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>We tabulate the top stocks by inflows, outlfows, and holding by foreign investors.</li>
<li>We highlight inflows  for CATL, Kunlun Tech, BJ-SH HSR, CCB, Mindray, Longi, Wuliangye, Gree, Moutai, Midea.</li>
</ul>


We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.
We tabulate the top stocks by inflows, outlfows, and holding by foreign investors.
We highlight inflows  for CATL, Kunlun Tech, BJ-SH HSR, CCB, Mindray, Longi, Wuliangye, Gree, Moutai, Midea.


Northbound Flows Monthly (May): $1.7bn Outflows

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 5 changes for the <a href="https://www.smartkarma.com/entities/shanghai-stock-exchange-sse-50-a-share-index" target="_blank" data-smartkarma-citation="entities:31073:1" rel="noopener">SSE50 Index</a> that will be implemented at the close on 9 June. There is over 1x ADV to sell on a few deletions.</li>
<li>We estimate a one-way turnover of 5.3% at the June rebalance leading to a one-way trade of CNY 3.84bn. Index arb activity could add to the impact on the stocks.</li>
<li>The adds outperformed the deletes from February to April but have given up a lot of the outperformance over the last month.</li>
</ul>


There are 5 changes for the SSE50 Index that will be implemented at the close on 9 June. There is over 1x ADV to sell on a few deletions.
We estimate a one-way turnover of 5.3% at the June rebalance leading to a one-way trade of CNY 3.84bn. Index arb activity could add to the impact on the stocks.
The adds outperformed the deletes from February to April but have given up a lot of the outperformance over the last month.


SSE50 Index Rebalance: 5 Changes as Adds Give Up Recent Gains

Beijing Kingsoft Office Softwa / Event-Driven

<ul>
<li>With 2 trading days left in the review period, we see 7 potential adds/5 potential deletes in June. However, there can be a maximum of 5 changes at a rebalance.</li>
<li>We estimate one-way turnover of 5.58% at the June rebalance leading to a one-way trade of CNY 4.22bn. Index arb balances could increase the impact on the stocks.</li>
<li>The potential adds have outperformed the potential deletes over the last couple of months and have underperformed over the last week.</li>
</ul>


With 2 trading days left in the review period, we see 7 potential adds/5 potential deletes in June. However, there can be a maximum of 5 changes at a rebalance.
We estimate one-way turnover of 5.58% at the June rebalance leading to a one-way trade of CNY 4.22bn. Index arb balances could increase the impact on the stocks.
The potential adds have outperformed the potential deletes over the last couple of months and have underperformed over the last week.


SSE50 Index Rebalance Preview: Five Changes Coming Up in June

<ul>
<li>The review period nearly complete, we see 7 potential adds and 9 potential deletes at the December rebalance. However, there can be a maximum of 5 changes at a rebalance.</li>
<li>We estimate a one-way turnover of 4.28% at the December rebalance leading to a one-way trade of CNY 3.42bn. Index arb activity could add to the impact on the stocks.</li>
<li>The potential adds have dropped over the last month while the potential deletes have moved higher over the last couple of weeks.</li>
</ul>


The review period nearly complete, we see 7 potential adds and 9 potential deletes at the December rebalance. However, there can be a maximum of 5 changes at a rebalance.
We estimate a one-way turnover of 4.28% at the December rebalance leading to a one-way trade of CNY 3.42bn. Index arb activity could add to the impact on the stocks.
The potential adds have dropped over the last month while the potential deletes have moved higher over the last couple of weeks.


SSE50 Index Rebalance Preview: Sector Shift as IT and Financials Drop

<ul>
<li>We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.</li>
<li>We estimate that the inflows were USD 2,169.3 million last month, led by consumer staples and industrials.</li>
<li>We highlight flows for CATL, Longi Green, Yunnan Energy New Material, Yili, Moutai, Sanhua, Sungrow, Tbea, CMB, Beijing Oriental Yuhong. </li>
</ul>


We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.
We estimate that the inflows were USD 2,169.3 million last month, led by consumer staples and industrials.
We highlight flows for CATL, Longi Green, Yunnan Energy New Material, Yili, Moutai, Sanhua, Sungrow, Tbea, CMB, Beijing Oriental Yuhong. 


Northbound Flows Monthly (August): CATL, Longi, Yunnan Energy New Material

China

TBEA Co., Ltd. manufactures and markets electrical transformers, wires and cables, and other accessory equipment. Through its subsidiaries, the Company also develops and manages real estate.

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TBEA Co Ltd A (600089 CH)

Northbound Flows Monthly (May): $1.7bn Outflows

We analyzed the Shanghai/Shenzhen Connect Scheme for May and highlight flows for CATL, Kunlun Tech, BJ-SH HSR, CCB, Mindray, Longi, Wuliangye,...

Ke Yan, CFA, FRM

SSE50 Index Rebalance: 5 Changes as Adds Give Up Recent Gains

There are 5 changes for the SSE50 Index in June. The adds outperformed from Feb-April but have underperformed since then. The Anhui Conch Cement...

Brian Freitas

SSE50 Index Rebalance Preview: Five Changes Coming Up in June

There will be 5 changes in June. Estimated 1-way turnover is 5.58% leading to a 1-way trade of CNY 4.22bn. The adds have outperformed the deletes...

Brian Freitas

SSE50 Index Rebalance Preview: Sector Shift as IT and Financials Drop

We forecast 5 changes in December as Energy, Industrials and Materials weights increase and IT and Financials drop. One-way turnover will be over...

Brian Freitas

Northbound Flows Monthly (August): CATL, Longi, Yunnan Energy New Material

We estimate $2.2bn northbound inflows into A-share in August and highlight flows for CATL, Longi Green, Yunnan Energy New Material, Yili, Moutai,...

Ke Yan, CFA, FRM

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