Smartkarma Daily Briefs

The changes for the SSE STAR50 (STAR50 INDEX) and STAR100 Index were announced post market close on Friday.
The coming week is a full one with capping cutoffs, review cutoffs, announcements and implementations apart from futures expiries.
With China open after Lunar New Year, the National Team is back pouring money into ETFs with the largest inflows to the CSI 300, CSI 500, ChiNext and STAR50 indices.

A/H Premium Tracker (To 23 Feb 2024): Liquid AH Premia See Sharpest Fall in a LOONG (He-He) Time

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.
SOUTHBOUND and NORTHBOUND flows net positive. AH premia on average fell so Hs OUTperformed As by 2.1%. Liquid Hs saw their H outperform the A by 3.1% on average.
Last week was the sharpest one-week fall in AH premium in a very long time. SOUTHBOUND Flows Monitor here. NORTHBOUND Flows Monitor here.

HK Connect SOUTHBOUND Flows (To 23 Feb 2024); Selling of Consumer Stocks, But Big Buys of SOEs

A great week for HK and Chinese shares, especially the larger caps. Mainland indices were up 8 days in a row to Friday, helping HK shares stay bid.
Net SOUTHBOUND buying was HK$20.0bn in the first post-holiday week. LOTS of SOEs on the net buying side.
Remarkable this past week, was a new tendency to net sell names which were up a lot and net buy names which haven’t performed as well.

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Boral, CSR, Ansarada, TCM, Snow Peak, Azure Min, Genetron

By David Blennerhassett

I tally 53 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Five new deals discussed this week on Smartkarma! Boral Ltd (BLD AU), CSR Ltd (CSR AU), Ansarada Group Ltd (AND AU),TCM (570 HK), and Snow Peak Inc (7816 JP).
Key updates took place on Azure Minerals (AZS AU), CIMC Vehicle Group Co Ltd (1839 HK), Outsourcing Inc (2427 JP), and Genetron Holdings Ltd (GTH US).

Mainland Connect NORTHBOUND Flows (To 23 Feb 2024): Foreigners Buy, Natl Team Buys; Retail Sells

The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
Last week saw NORTHBOUND net BUY RMB 10.7bn of A-shares on strong average activity after RMB +16.1bn, +9.9bn and +12.1bn the three weeks before. More National Team buying this week.
Five of the top ten buys among liquid NORTHBOUND stocks were finance. Again. Info Tech saw net selling. Again. People trading long gamma now instead of short gamma.

A2B Australia (A2B AU): Scheme Vote on 25 March

The A2B Australia (A2B AU) IE considers Comfortdelgro Corp (CD SP)’s A$1.45 offer fair and reasonable as it above the midpoint of its A$1.30-1.54 per share valuation range.
The scheme is conditional on ACCC approval, which should be forthcoming as ComfortDelGro is not a significant player in Australia.
Several substantial shareholders have sold or exited, lowering the scheme vote risk. At the last close and for the 11 April payment, the gross/annualised spread was 2.5%/22.3%.

Weekly Deals Digest (25 Feb) – Azure, A2B, Boral, CSR, China TCM, Outsourcing, Payroll, Snow Peak

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: Toei Animation (4816 JP)‘s US$550 Million secondary offering and Trial Holdings (5882 JP) IPO.
Event-Driven developments: Azure Minerals (AZS AU), Boral Ltd (BLD AU), CSR Ltd (CSR AU), China Traditional Chinese Medicine (570 HK), Outsourcing Inc (2427 JP), Snow Peak Inc (7816 JP).

Hyosung Corp Split: Potential Mirror of December 2021 LX-LG Block Deal

By Sanghyun Park

Hyosung Corp’s split diverges from usual Korean market splits. No tender offer is expected post-new holding company formation, reducing value accretion opportunities.
Sibling separation in Hyosung Corp’s split mandates shares cross-transfers. Hence, block deals among siblings are plausible.
This scenario resembles the case in December 2021 when LX Koo Bon-joon disposed of LG Corp shares through a block deal instead of a swap, causing an 8% drop.

