HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>Rare earth is an important area in the US-China trade negotiation, as China processes 90% of the world's supply, and the US depends on China for 70% of its imports.</li>
<li>
<a href="https://www.smartkarma.com/entities/china-northern-rare-earth-group-high-tech-co-ltd" target="_blank" data-smartkarma-citation="entities:13440:1" rel="noopener">China Northern Rare Earth Group High-Tech (600111 CH)</a>, <a href="https://www.smartkarma.com/entities/china-minmetals-rare-earth-co-ltd" target="_blank" data-smartkarma-citation="entities:2083:1" rel="noopener">China Minmetals Rare Earth (000831 CH)</a>, and <a href="https://www.smartkarma.com/entities/shenghe-resources-holding-co-ltd" target="_blank" data-smartkarma-citation="entities:17058:1" rel="noopener">Shenghe Resources Holding (600392 CH)</a> are the main listed A-shares.</li>
<li>
<a href="https://www.smartkarma.com/entities/jl-mag-rare-earth-co-ltd-71612cf2-8326-48fd-8a92-d5dc0e9fa720" target="_blank" data-smartkarma-citation="entities:36201:1" rel="noopener">JL Mag Rare-Earth (6680 HK)</a> and <a href="https://www.smartkarma.com/entities/china-rare-earth-holdings-limited" target="_blank" data-smartkarma-citation="entities:12729:1" rel="noopener">China Rare Earth Holdings (769 HK)</a> are the key Hong Kong-listed ones. They all witnessed better YoY profit in the latest reported results.</li>
</ul>


Rare earth is an important area in the US-China trade negotiation, as China processes 90% of the world's supply, and the US depends on China for 70% of its imports.

China Northern Rare Earth Group High-Tech (600111 CH), China Minmetals Rare Earth (000831 CH), and Shenghe Resources Holding (600392 CH) are the main listed A-shares.

JL Mag Rare-Earth (6680 HK) and China Rare Earth Holdings (769 HK) are the key Hong Kong-listed ones. They all witnessed better YoY profit in the latest reported results.


China & HK Strategy: Rare Earths - What and How?

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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/eq-resources-limited" target="_blank" data-smartkarma-citation="entities:14984:1" rel="noopener">EQ Resources (EQR AU)</a> and <a href="https://www.smartkarma.com/entities/core-lithium-ltd" target="_blank" data-smartkarma-citation="entities:14712:1" rel="noopener">Core Lithium Ltd (CXO AU)</a> will be added to the <a href="https://www.smartkarma.com/entities/vaneck-rare-earth-strategic-me" target="_blank" data-smartkarma-citation="entities:32320:1" rel="noopener">VanEck Rare Earth/Strategic Me (REMX US)</a> at the close on 18 September.</li>
<li>The constituent changes, float changes and capping changes result in an estimated one-way turnover of 7.7% and in a round-trip trade of US$514m.</li>
<li>Other passive index trackers will be buying significant size in <a href="https://www.smartkarma.com/entities/eq-resources-limited" target="_blank" data-smartkarma-citation="entities:14984:1" rel="noopener">EQ Resources (EQR AU)</a> and smaller size in <a href="https://www.smartkarma.com/entities/core-lithium-ltd" target="_blank" data-smartkarma-citation="entities:14712:1" rel="noopener">Core Lithium Ltd (CXO AU)</a> at the same time.</li>
</ul>



EQ Resources (EQR AU) and Core Lithium Ltd (CXO AU) will be added to the VanEck Rare Earth/Strategic Me (REMX US) at the close on 18 September.
The constituent changes, float changes and capping changes result in an estimated one-way turnover of 7.7% and in a round-trip trade of US$514m.
Other passive index trackers will be buying significant size in EQ Resources (EQR AU) and smaller size in Core Lithium Ltd (CXO AU) at the same time.


MV Global Rare Earth/​​​​​Strategic Metals Index Rebalance: Multiple Flows for the Adds

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

<ul><li>Shares of Chinese rare earth suppliers plunged Thursday after Tesla Inc. said it will reduce its use of the minerals in future electric vehicles to control costs.</li><li>The leading electric-car maker is designing next-generation powertrain that will use a permanent magnet motor that doesn’t rely on rare earth materials, Colin Campbell, Tesla vice president for powertrain engineering, said at an investor meeting.</li><li>The change reflects Tesla’s efforts to control material costs and reduce its involvement in the health and<a href="https://www.caixinglobal.com/2022-04-29/in-depth-chinas-rare-earth-hub-wrestles-a-stubborn-problem-cleaning-up-101878773.html" target="_blank" rel="noopener"> environmental risks </a>of mining the minerals, Campbell said.</li></ul>

Shares of Chinese rare earth suppliers plunged Thursday after Tesla Inc. said it will reduce its use of the minerals in future electric vehicles to control costs.The leading electric-car maker is designing next-generation powertrain that will use a permanent magnet motor that doesn’t rely on rare earth materials, Colin Campbell, Tesla vice president for powertrain engineering, said at an investor meeting.The change reflects Tesla’s efforts to control material costs and reduce its involvement in the health and environmental risks of mining the minerals, Campbell said.

