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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyze the monthly Hong Kong Connect flows with our data engine.</li>
<li>We tabulate the top stocks by inflows, outflows, and holding by mainland investors.</li>
<li>We highlight inflows into ICBC,  CCB, Meituan, Innovent Biologics, Xpeng and outflows from Petrochina.</li>
</ul>


We analyze the monthly Hong Kong Connect flows with our data engine.
We tabulate the top stocks by inflows, outflows, and holding by mainland investors.
We highlight inflows into ICBC,  CCB, Meituan, Innovent Biologics, Xpeng and outflows from Petrochina.


Hong Kong Connect Flows: $7.3bn of Inflows in September

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

Equity Bottom-Up

<ul>
<li>Fee income is down 33% in the most recent quarter which may have prompted the bank to realize gains up 63% in the period to preserve profit growth</li>
<li>Quality of earnings is not strong, with more than half of the bank's pre-tax income delta driven by realized and unrealized gains, with credit cost decline the other key driver</li>
<li>Loss NPLs are now 26% of total NPLs, from 11% a few year ago, suggesting worsening credit metrics. Declining credit costs seem at odds with economy, NPL distribution.</li>
</ul>


Fee income is down 33% in the most recent quarter which may have prompted the bank to realize gains up 63% in the period to preserve profit growth
Quality of earnings is not strong, with more than half of the bank's pre-tax income delta driven by realized and unrealized gains, with credit cost decline the other key driver
Loss NPLs are now 26% of total NPLs, from 11% a few year ago, suggesting worsening credit metrics. Declining credit costs seem at odds with economy, NPL distribution.


Bank of Jiangsu - Fees -33%, Gains +64% Credit Costs -19%, Does Not Suggest Quality Earnings

Financial sector veteran, KT Capital Group

Fern Wang

Financial sector veteran

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

<ul>
<li>PBOC and NAFR included Bank of Nanjing in its latest D-SIBs list, increasing the total D-SIBs to 20</li>
<li>13 benchmarks were used to assess the D-SIBs using 1H23 data</li>
<li>All D-SIBs fulfilled their additional capital requirements as of 1H23, but the buffer is wearing thin for some especially in view of the difficult economic environment </li>
</ul>


PBOC and NAFR included Bank of Nanjing in its latest D-SIBs list, increasing the total D-SIBs to 20
13 benchmarks were used to assess the D-SIBs using 1H23 data
All D-SIBs fulfilled their additional capital requirements as of 1H23, but the buffer is wearing thin for some especially in view of the difficult economic environment 


China's New List Of D-SIBs' Capital Buffer Is Wearing Thin For Some

Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

Foxconn Industrial Internet / Index Rebalance

<ul>
<li>SSE 50 and SSE180, respectively, aim to represent the performance of the 50 and 180 largest and most liquid A-share stocks listed on Shanghai Stock Exchange.</li>
<li>In this insight, we take a look at our expectations for potential index changes for SSE 50 and SSE 180 during the December 2023 Rebalance event.</li>
<li>I currently expect 5 ADDs/DELETEs for the SSE 50 index 18 ADDs/DELs for the SSE 180 index. Some of these names are different from my previous expectations.</li>
</ul>


SSE 50 and SSE180, respectively, aim to represent the performance of the 50 and 180 largest and most liquid A-share stocks listed on Shanghai Stock Exchange.
In this insight, we take a look at our expectations for potential index changes for SSE 50 and SSE 180 during the December 2023 Rebalance event.
I currently expect 5 ADDs/DELETEs for the SSE 50 index 18 ADDs/DELs for the SSE 180 index. Some of these names are different from my previous expectations.


Quiddity Leaderboard SSE50/180 Dec 23: US$937mn One-Way; Some Changes to Expectations

<ul>
<li>1Q23 shows strong Value Of New Business (VONB), not sure of profit flow through</li>
<li>Comparative to 1H22 is easy vs loss of USD556m in the period, but risk to downside</li>
<li>Despite, stock buybacks, increased dividends market cap down 34% since peak this year</li>
</ul>


1Q23 shows strong Value Of New Business (VONB), not sure of profit flow through
Comparative to 1H22 is easy vs loss of USD556m in the period, but risk to downside
Despite, stock buybacks, increased dividends market cap down 34% since peak this year


AIA - Results 24 Aug, Cratering Mkt Cap Suggests Malaise, Earnings Base May Be Structurally Lower

China

Bank of China Limited provides banking services. The Company offers deposits, loans, foreign currency transaction, fund settlement, and other services. Bank of China provides its services to individuals, enterprises, and other clients.

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Bank of China (601988 CH)

Hong Kong Connect Flows: $7.3bn of Inflows in September

We analyzed the Hong Kong Connect Scheme for September and highlight flows for ICBC, CCB, Meituan, Innovent Biologics, Xpeng and Petrochina.

Ke Yan, CFA, FRM

Bank of Jiangsu - Fees -33%, Gains +64% Credit Costs -19%, Does Not Suggest Quality Earnings

Dramatically lower fee income, far higher realized gains, and lower credit costs are driving net profit growth, and do not suggest a positive or...

Daniel Tabbush

China's New List Of D-SIBs' Capital Buffer Is Wearing Thin For Some

China's total D-SIBs increased to 20 with addition of BONJ. All banks on the list complied with the additional capital requirements as end of 1H23...

Fern Wang

Quiddity Leaderboard SSE50/180 Dec 23: US$937mn One-Way; Some Changes to Expectations

My latest estimates for one-way flows for the SSE 50 and SSE 180 are roughly US$678mn and US$259mn respectively. Most of these names have fairly...

Janaghan Jeyakumar, CFA

AIA - Results 24 Aug, Cratering Mkt Cap Suggests Malaise, Earnings Base May Be Structurally Lower

August 24 will see 1H23 earnings release, comparative YoY easy due to losses 1H22, but seems like earnings base is structurally lower. HK, CH...

Daniel Tabbush

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