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Caixin Global

Articles from Caixin Global

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Equity Bottom-Up

<ul><li>Luxury liquor-maker Kweichow Moutai has teamed up with candy giant Mars Inc. to launch an alcohol-infused chocolate.</li><li>The state-owned Chinese company’s latest move to introduce its brand of fiery spirits to a new, and preferably younger, group of consumers.</li><li>The chocolate is Moutai’s latest effort to give its brand a bit more cache through partnerships with well-known consumer brands.</li></ul>

Luxury liquor-maker Kweichow Moutai has teamed up with candy giant Mars Inc. to launch an alcohol-infused chocolate.The state-owned Chinese company’s latest move to introduce its brand of fiery spirits to a new, and preferably younger, group of consumers.The chocolate is Moutai’s latest effort to give its brand a bit more cache through partnerships with well-known consumer brands.

After Lattes and Ice Cream, Moutai Serves Up Booze-Infused Chocolates

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

Western Superconducting Techno / Event-Driven

<ul>
<li>Over 85% of the way through the review period for the December rebalance of the <a href="https://www.smartkarma.com/entities/csi-smallcap-500-index-shang" target="_blank" data-smartkarma-citation="entities:35347:1" rel="noopener">CSI500 Index</a>, we forecast 50 changes (the maximum permitted) at the close on 8 December.</li>
<li>There is a big sector skew in the potential changes. We estimate a one-way turnover of 9.4% at the December rebalance resulting in a one-way trade of CNY 7.22bn.</li>
<li>With the market being stabilised through the ETF route, the index constituents have outperformed the non-index constituents over the last 6-7 weeks. That could reverse over the near term.</li>
</ul>


Over 85% of the way through the review period for the December rebalance of the CSI500 Index, we forecast 50 changes (the maximum permitted) at the close on 8 December.
There is a big sector skew in the potential changes. We estimate a one-way turnover of 9.4% at the December rebalance resulting in a one-way trade of CNY 7.22bn.
With the market being stabilised through the ETF route, the index constituents have outperformed the non-index constituents over the last 6-7 weeks. That could reverse over the near term.


CSI500 Index Rebalance Preview: ETF Inflows Lead to Performance Skew

Jiangxi Special Electric Motor A / Event-Driven

<ul>
<li>Three quarters of the way through the review period for the June rebalance of the CSI500 Index, we forecast 50 changes (the maximum permitted) at the close on 9 June.</li>
<li>There is a big sector skew in the potential changes. We estimate a one-way turnover of 11.47% at the June rebalance resulting in a one-way trade of CNY 10.11bn.</li>
<li>The potential adds have outperformed the potential deletes and the CSI500 Index over the last few weeks. There could be more outperformance till nearer the end of the review period.</li>
</ul>


Three quarters of the way through the review period for the June rebalance of the CSI500 Index, we forecast 50 changes (the maximum permitted) at the close on 9 June.
There is a big sector skew in the potential changes. We estimate a one-way turnover of 11.47% at the June rebalance resulting in a one-way trade of CNY 10.11bn.
The potential adds have outperformed the potential deletes and the CSI500 Index over the last few weeks. There could be more outperformance till nearer the end of the review period.


CSI500 Index Rebalance Preview: Potential Adds Continuing to Outperform

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 monthly Shanghai/Shenzhen northbound Connect flows with our data engine.</li>
<li>Consumer Staples, Financials, Health Care led the inflows while Industrials , Information Technology led the outflows.</li>
<li>We highlight inflows into Wuliangye, Moutai, Ping An Insurance, China Tourism, Shenzhen Mindray,  and outflows from Yunnan Energy New Material, BJ-SH HSR, Nari Technology, Goertek.</li>
</ul>


We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.
Consumer Staples, Financials, Health Care led the inflows while Industrials , Information Technology led the outflows.
We highlight inflows into Wuliangye, Moutai, Ping An Insurance, China Tourism, Shenzhen Mindray,  and outflows from Yunnan Energy New Material, BJ-SH HSR, Nari Technology, Goertek.


Northbound Flows Monthly: $4.6bn of Inflows

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of December 23rd. </li>
<li>We estimate the weekly inflows to be US$680.7 million, led by consumer staples, health care, financials sectors, and offset by information technology, materials.</li>
<li>We highlight flows for Wulianye, Moutai, Sichuan Swell, Ping An, Yiling, China Tourism, CATL, Goertek, BYD.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of December 23rd. 
We estimate the weekly inflows to be US$680.7 million, led by consumer staples, health care, financials sectors, and offset by information technology, materials.
We highlight flows for Wulianye, Moutai, Sichuan Swell, Ping An, Yiling, China Tourism, CATL, Goertek, BYD.


Northbound Flows (Dec 23rd): Inflows into Liquor Names

China

Sichuan Swellfun Co., Ltd. produces and markets spirits.  Through its subsidiaries, the Company also manufactures antibiotics and operates in printing and packaging business.

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Sichuan Swellfun Co Ltd A (600779 CH)

After Lattes and Ice Cream, Moutai Serves Up Booze-Infused Chocolates

Luxury liquor-maker Kweichow Moutai has teamed up with candy giant Mars Inc. to launch an alcohol-infused chocolate. The state-owned Chinese...

Caixin Global

CSI500 Index Rebalance Preview: ETF Inflows Lead to Performance Skew

There should be 50 changes in Dec with a big sector skew. Turnover is ~10% and 31 stocks will have 1x ADV to trade. Huge ETF inflows have led to...

Brian Freitas

CSI500 Index Rebalance Preview: Potential Adds Continuing to Outperform

We forecast 50 changes a side at the June rebal leading to a one-way turnover of 11.47% & in a one-way trade of CNY 10bn. The potential adds have...

Brian Freitas

Northbound Flows Monthly: $4.6bn of Inflows

We analyzed the Shanghai/Shenzhen Connect Scheme for December and highlight flows for Wuliangye, Moutai, Ping An Insurance, China Tourism, Shenzhen...

Ke Yan, CFA, FRM

Northbound Flows (Dec 23rd): Inflows into Liquor Names

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Wulianye, Moutai, Sichuan Swell, Ping An, Yiling,...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)