Rare Earth Stocks Plunge as Tesla Seeks Alternatives

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 analyzed the changes in margin trading positions of A-share stocks as of Jul 10th. The aggregated net margin trading position is USD397,076m.</li>
<li>We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.</li>
<li>We highlight net margin buy/sell changes in GUOTAI HAITONG SECURITIES, ZTE, DAWNING INFORMATION INDUSTRY, SMIC, CAMBRICON.</li>
</ul>


We analyzed the changes in margin trading positions of A-share stocks as of Jul 10th. The aggregated net margin trading position is USD397,076m.
We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.
We highlight net margin buy/sell changes in GUOTAI HAITONG SECURITIES, ZTE, DAWNING INFORMATION INDUSTRY, SMIC, CAMBRICON.


A-Share Margin Trading Weekly (Jul 10th): GUOTAI HAITONG SECURITIES, ZTE, SMIC, CAMBRICON

<ul>
<li>We analysed the earning revision of component stocks of CSI 100 in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on POLY DEVELOPMENTS, CHINA PETROLEUM AND CHEMICAL, Longi Green, EOPTOLINK TECHNOLOGY, SATELLITE CHEMICAL, HENGLI PETROCHEMICAL, CHONGQING ZHIFEI BIOLOGICAL PRODUCTS, YUNNAN ALUMINIUM.</li>
</ul>


We analysed the earning revision of component stocks of CSI 100 in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on POLY DEVELOPMENTS, CHINA PETROLEUM AND CHEMICAL, Longi Green, EOPTOLINK TECHNOLOGY, SATELLITE CHEMICAL, HENGLI PETROCHEMICAL, CHONGQING ZHIFEI BIOLOGICAL PRODUCTS, YUNNAN ALUMINIUM.


CSI 100 Index Earning Revision (Jun): POLY DEVELOPMENTS, CHINA PETROLEUM AND CHEMICAL

China

China Northern Rare Earth Group High-Tech Co. Ltd. is the consolidation of mining, smelting, separation and utilization companies in the northern region of Inner Mongolia.

China Northern Rare Earth Group High-Tech (600111 CH)

China Northern Rare Earth Group High-Tech

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

China Northern Rare Earth Group High-Tech (600111 CH)

China & HK Strategy: Rare Earths - What and How?

US-China trade negotiation is heavily influenced by rare earths, with China processing 90% of the global supply and the US relying on China for...

Osbert Tang, CFA

MV Global Rare Earth/Strategic Metals Index Rebalance: Multiple Flows for the Adds

There are 2 adds in Sep. The constituent, float, capping changes result in an estimated one-way turnover of 7.7% and in a round-trip trade of...

Brian Freitas

Rare Earth Stocks Plunge as Tesla Seeks Alternatives

Shares of Chinese rare earth suppliers plunged Thursday after Tesla Inc. said it will reduce its use of the minerals in future electric vehicles...

Caixin Global

CSI 100 Index Earning Revision (Jun): POLY DEVELOPMENTS, CHINA PETROLEUM AND CHEMICAL

We analyzed CSI 100's consensus for Jun 2026 and highlighted changes of EPS in POLY DEVELOPMENTS (600048 CH), CHINA PETROLEUM AND CHEMICAL (600028...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China & HK Strategy: Rare Earths - What and How?

​US-China trade negotiation is heavily influenced by rare earths, with China processing 90% of the global supply and the US relying on China for...

Osbert Tang, CFA

MV Global Rare Earth/​​​​​Strategic Metals Index Rebalance: Multiple Flows for the Adds

There are 2 adds in Sep. The constituent, float, capping changes result in an estimated one-way turnover of 7.7% and in a round-trip trade of...

Brian Freitas

Rare Earth Stocks Plunge as Tesla Seeks Alternatives

Shares of Chinese rare earth suppliers plunged Thursday after Tesla Inc. said it will reduce its use of the minerals in future electric vehicles...

Caixin Global

A-Share Margin Trading Weekly (Jul 10th): GUOTAI HAITONG SECURITIES, ZTE, SMIC, CAMBRICON

We analyzed A-share margin trading positions report for the past week and highlighted GUOTAI HAITONG SECURITIES, ZTE, DAWNING INFORMATION INDUSTRY,...

Ke Yan, CFA, FRM

CSI 100 Index Earning Revision (Jun): POLY DEVELOPMENTS, CHINA PETROLEUM AND CHEMICAL

We analyzed CSI 100's consensus for Jun 2026 and highlighted changes of EPS in POLY DEVELOPMENTS (600048 CH), CHINA PETROLEUM AND CHEMICAL (600028...

Ke Yan, CFA, FRM

US-China trade negotiation is heavily influenced by rare earths, with China processing 90% of the global supply and the US relying on China for...

MV Global Rare Earth/Strategic Metals Index Rebalance: Multiple Flows for the Adds