In today’s briefing:
- HSCEI Index Rebalance Preview: One Change; Capping Impact Increases
- Tianju Dihe Technology IPO Preview: Data Drives The Future
- WuXi AppTec (2359.HK/603259.CH) – Would the Recent Rebound in Share Price Be a Flash in the Pan?
- As a Group, Typical SHEIN & Temu Users in the US Lack Political Clout; Why It Matters
- ChiNext/ChiNext50 Index Rebalance Preview: Sector Rotation Continues
- Lalatech Holdings Pre-IPO – Refiling Updates – Growth and Profit Pickup but Valuation Gap Remains
- EQD | HSI WEEKLY Resistance Levels UPDATED
- Morning Views Asia: Hopson Development, Lenovo, Tata Steel Thailand, West China Cement
![](http://www.smartkarma.com/assets/plugins/a3-lazy-load/assets/images/lazy_placeholder.gif)
HSCEI Index Rebalance Preview: One Change; Capping Impact Increases
- Zhongsheng Group (881 HK) is in deletion zone and could be deleted. China Unicom Hong Kong (762 HK) could be added to the index as the highest ranked non-index constituent.
- Estimated one-way turnover at the rebalance is 2.14% resulting in a one-way trade of HK$1.38bn. Meituan (3690 HK), Alibaba Group (9988 HK) and Tencent (700 HK) will be capped higher.
- China Unicom Hong Kong (762 HK) is supported on its 50/100 day moving averages and could move higher. Zhongsheng Group (881 HK) has been trading below its moving averages.
Tianju Dihe Technology IPO Preview: Data Drives The Future
- Tianju Dihe Technology, more commonly known as Juhe Data, filed to go public in Hong Kong. The company provides standard API services through its APIHub marketplace in China.
- Tianju Dihe Technology plans to trade on the HKSE, and CITIC Securities is leading the IPO. The company was backed by JD Technology, a fintech unit of JD.com.
- With a market leadership position and a mission to empower the digital economy with data technologies, I have no doubt that Tianju Dihe Technology will have a successful IPO.
WuXi AppTec (2359.HK/603259.CH) – Would the Recent Rebound in Share Price Be a Flash in the Pan?
- WuXi AppTec’s share price has performed well recently, mainly driven by CXO’s “immune attributes” to anti-corruption campaign, investors’ bullish view of weight loss drug business, and the previous oversold rebound.
- Peptide CDMO business would contribute limited incremental performance to WuXi AppTec considering overall large business volume.Downward trend of CRO business is hard to be hedged by weight loss drug business.
- Due to higher-for-longer rate, China CXOs only have rebound value, but no reversal logic. It’s time to consider taking profits in a timely manner before the share price falls again.
As a Group, Typical SHEIN & Temu Users in the US Lack Political Clout; Why It Matters
- US users of the popular SHEIN and Temu shopping apps tend to be relatively young
- Compared to older Americans, younger Americans (18-34) tend to have less political clout
- What does this mean for SHEIN and Temu, and how will they respond to political challenges?
ChiNext/ChiNext50 Index Rebalance Preview: Sector Rotation Continues
- Nearing the end of the review period, we forecast 8 changes for the ChiNext Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index in December.
- Given stock selection uses liquidity as a major input, the impact of passive trading will be much larger on the deletions as compared to the additions.
- The potential adds have outperformed the potential deletes, but relative performance has been drifting lower over the last few months. There are stocks that will have flows from other indices.
Lalatech Holdings Pre-IPO – Refiling Updates – Growth and Profit Pickup but Valuation Gap Remains
- Lalatech Holdings Co Ltd (LALA HK) is looking to raise about US$1bn in its upcoming HK IPO.
- Lalatech operates via a marketplace model serving merchants and carriers. Its platform facilitates closed-loop transactions from online shipping order booking to intelligent order matching, and automated dispatching to after-sale services.
- We have looked at the company’s past performance in our earlier notes. In this note we will talk about the updates from its refiling.
EQD | HSI WEEKLY Resistance Levels UPDATED
- The HSI INDEX has fallen for 2 more weeks since our last insight – current CC is =-5, and Q3 support was breached last week, the index is clearly OVERSOLD.
- If the HSI bounces this week, it could be an occasion to go SHORT – take note that the index could take 3 weeks to rally before rolling down again.
- The target price area where to enter SHORT trades,to benefit from a continuation of the downtrend is: 17598-18784.
Morning Views Asia: Hopson Development, Lenovo, Tata Steel Thailand, West China Cement
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.