In today’s briefing:
- A/H Premium Tracker (To 2 Feb 2024): Liquid AH Premia Near Multi-Yr Wides, Wide Spreads Narrowing
- Mainland Connect NORTHBOUND Flows (To 2 Feb 2024): Decent Net Buying, But Reversionary Net Flows
- HK Connect SOUTHBOUND Flows (To 2 Feb 2024); Net Selling (Much Tech), Net SOE Buying, Still
- ECM Weekly (4th Feb 2024) – Ola Electric, Mixue, Citicore, Amer, Thai Credit, Indus Tower, MTAL
- China Healthcare Weekly (Feb.2) – US Strike on China CXOs, CSPC Innovation, Peach Picking Period
A/H Premium Tracker (To 2 Feb 2024): Liquid AH Premia Near Multi-Yr Wides, Wide Spreads Narrowing
- The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.
- SOUTHBOUND flows were net negative and NORTHBOUND flows a decent buy. AH premia on average fell, but liquid pairs saw AH premia rise. Chinese/HK shares shellacked.
- Watch the SOE stock price KPI space. Wouldn’t be short SOEs vs Privates on H/A basis. Low-hanging fruit with some SOEs having large cash balances.
Mainland Connect NORTHBOUND Flows (To 2 Feb 2024): Decent Net Buying, But Reversionary Net Flows
- The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
- Last week saw NORTHBOUND net BUY RMB 9.9bn of A-shares on very strong average activity after +12.1bn RMB the week before. Some National Team buying this week.
- Renewables selling was tempered. Energy and Finance saw net selling. Industry and Tech saw large net buying. Relatively larger net Shenzhen buying later in the week as stocks fell hard.
HK Connect SOUTHBOUND Flows (To 2 Feb 2024); Net Selling (Much Tech), Net SOE Buying, Still
- A bad week for HK and Chinese shares. National Team buying seems lighter into the waning days of the Year of the Rabbit.
- Net SOUTHBOUND selling was HK$9.4bn on the week, with net selling every day as the market fell hard – both in HK and the mainland.
- Remarkable this past week was the tendency to net sell names which were down hard, and net buy names which have been performing well.
ECM Weekly (4th Feb 2024) – Ola Electric, Mixue, Citicore, Amer, Thai Credit, Indus Tower, MTAL
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- On the IPO front, Amer Sports (AS US) was priced below its range, while Thai Credit Bank PCL, managed to get enough support to pull thru.
- Given the earnings season, there weren’t many placement apart from Indus Towers (INDUSTOW IN) and Metals Acquisition (MTAL US)‘s CDR offering.
China Healthcare Weekly (Feb.2) – US Strike on China CXOs, CSPC Innovation, Peach Picking Period
- If there’s ultimately substantial negative policies in the field of biopharmaceuticals between China and US, APIs will be the segment with the highest risk. But CXO would also be affected.
- Now we have entered the harvest period after the previous peak of financing round in China’s biotech industry, which has become a concentrated “peach picking period” for foreign pharmaceutical enterprises.
- Considering the low market sentiment, we’re cautious on companies with high valuation elasticity before they come up with convincing products. So, we don’t recommend investors rush to bottom-fish CSPC Innovation.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
