In today’s briefing:
- MVIS Australia Equal Weight Index Rebalance: Three Deletions & Other Changes
- REPT BATTERO (0666 HK): Index Inclusion Possibility & Timelines
- Trip.com (TCOM US, 9961 HK): Revenue 30% Above Pre-COVID Level
- SHEIN Versus Amazon: Our Online Shopping Adventure In Pursuit Of Ultra-Cheap Holiday Deals
- Mainland Connect NORTHBOUND Flows (To 8 Dec 23): Net Sales Again on Midea and Wuliangye Yibin
- China Consumption Weekly (11 Dec 2023): BYD, NIO, Meituan, Alibaba, Tencent
MVIS Australia Equal Weight Index Rebalance: Three Deletions & Other Changes
- A2 Milk Co Ltd (A2M AU), AMP Ltd (AMP AU) and Charter Hall (CHC AU) will be deleted from the MVIS Australia Equal Weight Index at the close 15 December.
- Constituent changes plus capping and float changes result in a one-way turnover of 5.05% and will result in a one-way trade of A$99m.
- There is a fair amount of short interest on the deletions and shorts could look to cover against the passive flow.
REPT BATTERO (0666 HK): Index Inclusion Possibility & Timelines
- REPT BATTERO Energy (1998104D CH) is looking to raise up to HK$2.39bn (US$306m) in its IPO by selling 116.07m shares at HK$20.6/share, valuing the company at HK$46.9bn (US$6bn).
- The H-share market cap is a lot lower at HK$6.33bn (US$811m) since most of the pre-IPO shares will remain as Domestic Unlisted Shares.
- The stock will be eligible for HSCI inclusion in March but will need to trade higher than the upper end of the IPO range to be added to the index.
Trip.com (TCOM US, 9961 HK): Revenue 30% Above Pre-COVID Level
- Travelers increased by 75% YoY and traveling spending increased by 144% YoY in China in 9M2023.
- TCOM’s total revenue rose by 31% in 3Q23 over 3Q19 before COVID.
- We conclude an upside of 33% and a price target of US$43.70.
SHEIN Versus Amazon: Our Online Shopping Adventure In Pursuit Of Ultra-Cheap Holiday Deals
- We set out to compare prices & the “retail experience” at AMZN, SHEIN
- Selecting comparable items, we looked at landed costs, transit times, returns
- SHEIN’s value proposition is obvious; will consumers accept its drawbacks, too?
Mainland Connect NORTHBOUND Flows (To 8 Dec 23): Net Sales Again on Midea and Wuliangye Yibin
- The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts to play with.
- Last week saw NORTHBOUND net sell RMB 5.8bn of A-sharesin higher-than-normal activity.
- Looking at the change in the weekly position charts over the last year is striking (easiest in the Sectors table to start).
China Consumption Weekly (11 Dec 2023): BYD, NIO, Meituan, Alibaba, Tencent
- BYD offers a reward up to RMB5 million for reporting defamation.
- NIO denied further layoff after releasing the 3Q23 results with both revenue and loss increasing significantly.
- Meituan’s GMV of live broadcasting food delivery reached RMB2 billion.
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