Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Quantitative Analysis

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<p>The H-Share/A-Share monitor is published every weekend for the data ending the last trading day of the previous week. It includes all H-Share/A-Share pairs where the H-Share has a 90-day average daily value-traded of US$1.0mm or more. It shows basic data per H/A spread stock by sector, with...</p>
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<ul style="list-style-type: disc;">
<li>H/A Discount,</li>
<li>movement in H/A Discount over 5 and 20 days,</li>
<li>a 52-week Z-score for the spread,</li>
<li>A chart showing evolution of the H/A spread over the last 20 days,</li>
<li>Southbound shares held (millions of shares), Net Change in Southbound (Shanghai and Shenzhen combined) shares held by millions of shares, and contribution of Net Southbound Volume to HK-traded volume over the past five days and 20 days, </li>
<li>There is also a chart showing the average sector spread and the individual spreads within each sector over the last three years. </li>
</ul>
<p>New this week is a label on the name which shows the possible status of H/A-share companies in the monitor which are subject to the Trump Executive Order on Chinese Military Companies. They are separated into three types (Possible Direct Qualifying Entity, Possible Indirect Qualifying Entity, and 20+%-owned by Qualifying Entity). They are color-coded as below.</p>
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<p>For more on the list of names, please see <a href="https://www.smartkarma.com/insights/trump-s-executive-order-on-chinese-military-companies" target="_blank" data-smartkarma-citation="insights:45259" rel="noopener">Trump's Executive Order on Chinese Military Companies</a>. </p>
<p>Changed this week is that I have removed the spreads from the sector charts when the H-shares have low ADV</p>
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<p>The first sector discussed is <strong>Consumer</strong>, where H/A spreads narrowed on average 1.4% for the week, after running 0.6% wider the previous week. Individual stock movement in the sector was striking. <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a>, <a href="https://www.smartkarma.com/entities/great-wall-motor-co-ltd-cb302af9-398c-4d2d-ba39-023e43287eef" target="_blank" data-smartkarma-citation="entities:128:1" rel="noopener">Great Wall Motor (2333 HK)</a>, and <a href="https://www.smartkarma.com/entities/guangzhou-automobile-group-co-ltd" target="_blank" data-smartkarma-citation="entities:11082:1" rel="noopener">Guangzhou Automobile Group (2238 HK)</a> narrowed again on very weak A-share performance in the week, and <a href="https://www.smartkarma.com/entities/tsingtao-brewery-co-ltd-h" target="_blank" data-smartkarma-citation="entities:1296:1" rel="noopener">Tsingtao Brewery Co Ltd H (168 HK)</a> narrowed despite strong performance on the week. The Tsingtao spread remains 4% wider through four weeks but is now at 33%. Performance was volatile in the cluster on the week, but on average the liquid Hs in the cluster are up 19% in 4 weeks and 27% since the start of the Golden Week holiday. </p>
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<p>Southbound investors through the Shenzhen-HK and Shanghai-HK Connect were heavy net sellers on the week with most of the net selling in the sector coming from Southbound selling of BYD.  <a href="https://www.smartkarma.com/entities/hisense-home-appliances-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20107:1" rel="noopener">Hisense Home Appliances Group Co., Ltd. H (921 HK)</a> is substantially less liquid, but net southbound selling on the week accounted for a remarkable 65% of volume.</p>
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<p><a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a> remains at the overbought end of the 52-week range. <a href="https://www.smartkarma.com/entities/great-wall-motor-co-ltd-cb302af9-398c-4d2d-ba39-023e43287eef" target="_blank" data-smartkarma-citation="entities:128:1" rel="noopener">Great Wall Motor (2333 HK)</a>, and <a href="https://www.smartkarma.com/entities/tsingtao-brewery-co-ltd-h" target="_blank" data-smartkarma-citation="entities:1296:1" rel="noopener">Tsingtao Brewery Co Ltd H (168 HK)</a> are at or near 52-week wides.</p>
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<p>There were no sector spread recommendations last week in this sector, for the second week in a row. This week I recommend going long the H vs A on Great Wall Motor (2333 HK).</p>
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<p>For Energy, Financials &amp; Real Estate, Health Care, Tech, Industrials, Materials, and Utilities, please read on.</p>
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The H-Share/A-Share monitor is published every weekend for the data ending the last trading day of the previous week. It includes all H-Share/A-Share pairs where the H-Share has a 90-day average daily value-traded of US$1.0mm or more. It shows basic data per H/A spread stock by sector, with...



H/A Discount,
movement in H/A Discount over 5 and 20 days,
a 52-week Z-score for the spread,
A chart showing evolution of the H/A spread over the last 20 days,
Southbound shares held (millions of shares), Net Change in Southbound (Shanghai and Shenzhen combined) shares held by millions of shares, and contribution of Net Southbound Volume to HK-traded volume over the past five days and 20 days, 
There is also a chart showing the average sector spread and the individual spreads within each sector over the last three years. 