Last Week in Event SPACE: Outsourcing, Boral, Itoki, CIMC Vehicle, Dissentient Shareholder Rights

By David Blennerhassett

There is no suggestion of precondition breach attached to Outsourcing Inc (2427 JP)‘s impairment losses.
Seven Group, now holding 71.6%, has returned to the well, and made a cash/scrip Offer for shares not owned in Boral (BLD AU), with certain tendering thresholds triggering more cash.
Itoki Corp (7972 JP)‘s mega ToSTNeT-3 buyback is now done.

STAR50 Index Rebalance: Three Changes a Side; One Surprise Change

There are three constituent changes for the SSE STAR50 (STAR50 INDEX) at the March rebalance. One inclusion and one non-inclusion are surprises.
One way turnover is estimated at 2.9% and will result in a one-way trade of CNY 4,075m with over 2.5x ADV to trade on all constituent changes.
The adds have outperformed the deletes over the last few months with a jump in the last few trading sessions. There could be more outperformance over the next two weeks.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Feb 25

Daily Brief Equity Bottom-Up: Intel Snags Altman To Close Foundry Day Event and more

By Smartkarma Daily Briefs | Daily Briefs, Equity Bottom-Up

In today’s briefing:

Intel Snags Altman To Close Foundry Day Event
Alnylam Pharmaceuticals: Progress of the HELIOS-B Study & 4 Other Major Drivers
Deere & Co: Expansion In Precision Agriculture & 5 Other Factors Driving Growth In 2024! – Major Drivers
China Healthcare Weekly (Feb.23)- TCM Ushers in a Harvest Period, Biotech Bottom-Line, Kelun-Biotech
Asian Dividend Gems: Youngone Holdings
Avantor Inc: Is The Growth in the Aerospace and Defense Market Changing The Game? – Major Drivers
HubSpot Inc: Are They Successfully Implementing AI In Their Operations? – Major Drivers
CF Industries: Export Opportunities and Global Market Dynamics – Major Drivers
Applied Materials Inc (AMAT): Is The Escalation In Services Growth A Major Growth Catalyst In 2024? – Major Drivers
Martin Marietta Materials: Expected Improvements In Housing Market Conditions Could Help Them Recover In 2024 & Beyond! – Major Drivers

Intel Snags Altman To Close Foundry Day Event

By William Keating

Despite the high-profile announcement of his attendance, his segment was less than 3 minutes long!
Intel’s CEO alluded to a partnership with OpenAI and implied there’s more to come yet there’s been no public announcement of any such partnership.
Microsoft’s commitment to use Intel’s 18A is a vote of confidence in their foundry offering. Let’s see how it plays out.

Alnylam Pharmaceuticals: Progress of the HELIOS-B Study & 4 Other Major Drivers

Alnylam Pharmaceuticals reported solid progress across all business areas in 2023, delivering robust product growth for its four wholly-owned commercial medicines, and reaching a milestone of over 5,000 patients now on an Alnylam commercial RNAi therapeutic.
The company recorded $1.24 billion in global net product revenues.
Alnylam also extended its leadership in RNAi therapeutics, including pioneering delivery of RNAi therapeutics to adipose and muscle tissues.

Deere & Co: Expansion In Precision Agriculture & 5 Other Factors Driving Growth In 2024! – Major Drivers

Deere & Company’s earnings revealed a company operating well in the midst of an increasingly competitive market landscape, with stable demand across the majority of sectors.
The firm noted solid execution across the cycle with an 18.5% margin for equipment operations in the first quarter.
Land sales fell by 4% to $12.658 billion while equipment operations also dropped 8% to $10.486 billion.

China Healthcare Weekly (Feb.23)- TCM Ushers in a Harvest Period, Biotech Bottom-Line, Kelun-Biotech

By Xinyao (Criss) Wang

Thanks to the continuous support of policies, the TCM industry has ushered in a harvest period. So, TCM remains to be a relatively certain field for investment in China healthcare.
Biotech companies must meet several conditions in order to have good long-term development, such as sufficient financial support, at least one blockbuster product and high moral standard of the management.
Reasonable valuation of Sichuan Kelun-Biotech Biopharm (6990 HK) is about RMB15 billion. So, we think it is now overvalued. Meanwhile, restricted shares will be lifted 12 months after the IPO.

