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

Shanghai Electric Group Company / Event-Driven

<ul>
<li>CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500.</li>
<li>In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in June 2025.</li>
<li>Currently, we see 6 ADDs/DELs for the CSI 300 index and 50 ADDs/DELs for the CSI 500 index.</li>
</ul>


CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500.
In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in June 2025.
Currently, we see 6 ADDs/DELs for the CSI 300 index and 50 ADDs/DELs for the CSI 500 index.


Quiddity Leaderboard CSI 300/​​500 Jun 25: ~US$5.9bn Collective One-Way Flows

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

Shanghai Electric Group Company / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-electric-group-company-limited-d542164d-4d5a-4ce0-b33e-5fe6bc34722c" target="_blank" data-smartkarma-citation="entities:8777:1" rel="noopener">Shanghai Electric Group Company (2727 HK)</a> (SEC) has more than doubled since Oct, riding on the Fanuc Robots acquisition and speculation of a backdoor listing of SMEE.</li>
<li>The Fanuc acquisition is very earnings accretive. The SMEE backdoor listing, if happens, will allow SEC to enter the extremely strategic and lucrative EUV lithography machine sector.</li>
<li>SEC's 3Q24 result has some improvements, but with profitability and ROE still low, there will be more newsflow on asset optimisation and restructuring. </li>
</ul>



Shanghai Electric Group Company (2727 HK) (SEC) has more than doubled since Oct, riding on the Fanuc Robots acquisition and speculation of a backdoor listing of SMEE.
The Fanuc acquisition is very earnings accretive. The SMEE backdoor listing, if happens, will allow SEC to enter the extremely strategic and lucrative EUV lithography machine sector.
SEC's 3Q24 result has some improvements, but with profitability and ROE still low, there will be more newsflow on asset optimisation and restructuring. 


Shanghai Electric (2727 HK): What Is Driving It Crazy?

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>Hong Kong Long-Only portfolio launched on October 1st with objective to generate alpha in the Hong Kong market.</li>
<li>Stocks are chosen from single stock insights as well as sector and weekly publications.</li>
<li>Positions will be adjusted once a month and the cash position will vary based on market conditions.</li>
</ul>


Hong Kong Long-Only portfolio launched on October 1st with objective to generate alpha in the Hong Kong market.
Stocks are chosen from single stock insights as well as sector and weekly publications.
Positions will be adjusted once a month and the cash position will vary based on market conditions.


<ul>
<li>Hong Kong markets continue to outperform global equity markets this year outperforming the MSCI Asia Pacific index by a substantial margin.</li>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-electric-group-company-limited-d542164d-4d5a-4ce0-b33e-5fe6bc34722c" target="_blank" data-smartkarma-citation="entities:8777:1" rel="noopener">Shanghai Electric Group Company (2727 HK)</a> has a breakout pattern to a new high as it re-rates as a China robotics company.
</li>
<li>
<a href="https://www.smartkarma.com/entities/china-railway-construction-corp-limited" target="_blank" data-smartkarma-citation="entities:263:1" rel="noopener">China Railway Construction Corp (1186 HK)</a> has a breakout from a symmetrical triangle pattern showing further upside as valuations within the sector remain depressed. 
</li>
</ul>


Hong Kong markets continue to outperform global equity markets this year outperforming the MSCI Asia Pacific index by a substantial margin.

Shanghai Electric Group Company (2727 HK) has a breakout pattern to a new high as it re-rates as a China robotics company.


China Railway Construction Corp (1186 HK) has a breakout from a symmetrical triangle pattern showing further upside as valuations within the sector remain depressed. 



Technically Speaking, Breakouts and Breakdowns: HONG KONG (OCTOBER 27)

<ul>
<li>CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500.</li>
<li>In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2024.</li>
<li>Since our last insight in August, there has been a sharp increase in reported AUMs tracking CSI 300 and CSI 500. This has caused our flow expectations to rise sharply.</li>
</ul>


CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500.
In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2024.
Since our last insight in August, there has been a sharp increase in reported AUMs tracking CSI 300 and CSI 500. This has caused our flow expectations to rise sharply.


Quiddity Leaderboard CSI 300/​​500 Dec 24: Massive Increase in AUMs Causes Flow Expectations to Soar

China

Shanghai Electric Group Company Limited manufactures power generation equipment. The Company produces and sells thermal generator set, nuclear power units, wind power equipment, power transmission and distribution equipment, and other products. Shanghai Electric Group also manufactures environmental protection equipment.

Shanghai Electric Group Company (601727 CH)

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Shanghai Electric Group Company (601727 CH)

Quiddity Leaderboard CSI 300/500 Jun 25: ~US$5.9bn Collective One-Way Flows

We expect 6 ADDs/DELs for CSI 300 and 50 ADDs/DELs for CSI 500 based on the latest data. There could be US$2.1bn and US$3.8bn one-way flows for CSI...

Janaghan Jeyakumar, CFA

Shanghai Electric (2727 HK): What Is Driving It Crazy?

SEC's stock surges on Fanuc Robots acquisition and potential backdoor listing of SMEE, allowing an entry into EUV lithography machine sector. Low...

Osbert Tang, CFA

HONG KONG ALPHA PORTFOLIO - Introduction

We have launched a Hong Kong portfolio with the aim to outperform HK indexes and generate alpha. Stocks are chosen from those highlighted in our...

David Mudd

Technically Speaking, Breakouts and Breakdowns: HONG KONG (OCTOBER 27)

HK markets are the star performers in Asia beating the MSCI Asia Pacific index. Shanghai Electric has a breakout as it re-rates as a robotic...

David Mudd

Quiddity Leaderboard CSI 300/500 Dec 24: Massive Increase in AUMs Causes Flow Expectations to Soar

Collectively, there could be US$6bn+ in one-way flows for the CSI 300 and CSI 500 index rebalance events in December 2024.

Janaghan Jeyakumar, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Quiddity Leaderboard CSI 300/​​500 Jun 25: ~US$5.9bn Collective One-Way Flows

We expect 6 ADDs/DELs for CSI 300 and 50 ADDs/DELs for CSI 500 based on the latest data. There could be US$2.1bn and US$3.8bn one-way flows for CSI...

Janaghan Jeyakumar, CFA

Shanghai Electric (2727 HK): What Is Driving It Crazy?

SEC's stock surges on Fanuc Robots acquisition and potential backdoor listing of SMEE, allowing an entry into EUV lithography machine sector. Low...

Osbert Tang, CFA

HONG KONG ALPHA PORTFOLIO - Introduction

We have launched a Hong Kong portfolio with the aim to outperform HK indexes and generate alpha. Stocks are chosen from those highlighted in our...

David Mudd

Technically Speaking, Breakouts and Breakdowns: HONG KONG (OCTOBER 27)

HK markets are the star performers in Asia beating the MSCI Asia Pacific index. Shanghai Electric has a breakout as it re-rates as a robotic...

David Mudd

Quiddity Leaderboard CSI 300/​​500 Dec 24: Massive Increase in AUMs Causes Flow Expectations to Soar

Collectively, there could be US$6bn+ in one-way flows for the CSI 300 and CSI 500 index rebalance events in December 2024.

Janaghan Jeyakumar, CFA

Quiddity Leaderboard CSI 300/500 Jun 25: ~US$5.9bn Collective One-Way Flows

Quiddity Leaderboard CSI 300/500 Dec 24: Massive Increase in AUMs Causes Flow Expectations to Soar