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 143 stocks over the last week. The average A-H premium was 113.6% as of Mar 31st.</li>
<li>The average A-H premium changed by -0.5ppt week on week, led by communication services, energy, utilities and offset by consumer staples, health care.</li>
<li>We highlight weekly changes in A-H premium for Yankuang Energy, CRRC, China Telecom, CCCC.</li>
</ul>


We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 113.6% as of Mar 31st.
The average A-H premium changed by -0.5ppt week on week, led by communication services, energy, utilities and offset by consumer staples, health care.
We highlight weekly changes in A-H premium for Yankuang Energy, CRRC, China Telecom, CCCC.


A-H Premium Weekly (Mar 31st): Yankuang Energy, CRRC, China Telecom, CCCC

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

China Shenhua Energy Co H / Index Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-shenhua-energy-co-h" target="_blank" data-smartkarma-citation="entities:382:1" rel="noopener">China Shenhua Energy Co H (1088 HK)</a> could replace <a href="https://www.smartkarma.com/entities/country-garden-holdings-co" target="_blank" data-smartkarma-citation="entities:5225:1" rel="noopener">Country Garden Holdings Co (2007 HK)</a> in the <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">Hang Seng China Enterprises Index (HSCEI INDEX)</a> at the June rebalance.</li>
<li>Short interest on <a href="https://www.smartkarma.com/entities/china-shenhua-energy-co-h" target="_blank" data-smartkarma-citation="entities:382:1" rel="noopener">China Shenhua Energy Co H (1088 HK)</a> is pretty small while the short interest on <a href="https://www.smartkarma.com/entities/country-garden-holdings-co" target="_blank" data-smartkarma-citation="entities:5225:1" rel="noopener">Country Garden Holdings Co (2007 HK)</a> is large and possibly getting bigger.</li>
<li>The change could result in a big increase in the fair value for the HSCEI 2023 dividend futures. Currently, we estimate an increase of up to 9 DIPS.</li>
</ul>



China Shenhua Energy Co H (1088 HK) could replace Country Garden Holdings Co (2007 HK) in the Hang Seng China Enterprises Index (HSCEI INDEX) at the June rebalance.
Short interest on China Shenhua Energy Co H (1088 HK) is pretty small while the short interest on Country Garden Holdings Co (2007 HK) is large and possibly getting bigger.
The change could result in a big increase in the fair value for the HSCEI 2023 dividend futures. Currently, we estimate an increase of up to 9 DIPS.


HSCEI Index Rebalance Preview: China Shenhua (1088) Could Replace Country Garden (2007); Div Impact

<ul>
<li>We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 109.6% as of Feb 17th.</li>
<li>The average A-H premium changed by -2.3ppt week on week, led by consumer discretionary, health care, energy and offset by communication services, consumer staples, materials.</li>
<li>We highlight weekly changes in A-H premium for China Shenhua, PetroChina, GWM, First Tractor.</li>
</ul>


We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 109.6% as of Feb 17th.
The average A-H premium changed by -2.3ppt week on week, led by consumer discretionary, health care, energy and offset by communication services, consumer staples, materials.
We highlight weekly changes in A-H premium for China Shenhua, PetroChina, GWM, First Tractor.


A-H Premium Weekly (Feb 17th): China Shenhua, PetroChina, GWM, First Tractor

<ul>
<li>We expect one change to the <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">Hang Seng China Enterprises Index (HSCEI INDEX)</a> in March, though there is a possibility of a second change.</li>
<li>The change in the index handling treatment for Secondary Listings and Dual Primary Listings will also result in some big float changes resulting in inflows to some stocks.</li>
<li>If there are two changes to the index, estimated one-way turnover is 2.39% resulting in a one-way trade of HK$1,536m.</li>
</ul>


We expect one change to the Hang Seng China Enterprises Index (HSCEI INDEX) in March, though there is a possibility of a second change.
The change in the index handling treatment for Secondary Listings and Dual Primary Listings will also result in some big float changes resulting in inflows to some stocks.
If there are two changes to the index, estimated one-way turnover is 2.39% resulting in a one-way trade of HK$1,536m.


HSCEI Index Rebalance Preview: Handling Treatment & Changes in March

<ul>
<li>We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 113.5% as of Dec 16th.</li>
<li>The average A-H premium changed by -1.9ppt weeok on week, led by health care, consumer discretionary, energy and offset by consumer staples, real estate.</li>
<li>We highlight weekly changes in A-H premium for Weichai Power, Fuyao Glass, Tianqi Lithium, Cansino Biologics, Air China, Cosco Ship Holding.</li>
</ul>


We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 113.5% as of Dec 16th.
The average A-H premium changed by -1.9ppt weeok on week, led by health care, consumer discretionary, energy and offset by consumer staples, real estate.
We highlight weekly changes in A-H premium for Weichai Power, Fuyao Glass, Tianqi Lithium, Cansino Biologics, Air China, Cosco Ship Holding.


A-H Premium Weekly (Dec 16th): Weichai Power, Fuyao Glass, Tianqi Lithium

China

China Coal Energy Company Ltd mines and markets thermal coal and coking coal. The Company also manufactures coal mining equipment and offers coal mine design services.

Price Gauge
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China Coal Energy Co H (1898 HK)

A-H Premium Weekly (Mar 31st): Yankuang Energy, CRRC, China Telecom, CCCC

We analyzed A-H premium for last week and highlight weekly changes in A-H premium for Yankuang Energy, CRRC, China Telecom, CCCC.

Ke Yan, CFA, FRM

HSCEI Index Rebalance Preview: China Shenhua (1088) Could Replace Country Garden (2007); Div Impact

China Shenhua could replace Country Garden in the HSCEI in June. Shenhua has been moving higher, COGARD lower. Shorts are much higher on COGARD...

Brian Freitas

A-H Premium Weekly (Feb 17th): China Shenhua, PetroChina, GWM, First Tractor

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Shenhua, PetroChina, GWM, First Tractor

Ke Yan, CFA, FRM

HSCEI Index Rebalance Preview: Handling Treatment & Changes in March

There should be at least 1 index change in March, but there could be 2. Changes in index handling treatment will result in free float changes....

Brian Freitas

A-H Premium Weekly (Dec 16th): Weichai Power, Fuyao Glass, Tianqi Lithium

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Weichai Power, Fuyao Glass, Tianqi Lithium, Cansino...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)