Asian Dividend Gems: Youngone Holdings

By Douglas Kim

Youngone Holdings is an attractive deep value stock. Net cash (including short term investments) was 1.1 trillion won at the end of 3Q 2023 (79% of market cap).
Youngone Holdings is the holding company of Youngone Group. Youngone Corp is best known for its OEM apparel business for major branded companies such as The North Face and Patagonia.
We found Youngone Holdings using Smartkarma’s Smart Score Screener system.

Avantor Inc: Is The Growth in the Aerospace and Defense Market Changing The Game? – Major Drivers

Avantor delivered fourth quarter business results at the high end of their guidance across key financial metrics, including a core organic revenue decline of 4.8%, adjusted EBITDA margin of 17.5% and adjusted EPS of $0.25.
They demonstrated robust cash flow management and considerable debt reduction, exceeding their guidance range.
The company experienced industry wide headwinds due to inventory destocking and cautious customer spending.

HubSpot Inc: Are They Successfully Implementing AI In Their Operations? – Major Drivers

HubSpot, a leading software company, provided a generally positive update on the firm’s financial performance, strategic direction, and plans for future growth.
On the financial front, the firm reported solid results for Q4 2023.
Revenue grew by 21% year-on-year in constant currency terms, and by 25% for the full year 2023.

CF Industries: Export Opportunities and Global Market Dynamics – Major Drivers

CF Industries Holdings Inc., a global leader in nitrogen-based fertilizers, reported a strong performance for the full year and fourth quarter of 2023.
The company posted an adjusted EBITDA and net cash from operations of approximately $2.8 billion each, and a free cash flow of $1.8 billion.
This robust outcome was attributed to a balanced nitrogen supply-demand situation and energy spreads favoring the company’s low-cost production in North America..

Applied Materials Inc (AMAT): Is The Escalation In Services Growth A Major Growth Catalyst In 2024? – Major Drivers

Applied Materials delivered a decent result and the management claims to have made a strong start to the current fiscal year, exceeding its earnings projections.
Strengths identified include the company’s innovation strategy and position at key industry inflections, such as new-foundry logic and developments in its DRAM market where it has captured over 50% of market share.
Revenue from its advanced packaging product portfolio is predicted to reach nearly $1.5 billion in 2024.

Martin Marietta Materials: Expected Improvements In Housing Market Conditions Could Help Them Recover In 2024 & Beyond! – Major Drivers

Martin Marietta, a provider of aggregates and heavy building materials, presented a decent financial performance for the full year and fourth quarter of 2023.
Positive elements in the report include the company’s record financial performance, reaching a milestone of $2.1 billion in adjusted EBITDA. Additionally, the company noted that it had a successful, safe year without any major incidents.
This was also underpinned by the strong performance of the company’s aggregates business which drove revenues up by over 10% to $4.3 billion.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Feb 25

Daily Brief Macro: EUR-flation Watch: A major surprise is needed in February and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

EUR-flation Watch: A major surprise is needed in February

EUR-flation Watch: A major surprise is needed in February

By Ulrik Simmelholt

The EUR HICP report for February needs to be very soft to tempt the ECB into spring action.
The über-hawk of the committee Holzmann said the following on Bloomberg earlier:“But typically the Fed always in the last few years has always gone first by about half a year so I would assume, ceteris paribus, as things are, that we would also follow with delay,” which rhymes with market fears that the ECB, despite the outlook warranting a softer stance than the Fed, remains caught between a rock and a hard place when discussing the timing of the first cut.
We see Euro area HICP coming in around 0.3% MoM and most importantly German HICP coming in around 0.43% MoM in our nowcasts, which is probably around 0.2%-points below early consensus.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Feb 25

Daily Brief Australia: A2B Australia, Azure Minerals and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

A2B Australia (A2B AU): Scheme Vote on 25 March
Weekly Deals Digest (25 Feb) – Azure, A2B, Boral, CSR, China TCM, Outsourcing, Payroll, Snow Peak

A2B Australia (A2B AU): Scheme Vote on 25 March

The A2B Australia (A2B AU) IE considers Comfortdelgro Corp (CD SP)’s A$1.45 offer fair and reasonable as it above the midpoint of its A$1.30-1.54 per share valuation range.
The scheme is conditional on ACCC approval, which should be forthcoming as ComfortDelGro is not a significant player in Australia.
Several substantial shareholders have sold or exited, lowering the scheme vote risk. At the last close and for the 11 April payment, the gross/annualised spread was 2.5%/22.3%.

