Daily Brief Consumer: Trip.com, JD.com Inc (ADR), Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, STAR50, KOSDAQ150, CPSE/CNXBANK, Kenedix Merger
ECM Weekly (18th June 2023) – JD Property, Tata Tech, SBFC Fin, Auckland Air, Weilong, Sula, Abacus
The Problem Is that Many Managers Know that ROE Is Below Cost of Capital but Are Not Taking Action

Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, STAR50, KOSDAQ150, CPSE/CNXBANK, Kenedix Merger

There were a bunch of rebalances across different index families that were implemented at the close of trading on Friday.
The coming week is quieter though there are a couple of ad hoc rebalances for the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) and KOSDAQ 150 Index (KOSDQ150 INDEX).
Yet another week of inflows to Tracker Fund of Hong Kong Ltd (2800 HK) as the number of units outstanding is nearly the highest over the last couple of years.

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, HK remained quiet with Australia seeing some more action.
On the placement front, Bain continued to exit Axis Bank Ltd (AXSB IN) while Weilong Delicious Global (9985 HK) and Sula Vineyards had lock-up expiries.

The essence of problem lies in the fact that even half of them believe that ROE doesn’t exceed cost of capital, yet managers haven’t taken measures to address this problem.
In reality, management reform is still a long way off, as constructive proposals from shareholders are often not accepted until the % of foreign shareholders rises to the 30% level.
TSE has made it possible to compare the superiority of management skills with share price. Attention will be focused on how managers will answer questions about share prices at AGMs.

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