Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>The Hong Kong market has been range-trading over the last month, with pockets of strength in the AI-related sectors.  Korea and Taiwan markets are the star performers in Asia YTD.</li>
<li>Value and dividend yield factors have been the best-performing in the market, with the growth factor showing negative returns.  Energy, industrials, and conglomerates are the best-performing sectors YTD.</li>
<li>
<a href="https://www.smartkarma.com/entities/huaneng-power-international-inc-class-h" target="_blank" data-smartkarma-citation="entities:28:1" rel="noopener">Huaneng Power International (902 HK)</a> broke out to new highs.  The company has rapidly expanded its renewable energy segment and has benefited from AI/datacenter demand.
</li>
</ul>


The Hong Kong market has been range-trading over the last month, with pockets of strength in the AI-related sectors.  Korea and Taiwan markets are the star performers in Asia YTD.
Value and dividend yield factors have been the best-performing in the market, with the growth factor showing negative returns.  Energy, industrials, and conglomerates are the best-performing sectors YTD.

Huaneng Power International (902 HK) broke out to new highs.  The company has rapidly expanded its renewable energy segment and has benefited from AI/datacenter demand.



Technically Speaking Breakouts & Breakdowns - HONG KONG (May 2026)

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

China Suntien Green Energy / Event-Driven

<ul>
<li>AH Premia continues to trend slightly higher on average (see first chart below). Bumpy, but AH premia are up 3 of last four trading weeks. Quiddity Portfolio Alpha continues positive.</li>
<li>There continue to be some really big moves on pairs. This past week it was <a href="https://www.smartkarma.com/entities/china-suntien-green-energy-corp" target="_blank" data-smartkarma-citation="entities:17269:1" rel="noopener">China Suntien Green Energy (956 HK)</a> and <a href="https://www.smartkarma.com/entities/datang-international-power-generation-company-h" target="_blank" data-smartkarma-citation="entities:3664:1" rel="noopener">Datang International (991 HK)</a> - both widened sharply.</li>
<li>The data tables below update daily in the <a href="https://www.smartkarma.com/tools" target="_blank" rel="noopener">Tools</a> section of Smartkarma. The <a href="https://www.smartkarma.com/tools/quiddity/south-flow-monitor" target="_blank" rel="noopener">Southbound Flow Monitor</a> and <a href="https://www.smartkarma.com/tools/quiddity/ah-shares-monitor" target="_blank" rel="noopener">AH Pairs Monitor</a> are both there - free for all SK readers. Recently used tools are now sticky.</li>
</ul>


AH Premia continues to trend slightly higher on average (see first chart below). Bumpy, but AH premia are up 3 of last four trading weeks. Quiddity Portfolio Alpha continues positive.
There continue to be some really big moves on pairs. This past week it was China Suntien Green Energy (956 HK) and Datang International (991 HK) - both widened sharply.
The data tables below update daily in the Tools section of Smartkarma. The Southbound Flow Monitor and AH Pairs Monitor are both there - free for all SK readers. Recently used tools are now sticky.


A/H Premium Tracker (2 Wks to 13 Mar 26); AH Wider Again - Pharmas & Tech Too Wide

<ul>
<li>AI is poised to drive a large increase in power consumption on the mainland.  Data demand from generative AI necessitates more data centers and consequently more power.</li>
<li>China energy consumption is at the beginning of a super cycle as AI becomes integral to everyday corporate and eventually personal lives.</li>
<li>China's clean energy names will benefit from the China's energy strategy as its power needs from data centers surge.</li>
</ul>


AI is poised to drive a large increase in power consumption on the mainland.  Data demand from generative AI necessitates more data centers and consequently more power.
China energy consumption is at the beginning of a super cycle as AI becomes integral to everyday corporate and eventually personal lives.
China's clean energy names will benefit from the China's energy strategy as its power needs from data centers surge.


