Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Equity Bottom-Up

Citic Resources Holdings / Equity Bottom-Up

<ul>
<li>One of a basket of Hong Kong commodity stocks we like</li>
<li>One off issues in 2023 which should reverse in 2024</li>
<li>Can also be viewed as  a tangential play on India's industrial growth</li>
</ul>


One of a basket of Hong Kong commodity stocks we like
One off issues in 2023 which should reverse in 2024
Can also be viewed as  a tangential play on India's industrial growth


Citic Resource Holdings (1205.HK) - A Play on Oil and Coal Demand

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Friday in US time, the China Securities Regulatory Commission (CSRC), China's MOF, and the US Public Company Accounting Oversight Board (PCAOB) "agreed" on a Statement of Protocol.</li>
<li>This SoP sets the outlines for PCAOB access to inspect/investigate audit papers and accounting firms in China and HK for companies listed in the US.</li>
<li>The releases' difference in language is to be expected - different constituencies - but as PCAOB Chair Williams said, “Now we will find out whether those promises hold up."
</li>
</ul>


Friday in US time, the China Securities Regulatory Commission (CSRC), China's MOF, and the US Public Company Accounting Oversight Board (PCAOB) "agreed" on a Statement of Protocol.
This SoP sets the outlines for PCAOB access to inspect/investigate audit papers and accounting firms in China and HK for companies listed in the US.
The releases' difference in language is to be expected - different constituencies - but as PCAOB Chair Williams said, “Now we will find out whether those promises hold up."



CSRC and PCAOB "Agree" On Audit Terms - Now PCAOB Will Try To Prove a Negative

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Thematic (Sector/Industry)

Exposure in Aluminium stocks has moved higher over the last 12-months.  Just over a fifth of the EM funds in our analysis now have exposure to the Aluminium industry group, up from 7.7% in June of last year.  However, at just 0.12% average weight, exposure levels are far from convincing.Ten stocks make up the Emerging Markets Aluminium Industry group, led by <a href="https://www.smartkarma.com/entities/china-hongqiao-group-ltd" target="_blank" data-smartkarma-citation="entities:1909:1" rel="noopener">China Hongqiao (1378 HK)</a> and <a href="https://www.smartkarma.com/entities/aluminum-corporation-of-china-limited" target="_blank" data-smartkarma-citation="entities:6884:1" rel="noopener">Aluminum Corporation Of China (2600 HK)</a>, held by 10.8% and 5.2% of managers respectively.The image of Aluminium from an ESG perspective doesn't appear to be a major issue and hasn't deterred the ESG focused strategies in our analysis from investing.  In fact, 26.3% of ESG funds have exposure to the Aluminium Industry compared to 19% of non-ESG funds.But we can't escape the fact that across all of the stocks in the Aluminium Industry group, not one has managed to attract an investment of above 2% in any of the 250 active GEM funds in our analysis.  At this stage, active EM managers are only 'dipping their toes in', rather than risking a high conviction allocation.

Exposure in Aluminium stocks has moved higher over the last 12-months.  Just over a fifth of the EM funds in our analysis now have exposure to the Aluminium industry group, up from 7.7% in June of last year.  However, at just 0.12% average weight, exposure levels are far from convincing.Ten stocks make up the Emerging Markets Aluminium Industry group, led by China Hongqiao (1378 HK) and Aluminum Corporation Of China (2600 HK), held by 10.8% and 5.2% of managers respectively.The image of Aluminium from an ESG perspective doesn't appear to be a major issue and hasn't deterred the ESG focused strategies in our analysis from investing.  In fact, 26.3% of ESG funds have exposure to the Aluminium Industry compared to 19% of non-ESG funds.But we can't escape the fact that across all of the stocks in the Aluminium Industry group, not one has managed to attract an investment of above 2% in any of the 250 active GEM funds in our analysis.  At this stage, active EM managers are only 'dipping their toes in', rather than risking a high conviction allocation.

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

<ul>
<li>We analyse the changes of A-H premium on 146 stocks over the last week. The average A-H premium was 124.6% as of Mar 22nd.</li>
<li>The average A-H premium changed by 1.4ppt week-on-week, led by consumer staples, information technology, utilities and offset by financials, health care.</li>
<li>We highlight weekly changes in A-H premium for ZTE, CRCC Times Electric, Air China, Longyuan, Shanghai Fudan, Hua Hong Semi.</li>
</ul>


We analyse the changes of A-H premium on 146 stocks over the last week. The average A-H premium was 124.6% as of Mar 22nd.
The average A-H premium changed by 1.4ppt week-on-week, led by consumer staples, information technology, utilities and offset by financials, health care.
We highlight weekly changes in A-H premium for ZTE, CRCC Times Electric, Air China, Longyuan, Shanghai Fudan, Hua Hong Semi.


A-H Premium Weekly (Mar 22nd): ZTE, CRCC Times Electric, Air China, Longyuan, Shanghai Fudan

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

<ul><li>China’s largest state-owned companies have poured hundreds of billions of yuan into wind and solar power projects, putting the country on course to hit its clean energy target six years ahead of schedule.</li><li>But the investment frenzy has also raised concerns over profitability and waste.</li><li>China has seen explosive growth in photovoltaic and wind power over the past three years as Beijing pushes to achieve a carbon peak by 2030 and carbon neutrality by 2060. To meet these goals, China in 2020 set a target to install 1.2 billion kilowatts of wind and solar power capacity by 2030. The country has moved faster than planned.</li></ul>

China’s largest state-owned companies have poured hundreds of billions of yuan into wind and solar power projects, putting the country on course to hit its clean energy target six years ahead of schedule.But the investment frenzy has also raised concerns over profitability and waste.China has seen explosive growth in photovoltaic and wind power over the past three years as Beijing pushes to achieve a carbon peak by 2030 and carbon neutrality by 2060. To meet these goals, China in 2020 set a target to install 1.2 billion kilowatts of wind and solar power capacity by 2030. The country has moved faster than planned.

State Companies’ Rush to Clean Energy Sparks Bubble Fears 

China

Aluminum Corporation of China Limited, also known as Chalco, is a producer of alumina and primary aluminum in China. The Company refines bauxite into alumina and smelts alumina to produce primary aluminum.

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Aluminum Corporation Of China (2600 HK)

Citic Resource Holdings (1205.HK) - A Play on Oil and Coal Demand

A HK commodity stock with earnings expected to improve over the next few years - also tied to India's industrial growth.

Rikki Malik

CSRC and PCAOB "Agree" On Audit Terms - Now PCAOB Will Try To Prove a Negative

The PCAOB and CSRC announced they had signed a Statement of Protocol which allows the PCAOB to move forward with testing whether there will be...

Travis Lundy

EM Aluminium: Early Stage Move

Aluminium exposure has moved higher over the last 12-months. Just over a fifth of the EM funds in our analysis now have exposure to the Aluminium...

Steven Holden

A-H Premium Weekly (Mar 22nd): ZTE, CRCC Times Electric, Air China, Longyuan, Shanghai Fudan

We analyzed A-H premium changes in the past week and highlight A-H premium changes for ZTE, CRCC Times Electric, Air China, Longyuan, Shanghai...

Ke Yan, CFA, FRM

State Companies’ Rush to Clean Energy Sparks Bubble Fears

China’s largest state-owned companies have poured hundreds of billions of yuan into wind and solar power projects, putting the country on course...

Caixin Global

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