Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>Wide dispersion of returns has meant that industry sector investing  was a major performance contributor in Hong Kong</li>
<li>
<a href="https://www.smartkarma.com/entities/lygend-resources-technology" target="_blank" data-smartkarma-citation="entities:36493:1" rel="noopener">Lygend Resources &amp; Technology (2245 HK)</a> brokeout after Indonesia announced a moratorium on new nickel mining permits.  <a href="https://www.smartkarma.com/entities/sino-biopharmaceutical" target="_blank" data-smartkarma-citation="entities:230:1" rel="noopener">Sino Biopharmaceutical (1177 HK)</a> broke its falling wedge pattern after announcing results.
</li>
<li>
<a href="https://www.smartkarma.com/entities/wynn-macau-ltd" target="_blank" data-smartkarma-citation="entities:473:1" rel="noopener">Wynn Macau Ltd (1128 HK)</a> broke to a new low after announcing a disappointing 2Q EBITDA.  The sector is also affected by a crackdown on illegal money exchange operations.
</li>
</ul>


Wide dispersion of returns has meant that industry sector investing  was a major performance contributor in Hong Kong

Lygend Resources &amp; Technology (2245 HK) brokeout after Indonesia announced a moratorium on new nickel mining permits.  Sino Biopharmaceutical (1177 HK) broke its falling wedge pattern after announcing results.


Wynn Macau Ltd (1128 HK) broke to a new low after announcing a disappointing 2Q EBITDA.  The sector is also affected by a crackdown on illegal money exchange operations.



Technically Speaking, Breakouts and Breakdowns: HONG KONG (AUGUST 15)

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

Simcere Pharmaceutical / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/simcere-pharmaceutical-group-limited" target="_blank" data-smartkarma-citation="entities:29186:1" rel="noopener">Simcere Pharmaceutical (2096 HK)</a> reported 28% YoY revenue growth to RMB 4.6B, driven by neuroscience and autoimmune segments.</li>
<li>Sanbexin injection, company’s flagship product, accounted for approximately 35% of the market share (~31% in 2025, ~29% in 1H25) in stroke injection, covering approximately 1.07M patients.</li>
<li>The extensive pipeline reserves have huge clinical and commercialization potential. Licensing deals signed alongside strong innovative drug portfolio, pending approvals and promising future pipeline augur well for future growth.</li>
</ul>



Simcere Pharmaceutical (2096 HK) reported 28% YoY revenue growth to RMB 4.6B, driven by neuroscience and autoimmune segments.
Sanbexin injection, company’s flagship product, accounted for approximately 35% of the market share (~31% in 2025, ~29% in 1H25) in stroke injection, covering approximately 1.07M patients.
The extensive pipeline reserves have huge clinical and commercialization potential. Licensing deals signed alongside strong innovative drug portfolio, pending approvals and promising future pipeline augur well for future growth.


Simcere Pharma (2096 HK): Sanbexin Increase Market Share; Prospective Pipeline, Approvals Holds Key

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>Many have missed out on the 14%, or 2,300 points, rally of the HSI in the last 9 trading days. There are still several stocks that look interesting now.</li>
<li>
<a href="https://www.smartkarma.com/entities/li-auto-inc-3dbe6187-544f-40dd-b9f9-72fba9c0110e" target="_blank" data-smartkarma-citation="entities:33811:1" rel="noopener">Li Auto (2015 HK)</a>, <a href="https://www.smartkarma.com/entities/link-reit" target="_blank" data-smartkarma-citation="entities:872:1" rel="noopener">Link REIT (823 HK)</a>, <a href="https://www.smartkarma.com/entities/china-mengniu-dairy-co" target="_blank" data-smartkarma-citation="entities:354:1" rel="noopener">China Mengniu Dairy Co (2319 HK)</a>, <a href="https://www.smartkarma.com/entities/hang-lung-properties-ltd" target="_blank" data-smartkarma-citation="entities:49:1" rel="noopener">Hang Lung Properties (101 HK)</a> and <a href="https://www.smartkarma.com/entities/galaxy-entertainment-group-limited" target="_blank" data-smartkarma-citation="entities:806:1" rel="noopener">Galaxy Entertainment Group (27 HK)</a> are massive laggards YTD.</li>
<li>As they have only experienced limited rebounds from the 19-Apr trough, they are set to catch up. Also, their earnings prospects look positive this year. </li>
</ul>


Many have missed out on the 14%, or 2,300 points, rally of the HSI in the last 9 trading days. There are still several stocks that look interesting now.

Li Auto (2015 HK), Link REIT (823 HK), China Mengniu Dairy Co (2319 HK), Hang Lung Properties (101 HK) and Galaxy Entertainment Group (27 HK) are massive laggards YTD.
As they have only experienced limited rebounds from the 19-Apr trough, they are set to catch up. Also, their earnings prospects look positive this year. 


