In today’s briefing:
- STAR50 Index Rebalance: Index Committees Just Wanna Have Fun
- Yunkang IPO: Core Business Growth to Slow Down Post-Covid
STAR50 Index Rebalance: Index Committees Just Wanna Have Fun
- In keeping with tradition, the SSE and CSI have continued to use a 6 month minimum listing history. No one remembers how or why it started, but it carries on.
- There are only 10 trading days to implementation and passive funds will need to trade multiple days of ADV on the inclusions and exclusions.
- The adds, deletes and the SSE STAR50 (STAR50 INDEX) have moved in lockstep since November. The CSI500 Index has outperformed over the period opening up a trading opportunity.
Yunkang IPO: Core Business Growth to Slow Down Post-Covid
- Yunkang Group (YK HK) is a medical operation service provider in China and offers a full suite of diagnostic testing services.
- The company’s earnings had a boost in 2020 with the pandemic which resulted in huge demand for Covid-19 diagnostic tests.
- Yunkang has filed for an IPO to raise about US$200m. We expect the company’s earnings to gradually decline with pandemic conditions easing off.
Before it’s here, it’s on Smartkarma
