Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>It recently became publicly available that Michael Burry (CEO of Scion Asset Management) started buying put options on numerous Chinese stocks including Alibaba Group Holding (BABA US).</li>
<li>We highlight four major reasons why Burry may have turned bearish on Chinese tech names (tariffs, delisting threats, increasing hostile political pressure on China, and China's 30 year bond yield). </li>
<li>Although we do not know exactly know how Burry has changed his position in 2Q25, he is likely to have reduced put options on major Chinese tech stocks in April/May.</li>
</ul>


It recently became publicly available that Michael Burry (CEO of Scion Asset Management) started buying put options on numerous Chinese stocks including Alibaba Group Holding (BABA US).
We highlight four major reasons why Burry may have turned bearish on Chinese tech names (tariffs, delisting threats, increasing hostile political pressure on China, and China's 30 year bond yield). 
Although we do not know exactly know how Burry has changed his position in 2Q25, he is likely to have reduced put options on major Chinese tech stocks in April/May.


Why Is Michael Burry So Bearish on Alibaba (And Other Major Chinese Tech Stocks)?

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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/weride-corp" target="_blank" data-smartkarma-citation="entities:39905:1" rel="noopener">WeRide (WRD US)</a> plans to raise around US$325m in its secondary listing in Hong Kong.</li>
<li>We have looked at the deal dynamics in our previous note.</li>
<li>In this note, we talk about the deal structure and updates since then.</li>
</ul>



WeRide (WRD US) plans to raise around US$325m in its secondary listing in Hong Kong.
We have looked at the deal dynamics in our previous note.
In this note, we talk about the deal structure and updates since then.


WeRide Secondary HK Offering - Has Been Trading Up, Given the Valuation Gap

<ul>
<li>
<a href="https://www.smartkarma.com/entities/pony-ai-inc" target="_blank" data-smartkarma-citation="entities:44035:1" rel="noopener">Pony AI (PONY US)</a>  plans to raise around US$825m in its secondary listing in Hong Kong.</li>
<li>We have looked at the deal dynamics in our previous note.</li>
<li>In this note, we talk about the deal structure and updates since then.</li>
</ul>



Pony AI (PONY US)  plans to raise around US$825m in its secondary listing in Hong Kong.
We have looked at the deal dynamics in our previous note.
In this note, we talk about the deal structure and updates since then.


Pony AI Secondary HK Offering - Needs to Correct Some More

Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

Cross Asset Strategy

<ul>
<li>Asia's valuation rerating seems over. Future market performance would likely be driven by earnings growth. On current consensus forecasts, Taiwan, Korea, China and India lead the future earnings growth leaderboard.</li>
<li>Growth adjusted relative valuations are similar to early 2025, but markets are more closely aligned along the trendline. India is relatively less expensive and Korea relatively less cheap than previously.</li>
<li>Analysts are turning more bullish on 2026 than on 2025. For most large markets, especially Korea and Taiwan, 2026 consensus EPS estimates have moved up while 2025 estimates have declined.</li>
</ul>


Asia's valuation rerating seems over. Future market performance would likely be driven by earnings growth. On current consensus forecasts, Taiwan, Korea, China and India lead the future earnings growth leaderboard.
Growth adjusted relative valuations are similar to early 2025, but markets are more closely aligned along the trendline. India is relatively less expensive and Korea relatively less cheap than previously.
Analysts are turning more bullish on 2026 than on 2025. For most large markets, especially Korea and Taiwan, 2026 consensus EPS estimates have moved up while 2025 estimates have declined.


Asian Equities: Divergent EPS Trajectory, Narrowing Valuation Spread; KR-TW Leading EPS Upgrades

Sany Heavy Industry / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sany-heavy-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:20183:1" rel="noopener">Sany Heavy Industry (600031 CH)</a>, raised around US$2.0bn in its H-share listing.</li>
<li>Sany Heavy Industry was the world’s third largest and China’s largest construction machinery company in terms of construction machinery’s cumulative revenue from 2020 to 2024, according to Frost &amp; Sullivan.</li>
<li>We have looked at the past performance and valuation in our previous note. In this note, we talk about the trading dynamics.</li>
</ul>



Sany Heavy Industry (600031 CH), raised around US$2.0bn in its H-share listing.
Sany Heavy Industry was the world’s third largest and China’s largest construction machinery company in terms of construction machinery’s cumulative revenue from 2020 to 2024, according to Frost &amp; Sullivan.
We have looked at the past performance and valuation in our previous note. In this note, we talk about the trading dynamics.


Sany Heavy Industries A/H Trading - Strong Insti, Weak Retail. Pricing Still Tight

China

Alibaba Group Holding Limited provides online sales services. The Company provides internet infrastructure, electronic commerce, online financial, and internet content services through its subsidiaries. Alibaba Group Holding offers its products and services worldwide.

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Alibaba (9988 HK)

Why Is Michael Burry So Bearish on Alibaba (And Other Major Chinese Tech Stocks)?

It recently became publicly available that Michael Burry (CEO of Scion Asset Management) recently started buying put options on numerous Chinese...

Douglas Kim

WeRide Secondary HK Offering - Has Been Trading Up, Given the Valuation Gap

WeRide (WRD US) plans to raise around US$325m in its secondary listing in Hong Kong. In this note we talk about the deal structure and pricing.

Sumeet Singh

Pony AI Secondary HK Offering - Needs to Correct Some More

Pony AI (PONY US) plans to raise around US$825m in its secondary listing in Hong Kong. In this note, we talk about the deal structure and pricing.

Sumeet Singh

Asian Equities: Divergent EPS Trajectory, Narrowing Valuation Spread; KR-TW Leading EPS Upgrades

Asia's valn rerating seems over, with future performance driven by EPS grwth. TW, KR, CN, IN to lead future EPS growth. Analysts turning more...

Manishi Raychaudhuri

Sany Heavy Industries A/H Trading - Strong Insti, Weak Retail. Pricing Still Tight

Sany Heavy Industry (600031 CH), raised around US$2.0bn in its H-share listing. In this note, we talk about the trading dynamics.

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Why Is Michael Burry So Bearish on Alibaba (And Other Major Chinese Tech Stocks)?

It recently became publicly available that Michael Burry (CEO of Scion Asset Management) recently started buying put options on numerous Chinese...

Douglas Kim

WeRide Secondary HK Offering - Has Been Trading Up, Given the Valuation Gap

WeRide (WRD US) plans to raise around US$325m in its secondary listing in Hong Kong. In this note we talk about the deal structure and pricing.

Sumeet Singh

Pony AI Secondary HK Offering - Needs to Correct Some More

Pony AI (PONY US) plans to raise around US$825m in its secondary listing in Hong Kong. In this note, we talk about the deal structure and pricing.

Sumeet Singh

Asian Equities: Divergent EPS Trajectory, Narrowing Valuation Spread; KR-TW Leading EPS Upgrades

​Asia's valn rerating seems over, with future performance driven by EPS grwth. TW, KR, CN, IN to lead future EPS growth. Analysts turning more...

Manishi Raychaudhuri

Sany Heavy Industries A/H Trading - Strong Insti, Weak Retail. Pricing Still Tight

Sany Heavy Industry (600031 CH), raised around US$2.0bn in its H-share listing. In this note, we talk about the trading dynamics.

Sumeet Singh

Asia's valn rerating seems over, with future performance driven by EPS grwth. TW, KR, CN, IN to lead future EPS growth. Analysts turning more...