Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

HK Type 4 license through Ballingal Investment Advisors Ltd. ("BIA" or "BIAL")

BACKGROUND
I have 20+yrs experience in Asia doing alternative strategies (i.e. non-delta1 non long-only) in fixed income, equity derivatives, and activist/catalyst/event-driven and long-short equity strategies with most of that time spent managing money. 

4 years in fixed income macro, 8 years running internal hedge fund and 4yrs investment banking at Citi in Japan, 3 years running an Asia multi-strat portfolio at a hedge fund, 4+yrs as an independent special situations analyst.

Pan-Asia Catalysts/Events

Huatai GDRs - Prices Lower, Then Sooner, Then Later, Then Higher

Huatai Securities GDR Gets The Green Light, Taps Brakes

Quiddity Advisors

Equity Capital Markets

Huatai Securities Co Ltd (H) / Equity Capital Markets

Today, <a href="https://www.smartkarma.com/entities/huatai-securities-co-ltd-h" target="_blank" data-smartkarma-citation="entities:449:1">Huatai Securities Co Ltd (H) (6886 HK)</a> (or <a href="https://www.smartkarma.com/entities/huatai-securities-co-ltd-a" target="_blank" data-smartkarma-citation="entities:450:1">Huatai Securities Co Ltd (A) (601688 CH)</a> more properly) <a href="https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/other/14097594.html" target="_blank">announced</a> at the London Stock Exchange that it was resuming the process of its GDR (Global Depositary Receipt) issuance, with an offer of up to 82,515,00 GDRs.As covered six months ago, each GDR represents 10 A shares, that is up to RMB 15.578bn at the last traded price of the A shares today (RMB 18.88/share), which is a fair bit more than the "not less than US$500mm" which had been expected as a potential issuance. If all the shares were issued that would be about 10% of the share capital of Huatai (pre-issuance). This [re-] launches the London side of the London-Shanghai Connect.It creates an "access trade arb" so people will look at the GDRs vs the Hs vs the As.And it creates another arb.

Today, Huatai Securities Co Ltd (H) (6886 HK) (or Huatai Securities Co Ltd (A) (601688 CH) more properly) announced at the London Stock Exchange that it was resuming the process of its GDR (Global Depositary Receipt) issuance, with an offer of up to 82,515,00 GDRs.As covered six months ago, each GDR represents 10 A shares, that is up to RMB 15.578bn at the last traded price of the A shares today (RMB 18.88/share), which is a fair bit more than the "not less than US$500mm" which had been expected as a potential issuance. If all the shares were issued that would be about 10% of the share capital of Huatai (pre-issuance). This [re-] launches the London side of the London-Shanghai Connect.It creates an "access trade arb" so people will look at the GDRs vs the Hs vs the As.And it creates another arb.

Haitong Securities Co Ltd (A) (600837 CH)

China Merchants Securities Co Ltd (A) (600999 CH)

Huatai Securities GDR Back On - Good Replacement Trade But Not Great Otherwise