Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of October 3rd.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Alibaba, Tencent, Horizon Robotics, Xiaomi, SMIC, China Mobile, CCB.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of October 3rd.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Alibaba, Tencent, Horizon Robotics, Xiaomi, SMIC, China Mobile, CCB.


HK Connect Flows Weekly (Oct 3rd): Alibaba, Tencent, Horizon Robotics, Xiaomi, SMIC, China Mobile

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).</li>
<li>In this insight, we take a look at the impact of the new selection methodology for the December 2025 and March 2026 rebal/review events.</li>
<li>We have also presented our index change expectations for the next semiannual index review which will take place in March 2026 (regular ADDs/DELs only take place in March and September).</li>
</ul>


The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
In this insight, we take a look at the impact of the new selection methodology for the December 2025 and March 2026 rebal/review events.
We have also presented our index change expectations for the next semiannual index review which will take place in March 2026 (regular ADDs/DELs only take place in March and September).


Quiddity Leaderboard HSIII Dec25/Mar26: Interesting Implications of the Recent Methodology Changes

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Black Sesame International / Equity Bottom-Up

<ul><li>Black Sesame reported 1H25 results. Revenue was RMB253mn, up 40% YoY, on robust demand for its assisted driving solutions, which grew 42% YoY. GPM was 24.8%, compared with 50%/35.6% in 1H/2H24, reflecting an unfavorable product mix and upfront investments in new business exploration.</li><li>The Company recorded an IFRS net loss of RMB762mn.</li><li>On a non-IFRS basis, net loss narrowed to RMB549mn from RMB602mn/RMB702mn in 1H/2H24, driven by cost control in G&amp;A (-7% YoY) and improved R&amp;D efficiency (-10% YoY).</li><li>Looking forward, we expect Black Sesame’s revenue to grow by 71%/59% in 2025/26E, supported by rising adoption of driving assistance technologies and enhanced chip performance. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Black Sesame reported 1H25 results. Revenue was RMB253mn, up 40% YoY, on robust demand for its assisted driving solutions, which grew 42% YoY. GPM was 24.8%, compared with 50%/35.6% in 1H/2H24, reflecting an unfavorable product mix and upfront investments in new business exploration.The Company recorded an IFRS net loss of RMB762mn.On a non-IFRS basis, net loss narrowed to RMB549mn from RMB602mn/RMB702mn in 1H/2H24, driven by cost control in G&amp;A (-7% YoY) and improved R&amp;D efficiency (-10% YoY).Looking forward, we expect Black Sesame’s revenue to grow by 71%/59% in 2025/26E, supported by rising adoption of driving assistance technologies and enhanced chip performance. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Black Sesame (2533 HK) - Robust 1H25 Growth Amid Margin Pressure...

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of September 5th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Alibaba, Ping An Insurance, Xiaomi, Tencent, Pop Mart Intl, Shandong Gold Mining, Horizon Robotics, ZTE, China Hongqiao, Kuaishou.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of September 5th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Alibaba, Ping An Insurance, Xiaomi, Tencent, Pop Mart Intl, Shandong Gold Mining, Horizon Robotics, ZTE, China Hongqiao, Kuaishou.


HK Connect Flows Weekly (Sep 5th): Alibaba, Ping An Insurance, Xiaomi, Tencent, Pop Mart Intl

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>Horizon Robotics, a leading provider of integrated computing solutions for ADAS and AD for consumer vehicles, went public in October of 2024 in Hong Kong.</li>
<li>The Chinese technology company priced its IPO at HK$3.99 per share and raised ~HK$5.4B or $696M. The offering was multiple times oversubscribed.</li>
<li>The company’s market cap peaked at ~$18B in February and exceeded valuation of Mobileye Global. I expect a near-term selling pressure as IPO lock-up expires in April.</li>
</ul>


Horizon Robotics, a leading provider of integrated computing solutions for ADAS and AD for consumer vehicles, went public in October of 2024 in Hong Kong.
The Chinese technology company priced its IPO at HK$3.99 per share and raised ~HK$5.4B or $696M. The offering was multiple times oversubscribed.
The company’s market cap peaked at ~$18B in February and exceeded valuation of Mobileye Global. I expect a near-term selling pressure as IPO lock-up expires in April.


Horizon Robotics (9660.HK): The Stock Probably Peaked at HK$10.00+ As IPO Lock-Up Expires in April

China

Black Sesame International Holding Limited is a semiconductor company that provides automotive-grade computing System-on-Chips (SoC) and SoC-based intelligent vehicle solutions. Its product portfolio includes the Huashan series for autonomous driving and the Wudang series for cross-domain computing platforms, alongside supporting software and IP licensing. The company was founded in 2016 and is headquartered in Wuhan, China.

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Black Sesame International (2533 HK)

HK Connect Flows Weekly (Oct 3rd): Alibaba, Tencent, Horizon Robotics, Xiaomi, SMIC, China Mobile

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Alibaba, Tencent, Horizon Robotics, Xiaomi, SMIC, China...

Ke Yan, CFA, FRM

Quiddity Leaderboard HSIII Dec25/Mar26: Interesting Implications of the Recent Methodology Changes

The recent methodology update could result in unusual index changes during the December 2025 index rebal event. There could be more in March 2026 too.

Janaghan Jeyakumar, CFA

Black Sesame (2533 HK) - Robust 1H25 Growth Amid Margin Pressure...

Revenue was RMB253mn, up 40% YoY, on robust demand for its assisted driving solutions, which grew 42% YoY. GPM was 24.8%, compared with 50%/35.6%...

CMB International

HK Connect Flows Weekly (Sep 5th): Alibaba, Ping An Insurance, Xiaomi, Tencent, Pop Mart Intl

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Alibaba (9988 HK), Ping An Insurance (2318 HK), Xiaomi...

Ke Yan, CFA, FRM

Horizon Robotics (9660.HK): The Stock Probably Peaked at HK$10.00+ As IPO Lock-Up Expires in April

I expect Horizon Robotics shares will underperform in April as IPO lock-up expiry will unlock ~9.1B Class B ordinary shares or ~$8.6B worth of...

Andrei Zakharov

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