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

<div><p><a href="https://www.smartkarma.com/entities/ximalaya-inc" target="_blank" data-smartkarma-citation="entities:33232:1" rel="noopener">Ximalaya (XIMA US)</a>, the largest online audio platform in China, is looking to raise around US$1bn in its US listing. </p></div><div><p>As of 1Q21, it had 250m average MAUs, which included 104m mobile MAUs through its apps and 146m MAUs through internet-of-things (IoT) and other third-party platforms. As per CIC, it accounted for 75% of total mobile listening time among all online audio platforms in China. It had 5.2m active content creators in 2020.</p></div><div><p>In our previous notes,<a href="https://www.smartkarma.com/insights/ximalaya-pre-ipo-the-positives-a-whole-lot-of-listening" target="_blank" rel="noopener"> Ximalaya Pre-IPO - The Positives - A Whole Lot of Listening</a>, and  <a href="https://www.smartkarma.com/insights/ximalaya-pre-ipo-the-negatives" target="_blank" rel="noopener">Ximalaya Pre-IPO - The Negatives</a> we have covered the positive and negative aspects of the deal.</p></div><div><p>In this note, we will compare Ximalaya with some of its listed peers.</p></div>

Ximalaya (XIMA US), the largest online audio platform in China, is looking to raise around US$1bn in its US listing. As of 1Q21, it had 250m average MAUs, which included 104m mobile MAUs through its apps and 146m MAUs through internet-of-things (IoT) and other third-party platforms. As per CIC, it accounted for 75% of total mobile listening time among all online audio platforms in China. It had 5.2m active content creators in 2020.In our previous notes, Ximalaya Pre-IPO - The Positives - A Whole Lot of Listening, and  Ximalaya Pre-IPO - The Negatives we have covered the positive and negative aspects of the deal.In this note, we will compare Ximalaya with some of its listed peers.

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Quantitative Analysis

<p>Hong Kong SFC reported aggregate short position as of Apr 30. The aggregate short value for equities decreased by $-468m (-0.7%) WoW and decreased by $105m (-0.1%) over the preceding four weeks.</p><p>Most shorted stocks by aggregate short value of positions are Ping An Insurance (Group) Company Of China, Ltd./2318 HK($7,024m, -9.0% WoW), Tencent Holdings Limited/700 HK($1,938m, -1.8% WoW), Meituan/3690 HK($1,566m, -6.8% WoW), Zhongsheng Group Holdings Limited/881 HK($1,521m, +3.7% WoW), China Merchants Bank Co., Ltd./3968 HK($1,429m, +0.5% WoW).</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/205/381/original/Hong_Kong_Market_Short_Position_Value_%28line%29_and_1W_Changes_%28bar%29_%28%24m%292021-05-11+12_19_46.png?1620706921" class="editor-image img-responsive" data-smartkarma-image-id="205381"></figure></section>

Hong Kong SFC reported aggregate short position as of Apr 30. The aggregate short value for equities decreased by $-468m (-0.7%) WoW and decreased by $105m (-0.1%) over the preceding four weeks.Most shorted stocks by aggregate short value of positions are Ping An Insurance (Group) Company Of China, Ltd./2318 HK($7,024m, -9.0% WoW), Tencent Holdings Limited/700 HK($1,938m, -1.8% WoW), Meituan/3690 HK($1,566m, -6.8% WoW), Zhongsheng Group Holdings Limited/881 HK($1,521m, +3.7% WoW), China Merchants Bank Co., Ltd./3968 HK($1,429m, +0.5% WoW).

HK Short Interest: Baba, Xiaomi, Netease Short Increased

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<p>After outperforming its global peers over the last year, the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng Tech Index (HSTECH INDEX)</a> has had a big drawdown that has brought its performance closer to its peers. Today's drop has closed the gap even further.</p><p>With a backdrop of heightened US-China tensions, increased regulatory pressure from the State Administration for Market Regulation (SAMR) and an increased focus on monopolies (or perceived monopolies), investors have been happy to sell first given the gains they were sitting on, plus the valuation premium.</p><p>With valuations now lining up with their global peers, Hang Seng Indexes has announced that the China Securities Regulatory Commission (CSRC) had approved 7 ETFs and 1 Index Fund that will track the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng Tech Index (HSTECH INDEX)</a>. The mainland ETFs could garner a large amount of assets quickly given that most index members are household names. Additionally, stocks like <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a>, <a href="https://www.smartkarma.com/entities/baidu-inc-a55ca720-5968-48f0-8194-ac94390d065c" target="_blank" data-smartkarma-citation="entities:32212:1" rel="noopener">Baidu (9888 HK)</a> and <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com Inc. (9618 HK)</a> are not eligible for Southbound Stock Connect and the ETFs will offer investors access to those names.</p><p>With the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng Tech Index (HSTECH INDEX)</a> (or the "NASDAQ of the East" as it is called) underperforming the <a href="https://www.smartkarma.com/entities/nasdaq-100-stock-index" target="_blank" data-smartkarma-citation="entities:26197:1" rel="noopener">Nasdaq-100 Stock Index (NDX INDEX)</a> (of the West) over the last few months, there could be an opportunity to buy the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng Tech Index (HSTECH INDEX)</a> futures and hedge with <a href="https://www.smartkarma.com/entities/nasdaq-100-stock-index" target="_blank" data-smartkarma-citation="entities:26197:1" rel="noopener">Nasdaq-100 Stock Index (NDX INDEX)</a> futures.</p>

