China and US Equity Analyst

Roger Xie

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a> core businesses such as cash market and stock connect remain robust against the backdrop of relatively low expectation.</li>
<li>Mark-To-Market investment loss underscored the volatile fixed income market, we expect the negative impact will continue into 2Q22 as the shift in rate environment.</li>
<li>MSCI China A50 future continues its rapid ramp-up, ADV is up 86% quarter-over-quarter. Overall future trading is strong, ADV is up 39% quarter-over-quarter.</li>
</ul>



HKEX (388 HK) core businesses such as cash market and stock connect remain robust against the backdrop of relatively low expectation.
Mark-To-Market investment loss underscored the volatile fixed income market, we expect the negative impact will continue into 2Q22 as the shift in rate environment.
MSCI China A50 future continues its rapid ramp-up, ADV is up 86% quarter-over-quarter. Overall future trading is strong, ADV is up 39% quarter-over-quarter.


HKEx (388.HK): Resilient 1Q22 Earning Results Better than Feared

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

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine.</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 inflows into Tencent, Meituan, CNOOC as well as outflows from HKEx. </li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight inflows into Tencent, Meituan, CNOOC as well as outflows from HKEx. 


Hong Kong Connect Flows: Tencent, Meituan, CNOOC, HKEx

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine.</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 inflows into Meituan, CNOOC, China Mobile, COLI, and outflows from Tencent, China Resources Beer, and HKEX. </li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight inflows into Meituan, CNOOC, China Mobile, COLI, and outflows from Tencent, China Resources Beer, and HKEX. 


Hong Kong Connect Flows: Meituan, CNOOC, China Mobile, COLI

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>There has been an increase of 700m shares held in HK CCASS for <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com Inc. (9618 HK)</a> on 11 April.</li>
<li>The largest part of 421.5m shares is likely the conversion of Class B to Class A shares following Richard Liu stepping down as CEO of the company.</li>
<li>The rest is unknown at this point but could be <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus (PRX NA)</a> moving their shares to HK to sell-down and use the cash to buy back their own stock.</li>
</ul>


There has been an increase of 700m shares held in HK CCASS for JD.com Inc. (9618 HK) on 11 April.
The largest part of 421.5m shares is likely the conversion of Class B to Class A shares following Richard Liu stepping down as CEO of the company.
The rest is unknown at this point but could be Prosus (PRX NA) moving their shares to HK to sell-down and use the cash to buy back their own stock.


JD.com (9618 HK): CCASS Share Increase Driver & Potential Prosus Selldown

GoTo Gojek Tokopedia Tbk PT / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/gojek-goto" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">GoTo (GOTO IJ)</a> lists on the IDX tomorrow. The IDX has <a href="https://www.smartkarma.com/entities/gojek-goto" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">GoTo (GOTO IJ)</a>'s free float at 66% which would mean IDX30, LQ45 and IDX80 Fast Entry index inclusion. </li>
<li>If included in the indices at a free float of 66%, <a href="https://www.smartkarma.com/entities/gojek-goto" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">GoTo (GOTO IJ)</a> will have a weight of 13.55% in the IDX30 Index and 12.12% in the LQ45 Index.</li>
<li>Passive trackers will then need to buy 13.2% of the real float on the stock. Active funds will also buy the stock as it would appear in their benchmarks.</li>
</ul>



GoTo (GOTO IJ) lists on the IDX tomorrow. The IDX has GoTo (GOTO IJ)'s free float at 66% which would mean IDX30, LQ45 and IDX80 Fast Entry index inclusion. 
If included in the indices at a free float of 66%, GoTo (GOTO IJ) will have a weight of 13.55% in the IDX30 Index and 12.12% in the LQ45 Index.
Passive trackers will then need to buy 13.2% of the real float on the stock. Active funds will also buy the stock as it would appear in their benchmarks.


GoTo Gojek Tokopedia IPO: Potential LQ45, IDX30, IDX80 Index Fast Entry & Impact

Hong Kong

Hong Kong Exchanges & Clearing Limited owns and operates the stock exchange, futures exchange, and their related clearing houses in Hong Kong.  The Company provides the trading platforms for a range of cash and derivatives products and the facilities for processing trades.

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HKEX (388 HK)

HKEx (388.HK): Resilient 1Q22 Earning Results Better than Feared

HKEX (388 HK) core businesses remain robust against the backdrop of relatively low expectation. We recommend accumulating the share of HKEx on...

Roger Xie

Hong Kong Connect Flows: Tencent, Meituan, CNOOC, HKEx

We highlight Hong Kong Connect southbound inflows into Tencent (700 HK), Meituan (3690 HK), CNOOC (883 HK) as well as outflows from HKEx (388 HK).

Ke Yan, CFA, FRM

Hong Kong Connect Flows: Meituan, CNOOC, China Mobile, COLI

We highlight weekly southbound inflows into Meituan, CNOOC, China Mobile, COLI, and outflows from Tencent, China Resources Beer, and HKEX.

Ke Yan, CFA, FRM

GoTo Gojek Tokopedia IPO: Potential LQ45, IDX30, IDX80 Index Fast Entry & Impact

GoTo lists tomorrow and could get Fast Entry to the IDX30, LQ45 and IDX80 indices if the IDX uses a float of 66%. That would require passives to...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HKEx (388.HK): Resilient 1Q22 Earning Results Better than Feared

HKEX (388 HK) core businesses remain robust against the backdrop of relatively low expectation. We recommend accumulating the share of HKEx on...

Roger Xie

Hong Kong Connect Flows: Tencent, Meituan, CNOOC, HKEx

We highlight Hong Kong Connect southbound inflows into Tencent (700 HK), Meituan (3690 HK), CNOOC (883 HK) as well as outflows from HKEx (388 HK).

Ke Yan, CFA, FRM

Hong Kong Connect Flows: Meituan, CNOOC, China Mobile, COLI

We highlight weekly southbound inflows into Meituan, CNOOC, China Mobile, COLI, and outflows from Tencent, China Resources Beer, and HKEX.

Ke Yan, CFA, FRM

JD.com (9618 HK): CCASS Share Increase Driver & Potential Prosus Selldown

There has been a big increase in JD.com (9618 HK) CCASS shares. A large part should be a conversion of Class B to Class A shares. The missing piece...

Brian Freitas

GoTo Gojek Tokopedia IPO: Potential LQ45, IDX30, IDX80 Index Fast Entry & Impact

GoTo lists tomorrow and could get Fast Entry to the IDX30, LQ45 and IDX80 indices if the IDX uses a float of 66%. That would require passives to...

Brian Freitas