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 Shanghai/Shenzhen northbound Connect flows with our data engine.</li>
<li>Consumer staple, industrials, and material sector led the inflow of USD 5.7bn last week.</li>
<li>We highlight inflows into Moutai, Yili, China Tourism, Longi, Beijing Orient Yuhong.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine.
Consumer staple, industrials, and material sector led the inflow of USD 5.7bn last week.
We highlight inflows into Moutai, Yili, China Tourism, Longi, Beijing Orient Yuhong.


Northbound Flows: $5.7bn Inflows, Biggest Since Dec

<ul>
<li>We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.</li>
<li>Northbound connected recorded inflow of USD 2.7bn in May, led by financisl, utilities and energy sector.</li>
<li>We highlight inflows into CMB, Yangtze Power, Yili, Longi, and Industrial bank, as well as outflows from CATL, Conch, Haitian, Zijin and Tinci. </li>
</ul>


We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.
Northbound connected recorded inflow of USD 2.7bn in May, led by financisl, utilities and energy sector.
We highlight inflows into CMB, Yangtze Power, Yili, Longi, and Industrial bank, as well as outflows from CATL, Conch, Haitian, Zijin and Tinci. 


Northbound Flows Monthly (May): CMB, Yangtze Power, Yili

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Lanzhou Zhuangyuan Pasture / Event-Driven

<ul>
<li>PRC dairy farmer <strong><a href="https://www.smartkarma.com/entities/lanzhou-zhuangyuan-pasture-co-ltd" target="_blank" data-smartkarma-citation="entities:10174:1" rel="noopener">Lanzhou Zhuangyuan Pasture (1533 HK)</a></strong> has announced a Conditional Cash Offer for all H-shares at $10.89/share.</li>
<li>The Offer is being done via a Voluntary Cash Offer, therefore an onerous 90% tendering condition is present.</li>
<li>This transaction could potentially be wrapped up late-July. The FY21 dividend may also be added to terms. </li>
</ul>


PRC dairy farmer Lanzhou Zhuangyuan Pasture (1533 HK) has announced a Conditional Cash Offer for all H-shares at $10.89/share.
The Offer is being done via a Voluntary Cash Offer, therefore an onerous 90% tendering condition is present.
This transaction could potentially be wrapped up late-July. The FY21 dividend may also be added to terms. 


Zhuangyuan Pasture (1533 HK): H-Share Offer Via Buyback

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Thematic (Sector/Industry)

<ul>
<li>Agricultural Commodities have experienced a surge in ownership among active China investors. Average weights are at all-time highs as a record number of funds gain exposure to the sector.</li>
<li>Among industry peers, Agricultural Commodities saw some of the strongest ownership growth over the last 6-month period, with 9.3% of managers opening new exposure.</li>
<li>Inner Mongolia Yili was the key driver behind the move, though Yuan Longping High-Tech and Muyuan Foodstuff also saw investment levels rise.</li>
</ul>


Agricultural Commodities have experienced a surge in ownership among active China investors. Average weights are at all-time highs as a record number of funds gain exposure to the sector.
Among industry peers, Agricultural Commodities saw some of the strongest ownership growth over the last 6-month period, with 9.3% of managers opening new exposure.
Inner Mongolia Yili was the key driver behind the move, though Yuan Longping High-Tech and Muyuan Foodstuff also saw investment levels rise.


China Funds:  Agricultural Commodities Spike

Cross Asset Strategy

<ul>
<li>China A-Shares allocations continues to grow among active EM investors. Average holding weights sit close to all-time highs of 5.60%, with a record 87.8% of funds invested</li>
<li>Over the past 6-months, EM investors have made a clear rotation in to A-Shares, with all measures of ownership moving higher vs country peers. Growth investors are the key allocators</li>
<li>Ecovacs Robotics Co Ltd and East Money Information have seen ownership levels double, whilst CATL and Midea Group remain the most widely held stocks.</li>
</ul>


China A-Shares allocations continues to grow among active EM investors. Average holding weights sit close to all-time highs of 5.60%, with a record 87.8% of funds invested
Over the past 6-months, EM investors have made a clear rotation in to A-Shares, with all measures of ownership moving higher vs country peers. Growth investors are the key allocators
Ecovacs Robotics Co Ltd and East Money Information have seen ownership levels double, whilst CATL and Midea Group remain the most widely held stocks.


China

Inner Mongolia Yili Industrial Group Co., Ltd. produces milk, powdered milk, ice cream, and other dairy products.  The Company also produces frozen food and noodles.

Inner Mongolia Yili Industrial Group (A) (600887 CH)

Price Gauge
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Inner Mongolia Yili Industrial Group (A) (600887 CH)

Northbound Flows: $5.7bn Inflows, Biggest Since Dec

We highlight northbound Shanghai Shenzhen Connect inflows into Moutai, Yili, China Tourism, Longi, Beijing Orient Yuhong.

Ke Yan, CFA, FRM

Northbound Flows Monthly (May): CMB, Yangtze Power, Yili

Northbound stock connect recorded inflows of $2.7bn in May. We highlight inflows into CMB, Yangtze Power, Yili, Longi, Industrial bank, as well as...

Ke Yan, CFA, FRM

China Funds: Agricultural Commodities Spike

Agricultural Commodities have experienced a surge in ownership among active China investors. Average weights are at all-time highs as a record...

Steven Holden

China A-Shares: Powering to New Highs

China A-Shares allocations have hit new highs among EM investors. We see a clear rotation in to A-Shares, with all measures of ownership moving...

Steven Holden

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Northbound Flows: $5.7bn Inflows, Biggest Since Dec

We highlight northbound Shanghai Shenzhen Connect inflows into Moutai, Yili, China Tourism, Longi, Beijing Orient Yuhong.

Ke Yan, CFA, FRM

Northbound Flows Monthly (May): CMB, Yangtze Power, Yili

Northbound stock connect recorded inflows of $2.7bn in May. We highlight inflows into CMB, Yangtze Power, Yili, Longi, Industrial bank, as well as...

Ke Yan, CFA, FRM

Zhuangyuan Pasture (1533 HK): H-Share Offer Via Buyback

Assuming late July payment, and inclusive of the FY21 dividend of RMB0.047/share, then I suggest buying up to ~HK$10.50/share or a gross/annualised...

David Blennerhassett

China Funds: Agricultural Commodities Spike

Agricultural Commodities have experienced a surge in ownership among active China investors. Average weights are at all-time highs as a record...

Steven Holden

China A-Shares: Powering to New Highs

China A-Shares allocations have hit new highs among EM investors. We see a clear rotation in to A-Shares, with all measures of ownership moving...

Steven Holden