HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Shenyang Xingqi Pharmaceutical / Equity Bottom-Up

<ul>
<li>Xingqi’s 0.01% atropine sulfate eye drops got approved for marketing this March, which is expected to monopolize the domestic market for at least 2.5-3 years, and enjoy higher gross margin.</li>
<li>Peak sales of 0.01% atropine sulfate eye drops would reach RMB5 billion at least. Together with other products, Xingqi’s total revenue would reach at least RMB6 billion in the future.</li>
<li>Due to attractive dividend policy, this stock is worth holding for the long term.Xingqi’s market value could even reach RMB50 billion if the sales exclusivity period is longer than expected. </li>
</ul>


Xingqi’s 0.01% atropine sulfate eye drops got approved for marketing this March, which is expected to monopolize the domestic market for at least 2.5-3 years, and enjoy higher gross margin.
Peak sales of 0.01% atropine sulfate eye drops would reach RMB5 billion at least. Together with other products, Xingqi’s total revenue would reach at least RMB6 billion in the future.
Due to attractive dividend policy, this stock is worth holding for the long term.Xingqi’s market value could even reach RMB50 billion if the sales exclusivity period is longer than expected. 


Shenyang Xingqi Pharmaceutical (300573.CH)-Looking Forward to a Leap in Valuation and Rich Dividends

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

Guangzhou Great Power Ener-A / Event-Driven

<ul>
<li>The June 2024 index review results for the ChiNext and ChiNext 50 indices were announced yesterday.</li>
<li>There will be seven changes for the ChiNext index and five changes for the ChiNext 50 index. Some of these names surprised us.</li>
<li>In this insight, we take a look at our final flow expectations for the confirmed index changes and our thoughts on the selection process.</li>
</ul>


The June 2024 index review results for the ChiNext and ChiNext 50 indices were announced yesterday.
There will be seven changes for the ChiNext index and five changes for the ChiNext 50 index. Some of these names surprised us.
In this insight, we take a look at our final flow expectations for the confirmed index changes and our thoughts on the selection process.


Quiddity ChiNext/ChiNext 50 Jun 24 Rebalance: ~US$700mn One-Way Flows; Thoughts on Surprises

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

Victory Giant Technology -A / Event-Driven

<ul>
<li>There are 7 changes for the <a href="https://www.smartkarma.com/entities/chinext-index" target="_blank" data-smartkarma-citation="entities:25483:1" rel="noopener">ChiNext Index (SZ399006 INDEX)</a> and 5 changes for the ChiNext 50 Index at the June rebalance.</li>
<li>We correctly forecast 5/7 and 7/7 for the Chinext Index adds/deletes and were 3/5 and 5/5 for the Chinext50 Index adds/deletes.</li>
<li>Based on the estimated passive tracking AUM, the one-way trade across both indices is estimated to be CNY 3.69bn (US$508m).</li>
</ul>


There are 7 changes for the ChiNext Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index at the June rebalance.
We correctly forecast 5/7 and 7/7 for the Chinext Index adds/deletes and were 3/5 and 5/5 for the Chinext50 Index adds/deletes.
Based on the estimated passive tracking AUM, the one-way trade across both indices is estimated to be CNY 3.69bn (US$508m).


ChiNext/​​ChiNext 50 Index Rebalance: US$1bn Round-Trip Trade

Shenyang Xingqi Pharmaceutical / Event-Driven

<ul>
<li>With the review period now complete, we forecast 7 changes for the <a href="https://www.smartkarma.com/entities/chinext-index" target="_blank" data-smartkarma-citation="entities:25483:1" rel="noopener">ChiNext Index (SZ399006 INDEX)</a> and 5 changes for the ChiNext 50 Index in June.</li>
<li>There are 4 stocks that could be added to both indices while some stocks will also have same way flows from <a href="https://www.smartkarma.com/entities/csi-smallcap-500-index-shang" target="_blank" data-smartkarma-citation="entities:35347:1" rel="noopener">CSI Smallcap 500 Index (SH000905 INDEX)</a> trackers.</li>
<li>The potential adds have outperformed the potential deletes over the last 6 months. There has been a big move higher in the potential adds over the last few weeks.</li>
</ul>


With the review period now complete, we forecast 7 changes for the ChiNext Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index in June.
There are 4 stocks that could be added to both indices while some stocks will also have same way flows from CSI Smallcap 500 Index (SH000905 INDEX) trackers.
The potential adds have outperformed the potential deletes over the last 6 months. There has been a big move higher in the potential adds over the last few weeks.


