HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>The HSI has already recovered to 2.2% above the pre-"reciprocal tariff" level, and the top 10 best-performing constituents have registered an average return of 15.6%.</li>
<li>Despite so, there are still 40 under-performing stocks, with 32 of them remain in the negative zone with an average of 4.8% loss. </li>
<li>Among them, <a href="https://www.smartkarma.com/entities/zto-express-cayman-inc" target="_blank" data-smartkarma-citation="entities:33488:1" rel="noopener">ZTO Express Cayman (2057 HK)</a>, <a href="https://www.smartkarma.com/entities/budweiser-brewing-co-apac-ltd" target="_blank" data-smartkarma-citation="entities:28077:1" rel="noopener">Budweiser Brewing APAC (1876 HK)</a>, <a href="https://www.smartkarma.com/entities/byd-electronic-international-co-ltd" target="_blank" data-smartkarma-citation="entities:1927:1" rel="noopener">BYD Electronics (285 HK)</a>, and <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> look well-positioned to catch up.</li>
</ul>


The HSI has already recovered to 2.2% above the pre-"reciprocal tariff" level, and the top 10 best-performing constituents have registered an average return of 15.6%.
Despite so, there are still 40 under-performing stocks, with 32 of them remain in the negative zone with an average of 4.8% loss. 
Among them, ZTO Express Cayman (2057 HK), Budweiser Brewing APAC (1876 HK), BYD Electronics (285 HK), and Meituan (3690 HK) look well-positioned to catch up.


HK Strategy: What Are Some of the HSI Laggards to Pick Up?

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>Skyworth’s monthly update confirms there has been "no substantial update since the Monthly Update Announcement dated 17 August 2026" and that it is "still preparing the listing application." </li>
<li>Skyworth is behind on every precedent's filing milestone; the lack of proof of filing Skyworth Photovoltaic’s application (AP) is now the standout red flag.</li>
<li>The delay could reflect unusually complex documentation or a sector policy risk resulting in informal regulatory discouragement before formal filing. Caution is warranted until the AP is filed. </li>
</ul>


Skyworth’s monthly update confirms there has been "no substantial update since the Monthly Update Announcement dated 17 August 2026" and that it is "still preparing the listing application." 
Skyworth is behind on every precedent's filing milestone; the lack of proof of filing Skyworth Photovoltaic’s application (AP) is now the standout red flag.
The delay could reflect unusually complex documentation or a sector policy risk resulting in informal regulatory discouragement before formal filing. Caution is warranted until the AP is filed. 


Skyworth (751 HK): Behind Every Precedent's Filing Clock

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>On the 20th January 2026, <a href="https://www.smartkarma.com/entities/skyworth-group-limited" target="_blank" data-smartkarma-citation="entities:10941:1" rel="noopener">Skyworth (751 HK)</a> announced an inter-conditional Scheme and concurrent listing of 70%-held Skyworth Photovoltaic (Skyworth PV) on the HKEx, by way of introduction.</li>
<li>The <a href="https://www.smartkarma.com/entities/dongfeng-motor-group-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:910:1" rel="noopener">Dongfeng (489 HK)</a>/<a href="https://www.smartkarma.com/entities/voyah-automotive-technology-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:47617:1" rel="noopener">Voyah (7489 HK)</a>-like structure appeared fair. The challenge was that Skyworth PV's key comps were/are A-share listed, and Skyworth PV should trade at an H-share discount.</li>
<li>Currently trading right at the Scheme cash consideration, assigning zero value for Skyworth PV. Skyworth's share price is 22% below the pre-spin-off announcement price.  I can see this trending lower.</li>
</ul>


On the 20th January 2026, Skyworth (751 HK) announced an inter-conditional Scheme and concurrent listing of 70%-held Skyworth Photovoltaic (Skyworth PV) on the HKEx, by way of introduction.
The Dongfeng (489 HK)/Voyah (7489 HK)-like structure appeared fair. The challenge was that Skyworth PV's key comps were/are A-share listed, and Skyworth PV should trade at an H-share discount.
Currently trading right at the Scheme cash consideration, assigning zero value for Skyworth PV. Skyworth's share price is 22% below the pre-spin-off announcement price.  I can see this trending lower.


Skyworth (751 HK) Gives Up Spin-Off Gains. And Then Some

<ul>
<li>Surging by 19.4% since the trough on 19-Apr, the HSI is now only 3.2% shy away from the psychological resistance of 20,000. We look at some potential profit-taking names. </li>
<li>Heavy-Weights like <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> and <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> are among the best-performing ones YTD and since the trough. Hence they are more exposed, particularly for Meituan.</li>
<li>
<a href="https://www.smartkarma.com/entities/haidilao-international-holding" target="_blank" data-smartkarma-citation="entities:27044:1" rel="noopener">Haidilao International Holding (6862 HK)</a> and <a href="https://www.smartkarma.com/entities/enn-energy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:316:1" rel="noopener">ENN Energy (2688 HK)</a> are another two on the list. Their valuations are no longer inexpensive relative to 3-year earnings CAGR.</li>
</ul>


Surging by 19.4% since the trough on 19-Apr, the HSI is now only 3.2% shy away from the psychological resistance of 20,000. We look at some potential profit-taking names. 
Heavy-Weights like Meituan (3690 HK) and Tencent (700 HK) are among the best-performing ones YTD and since the trough. Hence they are more exposed, particularly for Meituan.

