HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>Our "Buy the Worst" strategy made a strong comeback in 2025, outperforming the HSI by 11.1pp YTD, reversing the losses in the last two years.</li>
<li>For 2026, the strategy will hold <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>, <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/byd-electronic-international-co-ltd" target="_blank" data-smartkarma-citation="entities:1927:1" rel="noopener">BYD Electronics (285 HK)</a>, <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com (9618 HK)</a>, and <a href="https://www.smartkarma.com/entities/china-mengniu-dairy-co" target="_blank" data-smartkarma-citation="entities:354:1" rel="noopener">China Mengniu Dairy (2319 HK)</a>.  </li>
<li>The position in <a href="https://www.smartkarma.com/entities/china-mengniu-dairy-co" target="_blank" data-smartkarma-citation="entities:354:1" rel="noopener">China Mengniu Dairy (2319 HK)</a> may be replaced by <a href="https://www.smartkarma.com/entities/new-oriental-education-techn" target="_blank" data-smartkarma-citation="entities:32210:1" rel="noopener">New Oriental Education (9901 HK)</a> or <a href="https://www.smartkarma.com/entities/zhongsheng-group-holdings" target="_blank" data-smartkarma-citation="entities:10573:1" rel="noopener">Zhongsheng Group (881 HK)</a>, depending on their closing prices on 31 Dec. </li>
</ul>


Our "Buy the Worst" strategy made a strong comeback in 2025, outperforming the HSI by 11.1pp YTD, reversing the losses in the last two years.
For 2026, the strategy will hold Meituan (3690 HK), Li Auto (2015 HK), BYD Electronics (285 HK), JD.com (9618 HK), and China Mengniu Dairy (2319 HK).  
The position in China Mengniu Dairy (2319 HK) may be replaced by New Oriental Education (9901 HK) or Zhongsheng Group (881 HK), depending on their closing prices on 31 Dec. 


"Buy the Worst" HSI Strategy: A Fruitful 2025, Our Picks for 2026

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Bottom-Up

<ul>
<li>In H1 and Q2 this year, JD Logistics' top-line growth remained strong, growing by 20%+</li>
<li>But margins have continued to erode in recent periods, probably due to changes in mix</li>
<li>Down close to HK$10 per share, we believe lots of negativity is "baked in" to price</li>
</ul>


In H1 and Q2 this year, JD Logistics' top-line growth remained strong, growing by 20%+
But margins have continued to erode in recent periods, probably due to changes in mix
Down close to HK$10 per share, we believe lots of negativity is "baked in" to price


JD Logistics H1/Q2 Results | Momentum, Profitability Show Mixed Signals | Shares Drained Of Optimism

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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.

Equity Capital Markets

Moore Threads Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/moore-threads-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:40221:1" rel="noopener">Moore Threads Technology (688795 CH)</a> (MTT), a domestic GPU producer, aims to raise over &gt;US$1bn in its H-share listing.</li>
<li>MTT mainly engages in the research, design, and sales of GPUs and related products. It listed its A-shares just last year.</li>
<li>We looked at its past performance in our earlier note. In this note, undertake a peer comparison and talk about valuations.</li>
</ul>



Moore Threads Technology (688795 CH) (MTT), a domestic GPU producer, aims to raise over &gt;US$1bn in its H-share listing.
MTT mainly engages in the research, design, and sales of GPUs and related products. It listed its A-shares just last year.
We looked at its past performance in our earlier note. In this note, undertake a peer comparison and talk about valuations.


Aequitas: Moore Threads Technology A/H Listing - Peer Comparison and Thoughts on Valuations

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul><li>In Depth: E-Commerce Giants Step Up AI Rollouts to Boost Sales</li><li>China Signals Continued Expansionary Policy for 2026</li><li>China’s Data Dragnet Triggers Tax Jump for Online Merchants</li><li>U.S. to Allow Nvidia H200 Chip Exports to China With 25% Cut</li></ul>

In Depth: E-Commerce Giants Step Up AI Rollouts to Boost SalesChina Signals Continued Expansionary Policy for 2026China’s Data Dragnet Triggers Tax Jump for Online MerchantsU.S. to Allow Nvidia H200 Chip Exports to China With 25% Cut

