Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>The Hong Kong market is consolidating with rotational buying into value and high dividend factor investments.  Mainland buying has slowed and diversified away from tech into low volatility names.</li>
<li>After leading the market for nine months, growth and momentum factors turned down sharply in October.  The energy sector is showing increased strength and momentum, while tech and healthcare lag.</li>
<li>
<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> had a technical breakout after forming a Golden Cross with a rebound off its 50 day-moving-average. The share price is benefiting from anti-involution policies.
</li>
</ul>


The Hong Kong market is consolidating with rotational buying into value and high dividend factor investments.  Mainland buying has slowed and diversified away from tech into low volatility names.
After leading the market for nine months, growth and momentum factors turned down sharply in October.  The energy sector is showing increased strength and momentum, while tech and healthcare lag.

Xinyi Solar Holdings (968 HK) had a technical breakout after forming a Golden Cross with a rebound off its 50 day-moving-average. The share price is benefiting from anti-involution policies.



Technically Speaking Breakouts & Breakdowns - HONG KONG (November 10)

Macroeconomics

<ul>
<li>China has announced that it will significantly boost the share of domestic consumption in its next five years, while maintaining tech and manufacturing as top priorities.</li>
<li>The nation's banks will be instrumental in providing consumption financing to spur a virtual growth driver for the economy.  Easing monetary policies will be in addition to the trade-in programs.</li>
<li>Consumer in service sectors like e-commerce, travel &amp; tourism, healthcare, elderly care and AI will benefit from increasing consumption.  Local brands stand to gain market share against foreign competitors.</li>
</ul>


China has announced that it will significantly boost the share of domestic consumption in its next five years, while maintaining tech and manufacturing as top priorities.
The nation's banks will be instrumental in providing consumption financing to spur a virtual growth driver for the economy.  Easing monetary policies will be in addition to the trade-in programs.
Consumer in service sectors like e-commerce, travel &amp; tourism, healthcare, elderly care and AI will benefit from increasing consumption.  Local brands stand to gain market share against foreign competitors.


CHINA HOUSEHOLD CONSUMPTION: Unlocking Growth Potential in Five-Year Plan

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

<ul><li>Solar / In Depth: China’s polysilicon majors plan to bail out rest of glut-stricken industry</li><li>Tariffs /: Vietnam imposes anti-dumping tariffs on Chinese steel amid rising U.S. pressure</li><li>Alzheimer /: China halts experimental Alzheimer’s surgery, leaving patients in limbo</li></ul>

Solar / In Depth: China’s polysilicon majors plan to bail out rest of glut-stricken industryTariffs /: Vietnam imposes anti-dumping tariffs on Chinese steel amid rising U.S. pressureAlzheimer /: China halts experimental Alzheimer’s surgery, leaving patients in limbo

CX Daily: China’s Polysilicon Majors Plan to Bail Out Rest of Glut-Stricken Industry 

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 analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Sep 18th based on HKEx daily reports.</li>
<li>In the past 7 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Bidu (9888 HK), Link Reit (823 HK).</li>
<li>In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Bilibili (9626 HK), Kuaishou (1024 HK).</li>
</ul>


We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Sep 18th based on HKEx daily reports.
In the past 7 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Bidu (9888 HK), Link Reit (823 HK).
In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Bilibili (9626 HK), Kuaishou (1024 HK).


Hong Kong Buybacks Weekly (Sep 18th): Tencent, Bidu, Link Reit

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>Our list of HK-listed industrial companies indicated that the US generated an average of 22.9% of sales. With diversified production bases, higher tariffs may only affect ~10% of revenue.</li>
<li>
<a href="https://www.smartkarma.com/entities/vesync" target="_blank" data-smartkarma-citation="entities:31067:1" rel="noopener">Vesync (2148 HK)</a>, <a href="https://www.smartkarma.com/entities/chervon-holdings-limited" target="_blank" data-smartkarma-citation="entities:35309:1" rel="noopener">Chervon Holdings (2285 HK)</a>, and <a href="https://www.smartkarma.com/entities/aac-technologies-holdings-inc" target="_blank" data-smartkarma-citation="entities:6544:1" rel="noopener">AAC Technologies Holdings (2018 HK)</a> are more exposed given their significant US sales yet most production is still in China. </li>
<li>While the US generated over 50% of the revenue of <a href="https://www.smartkarma.com/entities/techtronic-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:4561:1" rel="noopener">Techtronic Industries (669 HK)</a> and <a href="https://www.smartkarma.com/entities/nexteer-automotive-group-ltd" target="_blank" data-smartkarma-citation="entities:15483:1" rel="noopener">Nexteer Automotive (1316 HK)</a>, they are less exposed given their worldwide manufacturing presence. </li>
</ul>


Our list of HK-listed industrial companies indicated that the US generated an average of 22.9% of sales. With diversified production bases, higher tariffs may only affect ~10% of revenue.

Vesync (2148 HK), Chervon Holdings (2285 HK), and AAC Technologies Holdings (2018 HK) are more exposed given their significant US sales yet most production is still in China. 
While the US generated over 50% of the revenue of Techtronic Industries (669 HK) and Nexteer Automotive (1316 HK), they are less exposed given their worldwide manufacturing presence. 


China & HK Strategy: Stocks Exposed to the US and Higher Tariffs

Hong Kong

GCL Technology Holdings Limited is a global leader in the research, development, and intelligent manufacturing of zero-carbon energy high-tech materials, primarily focusing on the solar PV sector. The company's core business involves the production and sale of polysilicon and silicon wafers, as well as the development of next-generation perovskite solar modules and the operation of solar farms. It was founded in 2006 and is headquartered in Hong Kong, China.

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GCL Technology (3800 HK)

Technically Speaking Breakouts & Breakdowns - HONG KONG (November 10)

The Hong Kong market is consolidating with rotational buying into value and high dividend factor investments. Mainland buying has slowed and...

David Mudd

CHINA HOUSEHOLD CONSUMPTION: Unlocking Growth Potential in Five-Year Plan

China has announced that it will significantly boost the share of domestic consumption in its next five years, while maintaining tech and...

David Mudd

CX Daily: China’s Polysilicon Majors Plan to Bail Out Rest of Glut-Stricken Industry

TOP STORIES Solar / In Depth: China’s polysilicon majors plan to bail out rest of glut-stricken industry China’s largest producers of...

Caixin Global

Hong Kong Buybacks Weekly (Sep 18th): Tencent, Bidu, Link Reit

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were Tencent (700 HK),...

Ke Yan, CFA, FRM

China & HK Strategy: Stocks Exposed to the US and Higher Tariffs

With the Trump administration announcing global reciprocal tariffs, even companies with manufacturing presence in other countries will suffer...

Osbert Tang, CFA

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