Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>3690 HK: China Cyberspace Administration Launches Initiative to Address Algorithm Issues(/)</li>
<li>BABA US/PDD US/JD US: Alibaba integrates its domestic and international e-commerce business under Jiang Fan (+/-/-)</li>
<li>TCOM US: China Implements Visa-Free Entry for Citizens from Japan and 8 Other Countries, Extends Stay Duration to 30 Days (+)</li>
</ul>


3690 HK: China Cyberspace Administration Launches Initiative to Address Algorithm Issues(/)
BABA US/PDD US/JD US: Alibaba integrates its domestic and international e-commerce business under Jiang Fan (+/-/-)
TCOM US: China Implements Visa-Free Entry for Citizens from Japan and 8 Other Countries, Extends Stay Duration to 30 Days (+)


[Blue Lotus Daily-TMT Update]:3690 HK/BABA US/PDD US/JD US/TCOM US/NTES US/700 HK/1024 HK

Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

Equity Derivatives

<ul>
<li>Implied vols were lower across all sectors on the week with option volumes peaking on Friday.</li>
<li>Post-Earnings vol crush helped push vols lower for key names.</li>
<li>Tencent stands out with low implied vols over the past year, high liquidity and is trading almost 17% below its 52 week high.</li>
</ul>


Implied vols were lower across all sectors on the week with option volumes peaking on Friday.
Post-Earnings vol crush helped push vols lower for key names.
Tencent stands out with low implied vols over the past year, high liquidity and is trading almost 17% below its 52 week high.


EQD | Hong Kong Single Stock Options Weekly

APAC IPOs & Placements, Aequitas Research

Nicholas Tan

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jst-group" target="_blank" data-smartkarma-citation="entities:39885:1" rel="noopener">JST Group (1703609D CH)</a> is looking to raise up to US$100m in its upcoming Hong Kong IPO.</li>
<li>It is China’s largest and most popular e-commerce SaaS ERP provider to facilitate the connection of merchants with over 400 e-commerce platforms in China and across the world.</li>
<li>In this note, we look at the firm's past performance.</li>
</ul>



JST Group (1703609D CH) is looking to raise up to US$100m in its upcoming Hong Kong IPO.
It is China’s largest and most popular e-commerce SaaS ERP provider to facilitate the connection of merchants with over 400 e-commerce platforms in China and across the world.
In this note, we look at the firm's past performance.


JST Group Pre-IPO: Growing Rapidly but with Some Accounting Red Flags

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

Equity Bottom-Up

<ul>
<li>The stock has risen 84% in one year, but we still believe there is an upside of 49%.</li>
<li>We believe the operating margin will continue to improve significantly in 3Q24.</li>
<li>We also believe the growth rates of all main businesses should be healthy in 3Q24.</li>
</ul>


The stock has risen 84% in one year, but we still believe there is an upside of 49%.
We believe the operating margin will continue to improve significantly in 3Q24.
We also believe the growth rates of all main businesses should be healthy in 3Q24.


MT/Meituan (3690 HK) 3Q24 Earnings Preview: Upside Narrowed to 50%

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>In a surprise, <a href="https://www.smartkarma.com/entities/midea-group-co-ltd" target="_blank" data-smartkarma-citation="entities:43993:1" rel="noopener">Midea Group (300 HK)</a> will replace <a href="https://www.smartkarma.com/entities/weibo-corp" target="_blank" data-smartkarma-citation="entities:35280:1" rel="noopener">Weibo (9898 HK)</a> in the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng TECH Index (HSTECH INDEX)</a> after the close of trading on 6 December.</li>
<li>Estimated one-way turnover at the rebalance is 4.5% resulting in a round-trip trade of HK$11.72bn (US$1.51bn). Passives need to buy 9x ADV in <a href="https://www.smartkarma.com/entities/midea-group-co-ltd" target="_blank" data-smartkarma-citation="entities:43993:1" rel="noopener">Midea Group (300 HK)</a>.</li>
<li>The <a href="https://www.smartkarma.com/entities/midea-group-co-ltd-a" target="_blank" data-smartkarma-citation="entities:16185:1" rel="noopener">Midea Group Co Ltd A (000333 CH)</a> / <a href="https://www.smartkarma.com/entities/midea-group-co-ltd" target="_blank" data-smartkarma-citation="entities:43993:1" rel="noopener">Midea Group (300 HK)</a> premium could drop due to the index inclusion providing an entry point into an AH expansion trade.</li>
</ul>


