In today’s briefing:
- Index Rebalance & ETF Flow Recap: HSCEI, LQ45, Kakao Pay, Thai Life
- Melco: By Far the Cheapest Bet on Recovery in the Asian Gaming Sector–With Cautions
- ECM Weekly (19th June 2022) – Tianqi, GoAir, China United, Hongjiu Fruit, Airtel/Singtel, ExaWizards
Index Rebalance & ETF Flow Recap: HSCEI, LQ45, Kakao Pay, Thai Life
- It was a busy Friday with multiple implementations of the June rebalance – FTSE All-World/All-Cap, FTSE China 50/A50/TW50, S&P/ASX, REMX and GDXJ among others.
- We highlight potential upcoming changes to the HSCEI INDEX and LQ45 Index, when Kakao Pay (377300 KS) could be added in MSCI Korea & the Thai Life IPO index inclusion.
- There were large inflows to China and Korea focused ETFs during the week.
Melco: By Far the Cheapest Bet on Recovery in the Asian Gaming Sector–With Cautions
- No stock in the sector among major operators has taken a bigger hit than Melco, down over 60% this year.
- The bet is tied to whether Beijing will begin to ease travel bans and lockdowns or not before the end of this year. If so, Melco is very cheap here.
- Performance of its Manila property, the opening of its new Cyprus resorts could carry the company safely until Macau recovery is in place.
ECM Weekly (19th June 2022) – Tianqi, GoAir, China United, Hongjiu Fruit, Airtel/Singtel, ExaWizards
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- IPO volumes remain subdued across the region, although a number of deals are said to be looking to launch soon.
- Given the recent market volatility, there were no large placements this week.
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