HK/China Equity Long-Short

Osbert Tang, CFA

Quantitative Analysis

<ul>
<li>2023 is the worst year for our "Buy the Worst" strategy as it returned -34.5% YTD, underperforming the HSI by 20.7pp. The two property names are the key drags.</li>
<li>Despite a poor 2023, the strategy has still outperformed the HSI by 17.9pp for 2018-2023. It remains significantly better than buying the winners in the current year.</li>
<li>For 2024, our strategy is to switch to <a href="https://www.smartkarma.com/entities/li-ning-co-ltd" target="_blank" data-smartkarma-citation="entities:6047:1" rel="noopener">Li Ning (2331 HK)</a>, <a href="https://www.smartkarma.com/entities/country-garden-services-holdin" target="_blank" data-smartkarma-citation="entities:27343:1" rel="noopener">Country Garden Services (6098 HK)</a>, <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>, <a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a>, and <a href="https://www.smartkarma.com/entities/zhongsheng-group-holdings" target="_blank" data-smartkarma-citation="entities:10573:1" rel="noopener">Zhongsheng Group (881 HK)</a>. </li>
</ul>


2023 is the worst year for our "Buy the Worst" strategy as it returned -34.5% YTD, underperforming the HSI by 20.7pp. The two property names are the key drags.
Despite a poor 2023, the strategy has still outperformed the HSI by 17.9pp for 2018-2023. It remains significantly better than buying the winners in the current year.
For 2024, our strategy is to switch to Li Ning (2331 HK), Country Garden Services (6098 HK), Meituan (3690 HK), Wuxi Biologics (2269 HK), and Zhongsheng Group (881 HK). 


"Buy the Worst" HSI Strategy: A Tragic 2023 and What About 2024?

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.

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 22nd.</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 have highlighted Hong Kong Conncect flows for CNOOC and Tencent.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 22nd.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We have highlighted Hong Kong Conncect flows for CNOOC and Tencent.


Hong Kong Connect Flows (Dec 22nd): CNOOC, Tencent

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 15th.</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 Hong Kong Conncect flows for Meituan and Tencent.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 15th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight Hong Kong Conncect flows for Meituan and Tencent.


Hong Kong Connect Flows (Dec 15th): Meituan, Tencent

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 8th.</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 Meituan, CNOOC, Tencent, Wuxi Biologics, HKEx, Xiaomi.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 8th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Meituan, CNOOC, Tencent, Wuxi Biologics, HKEx, Xiaomi.


Hong Kong Connect Flows (Dec 8th): Meituan, CNOOC, Tencent, Wuxi Biologics, HKEx, Xiaomi

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 1st.</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 weekly Hongkong connect flows for Meituan and Tencent.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 1st.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight weekly Hongkong connect flows for Meituan and Tencent.


Hong Kong Connect Flows (Dec 1st): Meituan, Tencent

China

Country Garden Services Holdings Company Limited provides real estate development services. The Company develops residential apartments, multi-functional complex buildings, government and public facilities, industrial parks, highway service stations, and schools. Country Garden Services Holdings serves clients in China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Country Garden Services (6098 HK)

"Buy the Worst" HSI Strategy: A Tragic 2023 and What About 2024?

2023 was bad for the "Buy the Worst" strategy, but it still outperformed the HSI for 2018-2023. In 2024, we will switch to Li Ning, Country Garden...

Osbert Tang, CFA

Hong Kong Connect Flows (Dec 22nd): CNOOC, Tencent

We analyzed southbound Hong Kong connect flows in the past week and highlight Hong kong weekly flows for CNOOC and Tencent.

Ke Yan, CFA, FRM

Hong Kong Connect Flows (Dec 15th): Meituan, Tencent

We analyzed southbound Hong Kong connect flows in the past week and highlight weekly Hong Kong connect flows for Meituan and Tencent.

Ke Yan, CFA, FRM

Hong Kong Connect Flows (Dec 8th): Meituan, CNOOC, Tencent, Wuxi Biologics, HKEx, Xiaomi

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for Meituan, CNOOC, Tencent, Wuxi Biologics, HKEx, Xiaomi.

Ke Yan, CFA, FRM

Hong Kong Connect Flows (Dec 1st): Meituan, Tencent

We analyzed southbound weekly Hong Kong connect flows in the past week and we highlighted weekly flows for Meituan and Tencent.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

"Buy the Worst" HSI Strategy: A Tragic 2023 and What About 2024?

​2023 was bad for the "Buy the Worst" strategy, but it still outperformed the HSI for 2018-2023. In 2024, we will switch to Li Ning, Country Garden...

Osbert Tang, CFA

Hong Kong Connect Flows (Dec 22nd): CNOOC, Tencent

We analyzed southbound Hong Kong connect flows in the past week and highlight Hong kong weekly flows for CNOOC and Tencent.

Ke Yan, CFA, FRM

Hong Kong Connect Flows (Dec 15th): Meituan, Tencent

We analyzed southbound Hong Kong connect flows in the past week and highlight weekly Hong Kong connect flows for Meituan and Tencent.

Ke Yan, CFA, FRM

Hong Kong Connect Flows (Dec 8th): Meituan, CNOOC, Tencent, Wuxi Biologics, HKEx, Xiaomi

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for Meituan, CNOOC, Tencent, Wuxi Biologics, HKEx, Xiaomi.

Ke Yan, CFA, FRM

Hong Kong Connect Flows (Dec 1st): Meituan, Tencent

We analyzed southbound weekly Hong Kong connect flows in the past week and we highlighted weekly flows for Meituan and Tencent.

Ke Yan, CFA, FRM

2023 was bad for the "Buy the Worst" strategy, but it still outperformed the HSI for 2018-2023. In 2024, we will switch to Li Ning, Country Garden...