New this week is a label on the name which shows the possible status of H/A-share companies in the monitor which are subject to the Trump Executive Order on Chinese Military Companies. They are separated into three types (Possible Direct Qualifying Entity, Possible Indirect Qualifying Entity, and 20+%-owned by Qualifying Entity). They are color-coded as below.




For more on the list of names, please see Trump's Executive Order on Chinese Military Companies. 
Changed this week is that I have removed the spreads from the sector charts when the H-shares have low ADV


The first sector discussed is Consumer, where H/A spreads narrowed on average 1.4% for the week, after running 0.6% wider the previous week. Individual stock movement in the sector was striking. BYD (1211 HK), Great Wall Motor (2333 HK), and Guangzhou Automobile Group (2238 HK) narrowed again on very weak A-share performance in the week, and Tsingtao Brewery Co Ltd H (168 HK) narrowed despite strong performance on the week. The Tsingtao spread remains 4% wider through four weeks but is now at 33%. Performance was volatile in the cluster on the week, but on average the liquid Hs in the cluster are up 19% in 4 weeks and 27% since the start of the Golden Week holiday. 


Southbound investors through the Shenzhen-HK and Shanghai-HK Connect were heavy net sellers on the week with most of the net selling in the sector coming from Southbound selling of BYD.  Hisense Home Appliances Group Co., Ltd. H (921 HK) is substantially less liquid, but net southbound selling on the week accounted for a remarkable 65% of volume.


BYD (1211 HK) remains at the overbought end of the 52-week range. Great Wall Motor (2333 HK), and Tsingtao Brewery Co Ltd H (168 HK) are at or near 52-week wides.


There were no sector spread recommendations last week in this sector, for the second week in a row. This week I recommend going long the H vs A on Great Wall Motor (2333 HK).




For Energy, Financials &amp; Real Estate, Health Care, Tech, Industrials, Materials, and Utilities, please read on.


Quiddity Weekly H/A: Share Spread Monitor 13 Nov 2020

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<p>In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine, and highlight interesting observations. </p><p>We split the stocks eligible for the Hong Kong Connect trade into three groups: HSCEI component stocks, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.</p><p>In this insight, we will highlight inflows into <a href="https://www.smartkarma.com/entities/china-shenhua-energy-co-h" target="_blank" data-smartkarma-citation="entities:382:1" rel="noopener">China Shenhua Energy Co H (1088 HK)</a>, the largest coal mining company in the world when the company announced the newly elected chairman, and outflows from <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>, and <a href="https://www.smartkarma.com/entities/wh-group-ltd" target="_blank" data-smartkarma-citation="entities:13200:1" rel="noopener">WH Group (288 HK)</a>. In the mid-cap space, we will highlight strong inflows into <a href="https://www.smartkarma.com/entities/china-international-marine-cntnrs-gp-ltd" target="_blank" data-smartkarma-citation="entities:11752:1" rel="noopener">China International Marine Cntnrs Gp (2039 HK)</a> and <a href="https://www.smartkarma.com/entities/bosideng-intl-hldgs-ltd" target="_blank" data-smartkarma-citation="entities:6537:1" rel="noopener">Bosideng Intl Hldgs (3998 HK)</a>. We would also mention that <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan Dianping (3690 HK)</a> and <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> could become eligible for the Hong Kong connect trading in July. </p>

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine, and highlight interesting observations. We split the stocks eligible for the Hong Kong Connect trade into three groups: HSCEI component stocks, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.In this insight, we will highlight inflows into China Shenhua Energy Co H (1088 HK), the largest coal mining company in the world when the company announced the newly elected chairman, and outflows from Tencent Holdings (700 HK), and WH Group (288 HK). In the mid-cap space, we will highlight strong inflows into China International Marine Cntnrs Gp (2039 HK) and Bosideng Intl Hldgs (3998 HK). We would also mention that Meituan Dianping (3690 HK) and Xiaomi Corp (1810 HK) could become eligible for the Hong Kong connect trading in July. 

HK Connect Ideas: Seven Weeks of Inflows, Shenhua Energy, CIMC, Bosideng (2019-06-28)

<p>In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine, and highlight interesting observations. </p><p>We split the stocks eligible for the Hong Kong Connect trade into three groups: component stocks in the HSCEI index, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.</p><p>In this insight, we will highlight recent issue with <a href="https://www.smartkarma.com/entities/beijing-enterprises-water-group-limited" target="_blank" data-smartkarma-citation="entities:1660:1" rel="noopener">Beijing Enterprises Water Group (371 HK)</a> ​and catalyst for solar companies, including <a href="https://www.smartkarma.com/entities/xinyi-solar-holdings-ltd" target="_blank" data-smartkarma-citation="entities:318:1" rel="noopener">Xinyi Solar Holdings (968 HK)</a> ​and <a href="https://www.smartkarma.com/entities/flat-glass-group-ltd" target="_blank" data-smartkarma-citation="entities:1108:1" rel="noopener">Flat Glass (6865 HK)</a>​. Meanwhile, we will also review the flows of <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>​, <a href="https://www.smartkarma.com/entities/wh-group-ltd" target="_blank" data-smartkarma-citation="entities:13200:1" rel="noopener">WH Group (288 HK)</a> ​and <a href="https://www.smartkarma.com/entities/geely-automobile-holdings-ltd" target="_blank" data-smartkarma-citation="entities:127:1" rel="noopener">Geely Auto (175 HK)</a>​. </p>

