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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

The <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">SSE STAR 50 (STAR50 INDEX)</a> is a free float market cap weighted and is made up of the 50 largest stocks based on full market cap that are listed on the STAR Market.The review period for the June rebalance ends on 30 April, the results of the rebalance will be announced towards the end of May and will be implemented at the close of trading on 11 June.A maximum of 5 changes are permitted in a single review.At the June review, we see <a href="https://www.smartkarma.com/entities/suntar-environmental-techn-a" target="_blank" data-smartkarma-citation="entities:30342:1" rel="noopener">Suntar Environmental Techn-A (688101 CH)</a>, <a href="https://www.smartkarma.com/entities/shenzhen-qingyi-photomask-ltd" target="_blank" data-smartkarma-citation="entities:30351:1" rel="noopener">Shenzhen Qingyi Photomask Ltd (688138 CH)</a>, <a href="https://www.smartkarma.com/entities/traffic-control-technology-co" target="_blank" data-smartkarma-citation="entities:30309:1" rel="noopener">Traffic Control Technology Co (688015 CH)</a>, <a href="https://www.smartkarma.com/entities/hillstone-networks-co-ltd" target="_blank" data-smartkarma-citation="entities:30321:1" rel="noopener">Hillstone Networks Co Ltd (688030 CH)</a> and <a href="https://www.smartkarma.com/entities/ningbo-solartron-technolog-a" target="_blank" data-smartkarma-citation="entities:30380:1" rel="noopener">Ningbo Solartron Technolog-A (688299 CH)</a> being deleted from the index.With index rules that are not specific, there are two sets of possible inclusions depending on the minimum listing history for the stocks.The likelier inclusions are <a href="https://www.smartkarma.com/entities/ninebot-ltd" target="_blank" data-smartkarma-citation="entities:32180:1" rel="noopener">Ninebot Ltd (689009 CH)</a>, <a href="https://www.smartkarma.com/entities/cansino-biologics-inc-cc0c90b7-e854-4ba3-929b-914be1bd0d89" target="_blank" data-smartkarma-citation="entities:32181:1" rel="noopener">CanSino Biologics Inc (688185 CH)</a>, <a href="https://www.smartkarma.com/entities/sansure-biotech-inc" target="_blank" data-smartkarma-citation="entities:32182:1" rel="noopener">Sansure Biotech Inc (688289 CH)</a>, <a href="https://www.smartkarma.com/entities/verisilicon-microelectronics" target="_blank" data-smartkarma-citation="entities:32183:1" rel="noopener">VeriSilicon Microelectronics (688521 CH)</a> and <a href="https://www.smartkarma.com/entities/cathay-biotech-inc" target="_blank" data-smartkarma-citation="entities:32184:1" rel="noopener">Cathay Biotech Inc (688065 CH)</a>.The less likely inclusions are <a href="https://www.smartkarma.com/entities/beijing-huafeng-test-con-a" target="_blank" data-smartkarma-citation="entities:30367:1" rel="noopener">Beijing Huafeng Test &amp; Con-A (688200 CH)</a>, <a href="https://www.smartkarma.com/entities/zhejiang-orient-gene-biote-a" target="_blank" data-smartkarma-citation="entities:30379:1" rel="noopener">Zhejiang Orient Gene Biote-A (688298 CH)</a>, <a href="https://www.smartkarma.com/entities/bio-thera-solutions-ltd" target="_blank" data-smartkarma-citation="entities:29127:1" rel="noopener">Bio-Thera Solutions Ltd (688177 CH)</a>, <a href="https://www.smartkarma.com/entities/hangzhou-raycloud-technolo-a" target="_blank" data-smartkarma-citation="entities:30391:1" rel="noopener">Hangzhou Raycloud Technolo-A (688365 CH)</a> and <a href="https://www.smartkarma.com/entities/hitgen-inc" target="_blank" data-smartkarma-citation="entities:30371:1" rel="noopener">HitGen Inc (688222 CH)</a>.The recent selloff in growth stocks has led to the potential inclusions underperforming the potential deletions. A turn in momentum stocks could lead to the potential inclusions outperforming.

