Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>China started mulling an expansion of its Stock Connect relationships in late 2021 with plans to allow GDR issuance in Switzerland and eventually Germany.</li>
<li>New GDR issuance rules came into effect in February and companies started planning to issue GDRs in Switzerland in March.</li>
<li>The new SIX Listing Rules went into effect 25 July. Two companies priced GDRs on 22 July and two more yesterday. US$1.5bn so far. There are 6 more near-term.</li>
</ul>


China started mulling an expansion of its Stock Connect relationships in late 2021 with plans to allow GDR issuance in Switzerland and eventually Germany.
New GDR issuance rules came into effect in February and companies started planning to issue GDRs in Switzerland in March.
The new SIX Listing Rules went into effect 25 July. Two companies priced GDRs on 22 July and two more yesterday. US$1.5bn so far. There are 6 more near-term.


Chinese GDRs on the SIX Exchange - More Names, Smaller Discounts, Smaller Size, Less Liquidity

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

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

Gotion High-tech   / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/gotion-high-tech-co-ltd" target="_blank" data-smartkarma-citation="entities:27133:1" rel="noopener">Gotion High-Tech Co Ltd (002074 CH)</a> (GHT) is looking to raise US$1bn from its Swiss GDR listing. Bookrunners on the deal are CICC and Haitong International.</li>
<li>The shares offered in GHT’s GDR offering ranges between 16.65m - 33.29m GDRs (83.24m - 166.47m A-shares), ranging the deal size between US$499m-US$1bn. </li>
<li>At the top end, in terms of number of GDRs offered, the deal would represent 4.7 days of ADV on the A-share market and 9.6% of current mcap.</li>
</ul>



Gotion High-Tech Co Ltd (002074 CH) (GHT) is looking to raise US$1bn from its Swiss GDR listing. Bookrunners on the deal are CICC and Haitong International.
The shares offered in GHT’s GDR offering ranges between 16.65m - 33.29m GDRs (83.24m - 166.47m A-shares), ranging the deal size between US$499m-US$1bn. 
At the top end, in terms of number of GDRs offered, the deal would represent 4.7 days of ADV on the A-share market and 9.6% of current mcap.


Gotion High Tech GDR Listing - Recent GDRs Have Seen Narrowing Discounts

<ul>
<li>
<a href="https://www.smartkarma.com/entities/gem-co-ltd-a" target="_blank" data-smartkarma-citation="entities:20552:1" rel="noopener">Gem Co Ltd A (002340 CH)</a> is looking to raise around US$245m in its Swiss GDR listing.</li>
<li>Proceeds will be used mainly for overseas expansion, such as the development of the Indonesian Nickel Resource Base and development of its production base and recycling center in Europe.</li>
<li>In terms of discount, relative to the most recent two deals, Keda Industrial and Ningbo Shanshan, GEM’s GDRs are offered at a more enticing 11.7-14.2% discount to its A-shares,</li>
</ul>



Gem Co Ltd A (002340 CH) is looking to raise around US$245m in its Swiss GDR listing.
Proceeds will be used mainly for overseas expansion, such as the development of the Indonesian Nickel Resource Base and development of its production base and recycling center in Europe.
In terms of discount, relative to the most recent two deals, Keda Industrial and Ningbo Shanshan, GEM’s GDRs are offered at a more enticing 11.7-14.2% discount to its A-shares,


GEM Co., Ltd. GDR Listing - Better Discount than Last Two and Ming Yang Has Held Up

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Thematic (Sector/Industry)

<ul>
<li>Morowali, an Indonesian county with fewer than 200,000 residents, has attracted billions of dollars in investment from Chinese companies.</li>
<li>All the money went to the same place — industrial parks established by Chinese stainless steel giant Tsingshan Holding Group Ltd. — to set up nickel smelters</li>
<li>Like many other raw materials in the sector, the trend has driven up nickel prices</li>
</ul>


Morowali, an Indonesian county with fewer than 200,000 residents, has attracted billions of dollars in investment from Chinese companies.
All the money went to the same place — industrial parks established by Chinese stainless steel giant Tsingshan Holding Group Ltd. — to set up nickel smelters
Like many other raw materials in the sector, the trend has driven up nickel prices


In Depth: Chinese Companies’ Quest for Indonesian Nickel Grows Perilous

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

MSCI Emerging Markets Index / Technical Analysis

<p>Price and RS uptrends for the MSCI EM index continues to underpin our bullish outlook for emerging market equities -- remain overweight. We continue to attribute much of EM’s outperformance to the intact downtrend in the US dollar (DXY). As long as weakness in the DXY persists we believe EM’s outperformance is likely to continue.</p>

Price and RS uptrends for the MSCI EM index continues to underpin our bullish outlook for emerging market equities -- remain overweight. We continue to attribute much of EM’s outperformance to the intact downtrend in the US dollar (DXY). As long as weakness in the DXY persists we believe EM’s outperformance is likely to continue.

EM Remains Global Leadership -- Remain Overweight

China

GEM Co., Ltd. collects and recycles cobalt and nickel scraps into ultra-fine coba lt and nickel powder and other products.

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Gem Co Ltd A (002340 CH)

Chinese GDRs on the SIX Exchange - More Names, Smaller Discounts, Smaller Size, Less Liquidity

China amended its rules for GDR issuance in February 2022 and planned issuance in Switzerland to start this summer. Official issuance was permitted...

Travis Lundy

Gotion High Tech GDR Listing - Recent GDRs Have Seen Narrowing Discounts

Gotion High-Tech Co Ltd (002074 CH) (GHT) is looking to raise US$1bn from its Swiss GDR listing. Bookrunners on the deal are CICC and Haitong...

Clarence Chu

GEM Co., Ltd. GDR Listing - Better Discount than Last Two and Ming Yang Has Held Up

Gem Co Ltd A (002340 CH) is looking to raise around US$245m in its Swiss GDR listing. Proceeds will be used mainly for overseas expansion.

Clarence Chu

In Depth: Chinese Companies’ Quest for Indonesian Nickel Grows Perilous

Morowali, an Indonesian county with fewer than 200,000 residents, has attracted billions of dollars in investment from Chinese companies.

Caixin Global

EM Remains Global Leadership -- Remain Overweight

Price and RS uptrends for the MSCI EM index continues to underpin our bullish outlook for emerging market equities -- remain overweight.

Vermilion Research

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