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>Tencent and NetEase's stock prices plunged after the release of the new law about online game.</li>
<li>China Passenger Car Association expects NEV will grow by 37% for 2023.</li>
<li>NIO got US2.2 billion investment from CYVN Holdings based in Abu Dahbi.</li>
</ul>


Tencent and NetEase's stock prices plunged after the release of the new law about online game.
China Passenger Car Association expects NEV will grow by 37% for 2023.
NIO got US2.2 billion investment from CYVN Holdings based in Abu Dahbi.


China Consumption Weekly (25 Dec 2023): Tencent, NetEase, NIO, Xpeng, Alibaba, Meituan, Douyin

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>700 HK/NTES: Tencent's &lt;Dream Star&gt; achieved excellent results upon its launch.(+/-)</li>
<li>Temu/Shein/AMZN: Government newspaper reports that Temu merchants are developing their own brands (+/-/-)</li>
<li>3690 HK: It is rumored that Douyin will acquire Eleme with an offer price of US$7bn(-)</li>
</ul>


700 HK/NTES: Tencent's &lt;Dream Star&gt; achieved excellent results upon its launch.(+/-)
Temu/Shein/AMZN: Government newspaper reports that Temu merchants are developing their own brands (+/-/-)
3690 HK: It is rumored that Douyin will acquire Eleme with an offer price of US$7bn(-)


[Blue Lotus Daily - TMT Update]:NTES/700 HK/Temu/PDD/Shein/AMZN/3690 HK/BABA/JD

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>China has tightened restrictions on online games again driving significant falls in names such as Tencent and NetEase. </li>
<li>While the move may surprise some given prior moves to restart approvals in our view the overall trend of regulation is not especially surprising. </li>
<li>In particular, the tightened regulations appear to target the most important drivers of mobile gaming profitability and today’s large drops may actually be underreactions.</li>
</ul>


China has tightened restrictions on online games again driving significant falls in names such as Tencent and NetEase. 
While the move may surprise some given prior moves to restart approvals in our view the overall trend of regulation is not especially surprising. 
In particular, the tightened regulations appear to target the most important drivers of mobile gaming profitability and today’s large drops may actually be underreactions.


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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Dec 8th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short changes in JD, Microport, Wuxi Apptec, AIA.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Dec 8th.
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short changes in JD, Microport, Wuxi Apptec, AIA.


HK Short Interest Weekly: JD, Microport, Wuxi Apptec, AIA

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>China online games market revenue grew by 13.9% YoY to RMB303.0bn in 2023, representing a 2-year CAGR of 1.1%, according to GPC.</li><li>Online games market revenue recorded robust growth of 34.4% YoY in 2H23, underpinned by the launch of several blockbuster titles and the recovery of user paying willingness.</li><li>Despite the flattish user growth, ARPU was up 13% YoY to RMB453 in 2023. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

China online games market revenue grew by 13.9% YoY to RMB303.0bn in 2023, representing a 2-year CAGR of 1.1%, according to GPC.Online games market revenue recorded robust growth of 34.4% YoY in 2H23, underpinned by the launch of several blockbuster titles and the recovery of user paying willingness.Despite the flattish user growth, ARPU was up 13% YoY to RMB453 in 2023. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Internet – 2023 Online Games Recap: Start of a New Growth Phase

China

NetEase, Inc. is an Internet technology company that develops applications, services and other Internet technologies in China. The Company's core businesses consist of email service, web portal and online entertainment, including online gaming services. NetEase also offers online advertising, search, mobile applications and e-commerce.

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NetEase Inc (NTES US)

China Consumption Weekly (25 Dec 2023): Tencent, NetEase, NIO, Xpeng, Alibaba, Meituan, Douyin

China Passenger Car Association expects NEV will grow by 37% for 2023. NIO got US2.2 billion investment. Alibaba reduced shareholdings on Xpeng ...

Ming Lu

[Blue Lotus Daily - TMT Update]:NTES/700 HK/Temu/PDD/Shein/AMZN/3690 HK/BABA/JD

Tencent's <dream star> achieved excellent results upon its launch; Temu merchants developing own brands; Douyin rumored to acquire Eleme for $7bn.<...

Blue Lotus Research Institute

China Gaming Restrictions 2.0

China has tightened restrictions on online games and the tightened regulations appear to target the most important drivers of mobile gaming...

Mio Kato

HK Short Interest Weekly: JD, Microport, Wuxi Apptec, AIA

We analyzed the latest HK SFC report for aggregate short position as of Dec 8th and highlight short interest changes in Jd, Tracker Fund,...

Ke Yan, CFA, FRM

China Internet – 2023 Online Games Recap: Start of a New Growth Phase

China online games market revenue grew by 13.9% YoY to RMB303.0bn in 2023, representing a 2-year CAGR of 1.1%, according to GPC.

CMB International

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