Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>The HSTECH Index tracks the performance of the top technology companies listed in Hong Kong that have high business exposure to certain technology themes.</li>
<li>The market consultation results have been announced. All proposed changes will be adopted in full with two additional requirements to avoid low-liquidity and low-revenue names.</li>
<li>We expect 20 ADDs and no DELs in December 2026. We estimate one-way flow of around US$4bn with 11 expected ADDs having more than 3x ADV to buy.</li>
</ul>


The HSTECH Index tracks the performance of the top technology companies listed in Hong Kong that have high business exposure to certain technology themes.
The market consultation results have been announced. All proposed changes will be adopted in full with two additional requirements to avoid low-liquidity and low-revenue names.
We expect 20 ADDs and no DELs in December 2026. We estimate one-way flow of around US$4bn with 11 expected ADDs having more than 3x ADV to buy.


Quiddity Leaderboard HSTECH Dec26: New Rules Confirmed with Some Modifications; Latest Expectations

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>The Hong Kong market continued its downtrend over the last month.  The technology, materials, consumer, and healthcare sectors have declined in 2026, with the industrials sector showing the best performance.</li>
<li>Dividend and value factors have outperformed in 2026, while growth and momentum have declined.  </li>
<li>
<a href="https://www.smartkarma.com/entities/contemporary-amperex-technology-co-limited-class-h" target="_blank" data-smartkarma-citation="entities:45179:1" rel="noopener">Contemporary Amperex Technology (3750 HK)</a> was initiated as OVERWEIGHT by Barclays, with a target price implying 35% upside.
</li>
</ul>


The Hong Kong market continued its downtrend over the last month.  The technology, materials, consumer, and healthcare sectors have declined in 2026, with the industrials sector showing the best performance.
Dividend and value factors have outperformed in 2026, while growth and momentum have declined.  

Contemporary Amperex Technology (3750 HK) was initiated as OVERWEIGHT by Barclays, with a target price implying 35% upside.



BUY/SELL/HOLD: Hong Kong Market Update (6/22/26)

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.

Equity Capital Markets

Guangzhou Tinci Materials Technology / Equity Capital Markets

Guangzhou Tinci Materials Technology (TINCI HK)

<ul>
<li>Tinci, the world's largest lithium-ion battery electrolyte producer, is seeking an A+H listing. JPM, CITIC, and GF are the joint sponsors.</li>
<li>While our previous note covers the fundamentals of the company, in this note we look at its business development, 1H26 results and A-H premium moves.</li>
<li>We think the deal is worth following as a rise in electrolyte prices lifted 1H26 gross margin to its highest level since 2023.</li>
</ul>


Tinci, the world's largest lithium-ion battery electrolyte producer, is seeking an A+H listing. JPM, CITIC, and GF are the joint sponsors.
While our previous note covers the fundamentals of the company, in this note we look at its business development, 1H26 results and A-H premium moves.
We think the deal is worth following as a rise in electrolyte prices lifted 1H26 gross margin to its highest level since 2023.


Tinci (天赐材料) A+H Pre-IPO: PHIP and 1H26 Results Update

Hunan Yuneng New Energy Battery Material / Equity Capital Markets

Hunan Yuneng New Energy Battery Material (YNEM HK)

<ul>
<li>Hunan Yuneng, a lithium iron phosphate cathode material supplier, is seeking an A+H listing. CSC and HSBC are the joint sponsors.</li>
<li>We look at the company's core business, lithium iron phosphate cathode materials for power batteries and energy storage batteries.</li>
<li>We discuss our preliminary thoughts on the company's valuation based on the A-H premium.</li>
</ul>


Hunan Yuneng, a lithium iron phosphate cathode material supplier, is seeking an A+H listing. CSC and HSBC are the joint sponsors.
We look at the company's core business, lithium iron phosphate cathode materials for power batteries and energy storage batteries.
We discuss our preliminary thoughts on the company's valuation based on the A-H premium.


Hunan Yuneng (湖南裕能) A+H Pre-IPO: Early Thoughts

<ul>
<li>The Hong Kong Alpha portfolio gained 9.7% in May, outperforming its benchmark by 10.57%.  The portfolio has outperformed Hong Kong indexes by 57% to 75% since its inception in 10/2024.</li>
<li>The portfolio has a Sharpe ratio of 1.37 since its inception, with a mean excess annualized return of 21% and a beta of 1.2.  </li>
<li>At the end of May, we sold our remaining positions in the mining and materials sectors and added positions in the power, consumer and property sectors.</li>
</ul>


The Hong Kong Alpha portfolio gained 9.7% in May, outperforming its benchmark by 10.57%.  The portfolio has outperformed Hong Kong indexes by 57% to 75% since its inception in 10/2024.
The portfolio has a Sharpe ratio of 1.37 since its inception, with a mean excess annualized return of 21% and a beta of 1.2.  
At the end of May, we sold our remaining positions in the mining and materials sectors and added positions in the power, consumer and property sectors.


China

Ganfeng Lithium is a global leader in the lithium industry, specializing in the production and sales of lithium products and lithium batteries. Its business spans the entire lithium value chain, including upstream lithium resource development, midstream lithium refining and metal smelting, and downstream lithium battery manufacturing and recycling. The company's products, such as lithium salts and batteries, are widely used in electric vehicles, energy storage systems, consumer electronics, chemicals, and pharmaceuticals. Ganfeng Lithium was founded in 2000 and is headquartered in Xinyu City, Jiangxi Province, China.

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Ganfeng Lithium (1772 HK)

Quiddity Leaderboard HSTECH Dec26: New Rules Confirmed with Some Modifications; Latest Expectations

There could be more than 5x ADV to buy for the top 5 expected ADDs. Many other names have more than 1x ADV to trade. The flow expectations can...

Janaghan Jeyakumar, CFA

BUY/SELL/HOLD: Hong Kong Market Update (6/22/26)

The HK market continued its downtrend over the last month. The technology, materials, consumer, and healthcare sectors have declined in 2026, with...

David Mudd

Tinci (天赐材料) A+H Pre-IPO: PHIP and 1H26 Results Update

Tinci is seeking an A+H listing and passed hearing. In this note we update the company's fundamentals and business development since our last...

Ke Yan, CFA, FRM

Hunan Yuneng (湖南裕能) A+H Pre-IPO: Early Thoughts

Hunan Yuneng is seeking an A+H listing. In this note, we look at the company's business and its industry, and give our early thoughts on valuation.

Ke Yan, CFA, FRM

HONG KONG ALPHA PORTFOLIO: (May 2026)

The Hong Kong Alpha portfolio gained 9.7% in May, outperforming its benchmark by 10.57%. The portfolio has outperformed Hong Kong indexes by 57%...

David Mudd

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