In today’s briefing:
- Index Rebalance & ETF Flow Recap: MSCI May, FTSE June, HFCAA/China ADRs, GoTo
- Meituan (3690 HK) 182 Rejection Level and Draw Down Buy Support
- Tencent’s BIG In-Specie Dividend of JD.com Shares – The Likely Flows & Timing
- ECM Weekly (20th Mar 2022) – JD.com, Tencent, Prosus, GoTo, Ferretti, Green Tea, Recbio, Abacus
Index Rebalance & ETF Flow Recap: MSCI May, FTSE June, HFCAA/China ADRs, GoTo
- It was a busy Friday with a whole lot of rebalance implementations – FTSE AW/AC, EPRA Nareit, China 50, China A50, Taiwan 50, S&P/ASX. This week is quieter.
- We take an early look at potential changes to the MSCI Standard Index in May, to the FTSE AW/AC in June, China ADRs that could list in Hong Kong.
- There were some big inflows to Tracker Fund of Hong Kong Ltd (2800 HK) and Hang Seng H Share Index ETF (2828 HK) during the week.
Meituan (3690 HK) 182 Rejection Level and Draw Down Buy Support
- Meituan met the 104 macro buy support and short covering spike. 180 resistance to cap for a give back to let the dust settle and set up a fresh long.
- 180-182 resistance is where old price lows and the 38.2% retracement coincide and expected to induce a reaction lower.
- 200 and 222 intermediate barriers are in focus. Buy support below 142 lies near 120 on a steep give back sequence.
Tencent’s BIG In-Specie Dividend of JD.com Shares – The Likely Flows & Timing
- Tencent (700 HK) will deliver shares of JD.com Inc. (9618 HK) this week in its in-specie distribution of 14.7% of the shares out of JD.com.
- Some people will NEED to hold. Some will NEED to sell. On a net basis, it is a short-term sell and a longer-term overhang.
- The timing and execution are going to be quite interesting. There will be short-term opportunity.
ECM Weekly (20th Mar 2022) – JD.com, Tencent, Prosus, GoTo, Ferretti, Green Tea, Recbio, Abacus
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- GoTo (1379371D IJ) launched its bookbuild but decided to keep it local, with no international bookrunners.
- Placements continue to trickle in with Abacus Property (ABP AU) managing to raise US$150m odd. All eyes will be on JD.com Inc. (9618 HK) in the coming week.
Before it’s here, it’s on Smartkarma
