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 analyse the changes of A-H premium on 148 stocks over the last week. The average A-H premium was 95.2% as of Oct 11th.</li>
<li>The average A-H premium changed by -13.0ppt week-on-week, led by consumer staples, consumer discretionary, financials.</li>
<li>We highlight weekly changes in A-H premium for BYD, SMIC, TSINGTAO, Guotai Junan Securities, HAITONG, CanSino, Junshi Biosciences, FLAT Group, China Tourism.</li>
</ul>


We analyse the changes of A-H premium on 148 stocks over the last week. The average A-H premium was 95.2% as of Oct 11th.
The average A-H premium changed by -13.0ppt week-on-week, led by consumer staples, consumer discretionary, financials.
We highlight weekly changes in A-H premium for BYD, SMIC, TSINGTAO, Guotai Junan Securities, HAITONG, CanSino, Junshi Biosciences, FLAT Group, China Tourism.


A-H Premium Weekly (Oct 11th):BYD, SMIC, TSINGTAO, Guotai Junan Securities, HAITONG, CanSino

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

Event-Driven

<ul>
<li>There are 38 adds and 29 deletes for the Hang Seng Composite Index (HSCI) at the September rebalance to take the number of index constituents up to 518.</li>
<li>We expect 33 of the 38 HSCI inclusions to be added to Stock Connect while we expect 27 of the 29 HSCI deletions to be removed from Southbound Stock Connect.</li>
<li>Since the start of the calendar year, shares held though Southbound Connect have increased in 22 of the 27 HSCI deletions that will also be removed from Stock Connect.</li>
</ul>


There are 38 adds and 29 deletes for the Hang Seng Composite Index (HSCI) at the September rebalance to take the number of index constituents up to 518.
We expect 33 of the 38 HSCI inclusions to be added to Stock Connect while we expect 27 of the 29 HSCI deletions to be removed from Southbound Stock Connect.
Since the start of the calendar year, shares held though Southbound Connect have increased in 22 of the 27 HSCI deletions that will also be removed from Stock Connect.


HSCI Index Rebalance: 38 Adds, 29 Deletes & Changes to Southbound Stock Connect

<ul>
<li>We see 37 potential adds (including plenty of new listings) and 25 potential deletes (on market cap and liquidity) for the Hang Seng Composite Index in September.</li>
<li>We expect 32 stocks to be added to Southbound Stock Connect following the rebalance while 24 stocks could be deleted from the trading link and become Sell-only.</li>
<li>There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.</li>
</ul>


We see 37 potential adds (including plenty of new listings) and 25 potential deletes (on market cap and liquidity) for the Hang Seng Composite Index in September.
We expect 32 stocks to be added to Southbound Stock Connect following the rebalance while 24 stocks could be deleted from the trading link and become Sell-only.
There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.


HSCI Index Rebalance Preview and Stock Connect: Potential Changes in September

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.</li>
<li>BIG Net SOUTHBOUND inflow continues. Notable in the past four weeks are US$1.9bn of net flow to Energy Hs and US$2.2bn to Banks in the H side of H/A Pairs.</li>
<li>AH Premia lowish in 52-week range, but still high for many pairs. I continue to expect further "convergence" among spreads, and the recent HA Premium bounce has lost momentum.</li>
</ul>


The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.
BIG Net SOUTHBOUND inflow continues. Notable in the past four weeks are US$1.9bn of net flow to Energy Hs and US$2.2bn to Banks in the H side of H/A Pairs.
AH Premia lowish in 52-week range, but still high for many pairs. I continue to expect further "convergence" among spreads, and the recent HA Premium bounce has lost momentum.


A/H Premium Tracker (To 21 Jun 2024):  AH Premia Stabilising Lower, Can Move A Leg Lower Still

<ul>
<li>We analyze the monthly Hong Kong Connect flows with our data engine.</li>
<li>We tabulate the top stocks by inflows, outflows, and holding by mainland investors.</li>
<li>We highlight inflows for Bank of China, Tencent, China Mobile, CNOOC, ZTO, Anta.</li>
</ul>


We analyze the monthly Hong Kong Connect flows with our data engine.
We tabulate the top stocks by inflows, outflows, and holding by mainland investors.
We highlight inflows for Bank of China, Tencent, China Mobile, CNOOC, ZTO, Anta.


Hong Kong Connect Flows (Mar): 12 Month High of $9.8bn Inflows

China

Shanghai Fudan Microelectronics Group Company Limited designs and sells integrated circuits (IC) for industrial applications.  The Company's IC products are used for smart cards, telecommunication products, as well as motor vehicle electronic and power supply electronic products.

Shanghai Fudan Microelectronics H (1385 HK)

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Shanghai Fudan Microelectronics H (1385 HK)

A-H Premium Weekly (Oct 11th):BYD, SMIC, TSINGTAO, Guotai Junan Securities, HAITONG, CanSino

We analyzed A-H premium changes in the past week and highlight A-H premium changes for BYD, SMIC, TSINGTAO, Guotai Junan Securities, HAITONG,...

Ke Yan, CFA, FRM

HSCI Index Rebalance: 38 Adds, 29 Deletes & Changes to Southbound Stock Connect

There are 38 adds and 29 deletes for the HSCI at the September rebalance to take the number of index constituents up to 518. There will be a lot of...

Brian Freitas

HSCI Index Rebalance Preview and Stock Connect: Potential Changes in September

There could be nearly 80 adds/deletes for the HSCI in September. That will trigger changes to the Southbound Stock Connect list and increase flows...

Brian Freitas

A/H Premium Tracker (To 21 Jun 2024): AH Premia Stabilising Lower, Can Move A Leg Lower Still

The Quiddity AH Monitor shows that while AH Premia have spent weeks "bouncing" off multi-year lows, the rebound impetus is slowing. There's room...

Travis Lundy

Hong Kong Connect Flows (Mar): 12 Month High of $9.8bn Inflows

We analyzed the Hong Kong Connect Scheme for March and highlight flows for Bank of China, Tencent, China Mobile, CNOOC, ZTO, Anta.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)