Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).</li>
<li>In this insight, we take a look at the December 2026 index capping flows.</li>
<li>We have also presented our index change expectations for the next semiannual index review which will take place in March 2027.</li>
</ul>


The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
In this insight, we take a look at the December 2026 index capping flows.
We have also presented our index change expectations for the next semiannual index review which will take place in March 2027.


Quiddity Leaderboard HSIII Dec26/Mar27: Two ADDs/DELs Expected in Mar27, Third Change Possible

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>The Hong Kong market continues to trade sideways, with pockets of AI-themed stocks surging.  IPO activity remains robust in the technology sector.</li>
<li>Growth and momentum factors have underperformed so far in 2026, as stagnation in mainland domestic consumption is reflected in the underperformance of the consumer discretionary and staples sectors.</li>
<li>
<a href="https://www.smartkarma.com/entities/baidu-inc-class-a" target="_blank" data-smartkarma-citation="entities:32212:1" rel="noopener">Baidu (9888 HK)</a> received a BUY rating from Deutsche Bank with a target price of $186.  The company's cloud infrastructure revenue rose 79% in 1Q26.
</li>
</ul>


The Hong Kong market continues to trade sideways, with pockets of AI-themed stocks surging.  IPO activity remains robust in the technology sector.
Growth and momentum factors have underperformed so far in 2026, as stagnation in mainland domestic consumption is reflected in the underperformance of the consumer discretionary and staples sectors.

Baidu (9888 HK) received a BUY rating from Deutsche Bank with a target price of $186.  The company's cloud infrastructure revenue rose 79% in 1Q26.



BUY/SELL/HOLD: Hong Kong Market Update (5/27/26)

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

<ul><li>U.S. President Donald Trump’s summit with his Chinese counterpart Xi Jinping in Beijing last week highlighted how deeply intertwined major American companies remain with the world’s second-largest economy despite years of geopolitical and trade tensions.</li><li>The yuan is now in what many market analysts see as a sustained period of appreciation against the U.S. dollar, raising fundamental questions about how far it will go, how fast, and what that means for China’s exporters and the broader global economy.</li><li>Hong Kong’s convertible bond market is having its busiest year on record, with companies raising $14.2 billion so far this year as investors pour into equity-linked debt despite low or negative yields, according to investment bank UBS.</li></ul>

U.S. President Donald Trump’s summit with his Chinese counterpart Xi Jinping in Beijing last week highlighted how deeply intertwined major American companies remain with the world’s second-largest economy despite years of geopolitical and trade tensions.The yuan is now in what many market analysts see as a sustained period of appreciation against the U.S. dollar, raising fundamental questions about how far it will go, how fast, and what that means for China’s exporters and the broader global economy.Hong Kong’s convertible bond market is having its busiest year on record, with companies raising $14.2 billion so far this year as investors pour into equity-linked debt despite low or negative yields, according to investment bank UBS.

CX Daily: Trump’s China Trip Opens Doors for U.S. Business 

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

Shenzhen Transsion Holdings / Equity Capital Markets

<ul>
<li>The H-share IPO of <a href="https://www.smartkarma.com/entities/shenzhen-transsion-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:58740:1" rel="noopener">Shenzhen Transsion Holdings (2636 HK)</a>, a smart device and mobile Internet service provider, appears to provide some upside at the maximum IPO price.</li>
<li>Its earnings have recovered sharply in 1H26, and for FY25-28F, it is expected to achieve an EPS CAGR of 30.2% as it expands its market and products.</li>
<li>We value it at 12.5x FY26 PER, 10% discount to <a href="https://www.smartkarma.com/entities/tcl-electronics-holdings-limited" target="_blank" data-smartkarma-citation="entities:15654:1" rel="noopener">TCL Electronics (1070 HK)</a>, implying a fair price of HK$43.73, or 12.7% upside.  </li>
</ul>


The H-share IPO of Shenzhen Transsion Holdings (2636 HK), a smart device and mobile Internet service provider, appears to provide some upside at the maximum IPO price.
Its earnings have recovered sharply in 1H26, and for FY25-28F, it is expected to achieve an EPS CAGR of 30.2% as it expands its market and products.
We value it at 12.5x FY26 PER, 10% discount to TCL Electronics (1070 HK), implying a fair price of HK$43.73, or 12.7% upside.  


Shenzhen Transsion (2636 HK) IPO: Still Some Upside

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>Shenzhen Transsion launched Hongkong IPO to raise HK$ 3.4B. They are smart device and mobile Internet service provider, specializing in design, R&amp;D, manufacturing, sales and brand management of smart devices.</li>
<li>Shenzhen Transsion intends to use the proceeds for research and development, marketing, brand building, strengthen their mobile Internet services and &amp; IoT products and for general corporate purpose.</li>
<li>Shenzhen Transsion’s strong market presence (specially emerging markets), R&amp;D, product portfolio, brand recognition, coupled with a more stable demand outlook does make this issue fundamentally worth for investors.</li>
</ul>


Shenzhen Transsion launched Hongkong IPO to raise HK$ 3.4B. They are smart device and mobile Internet service provider, specializing in design, R&amp;D, manufacturing, sales and brand management of smart devices.
Shenzhen Transsion intends to use the proceeds for research and development, marketing, brand building, strengthen their mobile Internet services and &amp; IoT products and for general corporate purpose.
Shenzhen Transsion’s strong market presence (specially emerging markets), R&amp;D, product portfolio, brand recognition, coupled with a more stable demand outlook does make this issue fundamentally worth for investors.


Shenzhen Transsion Holdings IPO: Emerging Markets Hold The Key

China

Xiaomi is a Chinese multinational corporation specializing in consumer electronics and technology, primarily known for its smartphones (Mi, Redmi, POCO series) and a wide range of AIoT (Artificial Intelligence of Things) devices, including smart home products, wearables, and laptops. The company also provides internet services, including its MIUI operating system. Xiaomi was founded in 2010 and is headquartered in Beijing, China.

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Xiaomi (1810 HK)

Quiddity Leaderboard HSIII Dec26/Mar27: Two ADDs/DELs Expected in Mar27, Third Change Possible

We continue to see two ADDs/DELs for HSIII in March 2027. One more potential ADD remains close to the addition border and if it outperforms other...

Janaghan Jeyakumar, CFA

BUY/SELL/HOLD: Hong Kong Market Update (5/27/26)

The Hong Kong market continues to trade sideways, with pockets of AI-themed stocks surging. IPO activity remains robust in the technology sector.

David Mudd

CX Daily: Trump’s China Trip Opens Doors for U.S. Business

U.S. President Donald Trump’s summit with his Chinese counterpart Xi Jinping in Beijing last week highlighted how deeply intertwined major American...

Caixin Global

Shenzhen Transsion (2636 HK) IPO: Still Some Upside

Shenzhen Transsion's IPO is priced for an 12.7% upside. 1H26 earnings have recovered, and the 3-year EPS CAGR will reach 30.2%. Conservative...

Osbert Tang, CFA

Shenzhen Transsion Holdings IPO: Emerging Markets Hold The Key

Shenzhen Transsion launched HK IPO to raise HK$ 3.4B for R&D, marketing etc. Strong market presence, R&D, brand recognition and the demand outlook...

Tina Banerjee

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