Equity Research in HK and Mainland China

Li Tang

Thematic (Sector/Industry)

Vice Premier Han Zheng stressed the safe and stable supply of electricity for this winter and next spring through better planning and coordination on October 19. The Vice Premier emphasized expanding coal output and curbing coal hoarding and speculation.

Vice Premier Han Zheng stressed the safe and stable supply of electricity for this winter and next spring through better planning and coordination on October 19. The Vice Premier emphasized expanding coal output and curbing coal hoarding and speculation.

NDRC Studies Measures to Prevent Rising Coal Prices

Premier Li Keqiang emphasised ensuring stable energy supply and security and strengthening support for green development of energy sectors at the national energy committee meeting.
Premier Li stated some regions had set overly ambitious and unrealistic targets for carbon peaking and carbon neutrality, while some industries failed to make solid energy-saving efforts in high-consuming sectors to prepare for this.

Premier Li Keqiang emphasised ensuring stable energy supply and security and strengthening support for green development of energy sectors at the national energy committee meeting.
Premier Li stated some regions had set overly ambitious and unrealistic targets for carbon peaking and carbon neutrality, while some industries failed to make solid energy-saving efforts in high-consuming sectors to prepare for this.

Premier Li Keqiang Emphasises Energy Security and Stable Energy Supply

The State Council issued guideline on promoting standardized development for high-quality growth and modernization and met to address power supply shortages.The guideline also highlighted establishing carbon peak and carbon neutral standards, accelerating the energy-saving standards, setting stricter energy consumption quotas for some key products and equipment, expanding the coverage of energy consumption quota to reduce emissions.
Renewable energy operators or power operators with renewable energy capacity likely to benefit   after the State Council relaxed the ceiling on market-based power price increase from 10% to 20%. We recommend <a href="https://www.smartkarma.com/entities/guangdong-elec-power-dev-a" target="_blank" data-smartkarma-citation="entities:25417:1" rel="noopener">Guangdong Elec Power Dev-A (000539 CH)</a>, and <a href="https://www.smartkarma.com/entities/huaneng-power-intl-inc-h" target="_blank" data-smartkarma-citation="entities:28:1" rel="noopener">Huaneng Power Intl Inc H (902 HK)</a> with room to increase after other constituents of his investment theme having already experienced rapid stock rises.

The State Council issued guideline on promoting standardized development for high-quality growth and modernization and met to address power supply shortages.The guideline also highlighted establishing carbon peak and carbon neutral standards, accelerating the energy-saving standards, setting stricter energy consumption quotas for some key products and equipment, expanding the coverage of energy consumption quota to reduce emissions.
Renewable energy operators or power operators with renewable energy capacity likely to benefit   after the State Council relaxed the ceiling on market-based power price increase from 10% to 20%. We recommend Guangdong Elec Power Dev-A (000539 CH), and Huaneng Power Intl Inc H (902 HK) with room to increase after other constituents of his investment theme having already experienced rapid stock rises.

State Council Issues Supportive Measures to Boost Power Supply

CBIRC issued a circular on strengthening financial support for coal-fired thermal power, coal, iron and steel and non-ferrous metals to ensure supplies and stabilise the commodity market.
China will allow coal-fired power prices to fluctuate by up to 20% from base levels, an increase on previously limits, to prevent high energy consumption, reported by Reuters, citing a meeting of the State Council.China had previously allowed coal-fired power prices to rise by 10% and fall by 15% from base levels.Local governments set on-grid power tariffs based on coal prices, prevuois  several provinces including Hunan Inner Mongolia and Ningxia have removed the 10% fluctuation limit from the local benchmark on-grid tariffs, due to a surge in coal prices.
Despite tariff hikes not being enough to offset coal price rises, the rapid extension of tariff hikes in provinces around the country should benefit major IPPs <a href="https://www.smartkarma.com/entities/huaneng-power-intl-inc-h" target="_blank" data-smartkarma-citation="entities:28:1" rel="noopener">Huaneng Power Intl Inc H (902 HK)</a><a href="https://www.smartkarma.com/entities/datang-international-power-generation-company-h" target="_blank" data-smartkarma-citation="entities:3664:1" rel="noopener">Datang International (991 HK)</a><a href="https://www.smartkarma.com/entities/huadian-power-intl-corp-h" target="_blank" data-smartkarma-citation="entities:2506:1" rel="noopener">Huadian Power Intl Corp H (1071 HK)</a>

