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 147 stocks over the last week. The average A-H premium was 110.7% as of May 24th.</li>
<li>The average A-H premium changed by 4.3ppt week-on-week, led by real estate, financials, information technology and offset by communication services.</li>
<li>We highlight weekly changes in A-H premium for BOC, CCB, PetroChina, Zoomlion Heavy, Jiangxi Copper, China Longyuan.</li>
</ul>


We analyse the changes of A-H premium on 147 stocks over the last week. The average A-H premium was 110.7% as of May 24th.
The average A-H premium changed by 4.3ppt week-on-week, led by real estate, financials, information technology and offset by communication services.
We highlight weekly changes in A-H premium for BOC, CCB, PetroChina, Zoomlion Heavy, Jiangxi Copper, China Longyuan.


A-H Premium Weekly (May 24th): BOC, CCB, PetroChina, Zoomlion Heavy, Jiangxi Copper, China Longyuan

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

China International Capital Corporation / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-international-capital-corporation-ltd" target="_blank" data-smartkarma-citation="entities:1071:1" rel="noopener">China International Capital Corporation (3908 HK)</a> is a laggard among the Chinese securities companies. With the rebound in HSI and Shanghai Composite, such divergence should narrow.</li>
<li>The investment banking business should recover following the rebound in the secondary market and equity valuations. HK's IPO funds raised are forecast to double in 2024.</li>
<li>At 0.4x 12-month P/B, the market has deeply discounted CICC's earnings outlook. However, as earnings recovery will be fast, its share price will react rapidly.</li>
</ul>



China International Capital Corporation (3908 HK) is a laggard among the Chinese securities companies. With the rebound in HSI and Shanghai Composite, such divergence should narrow.
The investment banking business should recover following the rebound in the secondary market and equity valuations. HK's IPO funds raised are forecast to double in 2024.
At 0.4x 12-month P/B, the market has deeply discounted CICC's earnings outlook. However, as earnings recovery will be fast, its share price will react rapidly.


<ul>
<li>We analyse the changes of A-H premium on 147 stocks over the last week. The average A-H premium was 106.3% as of May 17th.</li>
<li>The average A-H premium changed by -7.7ppt week-on-week, led by consumer staples, real estate, utilities.</li>
<li>We highlight weekly changes in A-H premium for China Shenhua, Sinopec, PetroChina, China Telecom, CICC, GWM.</li>
</ul>


We analyse the changes of A-H premium on 147 stocks over the last week. The average A-H premium was 106.3% as of May 17th.
The average A-H premium changed by -7.7ppt week-on-week, led by consumer staples, real estate, utilities.
We highlight weekly changes in A-H premium for China Shenhua, Sinopec, PetroChina, China Telecom, CICC, GWM.


A-H Premium Weekly (May 17th): 44 Stocks at 52 Week High

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

China International Capital Corporation / Event-Driven

<ul>
<li>The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.</li>
<li>SOUTHBOUND's buy streak was interrupted again this past week, but they still net bought, as did NORTHBOUND. HK stocks continued bouncing VERY hard. Hs outperformed As very strongly.</li>
<li>As had a chance to catch up. Did not. Liquid Hs outperformed their As by 4.8% from 30-April through 10-May. Wide premia narrowed more than narrow premia.</li>
</ul>


The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.
SOUTHBOUND's buy streak was interrupted again this past week, but they still net bought, as did NORTHBOUND. HK stocks continued bouncing VERY hard. Hs outperformed As very strongly.
As had a chance to catch up. Did not. Liquid Hs outperformed their As by 4.8% from 30-April through 10-May. Wide premia narrowed more than narrow premia.


