HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Forest Cabin Cosmetics / Equity Capital Markets

<ul>
<li>FOREST CABIN holds a leading position in camellia oil segmentation, with mid-to-high end positioning and high gross profit margin. But high operating cost will put pressure on net profit margin.</li>
<li>Considering the risk of recession/depression, consumption downgrade and reducing non-rigid spending will be the main theme in short term. 50% YoY revenue growth in 2024 is likely to be unsustainable.</li>
<li>Valuation of FOREST CABIN could be lower than peers. Stock price performance would highly depend on market sentiment, company growth trend, and visibility of profitability at the time of listing.</li>
</ul>


FOREST CABIN holds a leading position in camellia oil segmentation, with mid-to-high end positioning and high gross profit margin. But high operating cost will put pressure on net profit margin.
Considering the risk of recession/depression, consumption downgrade and reducing non-rigid spending will be the main theme in short term. 50% YoY revenue growth in 2024 is likely to be unsustainable.
Valuation of FOREST CABIN could be lower than peers. Stock price performance would highly depend on market sentiment, company growth trend, and visibility of profitability at the time of listing.


Pre-IPO Shanghai Forest Cabin Biological-Tech - The Business Model and the Concerns Behind

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>The September rebalance of the Hang Seng family of indices will use today's closing prices to cap the index constituent weights.  </li>
<li>The net round-trip trade across all stocks across the five indices is estimated at HK$57.55bn (US$7.4bn). There is size to trade in a lot of stocks.</li>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba (9988 HK)</a> has flipped from a net buy to a net sell following its huge rally yesterday.</li>
</ul>


The September rebalance of the Hang Seng family of indices will use today's closing prices to cap the index constituent weights.  
The net round-trip trade across all stocks across the five indices is estimated at HK$57.55bn (US$7.4bn). There is size to trade in a lot of stocks.

Alibaba (9988 HK) has flipped from a net buy to a net sell following its huge rally yesterday.


HSI, HSCEI, HSTECH, HSIII Index Rebalance: US$7.4bn of Flows Post Capping (Sep 2025)

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

DZT Research

DZT 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 analyzed the latest HK SFC report for aggregate short position as of Aug 22nd.</li>
<li>Top short increases and decreases were tabulated for one week and four week period.</li>
<li>We highlight short changes in Xiaomi, TraHK HSI ETF, ZTE, Anta, Cathay Pacific Airways, HSCEI ETF.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Aug 22nd.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short changes in Xiaomi, TraHK HSI ETF, ZTE, Anta, Cathay Pacific Airways, HSCEI ETF.


HK Short Interest Weekly: Xiaomi, ZTE, Anta, Cathay Pacific Airways

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng HK-Listed Biotech Index for the September 2025 rebalance.</li>
<li>July saw an announcement of a methodology change, and we expected 20 DELs. In fact, there were 21 DELs and 1 ADD and we missed the last two. </li>
<li>HSHKBIO has relatively low tracking AUM, so the total flows here (for HSHKBIO only) should be limited to about US$400mm.</li>
</ul>


On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng HK-Listed Biotech Index for the September 2025 rebalance.
July saw an announcement of a methodology change, and we expected 20 DELs. In fact, there were 21 DELs and 1 ADD and we missed the last two. 
HSHKBIO has relatively low tracking AUM, so the total flows here (for HSHKBIO only) should be limited to about US$400mm.


[Quiddity Index] Sep25 HSHKBIO Review Announced; 21 DELs, 1 ADD on Methodology Shift

<ul>
<li>There is 1 add and 21 deletions for the Hang Seng Biotech Index (HSHKBIO Index) at the September rebalance.</li>
<li>Estimated one-way turnover at the rebalance is 11.25% resulting in a round-trip trade of HK$1.77bn (US$226m).</li>
<li>The deletes have underperformed the HSHKBIO Index since the start of the year with the gap opening up over the last two months following the announcement of the methodology change.</li>
</ul>


There is 1 add and 21 deletions for the Hang Seng Biotech Index (HSHKBIO Index) at the September rebalance.
Estimated one-way turnover at the rebalance is 11.25% resulting in a round-trip trade of HK$1.77bn (US$226m).
The deletes have underperformed the HSHKBIO Index since the start of the year with the gap opening up over the last two months following the announcement of the methodology change.


Hang Seng Biotech Index Rebalance: 1 Add & 21 Deletes as Methodology Changes

China

Giant Biogene designs, develops, manufactures, and sells beauty and health products, primarily functional skincare products and medical dressings, utilizing recombinant collagen as a key bioactive ingredient. The company also develops and manufactures functional foods based on rare ginsenosides technology. It was founded in 2000 and is headquartered in Xi'an, People's Republic of China.

Price Gauge
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Giant Biogene (2367 HK)

Pre-IPO Shanghai Forest Cabin Biological-Tech - The Business Model and the Concerns Behind

Forest Cabin's leading position in camellia oil market could be challenged by high operating costs and potential economic downturn, impacting...

Xinyao (Criss) Wang

HSI, HSCEI, HSTECH, HSIII Index Rebalance: US$7.4bn of Flows Post Capping (Sep 2025)

The Sep rebalance of the HSI, HSCEI, HSTECH, HSIII, HSHKBIO indices will use today's closing prices for capping. The round-trip trade across the...

Brian Freitas

HK Short Interest Weekly: Xiaomi, ZTE, Anta, Cathay Pacific Airways

We analyzed the latest HK SFC report for aggregate short position as of Aug 22nd and highlight short interest changes in Xiaomi, TraHK HSI ETF,...

Ke Yan, CFA, FRM

[Quiddity Index] Sep25 HSHKBIO Review Announced; 21 DELs, 1 ADD on Methodology Shift

Friday saw the review announcement of the Hang Seng HK-Listed Biotech Index. A methodology change meant 20 DELs but we got 21 DELs and 1 ADD in a...

Travis Lundy

Hang Seng Biotech Index Rebalance: 1 Add & 21 Deletes as Methodology Changes

There is 1 add and 21 deletes for the HSHKBIO in Sep. Couple of surprises. Estimated one-way turnover at the rebalance is 11.25% resulting in a...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO Shanghai Forest Cabin Biological-Tech - The Business Model and the Concerns Behind

​Forest Cabin's leading position in camellia oil market could be challenged by high operating costs and potential economic downturn, impacting...

Xinyao (Criss) Wang

HSI, HSCEI, HSTECH, HSIII Index Rebalance: US$7.4bn of Flows Post Capping (Sep 2025)

The Sep rebalance of the HSI, HSCEI, HSTECH, HSIII, HSHKBIO indices will use today's closing prices for capping. The round-trip trade across the...

Brian Freitas

HK Short Interest Weekly: Xiaomi, ZTE, Anta, Cathay Pacific Airways

We analyzed the latest HK SFC report for aggregate short position as of Aug 22nd and highlight short interest changes in Xiaomi, TraHK HSI ETF,...

Ke Yan, CFA, FRM

[Quiddity Index] Sep25 HSHKBIO Review Announced; 21 DELs, 1 ADD on Methodology Shift

Friday saw the review announcement of the Hang Seng HK-Listed Biotech Index. A methodology change meant 20 DELs but we got 21 DELs and 1 ADD in a...

Travis Lundy

Hang Seng Biotech Index Rebalance: 1 Add & 21 Deletes as Methodology Changes

There is 1 add and 21 deletes for the HSHKBIO in Sep. Couple of surprises. Estimated one-way turnover at the rebalance is 11.25% resulting in a...

Brian Freitas

Forest Cabin's leading position in camellia oil market could be challenged by high operating costs and potential economic downturn, impacting...