China and US Equity Analyst

Roger Xie

Equity Bottom-Up

<ul>
<li>2021 full year ADT has grown 29% year-over-year compared with 2020. Trading activities in December continued to slowdown to year-end given the relative weak market sentiment and policy uncertainty.</li>
<li>We expect <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> upcoming quarterly earning release (on Feb. 24) will be muted and estimate its 4Q21 revenue and profit will decline 3% and 7% year-over-year respectively. </li>
<li>However, we remain bullish on <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> with the view that China economy will likely rebound in 2022, which will drive the rebound of IPO activities and trading volume.</li>
</ul>


2021 full year ADT has grown 29% year-over-year compared with 2020. Trading activities in December continued to slowdown to year-end given the relative weak market sentiment and policy uncertainty.
We expect HKEX (388 HK) upcoming quarterly earning release (on Feb. 24) will be muted and estimate its 4Q21 revenue and profit will decline 3% and 7% year-over-year respectively. 
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): Soft 4Q21 Trading Volume; Expect Muted Quarterly Earning Results

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>In this latest installment in a series dating back to March 2018, I've analysed 4,400 moves over three years inside CCASS, targeting &gt;5% of shares outstanding of individual stocks. </li>
<li>The data continues to bear out the overall underperformance of stocks that exhibit large CCASS moves. </li>
<li>But it also serves to illustrate that when a certain % move takes place in tandem with a certain market capitalisation, there is a tendency for outperformance. </li>
</ul>


In this latest installment in a series dating back to March 2018, I've analysed 4,400 moves over three years inside CCASS, targeting &gt;5% of shares outstanding of individual stocks. 
The data continues to bear out the overall underperformance of stocks that exhibit large CCASS moves. 
But it also serves to illustrate that when a certain % move takes place in tandem with a certain market capitalisation, there is a tendency for outperformance. 


CCASS: Why Large Moves Still Mattered in 2021

<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> YTD Average Daily Turnover continued to slowdown, but it still delivered 33 per cent growth compared with the same period last year. </li>
<li>We believe that Hong Kong market is clouded by recent Beijing's crackdown of big tech and policy changes. Without more clarity, it might continue to pressure trading volume.</li>
<li>We remain constructive on <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> long-term growth given its unique role for offshore China listings. The recent weakness provides good opportunity to accumulate on HKEX (TP: HK$550). </li>
</ul>



HKEX (388 HK) YTD Average Daily Turnover continued to slowdown, but it still delivered 33 per cent growth compared with the same period last year. 
We believe that Hong Kong market is clouded by recent Beijing's crackdown of big tech and policy changes. Without more clarity, it might continue to pressure trading volume.
We remain constructive on HKEX (388 HK) long-term growth given its unique role for offshore China listings. The recent weakness provides good opportunity to accumulate on HKEX (TP: HK$550). 


HKEx (388.HK): Slowing Trading Activities, but Long-Term Growth Intact

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

<ul>
<li>
SGX and SPACs: Singapore Exchange (SGX.SP) [SGX] Consultation Paper on the Proposed Listing Framework for Special Purpose Acquisition Companies (SPACs);</li>
<li>
SEC Clamping Down: Creating a SPAC just became more difficult in the US, given the  level of disclosure, marketing practices, and liability issues surrounding SPACs;</li>
<li>
Not A Good Strategy: This is in addition to the SEC issuing accounting guidance for SPACs, and certainly throw a wrench into SGX’s SPAC plans.</li>
</ul>



SGX and SPACs: Singapore Exchange (SGX.SP) [SGX] Consultation Paper on the Proposed Listing Framework for Special Purpose Acquisition Companies (SPACs);

SEC Clamping Down: Creating a SPAC just became more difficult in the US, given the  level of disclosure, marketing practices, and liability issues surrounding SPACs;

Not A Good Strategy: This is in addition to the SEC issuing accounting guidance for SPACs, and certainly throw a wrench into SGX’s SPAC plans.


Singapore Exchange – Another SPAC Wrench

Alpha-Centric ESG Research

Kyle Rudden

<ul>
<li>Hang Seng Indexes launched two new sustainability/ESG indexes, the HSI ESG Screened Index and the HSI Low Carbon Index. Hang Seng is doing a good thing; advancing ESG in Asia.</li>
<li>Both are based on the Hang Seng Index. HSI ESG Screened Index is essentially ESG factor-tilted with a minor exclusionary screen. Straightforward, and with top ESG ratings firms behind it.</li>
<li>I do, however, have a few thoughts about the HSI Low Carbon Index. Call them observations, or experienced-based opinions, or similar. Food for thought kind of stuff, nothing critical.  </li>
</ul>


Hang Seng Indexes launched two new sustainability/ESG indexes, the HSI ESG Screened Index and the HSI Low Carbon Index. Hang Seng is doing a good thing; advancing ESG in Asia.
Both are based on the Hang Seng Index. HSI ESG Screened Index is essentially ESG factor-tilted with a minor exclusionary screen. Straightforward, and with top ESG ratings firms behind it.
I do, however, have a few thoughts about the HSI Low Carbon Index. Call them observations, or experienced-based opinions, or similar. Food for thought kind of stuff, nothing critical.  


Hang Seng's New ESG-Themed Indexes Will Help Promote ESG in Asia (Some Thoughts On the Carbon Index)

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): Soft 4Q21 Trading Volume; Expect Muted Quarterly Earning Results

We expect HKEX (388 HK) upcoming earning release will be muted given weak trading volume. But we continue to believe that the long-term growth...

Roger Xie

CCASS: Why Large Moves Still Mattered in 2021

Despite a general underperformance for large moves inside CCASS, when a certain % move takes place in tandem with a certain market capitalisation,...

David Blennerhassett

HKEx (388.HK): Slowing Trading Activities, but Long-Term Growth Intact

Hong Kong trading volume has been clouded by Beijing's crackdown of big tech and policy changes, but we continue to believe that its long-term...

Roger Xie

Singapore Exchange – Another SPAC Wrench

SGX: SGX wants to do SPACs, which just became more difficult in the US given likley increased requirements. This should throw certainly throw a...

Thomas J. Monaco

Hang Seng's New ESG-Themed Indexes Will Help Promote ESG in Asia (Some Thoughts On the Carbon Index)

Hang Seng Indexes launched two new sustainability/ESG indexes, the HSI ESG Screened Index and HSI Low Carbon Index. Here is a quick look, and a few...

Kyle Rudden

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