Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>In <em><strong><a href="https://skr.ma/mqr7w" target="_blank" rel="noopener">RMB Dual Counter Trading Is Coming - This Changes AH Relationships</a></strong></em>, <a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a> discussed the forthcoming inclusion of RMB dual counters in the Hong Kong Southbound Connect programs.</li>
<li>This is but one of the five capital market cooperation measures <a href="http://www.csrc.gov.cn/csrc/c100028/c7474875/content.shtml" target="_blank" rel="noopener">announced</a> by the CSRC last Friday. </li>
<li>The other four measures include ETFs, improving mutual recognition of funds, increasing China IPOs in Hong Kong, and the inclusion of REITs. This insight discusses the latter.</li>
</ul>


In RMB Dual Counter Trading Is Coming - This Changes AH Relationships, Travis Lundy discussed the forthcoming inclusion of RMB dual counters in the Hong Kong Southbound Connect programs.
This is but one of the five capital market cooperation measures announced by the CSRC last Friday. 
The other four measures include ETFs, improving mutual recognition of funds, increasing China IPOs in Hong Kong, and the inclusion of REITs. This insight discusses the latter.


Travis Lundy

<ul>
<li>The <a href="https://www.smartkarma.com/entities/yuexiu-property-co-ltd" target="_blank" data-smartkarma-citation="entities:18097:1" rel="noopener">Yuexiu Property (123 HK)</a> Rights start trading today. Last day is next Monday. There is a general pattern to the flows and it behooves investors to be aware.</li>
<li>There is a pattern to these trades which is worth understanding.</li>
<li>In this case, I expect it is worth going long Yuexiu Rights vs Short peer basket equity earlier in the cycle.</li>
</ul>


The Yuexiu Property (123 HK) Rights start trading today. Last day is next Monday. There is a general pattern to the flows and it behooves investors to be aware.
There is a pattern to these trades which is worth understanding.
In this case, I expect it is worth going long Yuexiu Rights vs Short peer basket equity earlier in the cycle.


<ul>
<li>The <a href="https://www.smartkarma.com/entities/link-reit" target="_blank" data-smartkarma-citation="entities:872:1" rel="noopener">Link REIT (823 HK)</a> rights offering caused some upset amongst investors. They got dilution where they did not need it, and de-leveraging from a REIT wanting to invest.</li>
<li>The units fell in price, then fell some more. Then the rights started trading.</li>
<li>Last week in <a href="https://www.smartkarma.com/insights/link-reit-823-nil-paid-rights-start-trading-tomorrow-the-trades" target="_blank" data-smartkarma-citation="insights:97326" rel="noopener">Link REIT (823) - Nil Paid Rights Start Trading Tomorrow - The Trades</a> I said strategy was to be long by Tuesday or Wednesday. It's Wednesday.</li>
</ul>


The Link REIT (823 HK) rights offering caused some upset amongst investors. They got dilution where they did not need it, and de-leveraging from a REIT wanting to invest.
The units fell in price, then fell some more. Then the rights started trading.
Last week in Link REIT (823) - Nil Paid Rights Start Trading Tomorrow - The Trades I said strategy was to be long by Tuesday or Wednesday. It's Wednesday.


Link REIT (823) - Anchors Aweigh! Fair Weather Sailing Ahead

<ul>
<li>After being halted this morning before the start of trade, post-close, <a href="https://www.smartkarma.com/entities/link-reit" target="_blank" data-smartkarma-citation="entities:872:1" rel="noopener">Link REIT (823 HK)</a> announced a fully-underwritten <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2023/0210/2023021000480.pdf" target="_blank" rel="noopener">Rights Offering</a>. </li>
<li>The Rights Offering intends to raise HK$18.8bn issuing 1 Right for every 5 Shares held, at a subscription price of HK$44.20, a 26% discount to TERP. </li>
<li>This will take an already under-levered REIT and add more capital to it. And there is going to be selling pressure at some point.</li>
</ul>


After being halted this morning before the start of trade, post-close, Link REIT (823 HK) announced a fully-underwritten Rights Offering. 
The Rights Offering intends to raise HK$18.8bn issuing 1 Right for every 5 Shares held, at a subscription price of HK$44.20, a 26% discount to TERP. 
This will take an already under-levered REIT and add more capital to it. And there is going to be selling pressure at some point.


<ul>
<li>The data in this insight is collated from the "shareholding disclosure" link on the HKEx website. </li>
<li>Often there is a corresponding HKEx announcement on the increase - or decrease - in the shareholding by directors. However, such disclosures are by no means an absolute. </li>
<li>These insights also flag those companies where shares have been pledged, both recently and ongoing.</li>
</ul>


The data in this insight is collated from the "shareholding disclosure" link on the HKEx website. 
Often there is a corresponding HKEx announcement on the increase - or decrease - in the shareholding by directors. However, such disclosures are by no means an absolute. 
These insights also flag those companies where shares have been pledged, both recently and ongoing.


Hong Kong CEO & Director Dealings - 17th August 2022

Hong Kong

Fortune Real Estate Investment Trust is a real estate investment trust that acquires, manages, and leases retail properties, primarily neighborhood shopping centers and related car park spaces in Hong Kong and Singapore. It generates revenue by leasing space to tenants such as supermarkets, restaurants, and banks. The company was founded on July 4, 2003, and is headquartered in Hong Kong.

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Fortune REIT (778 HK)

HK REITs Re-Rate On Southbound Inclusion

Stick to a basket of Hong Kong-focused REITs. I'd tilt to those HK-REITs which are not 100% exposed to the office-space, such as Link REIT (823...

David Blennerhassett

Yuexiu Rights - The Trading Pattern Fits

Yuexiu Property (123 HK) Rights are trading today. The stock is trading down, as expected, as those who do not wish to re-up sell their rights. I...

Travis Lundy

Link REIT (823) - Anchors Aweigh! Fair Weather Sailing Ahead

LINK REIT Rights trading ends soon. That's an end to obvious overhang. There may be a bit more when units are delivered in a few weeks. In the...

Travis Lundy

Big Link REIT (823 HK) Rights Offering

Link REIT (823 HK) is doing a Rights Offering. The Rights Offering is to raise HK$18.5bn or so (after fees). The Offering is for 425mm shares which...

Travis Lundy

Hong Kong CEO & Director Dealings - 17th August 2022

The data in this insight is collated from the "shareholding disclosure" link on the HKEx website. These insights also flag those companies where...

David Blennerhassett

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