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine, and highlight interesting observations. We split the stocks eligible for the Hong Kong Connect trade into three groups: component stocks in the HSCEI index, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.In this insight, we will highlight recent issue with Beijing Enterprises Water Group (371 HK) ​and catalyst for solar companies, including Xinyi Solar Holdings (968 HK) ​and Flat Glass (6865 HK)​. Meanwhile, we will also review the flows of Tencent Holdings (700 HK)​, WH Group (288 HK) ​and Geely Auto (175 HK)​. 

HK Connect Ideas: Six Weeks of Inflows, BEW, Solars (2019-06-21)

<p>In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine, and highlight interesting observations. </p><p>We split the stocks eligible for the Hong Kong Connect trade into three groups: component stocks in the HSCEI index, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.</p><p>In this insight, we will highlight the three weeks' consecutive inflow into HK Stocks via the southbound trade, led by Financials sector. Inflows into Tencent have been consistently positive. We also highlight outflows from auto manufacturers, such as Geely, Great Wall, and BYD. In the mid-cap space, we highlight Kingsoft, a leading mobile game and office software provider. </p>

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine, and highlight interesting observations. We split the stocks eligible for the Hong Kong Connect trade into three groups: component stocks in the HSCEI index, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.In this insight, we will highlight the three weeks' consecutive inflow into HK Stocks via the southbound trade, led by Financials sector. Inflows into Tencent have been consistently positive. We also highlight outflows from auto manufacturers, such as Geely, Great Wall, and BYD. In the mid-cap space, we highlight Kingsoft, a leading mobile game and office software provider. 

HK Connect Snippet: Auto Manufacturers, Kingsoft (2019-05-31)

<p>In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine, and highlight interesting observations. </p><p>We split the stocks eligible for the Hong Kong Connect trade into three groups: component stocks in the HSCEI index, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.</p><p>In this insight, we will highlight the two weeks' consecutive inflow into HK Stocks via the southbound trade, led by Financials sector. We also highlight that inflows into Tencent have been positive for three weeks. In addition, inflows into Geely turned into outflow last week, following CAAM data. </p>

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine, and highlight interesting observations. We split the stocks eligible for the Hong Kong Connect trade into three groups: component stocks in the HSCEI index, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.In this insight, we will highlight the two weeks' consecutive inflow into HK Stocks via the southbound trade, led by Financials sector. We also highlight that inflows into Tencent have been positive for three weeks. In addition, inflows into Geely turned into outflow last week, following CAAM data. 

HK Connect Snippet: Two Consecutive Weeks of Inflows, Tencent, Geely (2019-05-24)

China

First Tractor Company Limited manufactures and sells agricultural tractors, road rollers, and other construction machines.  The Company also manufactures and sells harvesting machines and biochemical products as well as provides financial services.

Price Gauge
52-week Range	0.00 - 0.00
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First Tractor Co H (38 HK)

HK Connect Ideas: Seven Weeks of Inflows, Shenhua Energy, CIMC, Bosideng (2019-06-28)

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as...

Ke Yan, CFA, FRM

HK Connect Ideas: Six Weeks of Inflows, BEW, Solars (2019-06-21)

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as...

Ke Yan, CFA, FRM

HK Connect Snippet: Auto Manufacturers, Kingsoft (2019-05-31)

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as...

Ke Yan, CFA, FRM

HK Connect Snippet: Two Consecutive Weeks of Inflows, Tencent, Geely (2019-05-24)

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Quiddity Weekly H/A: Share Spread Monitor 13 Nov 2020

The Quiddity H/A-Share Spread Monitor for the week ending 13 November 2020. Momentum on a spread basis continues, but momentum on a sector basis...

Travis Lundy

HK Connect Ideas: Seven Weeks of Inflows, Shenhua Energy, CIMC, Bosideng (2019-06-28)

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as...

Ke Yan, CFA, FRM

HK Connect Ideas: Six Weeks of Inflows, BEW, Solars (2019-06-21)

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as...

Ke Yan, CFA, FRM

HK Connect Snippet: Auto Manufacturers, Kingsoft (2019-05-31)

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as...

Ke Yan, CFA, FRM

HK Connect Snippet: Two Consecutive Weeks of Inflows, Tencent, Geely (2019-05-24)

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as...

Ke Yan, CFA, FRM