Haidilao International Holding (6862 HK) and ENN Energy (2688 HK) are another two on the list. Their valuations are no longer inexpensive relative to 3-year earnings CAGR.


HK Strategy: To Sell or Not to Sell, that Is the Question

<ul>
<li>Many have missed out on the 14%, or 2,300 points, rally of the HSI in the last 9 trading days. There are still several stocks that look interesting now.</li>
<li>
<a href="https://www.smartkarma.com/entities/li-auto-inc-3dbe6187-544f-40dd-b9f9-72fba9c0110e" target="_blank" data-smartkarma-citation="entities:33811:1" rel="noopener">Li Auto (2015 HK)</a>, <a href="https://www.smartkarma.com/entities/link-reit" target="_blank" data-smartkarma-citation="entities:872:1" rel="noopener">Link REIT (823 HK)</a>, <a href="https://www.smartkarma.com/entities/china-mengniu-dairy-co" target="_blank" data-smartkarma-citation="entities:354:1" rel="noopener">China Mengniu Dairy Co (2319 HK)</a>, <a href="https://www.smartkarma.com/entities/hang-lung-properties-ltd" target="_blank" data-smartkarma-citation="entities:49:1" rel="noopener">Hang Lung Properties (101 HK)</a> and <a href="https://www.smartkarma.com/entities/galaxy-entertainment-group-limited" target="_blank" data-smartkarma-citation="entities:806:1" rel="noopener">Galaxy Entertainment Group (27 HK)</a> are massive laggards YTD.</li>
<li>As they have only experienced limited rebounds from the 19-Apr trough, they are set to catch up. Also, their earnings prospects look positive this year. </li>
</ul>


Many have missed out on the 14%, or 2,300 points, rally of the HSI in the last 9 trading days. There are still several stocks that look interesting now.

Li Auto (2015 HK), Link REIT (823 HK), China Mengniu Dairy Co (2319 HK), Hang Lung Properties (101 HK) and Galaxy Entertainment Group (27 HK) are massive laggards YTD.
As they have only experienced limited rebounds from the 19-Apr trough, they are set to catch up. Also, their earnings prospects look positive this year. 


HK Strategy: Where Are the Short-Term Opportunities?

China

ENN Energy is a major clean energy distributor in China, primarily engaged in the investment, construction, operation, and management of gas pipeline infrastructure, as well as the sales and distribution of piped gas, liquefied natural gas (LNG), and other multi-energy products. The company also provides low-carbon integrated energy solutions and smart home services. It was founded in 1992 and is headquartered in Langfang, China.

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ENN Energy (2688 HK)

HK Strategy: What Are Some of the HSI Laggards to Pick Up?

HSI has rebounded above pre-reciprocal tariff levels, with top stocks up 15.6%. However, 32 stocks remain negative, with ZTO Express, Budweiser...

Osbert Tang, CFA

Skyworth (751 HK): Behind Every Precedent's Filing Clock

Skyworth is behind on every precedent's filing milestone; the lack of proof of filing Skyworth Photovoltaic’s application is now the standout red...

Arun George

Skyworth (751 HK) Gives Up Spin-Off Gains. And Then Some

Skyworth, as is, is trading above its five-year average on all metrics. I don't see the spin-off happening. This has been a terrible trade. I...

David Blennerhassett

HK Strategy: To Sell or Not to Sell, that Is the Question

HSI surges by 19.4% nearing the 20,000 resistance, potential profit-taking names include Meituan, Tencent, Haidilao, and ENN Energy due to strong...

Osbert Tang, CFA

HK Strategy: Where Are the Short-Term Opportunities?

Li Auto, Link REIT, China Mengniu, Hang Lung Properties, and Galaxy Entertainment are massive laggards YTD but the recent rebound from the trough...

Osbert Tang, CFA

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52-week Range

Market Cap (USDm)

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HK Strategy: What Are Some of the HSI Laggards to Pick Up?

​HSI has rebounded above pre-reciprocal tariff levels, with top stocks up 15.6%. However, 32 stocks remain negative, with ZTO Express, Budweiser...

Osbert Tang, CFA

Skyworth (751 HK): Behind Every Precedent's Filing Clock

Skyworth is behind on every precedent's filing milestone; the lack of proof of filing Skyworth Photovoltaic’s application is now the standout red...

Arun George

Skyworth (751 HK) Gives Up Spin-Off Gains. And Then Some

Skyworth, as is, is trading above its five-year average on all metrics. I don't see the spin-off happening. This has been a terrible trade. I...

David Blennerhassett

HK Strategy: To Sell or Not to Sell, that Is the Question

​HSI surges by 19.4% nearing the 20,000 resistance, potential profit-taking names include Meituan, Tencent, Haidilao, and ENN Energy due to strong...

Osbert Tang, CFA

HK Strategy: Where Are the Short-Term Opportunities?

Li Auto, Link REIT, China Mengniu, Hang Lung Properties, and Galaxy Entertainment are massive laggards YTD but the recent rebound from the trough...

Osbert Tang, CFA

HSI has rebounded above pre-reciprocal tariff levels, with top stocks up 15.6%. However, 32 stocks remain negative, with ZTO Express, Budweiser...

HSI surges by 19.4% nearing the 20,000 resistance, potential profit-taking names include Meituan, Tencent, Haidilao, and ENN Energy due to strong...