Daily Brief China: Hong Kong Hang Seng Index, Jiangnan, Pharmaron Beijing Co., Ltd. (A) and more

In today’s briefing:

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades- Grinding to a Halt
Jiangnan Group (1366 HK): Scheme Vote on 15 May
China Healthcare Weekly (Apr.21) – A Brutal Reality, Benign Returns from China Biotech, Pharmaron

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades- Grinding to a Halt

The Jiangnan (1366 HK) scheme document is out with the court meeting scheduled for 15 May. The IFA considers the HK$0.40 per share offer to be fair and reasonable.
Key conditions include approval by at least 75% independent shareholders (<10% rejection). The shareholder with a blocking stake has provided an irrevocable on 22 March.
This is a done deal. At the last close and for the 31 May payment, the gross and annualised spread is 3.9% and 44.0%, respectively.

Pharmaceutical companies shouldn’t always emphasize being the first to enter the market, but focus on how to best enter the market and maintain a dominant position as long as possible.
It’s truly felt that the assets of China’s pharmaceutical companies are accelerating their global recognition. As their internationalization strategy becomes increasingly mature, investors are expected to obtain more benign returns.
For Pharmaron, financial profit decline was the main reason for profit drop.If deducting fair value change of biological assets, operating profit growth was negative. We remain conservative about its outlook.

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