In today’s briefing:
- Index Rebalance & ETF Flow Recap: LQ45/IDX30, FXI, New Deal, KOSPI, KQ150, LG Energy, IN Float, TTMT
- China Healthcare Weekly (Jul.28) – Starting Point of New Prosperity, MNCs Change Strategy, Genscript
- Dali Foods (3799 HK): Scheme Vote on 23 August
- ECM Weekly (30th July 2023) – Tryt, Genda, Cinema XXI, Abacus, Robosense, Qiniu, Muthoot, LianLian
Index Rebalance & ETF Flow Recap: LQ45/IDX30, FXI, New Deal, KOSPI, KQ150, LG Energy, IN Float, TTMT
- The changes to the LQ45/IDX30 were announced last week and will be implemented Monday. The PSE also announced that there would be no changes for the PCOMP INDEX in August.
- There are a bunch of review cutoffs on Monday, most notably for the Nikkei 225 (NKY INDEX), STAR50 INDEX, the NIFTY family of indices and the KRX New Deal indices.
- There were inflows to China focused ETFs and outflows from Taiwan and Korea focused ETFs during the week.
China Healthcare Weekly (Jul.28) – Starting Point of New Prosperity, MNCs Change Strategy, Genscript
- AD (Alzheimer Disease) and RNAi are one of the most valuable breakthroughs in global pharmaceutical industry in recent years. We think they may bring the next round of biopharmaceutical prosperity.
- MNCs have begun to adjust their strategic business model in China. Licensing cooperation and equity investments in China biotech companies are expected to become a new trend.
- We can’t expect too much from Genscript Biotech (1548 HK) just because Legend Bio’s CAR-T product has good sales performance. Genscript could underperform based on our analysis.
Dali Foods (3799 HK): Scheme Vote on 23 August
- Dali Foods Group (3799 HK)‘s scheme document is out with the court meeting scheduled for 23 August. The IFA considers the HK$3.75 per share offer to be fair and reasonable.
- Key condition is approval by at least 75% of disinterested shareholders (<10% of all disinterested shareholders rejection). No independent shareholder holds a blocking stake.
- Sector sentiment has modestly weakened. This looks done. At the last close and for the 8 September payment, the gross and annualised spread is 3.6% and 34.8%, respectively.
ECM Weekly (30th July 2023) – Tryt, Genda, Cinema XXI, Abacus, Robosense, Qiniu, Muthoot, LianLian
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- In the IPO space, the coming week will see Cinema XXI listing.
- Given that we are in the middle of earnings season, there were no new placements this week.
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