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 analyse the changes of A-H premium on 189 stocks over the last week. The average A-H premium was 85.5% as of Jul 3rd.</li>
<li>The average A-H premium changed by 0.4ppt week-on-week, led by consumer staples, health care, energy and offset by utilities, consumer discretionary, materials.</li>
<li>We highlight weekly changes in A-H premium for China Longyuan, Psbc, Cicc, Yangtze Optical Fibre And-H, Midea, Ceb Bank.</li>
</ul>


We analyse the changes of A-H premium on 189 stocks over the last week. The average A-H premium was 85.5% as of Jul 3rd.
The average A-H premium changed by 0.4ppt week-on-week, led by consumer staples, health care, energy and offset by utilities, consumer discretionary, materials.
We highlight weekly changes in A-H premium for China Longyuan, Psbc, Cicc, Yangtze Optical Fibre And-H, Midea, Ceb Bank.


A-H Premium Weekly (Jul 3rd): China Longyuan, Psbc, Cicc, Yangtze Optical Fibre And-H, Midea

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Jun 26th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period.</li>
<li>We highlight short changes in Zijin Mining, Kingboard Laminates, Tencent, Alibaba, AIA, Sunny Optical, Vgt, Wuxi Xdc Cayman, Montage Tech, Guming.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Jun 26th.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short changes in Zijin Mining, Kingboard Laminates, Tencent, Alibaba, AIA, Sunny Optical, Vgt, Wuxi Xdc Cayman, Montage Tech, Guming.


HK Short Interest Weekly: Zijin Mining, Kingboard Laminates, Tencent, Alibaba, AIA, Sunny Optical

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

1. Industry viewpoints:<ul>
<li>In response to the rising incidence of infertility in recent years, the Central Committee of the China Democratic League plans to submit a proposal during the Two Sessions in March this year.</li>
<li>China's market for orphan drugs has huge potential and still remains untapped.</li>
<li>At present, in the domestic market of neurointerventional devices, multinational enterprises occupy the dominant position, and the overall scale of domestic enterprises is not large. The main reason is their product development strategy.</li>
</ul>2. Company news: News about the new acquisition and updated progress of new drugs from <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 HK)</a>, <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a>, <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a> and <a href="https://www.smartkarma.com/entities/akeso-biopharma-inc" target="_blank" data-smartkarma-citation="entities:28830:1" rel="noopener">Akeso Biopharma Inc (9926 HK)</a>. 3. Market review:Last week, stock price for healthcare sector in A share decreased 2.1%, while CSI 300 decreased 1.39% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
In response to the rising incidence of infertility in recent years, the Central Committee of the China Democratic League plans to submit a proposal during the Two Sessions in March this year.
China's market for orphan drugs has huge potential and still remains untapped.
At present, in the domestic market of neurointerventional devices, multinational enterprises occupy the dominant position, and the overall scale of domestic enterprises is not large. The main reason is their product development strategy.
2. Company news: News about the new acquisition and updated progress of new drugs from WuXi AppTec Co. Ltd. (2359 HK), Innovent Biologics Inc (1801 HK), BeiGene Ltd (6160 HK) and Akeso Biopharma Inc (9926 HK). 3. Market review:Last week, stock price for healthcare sector in A share decreased 2.1%, while CSI 300 decreased 1.39% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

The presentation for Webinar: 2021 High Conviction - Investment Opportunities in China Healthcare Industry would mainly include the following parts:<ul>
<li>Stock performance review</li>
<li>Market review</li>
<li>Logic behind the rally of the stock price </li>
<li>Investment trend in 2021</li>
<li>Q&amp;A</li>
</ul>

The presentation for Webinar: 2021 High Conviction - Investment Opportunities in China Healthcare Industry would mainly include the following parts:
Stock performance review
Market review
Logic behind the rally of the stock price 
Investment trend in 2021
Q&amp;A


Presentation for Webinar: 2021 High Conviction-Investment Opportunities in China Healthcare Industry

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

MSCI Emerging Markets Index / Technical Analysis

We are no longer recommending an overweight to China (MSCI China) due to recent RS deterioration. Our favorite countries remain Taiwan (TAIEX) and India (SENSEX), while Brazil (Bovespa) and South Korea (KOSPI) display improving price and RS trends -- add exposure. MSCI EM Technology and Materials are our top two Sector overweights. Additionally, the EM Health Care Sector shows bullish price and RS inflections, making it a timely Sector to add exposure to at current levels.

We are no longer recommending an overweight to China (MSCI China) due to recent RS deterioration. Our favorite countries remain Taiwan (TAIEX) and India (SENSEX), while Brazil (Bovespa) and South Korea (KOSPI) display improving price and RS trends -- add exposure. MSCI EM Technology and Materials are our top two Sector overweights. Additionally, the EM Health Care Sector shows bullish price and RS inflections, making it a timely Sector to add exposure to at current levels.

Overweight EM Vs. EAFE; Dollar Weakness Continues

China

WuXi AppTec is a global contract research, development, and manufacturing organization (CRDMO) for the pharmaceutical and life sciences industries. It provides integrated, end-to-end services including chemistry drug CRDMO, biology discovery, preclinical testing, and clinical research services for various therapeutic modalities. The company was founded in 2000 and is headquartered in Shanghai, China.

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WuXi AppTec (2359 HK)

A-H Premium Weekly (Jul 3rd): China Longyuan, Psbc, Cicc, Yangtze Optical Fibre And-H, Midea

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Longyuan, Psbc, Cicc, Yangtze Optical Fibre And-H,...

Ke Yan, CFA, FRM

HK Short Interest Weekly: Zijin Mining, Kingboard Laminates, Tencent, Alibaba, AIA, Sunny Optical

We analyzed the latest HK SFC report for aggregate short position as of Jun 26th and highlight short interest changes in Zijin Mining (2899 HK),...

Ke Yan, CFA, FRM

China Healthcare Weekly (Mar.5)

The article analyzed a new proposal about China infertility, domestic market for orphan drugs, neurointerventional devices, news about WuXi AppTec,...

Xinyao (Criss) Wang

Presentation for Webinar: 2021 High Conviction-Investment Opportunities in China Healthcare Industry

This article summarized the content for the presentation in Smartkarma Webinar about the topic "2021 High Conviction - Investment opportunities in...

Xinyao (Criss) Wang

Overweight EM Vs. EAFE; Dollar Weakness Continues

Our favorite countries remain Taiwan (TAIEX) and India (SENSEX), while Brazil (Bovespa) and South Korea (KOSPI) display improving price and RS...

Vermilion Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)