The SSE STAR 50 (STAR50 INDEX) is a free float market cap weighted and is made up of the 50 largest stocks based on full market cap that are listed on the STAR Market.The review period for the June rebalance ends on 30 April, the results of the rebalance will be announced towards the end of May and will be implemented at the close of trading on 11 June.A maximum of 5 changes are permitted in a single review.At the June review, we see Suntar Environmental Techn-A (688101 CH), Shenzhen Qingyi Photomask Ltd (688138 CH), Traffic Control Technology Co (688015 CH), Hillstone Networks Co Ltd (688030 CH) and Ningbo Solartron Technolog-A (688299 CH) being deleted from the index.With index rules that are not specific, there are two sets of possible inclusions depending on the minimum listing history for the stocks.The likelier inclusions are Ninebot Ltd (689009 CH), CanSino Biologics Inc (688185 CH), Sansure Biotech Inc (688289 CH), VeriSilicon Microelectronics (688521 CH) and Cathay Biotech Inc (688065 CH).The less likely inclusions are Beijing Huafeng Test &amp; Con-A (688200 CH), Zhejiang Orient Gene Biote-A (688298 CH), Bio-Thera Solutions Ltd (688177 CH), Hangzhou Raycloud Technolo-A (688365 CH) and HitGen Inc (688222 CH).The recent selloff in growth stocks has led to the potential inclusions underperforming the potential deletions. A turn in momentum stocks could lead to the potential inclusions outperforming.

STAR50 Index Rebalance June Preview: Selloff Presents Opportunity

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

In recent years, <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a> has launched a number of successful products, and the Company's investment value has significantly increased. Innovent leads the domestic counterparts in the layout of biological drugs and adhere to the development of internationally competitive products. The Company also establishes an excellent team to ensure the efficient implementation of the strategy. Meanwhile, Innovent is gradually transforming from a biotech company to a big pharma. With dozens of products in the pipeline, the Company is focusing on mainstream areas and is in the first echelon of clinical progress. In addition, with the rapid increase of sales after the listing of PD-1, its commercialization capability has also been recognized by the market.

In recent years, Innovent Biologics Inc (1801 HK) has launched a number of successful products, and the Company's investment value has significantly increased. Innovent leads the domestic counterparts in the layout of biological drugs and adhere to the development of internationally competitive products. The Company also establishes an excellent team to ensure the efficient implementation of the strategy. Meanwhile, Innovent is gradually transforming from a biotech company to a big pharma. With dozens of products in the pipeline, the Company is focusing on mainstream areas and is in the first echelon of clinical progress. In addition, with the rapid increase of sales after the listing of PD-1, its commercialization capability has also been recognized by the market. 

Innovent Biologics (1801 HK) - Have the Genes to Become a Big Pharma

Equity Capital Markets

Betta Pharmaceuticals   / Equity Capital Markets

In the past two years, especially in the year 2020, it seems to be a “fashion” for bio-pharmaceutical companies to list on the HKEX. Against this backdrop, <a href="https://www.smartkarma.com/entities/betta-pharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:25883:1" rel="noopener">Betta Pharmaceuticals (300558 CH)</a> could also not miss this trend. Betta is a leading biopharmaceutical company committed to the R&amp;D of innovative therapies intended to address unmet medical needs including those in lung and other large cancer indications. On February 8th, 2021, the Company submitted to the HKEX the application for IPO.

In the past two years, especially in the year 2020, it seems to be a “fashion” for bio-pharmaceutical companies to list on the HKEX. Against this backdrop, Betta Pharmaceuticals (300558 CH) could also not miss this trend. Betta is a leading biopharmaceutical company committed to the R&amp;D of innovative therapies intended to address unmet medical needs including those in lung and other large cancer indications. On February 8th, 2021, the Company submitted to the HKEX the application for IPO. 