CBIRC issued a circular on strengthening financial support for coal-fired thermal power, coal, iron and steel and non-ferrous metals to ensure supplies and stabilise the commodity market.
China will allow coal-fired power prices to fluctuate by up to 20% from base levels, an increase on previously limits, to prevent high energy consumption, reported by Reuters, citing a meeting of the State Council.China had previously allowed coal-fired power prices to rise by 10% and fall by 15% from base levels.Local governments set on-grid power tariffs based on coal prices, prevuois  several provinces including Hunan Inner Mongolia and Ningxia have removed the 10% fluctuation limit from the local benchmark on-grid tariffs, due to a surge in coal prices.
Despite tariff hikes not being enough to offset coal price rises, the rapid extension of tariff hikes in provinces around the country should benefit major IPPs Huaneng Power Intl Inc H (902 HK)Datang International (991 HK)Huadian Power Intl Corp H (1071 HK)

CBRIC Stresses Strengthening Financing Support for Coal, Coal-Fired Power

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

In our weekly HK Connect Flow series, we aim to highlight key stocks and sectors which the mainland investors traded via the southbound Hong Kong Connect, as analyzed by our proprietary data engine.Since the opening of Hong Kong Connect scheme in 2014, southbound Chinese money started to play an increasingly important role in the Hong Kong stock market. In 2020, Southbound trading accounted for 22% of the equity market ADT. We split the stocks eligible for the Hong Kong Connect trade into three groups: HSCEI component stocks, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.In this insight, we will highlight inflows into Tencent Holdings Limited (700 HK), Meituan (3690 HK), Cnooc Limited (883 HK), China Resources Power Holdings Company Limited (836 HK), Hygeia Healthcare Holdings Co., Limited (6078 HK).

In our weekly HK Connect Flow series, we aim to highlight key stocks and sectors which the mainland investors traded via the southbound Hong Kong Connect, as analyzed by our proprietary data engine.Since the opening of Hong Kong Connect scheme in 2014, southbound Chinese money started to play an increasingly important role in the Hong Kong stock market. In 2020, Southbound trading accounted for 22% of the equity market ADT. We split the stocks eligible for the Hong Kong Connect trade into three groups: HSCEI component stocks, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.In this insight, we will highlight inflows into Tencent Holdings Limited (700 HK), Meituan (3690 HK), Cnooc Limited (883 HK), China Resources Power Holdings Company Limited (836 HK), Hygeia Healthcare Holdings Co., Limited (6078 HK).

Hong Kong Connect Flows: What Did Chinese Buy Before National Day

China

Huaneng Power International, Inc. develops, constructs, owns and operates coal-fired power plants throughout China. It also builds gas-fired, hydroelectric and wind power generation in China and owns Tuas Power which controls power generation facilities in Singapore.

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Huaneng Power Intl Inc H (902 HK)

NDRC Studies Measures to Prevent Rising Coal Prices

Vice Premier Han Zheng highlighted expanding the floating range of coal-fired electricity prices to alleviate heavy loss-making at coal-fired IPPs...

Li Tang

Premier Li Keqiang Emphasises Energy Security and Stable Energy Supply

Premier stressed rectifying one-size-fits-all approach in shutting down energy-intensive projects.This provides further signs of policymakers...

Li Tang

State Council Issues Supportive Measures to Boost Power Supply

Renewable energy operators or power operators with renewable energy capacity likely to benefiting after the State Council relaxed the ceiling on...

Li Tang

CBRIC Stresses Strengthening Financing Support for Coal, Coal-Fired Power

Despite tariff hikes not being enough to offset coal price rises, the rapid extension of tariff hikes in provinces around the country should...

Li Tang

Hong Kong Connect Flows: What Did Chinese Buy Before National Day

We will highlight weekly Southbound Connect inflows into Tencent, Meituan, Cnooc, China Resources Power, Hygeia Healthcare.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)