Weekly Deals Digest (25 Feb) – Azure, A2B, Boral, CSR, China TCM, Outsourcing, Payroll, Snow Peak

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: Toei Animation (4816 JP)‘s US$550 Million secondary offering and Trial Holdings (5882 JP) IPO.
Event-Driven developments: Azure Minerals (AZS AU), Boral Ltd (BLD AU), CSR Ltd (CSR AU), China Traditional Chinese Medicine (570 HK), Outsourcing Inc (2427 JP), Snow Peak Inc (7816 JP).

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Feb 25

Daily Brief South Korea: Hyosung Corporation, Youngone Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Hyosung Corp Split: Potential Mirror of December 2021 LX-LG Block Deal
Asian Dividend Gems: Youngone Holdings

Hyosung Corp Split: Potential Mirror of December 2021 LX-LG Block Deal

By Sanghyun Park

Hyosung Corp’s split diverges from usual Korean market splits. No tender offer is expected post-new holding company formation, reducing value accretion opportunities.
Sibling separation in Hyosung Corp’s split mandates shares cross-transfers. Hence, block deals among siblings are plausible.
This scenario resembles the case in December 2021 when LX Koo Bon-joon disposed of LG Corp shares through a block deal instead of a swap, causing an 8% drop.

Asian Dividend Gems: Youngone Holdings

By Douglas Kim

Youngone Holdings is an attractive deep value stock. Net cash (including short term investments) was 1.1 trillion won at the end of 3Q 2023 (79% of market cap).
Youngone Holdings is the holding company of Youngone Group. Youngone Corp is best known for its OEM apparel business for major branded companies such as The North Face and Patagonia.
We found Youngone Holdings using Smartkarma’s Smart Score Screener system.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Feb 25

Daily Brief United States: Intel Corp, Alnylam Pharmaceuticals, Deere & Co, Twilio , Cf Industries Holdings, Applied Materials, Avantor , Hubspot Inc, Martin Marietta Materials, Williams Cos and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Intel Snags Altman To Close Foundry Day Event
Alnylam Pharmaceuticals: Progress of the HELIOS-B Study & 4 Other Major Drivers
Deere & Co: Expansion In Precision Agriculture & 5 Other Factors Driving Growth In 2024! – Major Drivers
Twilio Inc: Growth Opportunities through Partnerships and Omnichannel Authentication Catalyzing Growth? – Major Drivers
CF Industries: Export Opportunities and Global Market Dynamics – Major Drivers
Applied Materials Inc (AMAT): Is The Escalation In Services Growth A Major Growth Catalyst In 2024? – Major Drivers
Avantor Inc: Is The Growth in the Aerospace and Defense Market Changing The Game? – Major Drivers
HubSpot Inc: Are They Successfully Implementing AI In Their Operations? – Major Drivers
Martin Marietta Materials: Expected Improvements In Housing Market Conditions Could Help Them Recover In 2024 & Beyond! – Major Drivers
The Williams Companies Inc.: 6 Major Growth Drivers For Their Performance In 2024 & Beyond! – Major Drivers

Intel Snags Altman To Close Foundry Day Event

By William Keating

Despite the high-profile announcement of his attendance, his segment was less than 3 minutes long!
Intel’s CEO alluded to a partnership with OpenAI and implied there’s more to come yet there’s been no public announcement of any such partnership.
Microsoft’s commitment to use Intel’s 18A is a vote of confidence in their foundry offering. Let’s see how it plays out.

Alnylam Pharmaceuticals: Progress of the HELIOS-B Study & 4 Other Major Drivers

Alnylam Pharmaceuticals reported solid progress across all business areas in 2023, delivering robust product growth for its four wholly-owned commercial medicines, and reaching a milestone of over 5,000 patients now on an Alnylam commercial RNAi therapeutic.
The company recorded $1.24 billion in global net product revenues.
Alnylam also extended its leadership in RNAi therapeutics, including pioneering delivery of RNAi therapeutics to adipose and muscle tissues.

