Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Asset Allocation - Global and GEM Equity

Equity Bottom-Up

<ul>
<li>In this analysis, we review allocations in Contemporary Amperex Technology among 3 sets of active China managers.  MSCI China Funds, China A-Share Funds and Greater China Funds. </li>
<li>We find that exposure in Contemporary Amperex Technology has risen to peak levels across all 3 investor sets, making it one of the largest overweight positions in China.</li>
<li>Outside of dedicated China, we also see ownership growth among Global Emerging Market and Asia Ex-Japan active strategies.</li>
</ul>

Caixin Global

Articles from Caixin Global

<ul><li>Skyrocketing material costs shook the stock of Contemporary Amperex Technology Co. Ltd. (CATL) as investors wiped billions of dollars off the value of the world's largest electric-vehicle battery manufacturer.</li><li>Word circulated in the market that CATL is set to post net profit of less than 5 billion yuan for the first quarter, a sharp decline from the previous quarter.</li><li>The company hasn’t issued detailed financials for the fourth quarter and all of 2021. An estimate issued in January put annual net profit between 14 billion yuan and 16.5 billion yuan.</li></ul>

<ul>
<li>The world’s largest electric-vehicle battery maker Contemporary Amperex Technology Co. Ltd. (CATL) has announced that it’s considering building more factories overseas</li>
<li>The news came as CATL (300750.SZ +0.72%), based in East China’s Fujian province, has been trying to ease investor concerns about the recent sell-off of its stock</li>
<li>The statement also disclosed that the company has been talking with U.S. clients about the possibility of building production lines in the country to bring supplies of CATL products closer to home</li>
</ul>

Brian Freitas

Pan-Asia Index Rebalances/Events/Delta One

Event-Driven

<ul>
<li>There are 28 changes for the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX)</a> at the upcoming rebalance that will be implemented at the close of trading on 10 December.</li>
<li>The inclusion of ChiNext stocks with 1 year of listing history (down from 3 years) and the inclusion of other large stocks results in a one-way turnover greater than 10%.</li>
<li>There are 10 trading days to implementation and we expect the inclusions to outperform the market. A long inclusion basket can be hedged with CSI300 index futures.</li>
</ul>

<div><p>In this weeks recap, we look at:</p></div><div>
<ul style="list-style-type: disc;">
<li>potential changes to the MSCI Standard Index at the November SAIR</li>
<li>potential changes to the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hong Kong Hang Seng Index (HSI INDEX)</a> at the Dec rebalance</li>
<li>potential changes to the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> at the Dec rebalance</li>
<li>potential changes to the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> at the Dec rebalance</li>
<li>potential changes to the FTSE TWSE Taiwan 50 Index at the Dec rebalance</li>
<li>potential changes to the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX)</a> at the Dec rebalance</li>
<li>the impact of increasing the number of constituents to 100 for the <a href="https://www.smartkarma.com/entities/ftse-china-a50-index" target="_blank" data-smartkarma-citation="entities:22905:1" rel="noopener">FTSE China A50 Index (XIN9I INDEX)</a> </li>
<li>the index inclusion timeline for <a href="https://www.smartkarma.com/entities/gcl-poly-energy-holdings-limited" target="_blank" data-smartkarma-citation="entities:3708:1" rel="noopener">Gcl Poly Energy Holdings Limited (3800 HK)</a> following its re-listing</li>
<li>the <a href="https://www.smartkarma.com/entities/kakao-pay-corp" target="_blank" data-smartkarma-citation="entities:29675:1" rel="noopener">Kakao Pay (377300 KS)</a> listing and potential Fast Entry to the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> </li>
<li>the Fast Entry possibilities for <a href="https://www.smartkarma.com/entities/pt-dayamitra-telekomunikasi" target="_blank" data-smartkarma-citation="entities:34741:1" rel="noopener">Mitratel (1319Z IJ)</a> in various indices</li>
</ul>
<div><div><h2>Events This Week</h2></div></div>
<div><p><em>Click on the link under Detail to go to the Insight</em></p></div>
<div>
<table class="table table-striped"><tbody>
<tr>
<td style="width: 151.188px;"><p>Date</p></td>
<td style="width: 184.234px;"><p>Index</p></td>
<td style="width: 410.578px;"><p>Detail</p></td>
</tr>
<tr>
<td style="width: 151.188px;">11 November</td>
<td style="width: 184.234px;">FTSE GEIS</td>
<td style="width: 410.578px;"><a href="https://www.smartkarma.com/insights/ftse-geis-december-index-rebalance-preview-upcoming-lock-up-expiries-and-ipo-inclusions" target="_blank" rel="noopener">Review cutoff date</a></td>
</tr>
<tr>
<td style="width: 151.188px;">12 November (Asia)</td>
<td style="width: 184.234px;">MSCI</td>
<td style="width: 410.578px;"><p><a href="https://www.smartkarma.com/insights/msci-nov-2021-index-rebalance-preview-done-dusted" target="_blank" rel="noopener">SAIR Announcement</a></p></td>
</tr>
</tbody></table>
<p>Inflows to the Samsung KODEX MSCI Korea ETF (278540 KS) continue for another week, while there are outflows from the <a href="https://www.smartkarma.com/entities/ishares-msci-south-korea-etf" target="_blank" data-smartkarma-citation="entities:592:1" rel="noopener">iShares MSCI South Korea Index Fund (ETF) (EWY US)</a>. </p>
</div>
</div>

China

Contemporary Amperex Technology Co., Limited operates as a battery products manufacturing company. The Company produces and sells power battery materials, energy storage batteries energy storage battery cells, systems, and other products. Contemporary Amperex Technology also provides batteries recycling services.

CATL (A) - 300750 CH

Description