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 Shanghai/Shenzhen northbound Connect flows with our data engine.</li>
<li>We estimate that inflows for June was USD 11bn, led by consumer staple and financial sectors.</li>
<li>We highlight monthly inflows into Moutai, Yili, East Money, Tongwei, and Inovance.</li>
</ul>


We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.
We estimate that inflows for June was USD 11bn, led by consumer staple and financial sectors.
We highlight monthly inflows into Moutai, Yili, East Money, Tongwei, and Inovance.


Northbound Flows Monthly (June): $11bn Inflows

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine.</li>
<li>Consumer staple, industrials, and material sector led the inflow of USD 5.7bn last week.</li>
<li>We highlight inflows into Moutai, Yili, China Tourism, Longi, Beijing Orient Yuhong.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine.
Consumer staple, industrials, and material sector led the inflow of USD 5.7bn last week.
We highlight inflows into Moutai, Yili, China Tourism, Longi, Beijing Orient Yuhong.


Northbound Flows: $5.7bn Inflows, Biggest Since Dec

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

LONGi Green Energy Technology / Event-Driven

<ul>
<li>Inside is a recap of movements in the last week relating to the Hong Kong Stock-Shanghai and Shenzhen Northbound Connect facilities, broken down by company and industry.</li>
<li>Overall, net inflow was ~US$6.5bn, split between Shanghai (+US$5.5bn) and Shenzhen (+US$1.0bn).</li>
<li>The largest inflows were into <a href="https://www.smartkarma.com/entities/longi-green-energy-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:12703:1" rel="noopener">LONGi Green Energy Technology (601012 CH)</a> and <a href="https://www.smartkarma.com/entities/kweichow-moutai-co-ltd-a" target="_blank" data-smartkarma-citation="entities:1553:1" rel="noopener">Kweichow Moutai (600519 CH)</a>. The largest outflows were in <a href="https://www.smartkarma.com/entities/contemporary-amperex-techn-a" target="_blank" data-smartkarma-citation="entities:24404:1" rel="noopener">CATL (300750 CH)</a> and <a href="https://www.smartkarma.com/entities/cosco-shipping-holdings-co-ltd-a" target="_blank" data-smartkarma-citation="entities:27590:1" rel="noopener">Cosco Shipping Holdings (601919 CH)</a>.</li>
</ul>


Inside is a recap of movements in the last week relating to the Hong Kong Stock-Shanghai and Shenzhen Northbound Connect facilities, broken down by company and industry.
Overall, net inflow was ~US$6.5bn, split between Shanghai (+US$5.5bn) and Shenzhen (+US$1.0bn).
The largest inflows were into LONGi Green Energy Technology (601012 CH) and Kweichow Moutai (600519 CH). The largest outflows were in CATL (300750 CH) and Cosco Shipping Holdings (601919 CH).


Shanghai/​​​Shenzhen Northbound Connect: Weekly Moves (9 June 2022)

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine.</li>
<li>Information Technology, Materials, and Real Estate led the inflows while Health Care and Communication Services led the outflows.</li>
<li>We highlight inflows into Moutai, CSCC, Beijing Oriental Yuhong, Sungrow and outflows from Jiangsu Hengrui.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine.
Information Technology, Materials, and Real Estate led the inflows while Health Care and Communication Services led the outflows.
We highlight inflows into Moutai, CSCC, Beijing Oriental Yuhong, Sungrow and outflows from Jiangsu Hengrui.


Northbound Flows: Moutai, CSCC, Beijing Oriental Yuhong, Sungrow

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)

Despite playing such a minor role in China investment portfolios, Materials allocations have been on the rise.  Current holding weights represent an 8-year high and the percentage of funds invested is at the top of the 6 year range.  Activity over the last 6-months shows some of the pure metal plays gaining tracking with China investors.  A further 11.2% of funds added Steel exposure over the period and 10.3% Aluminum.  In contrast, Construction Materials suffered outflows and a scaling back of exposure from active managers.We would highlight stocks such as <a href="https://www.smartkarma.com/entities/beijing-oriental-yuhong-a" target="_blank" data-smartkarma-citation="entities:3060:1" rel="noopener">Beijing Oriental Yuhong A (002271 CH) </a>, <a href="https://www.smartkarma.com/entities/wanhua-chemical-group-co-a" target="_blank" data-smartkarma-citation="entities:5049:1" rel="noopener">Wanhua Chemical Group Co A (600309 CH)</a> , <a href="https://www.smartkarma.com/entities/shandong-sinocera-functional-material-a" target="_blank" data-smartkarma-citation="entities:6865:1" rel="noopener">Shandong Sinocera Functional Material (300285 CH)</a> , <a href="https://www.smartkarma.com/entities/china-molybdenum-co-ltd-d9c46a67-e31f-431f-9f5f-02222265d701" target="_blank" data-smartkarma-citation="entities:8585:1" rel="noopener">China Molybdenum Co Ltd H (3993 HK)</a> and <a href="https://www.smartkarma.com/entities/baoshan-iron-steel-co-a" target="_blank" data-smartkarma-citation="entities:3891:1" rel="noopener">Baoshan Iron &amp; Steel Co A (600019 CH)</a> as seeing investment levels rise from a very low base, having previously being off the radar for the majority of active China investors.Relative to 5-year history, allocations are now looking overstretched, but relative to 10 year history, allocations still have some way to go, and absolute weights are still tiny compared to the large allocations awarded to Consumer and Communication Services stocks.  In short, are the recent moves part of a short-term shift in momentum, or the early part of a longer-term structural shift?Taken from our active China fund universe, consisting of 116 funds with AUM $65bn.