CX Daily: E-Commerce Giants Step Up AI Rollouts to Boost Sales 

<ul>
<li>
<a href="https://www.smartkarma.com/entities/moore-threads-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:40221:1" rel="noopener">Moore Threads Technology (688795 CH)</a> (MTT), a domestic GPU producer, aims to raise over &gt;US$1bn in its H-share listing.</li>
<li>MTT mainly engages in the research, design, and sales of GPUs and related products. It listed its A-shares just last year.</li>
<li>In this note, we look at its past performance and other deal dynamics that might impact the Hong Kong listing.</li>
</ul>



Moore Threads Technology (688795 CH) (MTT), a domestic GPU producer, aims to raise over &gt;US$1bn in its H-share listing.
MTT mainly engages in the research, design, and sales of GPUs and related products. It listed its A-shares just last year.
In this note, we look at its past performance and other deal dynamics that might impact the Hong Kong listing.


Aequitas: Moore Threads Technology A/H Listing - Early Look - One of the Fast Growing Little Giants

China

JD.com Inc is an online direct sales company in China.  The Company offers a wide selection of products through its website and mobile applications.  JD.com sells appliances, computers, digital products, communication products, garments, books, and household items to consumers and vendors.

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JD.com (ADR) (JD US)

"Buy the Worst" HSI Strategy: A Fruitful 2025, Our Picks for 2026

The "Buy the Worst" strategy outperformed the HSI by 11.1pp YTD in 2025. For 2026, it will hold Meituan, Li Auto, BYD Electronics, JD.com, and...

Osbert Tang, CFA

JD Logistics H1/Q2 Results | Momentum, Profitability Show Mixed Signals | Shares Drained Of Optimism

Shares have "round tripped" since March 2026 and at HK$10 there appears to be lots of negativity baked into the price. At just 8x consensus 2026F...

Tracking Traffic

Aequitas: Moore Threads Technology A/H Listing - Peer Comparison and Thoughts on Valuations

Moore Threads Technology (688795 CH), a domestic GPU producer, aims to raise over >US$1bn in its H-share listing. In this note, we undertake a peer...

Sumeet Singh

CX Daily: E-Commerce Giants Step Up AI Rollouts to Boost Sales

In Depth: E-Commerce Giants Step Up AI Rollouts to Boost Sales China Signals Continued Expansionary Policy for 2026 China’s Data Dragnet Triggers...

Caixin Global

Aequitas: Moore Threads Technology A/H Listing - Early Look - One of the Fast Growing Little Giants

Moore Threads Technology (688795 CH) (MTT), a domestic GPU producer, aims to raise over >US$1bn in its H-share listing. In this, note we look at...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

"Buy the Worst" HSI Strategy: A Fruitful 2025, Our Picks for 2026

​The "Buy the Worst" strategy outperformed the HSI by 11.1pp YTD in 2025. For 2026, it will hold Meituan, Li Auto, BYD Electronics, JD.com, and...

Osbert Tang, CFA

JD Logistics H1/Q2 Results | Momentum, Profitability Show Mixed Signals | Shares Drained Of Optimism

Shares have "round tripped" since March 2026 and at HK$10 there appears to be lots of negativity baked into the price. At just 8x consensus 2026F...

Tracking Traffic

Aequitas: Moore Threads Technology A/H Listing - Peer Comparison and Thoughts on Valuations

Moore Threads Technology (688795 CH), a domestic GPU producer, aims to raise over >US$1bn in its H-share listing. In this note, we undertake a peer...

Sumeet Singh

CX Daily: E-Commerce Giants Step Up AI Rollouts to Boost Sales

In Depth: E-Commerce Giants Step Up AI Rollouts to Boost Sales China Signals Continued Expansionary Policy for 2026 China’s Data Dragnet Triggers...

Caixin Global

Aequitas: Moore Threads Technology A/H Listing - Early Look - One of the Fast Growing Little Giants

Moore Threads Technology (688795 CH) (MTT), a domestic GPU producer, aims to raise over >US$1bn in its H-share listing. In this, note we look at...

Sumeet Singh

The "Buy the Worst" strategy outperformed the HSI by 11.1pp YTD in 2025. For 2026, it will hold Meituan, Li Auto, BYD Electronics, JD.com, and...