Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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.

Event-Driven

<ul>
<li>On 26th Aug 2022, PCAOB and CSRC announced that they had entered into an agreement granting US authorities access to investigate public accounting firms headquartered in China and HK.</li>
<li>On 2nd Apr 2022, CSRC put out a draft for public comments on the revision of certain provisions which would allow easier access by overseas regulators to China ADRs audits.</li>
<li>In this note, we'll talk about the latest developments and its implications.</li>
</ul>


On 26th Aug 2022, PCAOB and CSRC announced that they had entered into an agreement granting US authorities access to investigate public accounting firms headquartered in China and HK.
On 2nd Apr 2022, CSRC put out a draft for public comments on the revision of certain provisions which would allow easier access by overseas regulators to China ADRs audits.
In this note, we'll talk about the latest developments and its implications.


China ADRs Delisting - Tide Is Turning - Non-HK Listed ADRs Are Already Outperforming

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>China’s NPPA issued a list of 67 new games approved for July 2022, and once again, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>  and its smaller rival NetEase were excluded from the list.</li>
<li>The nine-month long freeze on new game approval was lifted in April, however, none of Tencent’s new games were included in the approved lists in April, June and July.</li>
<li>This further affirms our view that the anti-monopoly crackdown on tech firms hasn’t slowed down, but regulators are probing on dominant players such as Tencent to level the playing field.</li>
</ul>


China’s NPPA issued a list of 67 new games approved for July 2022, and once again, Tencent (700 HK)  and its smaller rival NetEase were excluded from the list.
The nine-month long freeze on new game approval was lifted in April, however, none of Tencent’s new games were included in the approved lists in April, June and July.
This further affirms our view that the anti-monopoly crackdown on tech firms hasn’t slowed down, but regulators are probing on dominant players such as Tencent to level the playing field.


Tencent – Excluded Again from New Game Approvals

<ul>
<li>On 10th July, SAMR published 28 administrative penalties for violating anti-monopoly law related to disclosing past transactions on firms including Tencent, Alibaba, Didi, Weibo and Bilibili.</li>
<li>A fine of RMB17.2m (US$2.56m) was imposed in total and were fined for not properly reporting past deals between March 2011 to July 2021.</li>
<li>The market has come to believe that the anti-monopoly investigation in China is easing off, however, the recent development suggests that the anti-monopoly normalisation will continue.</li>
</ul>


On 10th July, SAMR published 28 administrative penalties for violating anti-monopoly law related to disclosing past transactions on firms including Tencent, Alibaba, Didi, Weibo and Bilibili.
A fine of RMB17.2m (US$2.56m) was imposed in total and were fined for not properly reporting past deals between March 2011 to July 2021.
The market has come to believe that the anti-monopoly investigation in China is easing off, however, the recent development suggests that the anti-monopoly normalisation will continue.


Tencent Fined for Violating Disclosure on Past Transactions; Anti-Monopoly Probe Is Far From Over

Equity Capital Markets

Zhihu Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zhihu-technology-ltd" target="_blank" data-smartkarma-citation="entities:32185:1" rel="noopener">Zhihu Technology (ZH US)</a> raised around US$106m via a dual primary listing in Hong Kong. </li>
<li>Unlike all the prior dual primary/secondary listings which have been done via offering either only primary or a mix of primary+secondary shares, Zhihu’s offering will consist of only secondary shares.</li>
<li>In this note, we'll talk about the demand and trading dynamics.</li>
</ul>



Zhihu Technology (ZH US) raised around US$106m via a dual primary listing in Hong Kong. 
Unlike all the prior dual primary/secondary listings which have been done via offering either only primary or a mix of primary+secondary shares, Zhihu’s offering will consist of only secondary shares.
In this note, we'll talk about the demand and trading dynamics.