Pre-IPO Betta Pharmaceuticals - Insights on Products and Concerns

On January 29th, 2021, <a href="https://www.smartkarma.com/entities/luye-pharma-group-ltd" target="_blank" data-smartkarma-citation="entities:488:1" rel="noopener">Luye Pharma (2186 HK)</a> announced a subscription agreement with Hillhouse NEV, involving HK$1.25 billion of investment from Hillhouse in exchange for issuing of new shares. The subscription price of the new shares was HK$4.28/share, a premium of approximately 10.03% over the closing price of HK$3.89/share on January 29th. Once the deals are completed, Hillhouse NEV will have a 15.60% stake in Luye, making it the second largest shareholder of the Company. The news had an immediate boost to share prices. Luye's shares opened sharply higher on Monday (February 1st), trading as high as HK$7, up 79.95% from Friday's close of HK$3.89/share. It surged again on Wednesday (February 3rd), up 11.3%, and then started to fall back on Thursday. By the end of February 5th, Luye's share price was HK$6.19. So, could the magic of Hillhouse last long?

On January 29th, 2021, Luye Pharma (2186 HK) announced a subscription agreement with Hillhouse NEV, involving HK$1.25 billion of investment from Hillhouse in exchange for issuing of new shares. The subscription price of the new shares was HK$4.28/share, a premium of approximately 10.03% over the closing price of HK$3.89/share on January 29th. Once the deals are completed, Hillhouse NEV will have a 15.60% stake in Luye, making it the second largest shareholder of the Company. The news had an immediate boost to share prices. Luye's shares opened sharply higher on Monday (February 1st), trading as high as HK$7, up 79.95% from Friday's close of HK$3.89/share. It surged again on Wednesday (February 3rd), up 11.3%, and then started to fall back on Thursday. By the end of February 5th, Luye's share price was HK$6.19. So, could the magic of Hillhouse last long?

Luye Pharma (2186.HK) - Could the Magic of Hillhouse Last Long?

Bio-Thera Solutions Ltd / Equity Capital Markets

In February 2020, <a href="https://www.smartkarma.com/entities/bio-thera-solutions-ltd" target="_blank" data-smartkarma-citation="entities:29127:1" rel="noopener">Bio-Thera Solutions Ltd (688177 CH)</a> completed its listing on the SSE STAR Market. Then in 2020/2H, Bio-Thera planned to list on the Hong Kong Stock Exchange, becoming another biopharmaceutical company with "A+H" listing. Currently the Company’s market value was about RMB13.5 billion. So how about this company? The following provides the insights on its pipeline and related competitive landscape.

In February 2020, Bio-Thera Solutions Ltd (688177 CH) completed its listing on the SSE STAR Market. Then in 2020/2H, Bio-Thera planned to list on the Hong Kong Stock Exchange, becoming another biopharmaceutical company with "A+H" listing. Currently the Company’s market value was about RMB13.5 billion. So how about this company? The following provides the insights on its pipeline and related competitive landscape. 

Pre-IPO Bio-Thera Solutions - Insights on Pipeline and the Competitive Landscape

China

Bio-Thera Solutions, Ltd. researches and develops innovative and biosimilar therapeutics. The Company produces innovative monoclonal antibodies, adalimumab biosimilars, innovative drugs, and other related products. Bio-Thera Solutions markets its products throughout China.

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Bio-Thera Solutions Ltd (688177 CH)

STAR50 Index Rebalance June Preview: Selloff Presents Opportunity

While the deletions at the STAR50 June review can be picked fairly easily, index rules that are not specific give rise to two sets of potential...

Brian Freitas

Innovent Biologics (1801 HK) - Have the Genes to Become a Big Pharma

This article mainly analyzed Innovent in terms of its current listed products (Sintilimab, Bevacizumab, Adalimumab and Rituximab), its pipeline,...

Xinyao (Criss) Wang

Pre-IPO Betta Pharmaceuticals - Insights on Products and Concerns

This article analyzed Betta Pharmaceutical in terms of its major products, pipeline, competitive landscape, and also include the concerns on the...

Xinyao (Criss) Wang

Luye Pharma (2186.HK) - Could the Magic of Hillhouse Last Long?

This article analyzed Luye Pharma after the subscription agreement with Hillhouse in terms of the past performance, insights on recent changes, and...

Xinyao (Criss) Wang

Pre-IPO Bio-Thera Solutions - Insights on Pipeline and the Competitive Landscape

This article summarized the insights on major products of Bio-Thera Solutions in the pipeline and related competitive landscape with other key...

Xinyao (Criss) Wang

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