After outperforming its global peers over the last year, the Hang Seng Tech Index (HSTECH INDEX) has had a big drawdown that has brought its performance closer to its peers. Today's drop has closed the gap even further.With a backdrop of heightened US-China tensions, increased regulatory pressure from the State Administration for Market Regulation (SAMR) and an increased focus on monopolies (or perceived monopolies), investors have been happy to sell first given the gains they were sitting on, plus the valuation premium.With valuations now lining up with their global peers, Hang Seng Indexes has announced that the China Securities Regulatory Commission (CSRC) had approved 7 ETFs and 1 Index Fund that will track the Hang Seng Tech Index (HSTECH INDEX). The mainland ETFs could garner a large amount of assets quickly given that most index members are household names. Additionally, stocks like Alibaba Group (9988 HK), Baidu (9888 HK) and JD.com Inc. (9618 HK) are not eligible for Southbound Stock Connect and the ETFs will offer investors access to those names.With the Hang Seng Tech Index (HSTECH INDEX) (or the "NASDAQ of the East" as it is called) underperforming the Nasdaq-100 Stock Index (NDX INDEX) (of the West) over the last few months, there could be an opportunity to buy the Hang Seng Tech Index (HSTECH INDEX) futures and hedge with Nasdaq-100 Stock Index (NDX INDEX) futures.

Hang Seng TECH Index: How Much Lower Can It Go? CSRC Approves 7 ETFs

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

Equity Bottom-Up

<ul>
<li>The government warned that Meituan should raise delivery workers’ benefits and reduce their workload.</li>
<li>The CEO quoted a poem on a social media and we believe all media reports misunderstand it.</li>
<li>We reduced the target price to HK$230.</li>
</ul>
<p>Our previous coverage on Meituan:</p>
<ul>
<li><a href="https://www.smartkarma.com/insights/meituan-3690-hk-forthcoming-punishment-will-benefit-alibaba" target="_blank" data-smartkarma-citation="insights:50794" rel="noopener">Meituan (3690 HK): Forthcoming Punishment Will Benefit Alibaba</a></li>
<li>
<a href="https://www.smartkarma.com/insights/meituan-3690-hk-meituan-spending-money-but-agents-accumulating-customers-for-themselves" target="_blank" data-smartkarma-citation="insights:50118" rel="noopener">Meituan (3690 HK): Meituan Spending Money, But Agents Accumulating Customers for Themselves</a> </li>
</ul>


The government warned that Meituan should raise delivery workers’ benefits and reduce their workload.
The CEO quoted a poem on a social media and we believe all media reports misunderstand it.
We reduced the target price to HK$230.

Our previous coverage on Meituan:

Meituan (3690 HK): Forthcoming Punishment Will Benefit Alibaba

Meituan (3690 HK): Meituan Spending Money, But Agents Accumulating Customers for Themselves 


Meituan (3690 HK): CEO's Poem, as Response to Authorities' Sweat Shop Warning, Could Be Disaster

<ul>
<li>Customer service refuses to return repaired graphics card to customers.</li>
<li>The graphics card prices has been rising significantly.</li>
<li>Customers believe customer service sold the repaired cards.</li>
</ul>
<p>Our previous coverage on JD.com:</p>
<p><a href="https://www.smartkarma.com/insights/jd-com-jd-main-business-accelerated-in-4q20" target="_blank" data-smartkarma-citation="insights:49083" rel="noopener">JD.com (JD): Main Business Accelerated in 4Q20</a></p>
<p><a href="https://www.smartkarma.com/insights/jd-com-jd-found-more-exclusive-advantages-but-need-more-reasonable-price" target="_blank" data-smartkarma-citation="insights:48677" rel="noopener">JD.com (JD): Found More Exclusive Advantages, But Need More Reasonable Price</a></p>


Customer service refuses to return repaired graphics card to customers.
The graphics card prices has been rising significantly.
Customers believe customer service sold the repaired cards.

Our previous coverage on JD.com:
JD.com (JD): Main Business Accelerated in 4Q20
JD.com (JD): Found More Exclusive Advantages, But Need More Reasonable Price

JD.com (JD): Customer Service Facing Short Squeeze Due to Bitcoin Surge

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 (BABA US)

Ximalaya Pre-IPO - Peer Comparison

Ximalaya (XIMA US), the largest online audio platform in China, is looking to raise around US$1bn in its US listing. As of 1Q21, it had 250m MAUs...

Sumeet Singh

HK Short Interest: Baba, Xiaomi, Netease Short Increased

We would like to highlight short increases for Alibaba (9988 HK), Xiaomi (1810 HK) and Netease (9999 HK) from the recent SFC short position report.

Ke Yan, CFA, FRM

Hang Seng TECH Index: How Much Lower Can It Go? CSRC Approves 7 ETFs

The Hang Seng TECH Index has had a large drawdown over the last couple of months on regulatory pressure and stretched valuations. With new ETFs...

Brian Freitas

Meituan (3690 HK): CEO's Poem, as Response to Authorities' Sweat Shop Warning, Could Be Disaster

The government warned that Meituan should raise delivery workers’ benefits and reduce their workload. The CEO quoted a poem on a social media and...

Ming Lu

JD.com (JD): Customer Service Facing Short Squeeze Due to Bitcoin Surge

Customer service refuses to return repaired graphics card to customers. The graphics card prices has been rising significantly. Customers believe...

Ming Lu

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