HK Strategy: Where Are the Short-Term Opportunities?

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

Shenton Research

Shenton 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 analysed the earning revision of component stocks of HSCEI 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 Kuaishou, PING AN, CHINA LIFE, XPENG, XIAOMI, BIDU, BEONE MEDICINES, LI AUTO.</li>
</ul>


We analysed the earning revision of component stocks of HSCEI 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 Kuaishou, PING AN, CHINA LIFE, XPENG, XIAOMI, BIDU, BEONE MEDICINES, LI AUTO.


HSCEI Index Earning Revision (Aug): Kuaishou, PING AN, CHINA LIFE, XPENG, XIAOMI, BIDU, LI AUTO

<ul>
<li>We analysed the earning revision of component stocks of HSI 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 XINYI SOLAR, Kuaishou, CK HUTCHISON, PING AN, CHINA LIFE, XIAOMI, LI AUTO, BEONE MEDICINES.</li>
</ul>


We analysed the earning revision of component stocks of HSI 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 XINYI SOLAR, Kuaishou, CK HUTCHISON, PING AN, CHINA LIFE, XIAOMI, LI AUTO, BEONE MEDICINES.


HSI Index Earning Revision (Aug): XINYI SOLAR, Kuaishou, CK HUTCHISON, PING AN, CHINA LIFE, XIAOMI

China

CSPC Pharmaceutical Group Limited is a prominent Chinese pharmaceutical company engaged in the research, development, manufacturing, and sale of pharmaceutical products, including innovative drugs and bulk drugs. Its key products include innovative drugs for nervous system diseases, oncology, anti-infectives, and cardiovascular diseases, as well as bulk products like vitamin C, antibiotics, and caffeine. The company was formally established in 1997 and is headquartered in Shijiazhuang, Hebei Province, China.

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CSPC Pharmaceutical (1093 HK)

Technically Speaking, Breakouts and Breakdowns: HONG KONG (AUGUST 15)

Successful returns in Hong Kong has meant getting the industry right! Lygend benefits from moratorium on new nickel mine permits. Sino Bio RX...

David Mudd

HK Strategy: Where Are the Short-Term Opportunities?

Li Auto, Link REIT, China Mengniu, Hang Lung Properties, and Galaxy Entertainment are massive laggards YTD but the recent rebound from the trough...

Osbert Tang, CFA

HSCEI Index Earning Revision (Aug): Kuaishou, PING AN, CHINA LIFE, XPENG, XIAOMI, BIDU, LI AUTO

We analyzed HSCEI's consensus for Aug 2026 and highlighted changes of EPS in Kuaishou, PING AN, CHINA LIFE, XPENG, XIAOMI, BIDU, BEONE MEDICINES,...

Ke Yan, CFA, FRM

HSI Index Earning Revision (Aug): XINYI SOLAR, Kuaishou, CK HUTCHISON, PING AN, CHINA LIFE, XIAOMI

We analyzed HSI's consensus for Aug 2026 and highlighted changes of EPS in XINYI SOLAR, Kuaishou, CK HUTCHISON, PING AN, CHINA LIFE, XIAOMI, LI...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Technically Speaking, Breakouts and Breakdowns: HONG KONG (AUGUST 15)

Successful returns in Hong Kong has meant getting the industry right! Lygend benefits from moratorium on new nickel mine permits. Sino Bio RX...

David Mudd

Simcere Pharma (2096 HK): Sanbexin Increase Market Share; Prospective Pipeline, Approvals Holds Key

Simcere Pharma reported 28% YoY revenue growth to RMB 4.6B, driven by neuroscience and autoimmune segments. Licensing deals, pending approvals and...

Tina Banerjee

HK Strategy: Where Are the Short-Term Opportunities?

Li Auto, Link REIT, China Mengniu, Hang Lung Properties, and Galaxy Entertainment are massive laggards YTD but the recent rebound from the trough...

Osbert Tang, CFA

HSCEI Index Earning Revision (Aug): Kuaishou, PING AN, CHINA LIFE, XPENG, XIAOMI, BIDU, LI AUTO

We analyzed HSCEI's consensus for Aug 2026 and highlighted changes of EPS in Kuaishou, PING AN, CHINA LIFE, XPENG, XIAOMI, BIDU, BEONE MEDICINES,...

Ke Yan, CFA, FRM

HSI Index Earning Revision (Aug): XINYI SOLAR, Kuaishou, CK HUTCHISON, PING AN, CHINA LIFE, XIAOMI

We analyzed HSI's consensus for Aug 2026 and highlighted changes of EPS in XINYI SOLAR, Kuaishou, CK HUTCHISON, PING AN, CHINA LIFE, XIAOMI, LI...

Ke Yan, CFA, FRM