Daily Brief Financials: Bank of Jiangsu , Aadhar Housing Finance Ltd, Jafco Co Ltd, ZEEKR, Huatai Securities Co Ltd (A), WeWork , Bitcoin, S&P Global , China Vanke , American International Group and more

• With the review period nearing completion, 6 stocks are in inclusion zone and 9 are in deletion zone. However, there can be a maximum of 5 changes at a review.
• We estimate a one-way turnover of 7.1% at the June rebalance leading to a one-way trade of CNY 9.9bn (US$1.37bn). Index arb balances should increase the impact on the stocks.
• The potential inclusions (of which four are Financials) have continued to outperform the mixed bag of potential deletions. With pretty big impact on the deletes, expect further divergence.

• Aadhar Housing Finance (AHF) is now looking to raise around US$360m in its India IPO, via selling a mix of primary and secondary shares.
• AHF is focused on the low income housing segments (ticket size less than INR1.5m) in India. It offers a range of mortgage-related loan products.
• We have looked at the company’s performance in our past note. In this note, we talk about valuations.

• The company’s management fees now cover the operating costs after many years of losses
• Recent fund raising has surpassed expectations for its latest VC fund
• The company’s steps towards better capital allocation are trending in the right direction

• ZEEKR (ZK US), a premium EV brand by Geely Auto (175 HK), aims to raise around US$370m in its US listing.
• Zeekr was formed in Mar 2021 as a JV between Geely and its founder. Its first model was launched in Apr 21 with deliveries starting in Oct 21.
• We have looked at the company’s past performance in our earlier notes. In this note, we talk about the updates from its recent filings and have a relook at valuations.

• 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.
• The 12-month reference period used for the June 2024 review is now complete. The SSE 180 expected ADDs/DELs list has changed slightly since I published my last insight (link).
• In this insight, we take a look at our final expectations for index changes during the June 2024 index rebal event.

• The last week of SPACs was packed with buyouts, IPOs, and deal amendments.
• A co-working spaces provider gets a lifeline with a restructuring deal with its creditors, while a SPAC terminates a deal with a group of companies.
• Also, two new IPOs are announced, including one from serial sponsor Michael Klein after a three-year hiatus. Read on to find out the latest about all things SPACs. 

• Unfortunately, it is not only Monday, but we have also found ourselves on the wrong side of the crypto market over the weekend.
• In Thursday’s Crypto Moves #26, we expressed a bearish outlook on the market for the short term.
• Contrary to our expectations, the overall industry did not adhere to our forecast.

• S&P Global’s Q1 2024 earnings highlighted several key performance aspects that potential investors should consider while evaluating the company.
• The financial market intelligence provider posted a 14% increase in revenue, excluding the divestiture of Engineering Solutions, with transaction revenue in its Ratings division being a significant part of this rise.
• Subscription revenue across all business areas also achieved a year-on-year uptick of 8%, contributing to the quarterly revenue of roughly $3.5 billion, the highest in the company’s history.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• China Vanke

• American Airlines Group reported an adjusted net loss of $226 million for the first quarter of 2024, with revenues reaching $12.6 billion, a record high for a first quarter.
• Despite a surge in fuel expenses during the quarter which was around $100 million higher than initially anticipated, the company remains on track with its full year EPS guidance.
• American Airlines benefits from robust business travel, especially from small and medium-sized enterprises.