In today’s briefing:
- Ping An A/H: At Parity Now; Position for Premium Expansion
- STAR50 Index Rebalance Preview (March 2022): Falling Knives
Ping An A/H: At Parity Now; Position for Premium Expansion
- After trading at a 12% premium as recently as a month ago, Ping An Insurance Group Of China (601318 CH) is trading at parity to Ping An Insurance (2318 HK).
- There is still some room left to reach the lower target on the A-share buyback. Once done, there could be more buying to reach the upper end of the target.
- Northbound Stock Connect holdings on the A-shares have been increasing over the last few months, though there will be outflows from FTSE China A50 Index (XIN9I INDEX) trackers in March.
STAR50 Index Rebalance Preview (March 2022): Falling Knives
- The review period ended last week. There will either be 4 or 5 changes to the SSE STAR50 (STAR50 INDEX) depending on the minimum listing history period used.
- Shanghai Medicilon Inc (688202 CH) is a high probability inclusion while there are 4 high probability deletions, irrespective of the minimum listing history period used.
- The potential inclusions have continued to drop and have underperformed the potential deletions. The next couple of weeks could see a reversal in that trend.
Before it’s here, it’s on Smartkarma
