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.

Thematic (Sector/Industry)

<ul><li>Due to COVID and early CNY this year, we have not seen any meaningful sign of recovery in property and its supply chain.</li><li>In terms of breakdown, property completion&gt;sales&gt;new start shown by 1) Completion-driven materials Aluminum and float glass saw WoW price up 2.9%/0.3%.</li><li>This is partly helped by direct funding support for home completion. </li></ul>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.

Due to COVID and early CNY this year, we have not seen any meaningful sign of recovery in property and its supply chain.In terms of breakdown, property completion&gt;sales&gt;new start shown by 1) Completion-driven materials Aluminum and float glass saw WoW price up 2.9%/0.3%.This is partly helped by direct funding support for home completion. 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.

China Property Sector – Property+ Weekly: Can we expect post-CNY recovery?

<ul><li>In-line NBS Dec data concluded the hard-landing 2022 for property market with sales value/property investment down 27/10% YoY.</li><li>Looking into 2023, we think the recovery of new home market still takes time and expect sales and investment to continue falling at -10/-5% (slightly more negative than consensus).</li><li>The key investment themes for this year are quick recovery in existing home market and property supply chain to enjoy direct policy support (RMB350bn Home completion funding, RMB100bn for social housing).</li></ul>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.

In-line NBS Dec data concluded the hard-landing 2022 for property market with sales value/property investment down 27/10% YoY.Looking into 2023, we think the recovery of new home market still takes time and expect sales and investment to continue falling at -10/-5% (slightly more negative than consensus).The key investment themes for this year are quick recovery in existing home market and property supply chain to enjoy direct policy support (RMB350bn Home completion funding, RMB100bn for social housing).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.

China Property Sector – Silver lining lies on relaxation in Tier 1 cities

Asia biased macro & technical analysis, Untying The Gordian Knot

Untying The Gordian Knot

Asia biased macro & technical analysis

A differentiated process with a primary focus on Asia. Technical Analysis as core and Macro drivers that could bring the view to fruition & changes that could make the idea fall apart. The objective is to be the best in class, hence corner shop.

Technical Analysis

<ul><li>The announcement of easing most Covid restrictions resulted in a new rally high, but the close was below at least the previous two-day open/closes, making it an outside day reversal pattern.</li><li>This note highlights the reversal patterns in HSI, HSTECH, AIA, and Tencent. These have some of the cleanest reversal patterns.</li><li>In real estate, SOEs like China Resource Land [-11.75% from 30th November intraday peak] and China Overseas Land [-9.7% from 29th intraday peak] reversed before the China Mainland Property index [6th December], a reflection of a short squeeze as a crucial driver of sector rally. Longfor peaked on 6th December and is down 17% after a 276% rally.</li></ul>

The announcement of easing most Covid restrictions resulted in a new rally high, but the close was below at least the previous two-day open/closes, making it an outside day reversal pattern.This note highlights the reversal patterns in HSI, HSTECH, AIA, and Tencent. These have some of the cleanest reversal patterns.In real estate, SOEs like China Resource Land [-11.75% from 30th November intraday peak] and China Overseas Land [-9.7% from 29th intraday peak] reversed before the China Mainland Property index [6th December], a reflection of a short squeeze as a crucial driver of sector rally. Longfor peaked on 6th December and is down 17% after a 276% rally.

Hang Seng Index, Hang Seng Tech Index, AIA, Tencent, and China Resource Land

<ul><li>We think the third arrow from CSRC is positive to the sector as 1) the signal is stronger than the previous 16 measures by PBOC because the equity financing channel has been long freeze for A-share property names.</li><li>So that means the attitude towards property sector is a U-turn to help developers in need.</li><li>2) It opens up the imagination that troubled developers may issue equity to SOEs or local government for mixed ownership. </li></ul>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.

We think the third arrow from CSRC is positive to the sector as 1) the signal is stronger than the previous 16 measures by PBOC because the equity financing channel has been long freeze for A-share property names.So that means the attitude towards property sector is a U-turn to help developers in need.2) It opens up the imagination that troubled developers may issue equity to SOEs or local government for mixed ownership. 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.

China Property Sector – Equity financing reopens to fuel another rally

<ul><li>In our last report dated 17 October, we highlighted a list of 21 long ideas.</li><li>The basket (equal weighted) of these 21 stocks underperformed MSCI China index by 5.4ppt, delivering 0.2% return (vs MSCI China 5.6%).</li><li>China Meidong Auto and Innovent Biologics delivered over 20% of return, and 4 of our 21 long ideas outperformed the benchmark.</li></ul>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.

In our last report dated 17 October, we highlighted a list of 21 long ideas.The basket (equal weighted) of these 21 stocks underperformed MSCI China index by 5.4ppt, delivering 0.2% return (vs MSCI China 5.6%).China Meidong Auto and Innovent Biologics delivered over 20% of return, and 4 of our 21 long ideas outperformed the benchmark.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.

CMBI Research Focus List (November Edition) – Our best high conviction stock ideas

Hong Kong

China Resources Land is a leading property developer, investor, and operator focused on urban construction and operation in Mainland China. The company develops and manages residential properties, shopping malls, offices, and hotels, and also engages in asset-light management and eco-system elementary businesses. It was founded in 1994 and is headquartered in Hong Kong.

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China Resources Land (1109 HK)

China Property Sector – Property+ Weekly: Can we expect post-CNY recovery?

Due to COVID and early CNY this year, we have not seen any meaningful sign of recovery in property and its supply chain.

CMB International

China Property Sector – Silver lining lies on relaxation in Tier 1 cities

In-line NBS Dec data concluded the hard-landing 2022 for property market with sales value/property investment down 27/10% YoY.

CMB International

Hang Seng Index, Hang Seng Tech Index, AIA, Tencent, and China Resource Land

The announcement of easing most Covid restrictions resulted in a new rally high, but the close was below at least the previous two-day open/closes,...

Untying The Gordian Knot

China Property Sector – Equity financing reopens to fuel another rally

After market closed, CSRC’s Chairman Yi Huiman announced that in order to maintain stable and heathy development of real estate market

CMB International

CMBI Research Focus List (November Edition) – Our best high conviction stock ideas

In our last report dated 17 October, we highlighted a list of 21 long ideas.The basket (equal weighted) of these 21 stocks underperformed MSCI...

CMB International

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