Daily Brief China: Swire Pacific (A), Greatview Aseptic Packaging, Kuaishou Technology, Shanghai Electric Group Company, Seres Group , China CSSC Holdings Ltd A, Contemporary Amperex Technology (CATL), Fosun Tourism and more

• Swire Pacific (19 HK) is coming up “cheap” on my monitor vs. Swire Properties (1972 HK) and Cathay Pacific (293 HK), after Cathay settles its Hong Kong government tab.
• Preceding my comments on Swire and Cathay are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• China’s State Administration for Market Regulation has formally accepted  Shandong Xinjufeng Technology  (301296 CH) (XJF)’s filing. That’s positive. SAMR previously okayed XJF’s initial 28.22% stake from Jardine Matheson (JM SP).
• No new update on co-founders Jeff Bi and Gang Hong’s non-binding Offer. 
• Separately, the EGM requisitioned by XJF to appoint two XJF-friendly directors progresses.

• DCM Investments is looking to raise US$484m via selling its remaining stake in Kuaishou Technology (1024 HK).
• While the current block deal isn’t entirely well flagged per se, it appears that DCM has since been trimming its stake on the open market.
• In this note, we run the deal through our ECM framework and comment on deal dynamics.

• CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500.
• In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2024.
• Since our last insight in August, there has been a sharp increase in reported AUMs tracking CSI 300 and CSI 500. This has caused our flow expectations to rise sharply.

• SSE 50 and SSE 180, respectively, aim to represent the performance of the 50 and 180 largest and most liquid A-share stocks listed on the Shanghai Stock Exchange.
• In this insight, we take a look at the names leading the race to become ADDs and DELs during the December 2024 index rebal event.
• We currently see 5 ADDs/DELs for the SSE 50 index and 18 ADDs/DELs for the SSE 180 index. 

• China State Shipbuilding Corp. Ltd. (CSSC) and China Shipbuilding Industry Corp. (CSIC) on Wednesday announced a stock exchange proposal in their merger deal.
• Analysts said the proposed exchange terms are not favorable for shareholders of China Shipbuilding Industry.
• The two largest state-owned shipbuilding conglomerates determined the exchange ratio at 0.1335 shares of CSSC for each share of CSIC.

• Company specializes in battery products for electric vehicles and energy storage
• Competes with itself to continuously innovate and invent new chemistries
• Relies on state support in China to quickly meet consumer needs and roll out products efficiently

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• A partial disposal of Club Med is positive for Fosun Tourism (1992 HK). The market is speculating CapitaLand Investment /Sing (CLI SP) is paying EUR500m for a 20-30% stake.
• Club Med generated 91.7% of its 1H24 operating profit. The rumoured valuation will boost its value by HK$6.9/share, 1.2x of the share price if true.
• We see reasons for such disposal, and if happens, this will align the stock’s valuation to international peers – 26.2x for FY24, vs. its 11.3x currently.