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

Cross Asset Strategy

<ul>
<li>Cover Story: FAW-GAC Deal Tests a New Path for China’s Auto Consolidation</li>
<li>A long-discussed restructuring between state-owned carmakers China FAW Group Co. Ltd. and Guangzhou Automobile Group Co. Ltd. (GAC) has shifted into a higher gear.</li>
<li>China’s Revived Bond Funds Draw Strong Institutional Demand</li>
</ul>


Cover Story: FAW-GAC Deal Tests a New Path for China’s Auto Consolidation
A long-discussed restructuring between state-owned carmakers China FAW Group Co. Ltd. and Guangzhou Automobile Group Co. Ltd. (GAC) has shifted into a higher gear.
China’s Revived Bond Funds Draw Strong Institutional Demand


CX Daily: FAW-GAC Deal Tests a New Path for China’s Auto Consolidation 

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dongfeng-motor-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:910:1" rel="noopener">Dongfeng Motor (489 HK)</a> disclosed a pre-conditional privatisation by merger by absorption by Dongfeng Motor Corporation, along with a proposed distribution and listing of VOYAH shares.</li>
<li>The offer comprises HK$6.68 + 0.3552608 VOYAH H Shares per H Share, which is valued at HK$10.85 per H Share, a 81.7% premium to the last close price. </li>
<li>The vote is low risk as the offer is attractive. It values the remaining business at a premium multiple, and the appraised value of HK$11.735 per VOYAH share is conservative. </li>
</ul>



Dongfeng Motor (489 HK) disclosed a pre-conditional privatisation by merger by absorption by Dongfeng Motor Corporation, along with a proposed distribution and listing of VOYAH shares.
The offer comprises HK$6.68 + 0.3552608 VOYAH H Shares per H Share, which is valued at HK$10.85 per H Share, a 81.7% premium to the last close price. 
The vote is low risk as the offer is attractive. It values the remaining business at a premium multiple, and the appraised value of HK$11.735 per VOYAH share is conservative. 


Dongfeng Motor (489 HK): DFM’s Attractive Privatisation Offer

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

COSCO SHIPPING Development / Event-Driven

<ul>
<li>AH spreads are slightly narrower, but performance is concentrated in fewer names and broad spread volatility is up. <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> now 5% through. CATL 10% through will help.</li>
<li>It feels like there were some concentrated shorts on H vs A. BYD performance on CATL and Hang Seng upweight/inclusion exacerbate the issue. CATL H less liquid than people think.</li>
<li>The data tables below update on a daily basis in the <a href="https://www.smartkarma.com/tools" target="_blank" rel="noopener">Tools</a> section of Smartkarma. The <strong><a href="https://www.smartkarma.com/tools/quiddity/south-flow-monitor" target="_blank" rel="noopener">SOUTHBOUND Flow Monitor</a></strong> and <strong><a href="https://www.smartkarma.com/tools/quiddity/ah-shares-monitor" target="_blank" rel="noopener">AH Monitor</a></strong> are both there free for SK readers.</li>
</ul>


AH spreads are slightly narrower, but performance is concentrated in fewer names and broad spread volatility is up. BYD (1211 HK) now 5% through. CATL 10% through will help.
It feels like there were some concentrated shorts on H vs A. BYD performance on CATL and Hang Seng upweight/inclusion exacerbate the issue. CATL H less liquid than people think.
The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.


A/H Premium Tracker (To 23 May 2025):  AH Premia Contract, H Premia Names Perform Best; Batteries!

Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>Box trades are gaining popularity on the Hong Kong Stock Exchange. These arbitrage strategies exploit price discrepancies in options markets for near risk-free profits.</li>
<li>Long box trades involve simultaneously buying bull call spreads and bear put spreads with identical strikes and expiration dates, creating a fixed payoff regardless of the underlying asset's price movement.</li>
<li>Box trades require careful execution consideration of spreads, commissions, margins, and fees, with risks primarily in execution and operations rather than market exposure.</li>
</ul>


Box trades are gaining popularity on the Hong Kong Stock Exchange. These arbitrage strategies exploit price discrepancies in options markets for near risk-free profits.
Long box trades involve simultaneously buying bull call spreads and bear put spreads with identical strikes and expiration dates, creating a fixed payoff regardless of the underlying asset's price movement.
Box trades require careful execution consideration of spreads, commissions, margins, and fees, with risks primarily in execution and operations rather than market exposure.


Box Trades Explained: How Traders Execute Near Risk-Free Arbitrage in Hong Kong's Options Market

<ul><li>Cover Story: The Gray Market Behind a Cross-Border Investing Boom</li><li>In the summer of 2026, two cross-border investment blowups rattled investors from the Chinese mainland to Hong Kong and landed on the desks of Hong Kong police investigators.</li><li>Chinese Retail Rush for U.S. Tech Stocks Drains Fresh Offshore Quotas</li></ul>

Cover Story: The Gray Market Behind a Cross-Border Investing BoomIn the summer of 2026, two cross-border investment blowups rattled investors from the Chinese mainland to Hong Kong and landed on the desks of Hong Kong police investigators.Chinese Retail Rush for U.S. Tech Stocks Drains Fresh Offshore Quotas

CX Daily: The Gray Market Behind a Cross-Border Investing Boom 

China

Guangzhou Automobile Group Co., Ltd. is a Chinese state-owned automobile manufacturer that designs, develops, manufactures, and sells passenger cars, commercial vehicles, motorcycles, and automotive components. The company operates its own brands, including Trumpchi, Aion, and Hyptec, and has joint ventures with international partners like Honda and Toyota. It was founded in June 1997 and is headquartered in Guangzhou, Guangdong, China.

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Guangzhou Automobile Group (2238 HK)

CX Daily: FAW-GAC Deal Tests a New Path for China’s Auto Consolidation

TOP STORIES Cover Story: FAW-GAC Deal Tests a New Path for China’s Auto Consolidation A long-discussed restructuring between state-owned carmakers...

Caixin Global

Dongfeng Motor (489 HK): DFM’s Attractive Privatisation Offer

The transaction helps unlock the HoldCo discount. The offer is attractive as it values the remaining business at a premium multiple, and the...

Arun George

A/H Premium Tracker (To 23 May 2025): AH Premia Contract, H Premia Names Perform Best; Batteries!

AH Premia contract again. Interestingly, the best performing tranche of discount was stocks where Hs trade at a premium to As. BYD squeezed. CATL a...

Travis Lundy

Box Trades Explained: How Traders Execute Near Risk-Free Arbitrage in Hong Kong's Options Market

JD.com (9618 HK) Earnings Call tonight 8:00 pm HKT. After yesterday's 3.06% move up, the ATM strike is now 165. Straddles offer an opportunity to...

Gaudenz Schneider

CX Daily: The Gray Market Behind a Cross-Border Investing Boom

Cover Story: The Gray Market Behind a Cross-Border Investing Boom In the summer of 2026, two cross-border investment blowups rattled...

Caixin Global

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