Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Equity Bottom-Up

<ul>
<li>Hong Kong market is range bound with conglomerates showing strength over the last few weeks.  As the CNY/HKD strengthens the A/H premium should narrow.</li>
<li>
<a href="https://www.smartkarma.com/entities/sunevision-holdings-ltd" target="_blank" data-smartkarma-citation="entities:110:1" rel="noopener">SUNeVision Holdings (1686 HK)</a> reported good results on the back of increased demand driven by the AI sector. 
</li>
<li>
<a href="https://www.smartkarma.com/entities/yum-china-holdings-inc-0533692c-6dae-4014-baa1-ed0b050638f2" target="_blank" data-smartkarma-citation="entities:29259:1" rel="noopener">Yum China Holdings (9987 HK)</a>,<a href="https://www.smartkarma.com/entities/yum-china-holdings-inc" target="_blank" data-smartkarma-citation="entities:23677:1" rel="noopener">Yum China Holdings (YUMC US)</a> reported flat sales and an increase in operating profit in a difficult fast food retail environment in China.
</li>
</ul>


Hong Kong market is range bound with conglomerates showing strength over the last few weeks.  As the CNY/HKD strengthens the A/H premium should narrow.

SUNeVision Holdings (1686 HK) reported good results on the back of increased demand driven by the AI sector. 


Yum China Holdings (9987 HK),Yum China Holdings (YUMC US) reported flat sales and an increase in operating profit in a difficult fast food retail environment in China.



BUY/SELL/HOLD: Hong Kong Stock Updates (September 12)

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

<ul>
<li>The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).</li>
<li>The indicative weights for the December 2024 index rebal event will be announced later this week on Friday 22nd November 2024.</li>
<li>In this insight, we take a look at our updated flow estimates for December 2024. Separately, we have also presented our latest March 2025 index review predictions.</li>
</ul>


The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
The indicative weights for the December 2024 index rebal event will be announced later this week on Friday 22nd November 2024.
In this insight, we take a look at our updated flow estimates for December 2024. Separately, we have also presented our latest March 2025 index review predictions.


Quiddity Leaderboard HSIII: ~US$160mn One-Way Flows in Dec 24; 3 ADDs/DELs in Mar 25 Likely

Cross Asset Strategy

<ul>
<li>AI is poised to drive a large increase in power consumption on the mainland.  Data demand from generative AI necessitates more data centers and consequently more power.</li>
<li>China energy consumption is at the beginning of a super cycle as AI becomes integral to everyday corporate and eventually personal lives.</li>
<li>China's clean energy names will benefit from the China's energy strategy as its power needs from data centers surge.</li>
</ul>


AI is poised to drive a large increase in power consumption on the mainland.  Data demand from generative AI necessitates more data centers and consequently more power.
China energy consumption is at the beginning of a super cycle as AI becomes integral to everyday corporate and eventually personal lives.
China's clean energy names will benefit from the China's energy strategy as its power needs from data centers surge.


<ul>
<li>The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).</li>
<li>In this insight, we take a look at our capping flow expectations for the December 2024 index rebal event.</li>
<li>We have also presented our index change expectations for the next semiannual index review which will take place in March 2025.</li>
</ul>


The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
In this insight, we take a look at our capping flow expectations for the December 2024 index rebal event.
We have also presented our index change expectations for the next semiannual index review which will take place in March 2025.


Quiddity Leaderboard HS Internet & IT: Dec 24 Flow Expectations and Mar 25 Expected ADDs/DELs

<ul>
<li>Onshore Equity ETF flows in China continued to be positive for 8th week. Southbound Connect flows in July are lower than June.</li>
<li>Baidu, Bilibili and GDS have had positive share price moves on the back of news flow.</li>
<li>The container shipping segment has had a sharp pullback on positive Middle East news and cement maker CNBM flags a loss in the first half.</li>
</ul>


Onshore Equity ETF flows in China continued to be positive for 8th week. Southbound Connect flows in July are lower than June.
Baidu, Bilibili and GDS have had positive share price moves on the back of news flow.
The container shipping segment has had a sharp pullback on positive Middle East news and cement maker CNBM flags a loss in the first half.


The Heat Is On: News Flow and Sentiment China/Hong Kong (July 12)

Hong Kong

SUNeVision Holdings Limited, through its subsidiaries, operates Internet services centers and Information Technology (IT) facilities.  The Company also designs and installs SMATV, structural cabling and security systems as well as provides system development, solutions, and management services.  In addition, Sunevision invests in properties.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

SUNeVision Holdings (1686 HK)

BUY/SELL/HOLD: Hong Kong Stock Updates (September 12)

Hong market should benefit from a stronger CNY/HKD as the Fed begins to cut rates. SUNeVision is benefiting from increased demand from the AI...

David Mudd

Quiddity Leaderboard HSIII: ~US$160mn One-Way Flows in Dec 24; 3 ADDs/DELs in Mar 25 Likely

Easou Technology Holdings (2550 HK) has dropped 80%+ in the last few trading days and is on the verge of missing out on HSIII addition in March 2025.

Janaghan Jeyakumar, CFA

CHINA: Do You Like AI? BUY Utilities!

AI is creating an opportunity to benefit from the surge in power needs of China. Rapid growth in data centers to power AI will benefit China power...

David Mudd

Quiddity Leaderboard HS Internet & IT: Dec 24 Flow Expectations and Mar 25 Expected ADDs/DELs

We estimate there to be one-way capping flows of US$190mn in December 2024. This translates to a turnover of approximately 5%.

Janaghan Jeyakumar, CFA

The Heat Is On: News Flow and Sentiment China/Hong Kong (July 12)

ETF flows in China have continued to support the overall A share market while Southbound Connect flows support Hong Kong shares. Positive news for...

David Mudd

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)