In today’s briefing:
- Taiwan Div+ Index Basket Trade Review – Time To Swing The Other Direction
- Hitachi Metals (5486) Gets SAMR Clearance, Finally. So Now We Can Sell.
- Shanghai/Shenzhen Southbound Connect: Weekly Moves (15 September 2022)
- IStyle’s @Cosme Gets a Boost from Amazon Investment
- Liquid Universe of European Ordinary and Preferred Shares: September ‘22 Report
- Shanghai/Shenzhen Northbound Connect: Weekly Moves (15 September 2022)
Taiwan Div+ Index Basket Trade Review – Time To Swing The Other Direction
- In August, Janaghan Jeyakumar, CFA published his leaderboard and flow estimates for the FTSE Taiwan Dividend+ Rebalance which starts today and runs through next Thursday.
- Late in August, I recommended a basket trade. Since then, the BUY basket has outperformed the SELL basket by 7.6%. Set & Forget it is up 7.2%.
- I provided timing in the basket trade. Now it is time to swing the other way.
Hitachi Metals (5486) Gets SAMR Clearance, Finally. So Now We Can Sell.
- Today before the open, China’s State Administration for Market Regulation (SAMR) finally announced the approval of the takeover of Hitachi Metals (5486 JP). This was what delayed things.
- The approval had actually been issued on 7 September, and the collected approvals in the week to the 12th were announced today. Some media outlets had the info yesterday.
- I expect it is likely that the Bain Tender Offer to buy Hitachi Metals will be announced today after the close, or at latest, early next week.
Shanghai/Shenzhen Southbound Connect: Weekly Moves (15 September 2022)
- Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry.
- Overall, the net inflow over the past week was ~US$0.33bn, split (+US$0.16bn) for Shanghai and (+US$0.17bn) for Shenzhen.
- The largest inflows were into Tencent (700 HK) and China Mobile (941 HK). The largest outflows were in Hang Seng H Share Index ETF (2828 HK) and Geely (175 HK).
IStyle’s @Cosme Gets a Boost from Amazon Investment
- Japan’s cosmetics market is the focus of attention from many large international businesses thanks to strong sales and new growth businesses.
- The latest is Amazon, which is to become the biggest shareholder in Istyle Inc (3660 JP), providing a major boost to the @Cosme operator.
- IStyle, meanwhile, plans to offer cosmetics brands the chance to open popup stores within its retail chain for fixed monthly fees.
Liquid Universe of European Ordinary and Preferred Shares: September ‘22 Report
- Since mid-August, spreads have shown a mixed performance across our liquid universe with a slight bias towards tightening (with the exception of German shares, which have generally widened).
- Trade recommendations long ords / short prefs: Fuchs Petrolub, SSAB Svenska Stal.
- Recommendations Long prefs / short ords: Sixt, VW, MFE-Media for Europe, Grifols, Atlas Copco.
Shanghai/Shenzhen Northbound Connect: Weekly Moves (15 September 2022)
- Inside is a recap of movements in the last week relating to the Hong Kong Stock Exchange -Shanghai and Shenzhen Northbound Connect facilities, broken down by company and industry.
- Overall, net inflow over the past week was ~US$1.9bn, split between Shanghai (+US$1.1bn) and Shenzhen (+US$0.8bn).
- The largest inflows were into Kweichow Moutai (600519 CH) and S.F. Holding (002352 CH). The largest outflows were in China Merchants Bank A (600036 CH) and CATL (A) (300750 CH).
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