In a surprise, Midea Group (300 HK) will replace Weibo (9898 HK) in the Hang Seng TECH Index (HSTECH INDEX) after the close of trading on 6 December.
Estimated one-way turnover at the rebalance is 4.5% resulting in a round-trip trade of HK$11.72bn (US$1.51bn). Passives need to buy 9x ADV in Midea Group (300 HK).
The Midea Group Co Ltd A (000333 CH) / Midea Group (300 HK) premium could drop due to the index inclusion providing an entry point into an AH expansion trade.


HSTECH Index Rebalance: Midea (300 HK) Replaces Weibo (9898 HK); US$1.5bn Round-Trip Trade

China

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Tencent Holdings (ADR) (TCEHY US)

[Blue Lotus Daily-TMT Update]:3690 HK/BABA US/PDD US/JD US/TCOM US/NTES US/700 HK/1024 HK

China's Cyberspace Administration tackles algorithm issues, Alibaba consolidates e-commerce business, and China extends visa-free entry for...

Blue Lotus Research Institute

EQD | Hong Kong Single Stock Options Weekly

Post-earnings vol crush the main contributor to decreased vols for key names. Tencent stands out for low implied vols, high liquidity while trading...

John Ley

JST Group Pre-IPO: Growing Rapidly but with Some Accounting Red Flags

JST Group (JST) is looking to raise up to US$100m in its upcoming Hong Kong IPO. It is China’s largest and most popular e-commerce SaaS ERP provider.

Nicholas Tan

MT/Meituan (3690 HK) 3Q24 Earnings Preview: Upside Narrowed to 50%

We still believe the stock has an upside of 49% after rising 84%. We believe the operating margin will improve significantly and the growth rates...

Ming Lu

HSTECH Index Rebalance: Midea (300 HK) Replaces Weibo (9898 HK); US$1.5bn Round-Trip Trade

Midea Group replaces Weibo in the HSTECH in Dec. Passives need to buy ~9% of the real float in Midea and that could lead to a drop in the AH...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Daily-TMT Update]:3690 HK/BABA US/PDD US/JD US/TCOM US/NTES US/700 HK/1024 HK

​China's Cyberspace Administration tackles algorithm issues, Alibaba consolidates e-commerce business, and China extends visa-free entry for...

Blue Lotus Research Institute

EQD | Hong Kong Single Stock Options Weekly

Post-earnings vol crush the main contributor to decreased vols for key names. Tencent stands out for low implied vols, high liquidity while trading...

John Ley

JST Group Pre-IPO: Growing Rapidly but with Some Accounting Red Flags

JST Group (JST) is looking to raise up to US$100m in its upcoming Hong Kong IPO. It is China’s largest and most popular e-commerce SaaS ERP provider.

Nicholas Tan

MT/Meituan (3690 HK) 3Q24 Earnings Preview: Upside Narrowed to 50%

We still believe the stock has an upside of 49% after rising 84%. We believe the operating margin will improve significantly and the growth rates...

Ming Lu

HSTECH Index Rebalance: Midea (300 HK) Replaces Weibo (9898 HK); US$1.5bn Round-Trip Trade

Midea Group replaces Weibo in the HSTECH in Dec. Passives need to buy ~9% of the real float in Midea and that could lead to a drop in the AH...

Brian Freitas

China's Cyberspace Administration tackles algorithm issues, Alibaba consolidates e-commerce business, and China extends visa-free entry for...