Equity Bottom-Up

<ul>
<li>Hong Kong continued a correction in its Bull market which has lifted the HSCEI to be the best performing Asian index this year.  Southboune buying is strong.</li>
<li>
<a href="https://www.smartkarma.com/entities/aac-technologies-holdings-inc" target="_blank" data-smartkarma-citation="entities:6544:1" rel="noopener">AAC Technologies Holdings (2018 HK)</a> share price had a breakout relative to the MSCI AC Asia Index.  The company reported solid results benifitting from the smartphone and auto sectors.
</li>
<li>
<a href="https://www.smartkarma.com/entities/cgn-power-co-ltd-h" target="_blank" data-smartkarma-citation="entities:58:1" rel="noopener">CGN Power (1816 HK)</a> share price relative to MSCI China broke down.  The company reported a disappointing 3Q24 results even as power generation increased by 15% YoY for the period.
</li>
</ul>


Hong Kong continued a correction in its Bull market which has lifted the HSCEI to be the best performing Asian index this year.  Southboune buying is strong.

AAC Technologies Holdings (2018 HK) share price had a breakout relative to the MSCI AC Asia Index.  The company reported solid results benifitting from the smartphone and auto sectors.


CGN Power (1816 HK) share price relative to MSCI China broke down.  The company reported a disappointing 3Q24 results even as power generation increased by 15% YoY for the period.



Technically Speaking, Breakouts and Breakdowns: HONG KONG (NOVEMBER 25)

<ul>
<li>The Somewhat-Brand-Spanking New (10 weeks old) A-H Monitor has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.</li>
<li>We used to do it. We brought it back better, with lots of cool interactive tables, and charts, heat maps, and comparative data. And 50 Trade Recommendations.</li>
<li>The last 10wks (since the start of the new Tracker and Portfolio 11 weeks ago) have seen net portfolio performance of +0.50%, +1.35%, +0.14%, +0.47%, +0.15%, +0.12%, -0.29%, -0.71%, -68%.</li>
</ul>


The Somewhat-Brand-Spanking New (10 weeks old) A-H Monitor has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.
We used to do it. We brought it back better, with lots of cool interactive tables, and charts, heat maps, and comparative data. And 50 Trade Recommendations.
The last 10wks (since the start of the new Tracker and Portfolio 11 weeks ago) have seen net portfolio performance of +0.50%, +1.35%, +0.14%, +0.47%, +0.15%, +0.12%, -0.29%, -0.71%, -68%.


Quiddity A/H Premium Tracker (To Oct20): Volatility Up Further, Wide Spreads Even Wider. Messy²

China

China Suntien Green Energy Corporation Limited engages in new energy and natural gas businesses in Mainland China. The company is involved in wind farm construction and operation, electricity sales, natural gas purchasing and distribution, and LNG terminal services. It was incorporated in 2010 and is headquartered in Shijiazhuang City, the People's Republic of China.

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China Suntien Green Energy (956 HK)

Technically Speaking Breakouts & Breakdowns - HONG KONG (May 2026)

The Hong Kong market has been range-trading over the last month, with pockets of strength in the AI-related sectors. Korea and Taiwan markets are...

David Mudd

A/H Premium Tracker (2 Wks to 13 Mar 26); AH Wider Again - Pharmas & Tech Too Wide

AH Premia continue to drift gently higher. Overall, spreads are middle of the last 52wk range but some are getting very wide again.

Travis Lundy

CHINA: Do You Like AI? BUY Utilities!

GDS Holdings announced that is considering an IPO for a REIT of its data center assets in China which could happen next year. The share sale could...

David Mudd

Technically Speaking, Breakouts and Breakdowns: HONG KONG (NOVEMBER 25)

Southbound buying in HK continued strong with Value Factor providing the best returns.AAC Tech share price had a break out as it provided strong...

David Mudd

Quiddity A/H Premium Tracker (To Oct20): Volatility Up Further, Wide Spreads Even Wider. Messy²

The Quiddity A/H Premium Tracker. Tables, Charts, Flows, Positions (both SB and NB). This week was AGAIN messy. Pairwise volatility is up. universe...

Travis Lundy

Price Gauge

52-week Range

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