Deere & Co: Expansion In Precision Agriculture & 5 Other Factors Driving Growth In 2024! – Major Drivers

Deere & Company’s earnings revealed a company operating well in the midst of an increasingly competitive market landscape, with stable demand across the majority of sectors.
The firm noted solid execution across the cycle with an 18.5% margin for equipment operations in the first quarter.
Land sales fell by 4% to $12.658 billion while equipment operations also dropped 8% to $10.486 billion.

Twilio Inc: Growth Opportunities through Partnerships and Omnichannel Authentication Catalyzing Growth? – Major Drivers

Twilio’s recent quarterly results highlighted that the company exceeded its revenue and Non-GAAP income from operations targets for Q4 2023 by generating nearly $1.1 billion in revenue and $173 million in Non-GAAP income from operations.
The free cash flow was $211 million.
The company achieved $4.2 billion in revenue for the full year and improved its Non-GAAP operating results from a Non-GAAP operating loss of $4 million in 2022 to Non-GAAP operating income of $533 million in 2023.

CF Industries: Export Opportunities and Global Market Dynamics – Major Drivers

CF Industries Holdings Inc., a global leader in nitrogen-based fertilizers, reported a strong performance for the full year and fourth quarter of 2023.
The company posted an adjusted EBITDA and net cash from operations of approximately $2.8 billion each, and a free cash flow of $1.8 billion.
This robust outcome was attributed to a balanced nitrogen supply-demand situation and energy spreads favoring the company’s low-cost production in North America..

Applied Materials Inc (AMAT): Is The Escalation In Services Growth A Major Growth Catalyst In 2024? – Major Drivers

Applied Materials delivered a decent result and the management claims to have made a strong start to the current fiscal year, exceeding its earnings projections.
Strengths identified include the company’s innovation strategy and position at key industry inflections, such as new-foundry logic and developments in its DRAM market where it has captured over 50% of market share.
Revenue from its advanced packaging product portfolio is predicted to reach nearly $1.5 billion in 2024.

Avantor Inc: Is The Growth in the Aerospace and Defense Market Changing The Game? – Major Drivers

Avantor delivered fourth quarter business results at the high end of their guidance across key financial metrics, including a core organic revenue decline of 4.8%, adjusted EBITDA margin of 17.5% and adjusted EPS of $0.25.
They demonstrated robust cash flow management and considerable debt reduction, exceeding their guidance range.
The company experienced industry wide headwinds due to inventory destocking and cautious customer spending.

HubSpot Inc: Are They Successfully Implementing AI In Their Operations? – Major Drivers

HubSpot, a leading software company, provided a generally positive update on the firm’s financial performance, strategic direction, and plans for future growth.
On the financial front, the firm reported solid results for Q4 2023.
Revenue grew by 21% year-on-year in constant currency terms, and by 25% for the full year 2023.

Martin Marietta Materials: Expected Improvements In Housing Market Conditions Could Help Them Recover In 2024 & Beyond! – Major Drivers

Martin Marietta, a provider of aggregates and heavy building materials, presented a decent financial performance for the full year and fourth quarter of 2023.
Positive elements in the report include the company’s record financial performance, reaching a milestone of $2.1 billion in adjusted EBITDA. Additionally, the company noted that it had a successful, safe year without any major incidents.
This was also underpinned by the strong performance of the company’s aggregates business which drove revenues up by over 10% to $4.3 billion.

The Williams Companies Inc.: 6 Major Growth Drivers For Their Performance In 2024 & Beyond! – Major Drivers

The Williams Companies has reported strong performance in the third quarter of 2023 with significant advances in operational execution, project completion, and positive expansion achievements.
In an environment of low gas prices compared to the third quarter of 2022, the company saw an impressive uptick in several areas.
The first half of Transco’s Regional Energy Access project, which will increase natural gas transportation from the northeast part of the Marcellus Shale to markets in Pennsylvania, New Jersey, and Maryland, has been completed, and the second half is slated for completion in the last quarter of 2024.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Feb 25

Daily Brief China: Hygon Information Technology C, China International Capital Corporation, Li Auto , China Traditional Chinese Medicine, Kweichow Moutai, Sichuan Kelun-Biotech Biopharm, Baimtec Material and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

