In today’s briefing:
- FTSE All-World/All-Cap Index Rebalance Preview: Plenty of Adds for China
- Shanghai Microport Endovascular MedTech (688016.CH) – Not as Attractive as Lifetech
FTSE All-World/All-Cap Index Rebalance Preview: Plenty of Adds for China
- The price review period for the FTSE All-World/All-Cap March 2022 SAIR ended on 31 December. The changes are expected to be announced on 18 February and implemented on 18 March.
- There are loads of potential inclusions to the index for China – a lot of the changes are a result of stocks being included in Northbound Stock Connect.
- There are stocks that are potential inclusions in other indices and will have additional passive inflows. Nongfu Spring could also be included in the FTSE China 50 and HSI indices.
Shanghai Microport Endovascular MedTech (688016.CH) – Not as Attractive as Lifetech
- Although Endovastec has leading position in aortic products, the growth space of this field in China is relatively limited and is not enough to support the long-term development of Endovastec.
- The lack of revolutionary blockbuster product/candidate with global pricing power as well as the current weak international business layout are also the concerns.
- Our view is that Shanghai Microport Endovascular MedTech (688016 CH) (Endovastec) is a good company, but it is not as attractive as Lifetech Scientific (1302 HK) at the current stage.
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