Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cspc-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:229:1" rel="noopener">CSPC Pharmaceutical Group (1093 HK)</a> entered into a strategic collaboration and license agreement with AstraZeneca for the development of innovative long-acting peptide medicines.</li>
<li>CSPC will receive upfront payment of US$1.2B and will be eligible for US$3.5B in R&amp;D milestone payments, US$13.8B in sales milestone payments, plus up to double-digit royalties.</li>
<li>CSPC’s play in the weight management drug scene will surely help boost revenues, but intense competition is likely to make the party short lived.</li>
</ul>



CSPC Pharmaceutical Group (1093 HK) entered into a strategic collaboration and license agreement with AstraZeneca for the development of innovative long-acting peptide medicines.
CSPC will receive upfront payment of US$1.2B and will be eligible for US$3.5B in R&amp;D milestone payments, US$13.8B in sales milestone payments, plus up to double-digit royalties.
CSPC’s play in the weight management drug scene will surely help boost revenues, but intense competition is likely to make the party short lived.


CSPC Pharma (1093 HK): AstraZeneca Collaboration Good, Impact Might Be Short Lived Given Competition

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>Despite the recovery of financing situation, vast majority of small/ medium-sized Biotech companies are still in long and cold winter. The “wealth gap” within industry has been further widened.</li>
<li>If based on the threshold of HK$9 billion, the companies with a relatively high probability of entering the Hong Kong Stock Connect program at present include <a href="https://www.smartkarma.com/entities/carsgen-therapeutics-ltd" target="_blank" data-smartkarma-citation="entities:32213:1" rel="noopener">CARSgen </a>and <a href="https://www.smartkarma.com/entities/ascletis-pharma-inc" target="_blank" data-smartkarma-citation="entities:27265:1" rel="noopener">Ascletis</a>.</li>
<li>WuXi Bio plans to place 150 million existing shares at a price of HK$38.52 each. However, the reduction in holdings by major shareholders is usually interpreted as a negative signal.</li>
</ul>


Despite the recovery of financing situation, vast majority of small/ medium-sized Biotech companies are still in long and cold winter. The “wealth gap” within industry has been further widened.
If based on the threshold of HK$9 billion, the companies with a relatively high probability of entering the Hong Kong Stock Connect program at present include CARSgen and Ascletis.
WuXi Bio plans to place 150 million existing shares at a price of HK$38.52 each. However, the reduction in holdings by major shareholders is usually interpreted as a negative signal.


China Healthcare Weekly (Jan.18)-Biotechs to Enter Hong Kong Stock Connect, Wuxi Biologics Placement

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>There could be 49 potential inclusions and 25 potential deletions for the Hang Seng Composite Index in March. There are more stocks that are close on market cap/liquidity.</li>
<li>A lot of the potential adds are very recently listed stocks that have a limited trading history. The low free float could lead to price spikes in the stocks.</li>
<li>There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.</li>
</ul>


There could be 49 potential inclusions and 25 potential deletions for the Hang Seng Composite Index in March. There are more stocks that are close on market cap/liquidity.
A lot of the potential adds are very recently listed stocks that have a limited trading history. The low free float could lead to price spikes in the stocks.
There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.


HSCI Index Rebalance Preview and Stock Connect (Mar 2026): Many Changes Following Huge IPO Quarter

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Dec 5th based on HKEx daily reports.</li>
<li>In the past 7 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Xiaomi (1810 HK), Cosco Shipping (1919 HK).</li>
<li>In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Xiaomi (1810 HK), Cosco Shipping (1919 HK).</li>
</ul>


We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Dec 5th based on HKEx daily reports.
In the past 7 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Xiaomi (1810 HK), Cosco Shipping (1919 HK).
In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Xiaomi (1810 HK), Cosco Shipping (1919 HK).