Index Rebalance & ETF Flow Recap: HSCEI, HSCI, HSTECH, HSIII, STTF, Top50, Div+, FXI, FnGuide
A/H Premium Tracker (To 23 Feb 2024): Liquid AH Premia See Sharpest Fall in a LOONG (He-He) Time
HK Connect SOUTHBOUND Flows (To 23 Feb 2024); Selling of Consumer Stocks, But Big Buys of SOEs
(Mostly) Asia-Pac Weekly Risk Arb Wrap: Boral, CSR, Ansarada, TCM, Snow Peak, Azure Min, Genetron
Mainland Connect NORTHBOUND Flows (To 23 Feb 2024): Foreigners Buy, Natl Team Buys; Retail Sells
China Healthcare Weekly (Feb.23)- TCM Ushers in a Harvest Period, Biotech Bottom-Line, Kelun-Biotech
STAR50 Index Rebalance: Three Changes a Side; One Surprise Change

Index Rebalance & ETF Flow Recap: HSCEI, HSCI, HSTECH, HSIII, STTF, Top50, Div+, FXI, FnGuide

The changes for the SSE STAR50 (STAR50 INDEX) and STAR100 Index were announced post market close on Friday.
The coming week is a full one with capping cutoffs, review cutoffs, announcements and implementations apart from futures expiries.
With China open after Lunar New Year, the National Team is back pouring money into ETFs with the largest inflows to the CSI 300, CSI 500, ChiNext and STAR50 indices.

A/H Premium Tracker (To 23 Feb 2024): Liquid AH Premia See Sharpest Fall in a LOONG (He-He) Time

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.
SOUTHBOUND and NORTHBOUND flows net positive. AH premia on average fell so Hs OUTperformed As by 2.1%. Liquid Hs saw their H outperform the A by 3.1% on average.
Last week was the sharpest one-week fall in AH premium in a very long time. SOUTHBOUND Flows Monitor here. NORTHBOUND Flows Monitor here.

HK Connect SOUTHBOUND Flows (To 23 Feb 2024); Selling of Consumer Stocks, But Big Buys of SOEs

A great week for HK and Chinese shares, especially the larger caps. Mainland indices were up 8 days in a row to Friday, helping HK shares stay bid.
Net SOUTHBOUND buying was HK$20.0bn in the first post-holiday week. LOTS of SOEs on the net buying side.
Remarkable this past week, was a new tendency to net sell names which were up a lot and net buy names which haven’t performed as well.

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Boral, CSR, Ansarada, TCM, Snow Peak, Azure Min, Genetron

By David Blennerhassett

I tally 53 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Five new deals discussed this week on Smartkarma! Boral Ltd (BLD AU), CSR Ltd (CSR AU), Ansarada Group Ltd (AND AU),TCM (570 HK), and Snow Peak Inc (7816 JP).
Key updates took place on Azure Minerals (AZS AU), CIMC Vehicle Group Co Ltd (1839 HK), Outsourcing Inc (2427 JP), and Genetron Holdings Ltd (GTH US).

Mainland Connect NORTHBOUND Flows (To 23 Feb 2024): Foreigners Buy, Natl Team Buys; Retail Sells

The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
Last week saw NORTHBOUND net BUY RMB 10.7bn of A-shares on strong average activity after RMB +16.1bn, +9.9bn and +12.1bn the three weeks before. More National Team buying this week.
Five of the top ten buys among liquid NORTHBOUND stocks were finance. Again. Info Tech saw net selling. Again. People trading long gamma now instead of short gamma.

China Healthcare Weekly (Feb.23)- TCM Ushers in a Harvest Period, Biotech Bottom-Line, Kelun-Biotech

By Xinyao (Criss) Wang

Thanks to the continuous support of policies, the TCM industry has ushered in a harvest period. So, TCM remains to be a relatively certain field for investment in China healthcare.
Biotech companies must meet several conditions in order to have good long-term development, such as sufficient financial support, at least one blockbuster product and high moral standard of the management.
Reasonable valuation of Sichuan Kelun-Biotech Biopharm (6990 HK) is about RMB15 billion. So, we think it is now overvalued. Meanwhile, restricted shares will be lifted 12 months after the IPO.

STAR50 Index Rebalance: Three Changes a Side; One Surprise Change