Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

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 Bottom-Up

<ul>
<li>The revenue growth accelerated for the fourth quarter in 3Q25.</li>
<li>In 3Q25, the gross margins of all business lines improved year over year.</li>
<li>Tencent’s operating margin had improved year over year for thirteen quarters.</li>
</ul>


The revenue growth accelerated for the fourth quarter in 3Q25.
In 3Q25, the gross margins of all business lines improved year over year.
Tencent’s operating margin had improved year over year for thirteen quarters.


Tencent (700 HK): 3Q25, Continuous Revenue Acceleration & Margin Improvement, 40% Upside

Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>
Context: Some of Hong Kong’s largest and most prominent companies will report in the coming days, representing 20% of the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hang Seng Index (HSI INDEX)</a> </li>
<li>
Highlight: This Insight quantifies option-implied swings which serve as a gauge for post-earnings reactions.</li>
<li>
Why Read: Prepare for a busy earnings week by understanding where single-stock and broader market volatility may be elevated.</li>
</ul>



Context: Some of Hong Kong’s largest and most prominent companies will report in the coming days, representing 20% of the Hang Seng Index (HSI INDEX) 

Highlight: This Insight quantifies option-implied swings which serve as a gauge for post-earnings reactions.

Why Read: Prepare for a busy earnings week by understanding where single-stock and broader market volatility may be elevated.


Earnings Volatility Preview: Options Price Sharp Swings in China Tech Earnings Week

<ul>
<li>While approximately 80% of pair trades play out according to plan, a small subset of trades fails to produce a trade close signal within the expected timeframe.</li>
<li>This Insight investigates the phenomenon of parameter drift and how to manage its adverse effects.</li>
<li>Analyzing challenging trades provides valuable insights into model behavior, enhancing both risk management and preparedness for future market shifts.</li>
</ul>


While approximately 80% of pair trades play out according to plan, a small subset of trades fails to produce a trade close signal within the expected timeframe.
This Insight investigates the phenomenon of parameter drift and how to manage its adverse effects.
Analyzing challenging trades provides valuable insights into model behavior, enhancing both risk management and preparedness for future market shifts.


When the Model Chases the Price: Lessons from Two Long-Running Pair Trades

External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

Key points (machine generated)<ul><li>Tencent has 1.4 billion users on Weixin/WeChat, establishing it as a leading digital platform.</li><li>The company is positioned to enhance monetization through AI integration across its services.</li><li>Despite its strengths, Tencent's core business is undervalued, trading at 14 times the consensus 2026 earnings per share.</li></ul>This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)Tencent has 1.4 billion users on Weixin/WeChat, establishing it as a leading digital platform.The company is positioned to enhance monetization through AI integration across its services.Despite its strengths, Tencent's core business is undervalued, trading at 14 times the consensus 2026 earnings per share.This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Tencent Holdings Ltd (TCTZF) - Friday, Jul 25, 2025

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

<ul>
<li>China announced game approval for the October batch. The number of games approved remained at a higher level than 2023.</li>
<li>The pace of China game approval appears to have accelerated to the same level as pre-tightening.</li>
<li>Of the companies that we are monitoring, none got approval.</li>
</ul>


China announced game approval for the October batch. The number of games approved remained at a higher level than 2023.
The pace of China game approval appears to have accelerated to the same level as pre-tightening.
Of the companies that we are monitoring, none got approval.


Tencent/Netease: Zero for Big Names Despite Optimism in October

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.

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Tencent Holdings (ADR) (TCEHY US)

Tencent (700 HK): 3Q25, Continuous Revenue Acceleration & Margin Improvement, 40% Upside

The revenue growth accelerated for the fourth quarter to 15% YoY in 3Q25. In 3Q25, the gross margins of all business lines improved. Tencent’s...

Ming Lu

Earnings Volatility Preview: Options Price Sharp Swings in China Tech Earnings Week

Option markets hint at sharp post-earnings reactions in some of China's top tech companies. Prepare for elevated volatility.

Gaudenz Schneider

When the Model Chases the Price: Lessons from Two Long-Running Pair Trades

A live example featuring Tencent shows how persistent price moves can cause parameter drift. The case study focuses on mitigation strategies and...

Gaudenz Schneider

Tencent Holdings Ltd (TCTZF) - Friday, Jul 25, 2025

The Tencent Investment Memo highlights its 1.4 billion Weixin/WeChat users and argues the market undervalues its AI-driven monetization potential...

Value Investors Club (VIC)

Tencent/Netease: Zero for Big Names Despite Optimism in October

China approves October batch of games at a higher level than 2023, with accelerated pace resembling pre-tightening, but none of the monitored...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Tencent (700 HK): 3Q25, Continuous Revenue Acceleration & Margin Improvement, 40% Upside

The revenue growth accelerated for the fourth quarter to 15% YoY in 3Q25. In 3Q25, the gross margins of all business lines improved. Tencent’s...

Ming Lu

Earnings Volatility Preview: Options Price Sharp Swings in China Tech Earnings Week

Option markets hint at sharp post-earnings reactions in some of China's top tech companies. Prepare for elevated volatility.

Gaudenz Schneider

When the Model Chases the Price: Lessons from Two Long-Running Pair Trades

A live example featuring Tencent shows how persistent price moves can cause parameter drift. The case study focuses on mitigation strategies and...

Gaudenz Schneider

Tencent Holdings Ltd (TCTZF) - Friday, Jul 25, 2025

The Tencent Investment Memo highlights its 1.4 billion Weixin/WeChat users and argues the market undervalues its AI-driven monetization potential...

Value Investors Club (VIC)

Tencent/Netease: Zero for Big Names Despite Optimism in October

​China approves October batch of games at a higher level than 2023, with accelerated pace resembling pre-tightening, but none of the monitored...

Ke Yan, CFA, FRM

China approves October batch of games at a higher level than 2023, with accelerated pace resembling pre-tightening, but none of the monitored...