Despite playing such a minor role in China investment portfolios, Materials allocations have been on the rise.  Current holding weights represent an 8-year high and the percentage of funds invested is at the top of the 6 year range.  Activity over the last 6-months shows some of the pure metal plays gaining tracking with China investors.  A further 11.2% of funds added Steel exposure over the period and 10.3% Aluminum.  In contrast, Construction Materials suffered outflows and a scaling back of exposure from active managers.We would highlight stocks such as Beijing Oriental Yuhong A (002271 CH) , Wanhua Chemical Group Co A (600309 CH) , Shandong Sinocera Functional Material (300285 CH) , China Molybdenum Co Ltd H (3993 HK) and Baoshan Iron &amp; Steel Co A (600019 CH) as seeing investment levels rise from a very low base, having previously being off the radar for the majority of active China investors.Relative to 5-year history, allocations are now looking overstretched, but relative to 10 year history, allocations still have some way to go, and absolute weights are still tiny compared to the large allocations awarded to Consumer and Communication Services stocks.  In short, are the recent moves part of a short-term shift in momentum, or the early part of a longer-term structural shift?Taken from our active China fund universe, consisting of 116 funds with AUM $65bn.

China

Beijing Oriental Yuhong Waterproof Technology Company Ltd. manufactures asphalt waterproof membranes.  The products are used for roofing, roads and bridge decks, and railroad bridges and culverts.

Price Gauge
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Beijing Oriental Yuhong A (002271 CH)

Northbound Flows Monthly (June): $11bn Inflows

We estimate $11bn inflow into A-share market through northbound in June and highlight monthly inflows into Moutai, Yili, East Money, Tongwei, and...

Ke Yan, CFA, FRM

Northbound Flows: $5.7bn Inflows, Biggest Since Dec

We highlight northbound Shanghai Shenzhen Connect inflows into Moutai, Yili, China Tourism, Longi, Beijing Orient Yuhong.

Ke Yan, CFA, FRM

Shanghai/Shenzhen Northbound Connect: Weekly Moves (9 June 2022)

Overall, net inflow was ~US$6.5bn, and was roughly split between Shanghai Northbound (+US$5.5bn) and Shenzhen Northbound (+US$1.0bn).

David Blennerhassett

Northbound Flows: Moutai, CSCC, Beijing Oriental Yuhong, Sungrow

We highlight weekly northbound inflows into Moutai, CSCC, Beijing Oriental Yuhong, Sungrow as well as outflows from Jiangsu Hengrui.

Ke Yan, CFA, FRM

China Materials: Exposure on the Rise

China Materials allocations are on the rise. Current holding weights represent an 8-year high and the percentage of funds invested is at the top...

Steven Holden

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Northbound Flows Monthly (June): $11bn Inflows

We estimate $11bn inflow into A-share market through northbound in June and highlight monthly inflows into Moutai, Yili, East Money, Tongwei, and...

Ke Yan, CFA, FRM

Northbound Flows: $5.7bn Inflows, Biggest Since Dec

We highlight northbound Shanghai Shenzhen Connect inflows into Moutai, Yili, China Tourism, Longi, Beijing Orient Yuhong.

Ke Yan, CFA, FRM

Shanghai/​​​Shenzhen Northbound Connect: Weekly Moves (9 June 2022)

Overall, net inflow was ~US$6.5bn, and was roughly split between Shanghai Northbound (+US$5.5bn) and Shenzhen Northbound (+US$1.0bn).

David Blennerhassett

Northbound Flows: Moutai, CSCC, Beijing Oriental Yuhong, Sungrow

We highlight weekly northbound inflows into Moutai, CSCC, Beijing Oriental Yuhong, Sungrow as well as outflows from Jiangsu Hengrui.

Ke Yan, CFA, FRM

China Materials: Exposure on the Rise

China Materials allocations are on the rise. Current holding weights represent an 8-year high and the percentage of funds invested is at the top...

Steven Holden

Shanghai/Shenzhen Northbound Connect: Weekly Moves (9 June 2022)