new listings, and what comes next for the STAR board that could drive price performance and turnover on the board.</p>

The China STAR market (or the Science and Technology Innovation Board, or China's reply to the NASDAQ) started trading on Monday, 22 July with 25 stocks listed.
With two months having passed since the launch of China's STAR market, we take a look at how the stocks have performed, check turnover on the STAR board, new listings, and what comes next for the STAR board that could drive price performance and turnover on the board.

STAR Board: China STAR Market - Turnover Tapering Off; Impetus Needed

<p>The China STAR market (or the Science and Technology Innovation Board, or China's reply to the NASDAQ) started trading on Monday, 22 July with 25 stocks listed. The day 1 average return across the 25 stocks was 139.55% with  minimum return of 84.22% and a maximum return of 400.15%.</p>
<p>In this note we look at the timeline from announcement to implementation, some of the rules governing listing and trading, a look at the stocks, their valuations, the IPO raise and the first few trading days, how it compares to the ChiNext market, the introduction of indices that could lead to ETFs bringing passive money into the market, and the possibility of these stocks entering global indices.</p>

The China STAR market (or the Science and Technology Innovation Board, or China's reply to the NASDAQ) started trading on Monday, 22 July with 25 stocks listed. The day 1 average return across the 25 stocks was 139.55% with  minimum return of 84.22% and a maximum return of 400.15%.
In this note we look at the timeline from announcement to implementation, some of the rules governing listing and trading, a look at the stocks, their valuations, the IPO raise and the first few trading days, how it compares to the ChiNext market, the introduction of indices that could lead to ETFs bringing passive money into the market, and the possibility of these stocks entering global indices.

STAR Board: A Shooting STAR or Here to Stay?

China

China Railway Signal & Communication Corporation Limited manufactures rail transit related systems. The Company researches, develops, designs, manufactures, sells and installs rail transit communication and signal systems. China Railway Signal & Communication also provides consulting, design and supervision work for urban transit projects and mainline railway projects.

China Railway Signal & Communication (3969 HK)

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China Railway Signal & Communication (3969 HK)

Ant Group IPO: STAR Market Trading Stats, A/H Spread

Ant Group aims to raise around USD 35bn via a dual listing on HKEX and STAR board. In this note, we will look at past STAR market IPOs, their...

Zhen Zhou, Toh

STAR Board: Launch of STAR50 Index and Inclusion in SSE Composite Indices

The China STAR market (or the Science and Technology Innovation Board, or China's reply to the NASDAQ) started trading on 22 July 2019 with 25...

Brian Freitas

China Capital Goods: New Infrastructure, New Opportunities!

With the boost on New Infrastructure from Central Government, rail sector, power T&D (transmission and distribution) sector, automation &...

Victoria Li

STAR Board: China STAR Market - Turnover Tapering Off; Impetus Needed

The China STAR market (or the Science and Technology Innovation Board, or China's reply to the NASDAQ) started trading on Monday, 22 July with 25...

Brian Freitas

STAR Board: A Shooting STAR or Here to Stay?

The China STAR market (or the Science and Technology Innovation Board, or China's reply to the NASDAQ) started trading on Monday, 22 July with 25...

Brian Freitas

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52-week Range

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