Hong Kong Buybacks Weekly (Dec 5th): Tencent, Xiaomi, Cosco Shipping

<ul>
<li>The 25H1 results of JD Health beat expectations. Due to the strong financial position/positive growth outlook, reasonable valuation of JD Health is P/S of 3 to 4x.</li>
<li>Ascletis announced Share Placing.If ASC30's Phase IIa data remain excellent, potential BD/licensing deal would drive valuation to HK$25bn. However, if clinical data is disappointing, valuation may fall below HK$12 billion.</li>
<li>Reasonable valuation of Hansoh is about RMB108-111 billion. So, the Placing Price of HK$36.30 per Placing Share is expensive. We think the valuation of Hansoh should be lower than BeiGene.</li>
</ul>


The 25H1 results of JD Health beat expectations. Due to the strong financial position/positive growth outlook, reasonable valuation of JD Health is P/S of 3 to 4x.
Ascletis announced Share Placing.If ASC30's Phase IIa data remain excellent, potential BD/licensing deal would drive valuation to HK$25bn. However, if clinical data is disappointing, valuation may fall below HK$12 billion.
Reasonable valuation of Hansoh is about RMB108-111 billion. So, the Placing Price of HK$36.30 per Placing Share is expensive. We think the valuation of Hansoh should be lower than BeiGene.


China Healthcare Weekly (Aug.24)-JD Health 25H1 Results, Hansoh Placement, Ascletis Pharma Placement

China

Ascletis Pharma is a fully integrated biotechnology company focused on the research, development, production, marketing, and sale of innovative pharmaceutical products. The company's marketed products include Ritonavir tablets, GANOVO®, and ASCLEVIR® for Hepatitis C, and it has a robust pipeline primarily in metabolic diseases, viral diseases, and oncology. Ascletis Pharma is headquartered in Hangzhou, China, and was founded in 2011.

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Ascletis Pharma (1672 HK)

CSPC Pharma (1093 HK): AstraZeneca Collaboration Good, Impact Might Be Short Lived Given Competition

CSPC Pharma partnered with AstraZeneca for long-acting peptide medicines, receiving substantial upfront and milestone payments. Weight loss drug...

Tina Banerjee

China Healthcare Weekly (Jan.18)-Biotechs to Enter Hong Kong Stock Connect, Wuxi Biologics Placement

We shared our views about the biotechs that would be included in Hong Kong Stock Connect. WuXi Bio's Placement is interpreted negative as its...

Xinyao (Criss) Wang

HSCI Index Rebalance Preview and Stock Connect (Mar 2026): Many Changes Following Huge IPO Quarter

There could be 74 changes for the HSCI in March. That could result in 64 changes to the Southbound Stock Connect list and also have implications...

Brian Freitas

Hong Kong Buybacks Weekly (Dec 5th): Tencent, Xiaomi, Cosco Shipping

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were Tencent (700 HK),...

Ke Yan, CFA, FRM

China Healthcare Weekly (Aug.24)-JD Health 25H1 Results, Hansoh Placement, Ascletis Pharma Placement

JD Health 25H1 strong financial position and positive growth outlook support 3-4x P/S.Ascletis' potential valuation hinges on ASC30's clinical...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

CSPC Pharma (1093 HK): AstraZeneca Collaboration Good, Impact Might Be Short Lived Given Competition

​CSPC Pharma partnered with AstraZeneca for long-acting peptide medicines, receiving substantial upfront and milestone payments. Weight loss drug...

Tina Banerjee

China Healthcare Weekly (Jan.18)-Biotechs to Enter Hong Kong Stock Connect, Wuxi Biologics Placement

We shared our views about the biotechs that would be included in Hong Kong Stock Connect. WuXi Bio's Placement is interpreted negative as its...

Xinyao (Criss) Wang

HSCI Index Rebalance Preview and Stock Connect (Mar 2026): Many Changes Following Huge IPO Quarter

There could be 74 changes for the HSCI in March. That could result in 64 changes to the Southbound Stock Connect list and also have implications...

Brian Freitas

Hong Kong Buybacks Weekly (Dec 5th): Tencent, Xiaomi, Cosco Shipping

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were Tencent (700 HK),...

Ke Yan, CFA, FRM

China Healthcare Weekly (Aug.24)-JD Health 25H1 Results, Hansoh Placement, Ascletis Pharma Placement

​JD Health 25H1 strong financial position and positive growth outlook support 3-4x P/S.Ascletis' potential valuation hinges on ASC30's clinical...

Xinyao (Criss) Wang

CSPC Pharma partnered with AstraZeneca for long-acting peptide medicines, receiving substantial upfront and milestone payments. Weight loss drug...

JD Health 25H1 strong financial position and positive growth outlook support 3-4x P/S.Ascletis' potential valuation hinges on ASC30's clinical...