Zhihu HK Secondary Listing Trading - Delivered the Correction but Still Set for the Worst Debut Yet

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zhihu-technology-ltd" target="_blank" data-smartkarma-citation="entities:32185:1" rel="noopener">Zhihu Technology (ZH US)</a> has launched an HKEx dual-primary listing to raise $150-200 million. The H Shares will be priced on 14 April and listed on 22 April.</li>
<li>In <a href="https://www.smartkarma.com/insights/zhihu-dual-primary-listing-a-question-of-judgment" target="_blank" data-smartkarma-citation="insights:68266" rel="noopener">Zhihu Dual-Primary Listing: A Question of Judgment</a>, we stated that while a loss-making tech name is not everybody's cup of tea, Zhihu has resilient performance and an undemanding valuation.  </li>
<li>In this note, we will look at Zhihu’s potential HK-ADS premium/(discount). Zhihu pricing its H-shares at a discount of 3-4% to its ADSs will be reasonable, in our view.</li>
</ul>



Zhihu Technology (ZH US) has launched an HKEx dual-primary listing to raise $150-200 million. The H Shares will be priced on 14 April and listed on 22 April.
In Zhihu Dual-Primary Listing: A Question of Judgment, we stated that while a loss-making tech name is not everybody's cup of tea, Zhihu has resilient performance and an undemanding valuation.  
In this note, we will look at Zhihu’s potential HK-ADS premium/(discount). Zhihu pricing its H-shares at a discount of 3-4% to its ADSs will be reasonable, in our view.


Zhihu Dual-Primary Listing: HK-ADS Premium/​​​(Discount) Views

China

Weibo Corp operates as a social media platform for people to create, distribute and discover Chinese language contents. The Company offers users public self expression in real time with a powerful platform for social interaction, as well as content aggregation and distribution. Weibo enables its advertising and marketing customers to promote their brands and services to users.

Price Gauge
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Weibo (9898 HK)

China ADRs Delisting - Tide Is Turning - Non-HK Listed ADRs Are Already Outperforming

On 26th Aug 2022, PCAOB and CSRC announced that they had entered into an agreement granting US authorities access to investigate public accounting...

Sumeet Singh

Tencent – Excluded Again from New Game Approvals

Tencent, once again failed to make into the approved list of 67 new games for July 2022, nor in the last two batches of approved new game titles....

Shifara Samsudeen, ACMA, CGMA

Tencent Fined for Violating Disclosure on Past Transactions; Anti-Monopoly Probe Is Far From Over

Tencent was fined for failing to make timely disclosures regarding past deals. Though the fine is not significant given the size of Tencent, it is...

Shifara Samsudeen, ACMA, CGMA

Zhihu HK Secondary Listing Trading - Delivered the Correction but Still Set for the Worst Debut Yet

Zhihu Technology (ZH US) raised around US$106m via a dual primary listing in Hong Kong. In this note we talk about the demand and trading dynamics.

Sumeet Singh

Zhihu Dual-Primary Listing: HK-ADS Premium/(Discount) Views

In this note, we will look at Zhihu’s potential HK-ADS premium/(discount). Zhihu pricing its H-shares at a discount of 3-4% to its ADSs will be...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China ADRs Delisting - Tide Is Turning - Non-HK Listed ADRs Are Already Outperforming

On 26th Aug 2022, PCAOB and CSRC announced that they had entered into an agreement granting US authorities access to investigate public accounting...

Sumeet Singh

Tencent – Excluded Again from New Game Approvals

Tencent, once again failed to make into the approved list of 67 new games for July 2022, nor in the last two batches of approved new game titles....

Shifara Samsudeen, ACMA, CGMA

Tencent Fined for Violating Disclosure on Past Transactions; Anti-Monopoly Probe Is Far From Over

Tencent was fined for failing to make timely disclosures regarding past deals. Though the fine is not significant given the size of Tencent, it is...

Shifara Samsudeen, ACMA, CGMA

Zhihu HK Secondary Listing Trading - Delivered the Correction but Still Set for the Worst Debut Yet

Zhihu Technology (ZH US) raised around US$106m via a dual primary listing in Hong Kong. In this note we talk about the demand and trading dynamics.

Sumeet Singh

Zhihu Dual-Primary Listing: HK-ADS Premium/​​​(Discount) Views

In this note, we will look at Zhihu’s potential HK-ADS premium/(discount). Zhihu pricing its H-shares at a discount of 3-4% to its ADSs will be...

Arun George

Zhihu Dual-Primary Listing: HK-ADS Premium/(Discount) Views