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 analyze the monthly Hong Kong Connect flows with our data engine.</li>
<li>We tabulate the top stocks by inflows, outflows, and holding by mainland investors.</li>
<li>We highlight inflows into Alibaba, Li Auto, China Mobile and outflows from Tencent.</li>
</ul>


We analyze the monthly Hong Kong Connect flows with our data engine.
We tabulate the top stocks by inflows, outflows, and holding by mainland investors.
We highlight inflows into Alibaba, Li Auto, China Mobile and outflows from Tencent.


Hong Kong Connect Flows (February): $6bn Inflows into Alibaba

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-dongxiang-group-co" target="_blank" data-smartkarma-citation="entities:1068:1" rel="noopener">China Dongxiang (3818 HK)</a>'s share price change has not sufficiently reflected <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a>'s movement. Their share price ratio is now at a historical low. </li>
<li>Its SOTP value increased by HK$927m with the surge in its PE, unlisted and fixed-income investment value, but its market capitalisation has gone up by just HK$258m.</li>
<li>Holdings in unlisted assets like Ant Financial and JD Technology (JD Digital) will benefit from the AI bonanza and the better sentiment in the HK IPO market.</li>
</ul>



China Dongxiang (3818 HK)'s share price change has not sufficiently reflected Alibaba Group (9988 HK)'s movement. Their share price ratio is now at a historical low. 
Its SOTP value increased by HK$927m with the surge in its PE, unlisted and fixed-income investment value, but its market capitalisation has gone up by just HK$258m.
Holdings in unlisted assets like Ant Financial and JD Technology (JD Digital) will benefit from the AI bonanza and the better sentiment in the HK IPO market.


China Dongxiang (3818 HK): More than Just BABA

<ul>
<li>We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Feb 21st based on HKEx daily reports.</li>
<li>In the past 7 days, the top 3 companies that repurchased the most shares from the market were Crrc Times (3898 HK), Swire Pacific (19 HK), Cosco Shipping (1919 HK).</li>
<li>In the past 30 days, the top 3 companies that repurchased the most shares from the market were AIA (1299 HK), HSBC (5 HK), Cosco Shipping (1919 HK).</li>
</ul>


We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Feb 21st based on HKEx daily reports.
In the past 7 days, the top 3 companies that repurchased the most shares from the market were Crrc Times (3898 HK), Swire Pacific (19 HK), Cosco Shipping (1919 HK).
In the past 30 days, the top 3 companies that repurchased the most shares from the market were AIA (1299 HK), HSBC (5 HK), Cosco Shipping (1919 HK).


Hong Kong Buybacks Weekly (Feb 21st): Zhuzhou Crrc Times Electric, Swire Pacific, Cosco Shipping

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.

<ul>
<li>We believe in 2025 HK/China shall outperform EM. While the undervalued and under-owned characteristic of the China market is well-known, monetizability of China’s technological capabilities has become apparent only recently.</li>
<li>Policy stimuli during the upcoming NPC could catalyze consumer sentiment and market performance. China’s structural hurdles, Debt, Demographics and Deflation, remain. But correct stock and sector selection can generate alpha.</li>
<li>We prefer the internet platforms, consumer discretionary and high dividend yield, the latter largely SOEs. Our “China Twelve” are mostly reasonably valued (low teen PE), with double digit EPS growth.</li>
</ul>


We believe in 2025 HK/China shall outperform EM. While the undervalued and under-owned characteristic of the China market is well-known, monetizability of China’s technological capabilities has become apparent only recently.
Policy stimuli during the upcoming NPC could catalyze consumer sentiment and market performance. China’s structural hurdles, Debt, Demographics and Deflation, remain. But correct stock and sector selection can generate alpha.
We prefer the internet platforms, consumer discretionary and high dividend yield, the latter largely SOEs. Our “China Twelve” are mostly reasonably valued (low teen PE), with double digit EPS growth.


Asian Equities: It's China's Year - Our "China Twelve" In the Year of the Snake

Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>The HSCEI serves as a benchmark to reflect the overall performance of the top 50 "Mainland China" securities listed in Hong Kong.</li>
<li>The official index changes and indicative weights for the March 2025 index rebal event will be announced on Friday 21st February 2025.</li>
<li>We continue to expect one change for the HSCEI index in March 2025.</li>
</ul>


The HSCEI serves as a benchmark to reflect the overall performance of the top 50 "Mainland China" securities listed in Hong Kong.
The official index changes and indicative weights for the March 2025 index rebal event will be announced on Friday 21st February 2025.
We continue to expect one change for the HSCEI index in March 2025.


Quiddity Leaderboard HSCEI Mar25: One Change Likely; US$204mn One-Way; Sector-Neutral Trade Idea

China

ANTA Sports Products Limited designs, develops, manufactures, and markets sportswear, including sports footwear and apparel for professionals and the general public.

Price Gauge
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Anta Sports Products (2020 HK)

Hong Kong Connect Flows (February): $6bn Inflows into Alibaba

We analyzed the Hong Kong Connect Scheme for February and highlighted flows for Alibaba, Li Auto, China Mobile and outflows from Tencent.

Ke Yan, CFA, FRM

China Dongxiang (3818 HK): More than Just BABA

CNDX's share price has not reflected BABA's, and the price ratio is at a historical low. The change in market cap has not kept pace with SOTP. Its...

Osbert Tang, CFA

Hong Kong Buybacks Weekly (Feb 21st): Zhuzhou Crrc Times Electric, Swire Pacific, Cosco Shipping

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were Zhuzhou Crrc Times...

Ke Yan, CFA, FRM

Asian Equities: It's China's Year - Our "China Twelve" In the Year of the Snake

In 25 HK/China should outperform. Monetization of China's tech capability, policy stimulus during NPC are catalysts. Structural issues- Debt,...

Manishi Raychaudhuri

Quiddity Leaderboard HSCEI Mar25: One Change Likely; US$204mn One-Way; Sector-Neutral Trade Idea

We expect China Resources Power (836 HK) to get added and Li Ning (2331 HK) to get deleted. Both names have more than 1x ADV to trade.

Janaghan Jeyakumar, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hong Kong Connect Flows (February): $6bn Inflows into Alibaba

We analyzed the Hong Kong Connect Scheme for February and highlighted flows for Alibaba, Li Auto, China Mobile and outflows from Tencent.

Ke Yan, CFA, FRM

China Dongxiang (3818 HK): More than Just BABA

​CNDX's share price has not reflected BABA's, and the price ratio is at a historical low. The change in market cap has not kept pace with SOTP. Its...

Osbert Tang, CFA

Hong Kong Buybacks Weekly (Feb 21st): Zhuzhou Crrc Times Electric, Swire Pacific, Cosco Shipping

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were Zhuzhou Crrc Times...

Ke Yan, CFA, FRM

Asian Equities: It's China's Year - Our "China Twelve" In the Year of the Snake

​In 25 HK/China should outperform. Monetization of China's tech capability, policy stimulus during NPC are catalysts. Structural issues- Debt,...

Manishi Raychaudhuri

Quiddity Leaderboard HSCEI Mar25: One Change Likely; US$204mn One-Way; Sector-Neutral Trade Idea

We expect China Resources Power (836 HK) to get added and Li Ning (2331 HK) to get deleted. Both names have more than 1x ADV to trade.

Janaghan Jeyakumar, CFA

CNDX's share price has not reflected BABA's, and the price ratio is at a historical low. The change in market cap has not kept pace with SOTP. Its...

In 25 HK/China should outperform. Monetization of China's tech capability, policy stimulus during NPC are catalysts. Structural issues- Debt,...