In today’s briefing:
- Tencent/Netease: Game Approval Accelerates, but Not for Big Names
- EQD | HSI Short-Sellers Prepare for a Rally in February
- [RemeGen (9995 HK, BUY, TP HK$34) Rating Change]: Time to Do Some Bottom Fishing…UG to BUY
Tencent/Netease: Game Approval Accelerates, but Not for Big Names
- China announced game approval for the Jan batch. The number of games approved has increased compared to recent months.
- The pace of China game approval appears to be accelerating, to the same level as pre-tightening.
- Tencent gets one game approved but we don’t see that the acceleration of game approval benefits big names proportionally.
EQD | HSI Short-Sellers Prepare for a Rally in February
- The Hang Seng Index this week reversed up and close the week up, after 3 weeks down. This may not be the usual opportunity to go SHORT.
- The index may rise for another 1 week and then pullback, but our seasonal matrix model says there is a good probability the HSI rallies in February.
- Based on this market reading we advise HSI Short Sellers to be particularly careful when setting up SHORT trades between here and the end of February.
[RemeGen (9995 HK, BUY, TP HK$34) Rating Change]: Time to Do Some Bottom Fishing…UG to BUY
- We believe RemeGen has bottom fishing value because its Systemic Lupus Erythematosus (SLE) drug Telitacicept (RC18) has already been approved for sale in China.
- Earliest data read in US clinical trial for IgA Nephropathy is already available, with SLE data read available in C3Q24 and MS in C4Q24;
- We don’t think a leading biotech from the wealthy city of Yantai will run out of cash. We assume RemeGen will be able to mitigate its liquidity problem.
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