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, Wuxi Biologics, and outflows from HKEx, GWM, and Sunny Optical.</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, Wuxi Biologics, and outflows from HKEx, GWM, and Sunny Optical.


Hong Kong Connect Flows: Tencent, Meituan, CNOOC, Wuxi Biologics

Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Equity Bottom-Up

<ul>
<li>HKEX reported a weak set of 4Q21 earnings results of HKD 2.7 bn, declining HKD 577 mn (17.7%) linked quarter, driven by the decline in cash ADT and higher costs; </li>
<li>Derivative activity remained flattish linked quarter with contract volume at 507 thousand – despite the successful launch of the MSCI China A50 Connect (HK A50); and </li>
<li>With HIBOR set to increase, HKEx is likely to become more reliant on lower quality investment income. </li>
</ul>


HKEX reported a weak set of 4Q21 earnings results of HKD 2.7 bn, declining HKD 577 mn (17.7%) linked quarter, driven by the decline in cash ADT and higher costs; 
Derivative activity remained flattish linked quarter with contract volume at 507 thousand – despite the successful launch of the MSCI China A50 Connect (HK A50); and 
With HIBOR set to increase, HKEx is likely to become more reliant on lower quality investment income. 


Hong Kong Exchanges & Clearing – Negative Jaws

China and US Equity Analyst

Roger Xie

<ul>
<li>The sluggish share performance of <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> underscored the weak trading activities at Hong Kong, its January average daily turnover (ADT) is down 47% year-over-year.</li>
<li>Hong Kong's surging COVID cases have already accounted for more confirmed infections than all previous outbreak combined, we believe this will also dampen market sentiment short-term.</li>
<li>However, we remain bullish on HKEX (388 HK) with the view that China economy will likely rebound in 2022, which will drive the rebound of IPO activities and trading volume. </li>
</ul>


The sluggish share performance of HKEX (388 HK) underscored the weak trading activities at Hong Kong, its January average daily turnover (ADT) is down 47% year-over-year.
Hong Kong's surging COVID cases have already accounted for more confirmed infections than all previous outbreak combined, we believe this will also dampen market sentiment short-term.
However, we remain bullish on HKEX (388 HK) with the view that China economy will likely rebound in 2022, which will drive the rebound of IPO activities and trading volume. 


HKEx (388.HK): Latest COVID Outbreak Weighted Trading Activities

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Feb 4th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short interest increases in HKEx and Country Garden in the past four weeks. </li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Feb 4th.
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short interest increases in HKEx and Country Garden in the past four weeks. 


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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sensetime-group-inc" target="_blank" data-smartkarma-citation="entities:34319:1" rel="noopener">SenseTime Group (20 HK)</a> listed just prior to review cutoff and will be eligible for inclusion in the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng Tech Index (HSTECH INDEX)</a> at the March rebalance.</li>
<li>We expect <a href="https://www.smartkarma.com/entities/sensetime-group-inc" target="_blank" data-smartkarma-citation="entities:34319:1" rel="noopener">SenseTime Group (20 HK)</a> to be added to the index and replace <a href="https://www.smartkarma.com/entities/autohome-inc" target="_blank" data-smartkarma-citation="entities:33492:1" rel="noopener">Autohome (2518 HK)</a> at the close of trading on 4 March.</li>
<li>The real float of <a href="https://www.smartkarma.com/entities/sensetime-group-inc" target="_blank" data-smartkarma-citation="entities:34319:1" rel="noopener">SenseTime Group</a> is much lower than what HSIL is likely to use. Expect a BIG squeeze if the stock is added at a higher float.</li>
</ul>



SenseTime Group (20 HK) listed just prior to review cutoff and will be eligible for inclusion in the Hang Seng Tech Index (HSTECH INDEX) at the March rebalance.
We expect SenseTime Group (20 HK) to be added to the index and replace Autohome (2518 HK) at the close of trading on 4 March.
The real float of SenseTime Group is much lower than what HSIL is likely to use. Expect a BIG squeeze if the stock is added at a higher float.


Hang Seng TECH Index Rebalance Preview (March 2022): SenseTime Could Be Added with HUGE 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)

Hong Kong Connect Flows: Tencent, Meituan, CNOOC, Wuxi Biologics

We highlight weekly HK Connect inflows into Tencent, Meituan, Cnooc, Wuxi Biologics, and outflows from HKEx, GWM, and Sunny Optical.

Ke Yan, CFA, FRM

Hong Kong Exchanges & Clearing – Negative Jaws

HKEX: HKEX reported a fairly weak set of 4Q21 results, declining 17.7% QOQ, and driven by the overall decline in cash ADT and higher overall costs.

Thomas J. Monaco

HKEx (388.HK): Latest COVID Outbreak Weighted Trading Activities

We remain bullish on HKEX (388 HK) with the view that China economy will likely rebound in 2022, which will drive the rebound of IPO activities and...

Roger Xie

HK Short Interest: HKEx, Country Garden

We highlight short interest increases in HKEx (388 HK) and Country Garden (2007 HK) in the past four weeks based on the latest short aggregate...

Ke Yan, CFA, FRM

Hang Seng TECH Index Rebalance Preview (March 2022): SenseTime Could Be Added with HUGE Impact

SenseTime could be added to the HSTECH Index at the March rebalance, replacing Autohome. HSIL is likely to use a much higher float for SenseTime...

Brian Freitas

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