A/H Premium Tracker (To 10 May 2024):  Excellent Quiddity Portfolio Gains as Hs Rally Huge Vs As

<ul>
<li>The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.</li>
<li>SOUTHBOUND and NORTHBOUND flows net positive. AH premia on average fell so Hs OUTperformed As by 2.1%. Liquid Hs saw their H outperform the A by 3.1% on average.</li>
<li>Last week was the sharpest one-week fall in AH premium in a very long time.  SOUTHBOUND Flows Monitor <a href="https://www.smartkarma.com/insights/hk-connect-southbound-flows-to-23-feb-2024-selling-of-consumer-stocks-but-big-buys-of-soes" target="_blank" rel="noopener">here</a>. NORTHBOUND Flows Monitor <a href="https://www.smartkarma.com/insights/mainland-connect-northbound-flows-to-23-feb-2024-foreigners-buy-natl-team-buys-retail-sells" target="_blank" rel="noopener">here</a>.</li>
</ul>


The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.
SOUTHBOUND and NORTHBOUND flows net positive. AH premia on average fell so Hs OUTperformed As by 2.1%. Liquid Hs saw their H outperform the A by 3.1% on average.
Last week was the sharpest one-week fall in AH premium in a very long time.  SOUTHBOUND Flows Monitor here. NORTHBOUND Flows Monitor here.


A/H Premium Tracker (To 23 Feb 2024):  Liquid AH Premia See Sharpest Fall in a LOONG (He-He) Time

China

China International Capital Corporation Ltd. (CICC) operates as an international investment bank. The Company provides financial services, including investment banking, capital markets, securities sales and trading, fixed income, asset management, and private equity. China International Capital also offers individual wealth management and research services.

China International Capital Corporation (3908 HK)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

China International Capital Corporation (3908 HK)

A-H Premium Weekly (May 24th): BOC, CCB, PetroChina, Zoomlion Heavy, Jiangxi Copper, China Longyuan

We analyzed A-H premium changes in the past week and highlight A-H premium changes for BOC, CCB, PetroChina, Zoomlion Heavy, Jiangxi Copper, China...

Ke Yan, CFA, FRM

CICC (3908 HK): Soon to Be Its Time

CICC is a laggard among Chinese securities companies. With the market rebound, its earnings and share price are set to improve rapidly. Its 0.4x P...

Osbert Tang, CFA

A-H Premium Weekly (May 17th): 44 Stocks at 52 Week High

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Shenhua, Sinopec, PetroChina, China Telecom, CICC, GWM.

Ke Yan, CFA, FRM

A/H Premium Tracker (To 10 May 2024): Excellent Quiddity Portfolio Gains as Hs Rally Huge Vs As

AH Premia narrowed significantly. As an average, they are down near 52wk lows, with most of the move having taken place in the last 3 weeks. Some...

Travis Lundy

A/H Premium Tracker (To 23 Feb 2024): Liquid AH Premia See Sharpest Fall in a LOONG (He-He) Time

Quiddity AH Monitor. The Quiddity Portfolio +1.49% despite being only 55% net long (52 long H short A, 15 short H long A); Big week in many pairs....

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

A-H Premium Weekly (May 24th): BOC, CCB, PetroChina, Zoomlion Heavy, Jiangxi Copper, China Longyuan

We analyzed A-H premium changes in the past week and highlight A-H premium changes for BOC, CCB, PetroChina, Zoomlion Heavy, Jiangxi Copper, China...

Ke Yan, CFA, FRM

CICC (3908 HK): Soon to Be Its Time

​CICC is a laggard among Chinese securities companies. With the market rebound, its earnings and share price are set to improve rapidly. Its 0.4x P...

Osbert Tang, CFA

A-H Premium Weekly (May 17th): 44 Stocks at 52 Week High

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Shenhua, Sinopec, PetroChina, China Telecom, CICC, GWM.

Ke Yan, CFA, FRM

A/H Premium Tracker (To 10 May 2024): Excellent Quiddity Portfolio Gains as Hs Rally Huge Vs As

AH Premia narrowed significantly. As an average, they are down near 52wk lows, with most of the move having taken place in the last 3 weeks. Some...

Travis Lundy

A/H Premium Tracker (To 23 Feb 2024): Liquid AH Premia See Sharpest Fall in a LOONG (He-He) Time

Quiddity AH Monitor. The Quiddity Portfolio +1.49% despite being only 55% net long (52 long H short A, 15 short H long A); Big week in many pairs....

Travis Lundy

CICC is a laggard among Chinese securities companies. With the market rebound, its earnings and share price are set to improve rapidly. Its 0.4x P...