ChiNext/​​​ChiNext50 Index Rebalance Preview: Outperformance Continues

CSPC Innovation Pharmaceutical-A / Event-Driven

<ul>
<li>The ChiNext Index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.</li>
<li>The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.</li>
<li>The 6-month reference period for the June 2024 index rebal event just ended. In this insight, we take a look at our final expectations for ADDs and DELs. </li>
</ul>


The ChiNext Index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
The 6-month reference period for the June 2024 index rebal event just ended. In this insight, we take a look at our final expectations for ADDs and DELs. 


Quiddity Leaderboard ChiNext & ChiNext 50 Jun 24: Bull-Bear Hot Streak Continues; Some Surprises

China

Ovctek China Inc. manufactures contact lenses. The Company produces corneal plastic lens, common corneal contact lens, contact lens care solutions, and other products. Ovctek China also produces nursing products, ordinary frame mirrors, and other products.

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Ovctek China (300595 CH)

Shenyang Xingqi Pharmaceutical (300573.CH)-Looking Forward to a Leap in Valuation and Rich Dividends

Xingqi's newly approved atropine eye drops will drive high growth/valuation expansion due to sales exclusivity period.Together with lucrative...

Xinyao (Criss) Wang

Quiddity ChiNext/ChiNext 50 Jun 24 Rebalance: ~US$700mn One-Way Flows; Thoughts on Surprises

ChiNext and ChiNext 50 "double" DEL Guangzhou Great Power Energy could underperform peers CATL and Gotion High-tec until the Inclusion event.

Janaghan Jeyakumar, CFA

ChiNext/ChiNext 50 Index Rebalance: US$1bn Round-Trip Trade

There are 7 changes for the Chinext and 5 changes for the Chinext50. Beijing Ultrapower and Victory Giant are surprise adds for both indices. The...

Brian Freitas

ChiNext/ChiNext50 Index Rebalance Preview: Outperformance Continues

There could be 7 changes for the Chinext and 5 changes for the Chinext50. There are 6 overlapping stocks and those have the largest flows. The...

Brian Freitas

Quiddity Leaderboard ChiNext & ChiNext 50 Jun 24: Bull-Bear Hot Streak Continues; Some Surprises

The Bullish Names have outperformed the Bearish Names by +17.7% since I published my last ChiNext insight on 10th April 2024.

Janaghan Jeyakumar, CFA

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Shenyang Xingqi Pharmaceutical (300573.CH)-Looking Forward to a Leap in Valuation and Rich Dividends

Xingqi's newly approved atropine eye drops will drive high growth/valuation expansion due to sales exclusivity period.Together with lucrative...

Xinyao (Criss) Wang

Quiddity ChiNext/ChiNext 50 Jun 24 Rebalance: ~US$700mn One-Way Flows; Thoughts on Surprises

ChiNext and ChiNext 50 "double" DEL Guangzhou Great Power Energy could underperform peers CATL and Gotion High-tec until the Inclusion event.

Janaghan Jeyakumar, CFA

ChiNext/​​ChiNext 50 Index Rebalance: US$1bn Round-Trip Trade

There are 7 changes for the Chinext and 5 changes for the Chinext50. Beijing Ultrapower and Victory Giant are surprise adds for both indices. The...

Brian Freitas

ChiNext/​​​ChiNext50 Index Rebalance Preview: Outperformance Continues

There could be 7 changes for the Chinext and 5 changes for the Chinext50. There are 6 overlapping stocks and those have the largest flows. The...

Brian Freitas

Quiddity Leaderboard ChiNext & ChiNext 50 Jun 24: Bull-Bear Hot Streak Continues; Some Surprises

The Bullish Names have outperformed the Bearish Names by +17.7% since I published my last ChiNext insight on 10th April 2024.

Janaghan Jeyakumar, CFA

ChiNext/ChiNext 50 Index Rebalance: US$1bn Round-Trip Trade

ChiNext/ChiNext50 Index Rebalance Preview: Outperformance Continues