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 analyze the weekly Hong Kong Connect flows with our data engine for holding position as of May 22nd.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Alibaba, China Life, China Mobile, PICC P&amp;C, SMIC, Tencent, Geely Automobile, Xiaomi, Meituan, AIA.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of May 22nd.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Alibaba, China Life, China Mobile, PICC P&amp;C, SMIC, Tencent, Geely Automobile, Xiaomi, Meituan, AIA.


HK Connect Flows Weekly (May 22nd): Alibaba, China Life, China Mobile, PICC P&C, SMIC, Tencent

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>The greatest differentiating advantage of ECC5004 lies in oral administration, but clinical progress has fallen short of expectations or the final efficacy data may not significantly surpass the existing therapies.</li>
<li>The competition in GLP-1 market has become extremely fierce. Product progress of Eccogene is relatively lagging behind, and its differentiated advantages need more solid clinical data to support them.</li>
<li>Eccogene’s valuation largely depends on the differentiated narrative of its oral small molecule pipeline. Valuation of Eccogene could be lower than peers such as Innovent/<a href="https://www.smartkarma.com/entities/guangzhou-innogen-pharmaceutical-group-co-ltd" target="_blank" data-smartkarma-citation="entities:44142:1" rel="noopener">Innogen, </a>who already have marketed GLP-1s.</li>
</ul>


The greatest differentiating advantage of ECC5004 lies in oral administration, but clinical progress has fallen short of expectations or the final efficacy data may not significantly surpass the existing therapies.
The competition in GLP-1 market has become extremely fierce. Product progress of Eccogene is relatively lagging behind, and its differentiated advantages need more solid clinical data to support them.
Eccogene’s valuation largely depends on the differentiated narrative of its oral small molecule pipeline. Valuation of Eccogene could be lower than peers such as Innovent/Innogen, who already have marketed GLP-1s.


Pre-IPO Eccogene - About the Pipeline and the Concerns Behind

Shaanxi Micot Pharmaceutical Technology / Equity Capital Markets

Shaanxi Micot Pharmaceutical Technology (SMP HK)

<ul>
<li>In addition to fierce competition in GLP-1 market, Micot also lacks experience in drug production, market promotion and sales. Any mistake in any link may lead to poor market acceptance.</li>
<li>After a product is launched on the market, whether it can smoothly enter the NRDL and how it is priced will directly determine its market penetration speed and peak sales. </li>
<li>The core drivers of Micot’s valuation mainly depend on the future clinical data and market space of pipeline. Valuation could be lower than peers due to lack of commercialized products. </li>
</ul>


In addition to fierce competition in GLP-1 market, Micot also lacks experience in drug production, market promotion and sales. Any mistake in any link may lead to poor market acceptance.
After a product is launched on the market, whether it can smoothly enter the NRDL and how it is priced will directly determine its market penetration speed and peak sales. 
The core drivers of Micot’s valuation mainly depend on the future clinical data and market space of pipeline. Valuation could be lower than peers due to lack of commercialized products. 


Pre-IPO Shaanxi Micot Pharmaceutical Technology - About the Pipeline and the Concerns Behind

Hangzhou Sciwind Biosciences / Equity Capital Markets

<ul>
<li>Competition in the entire GLP-1 market is constantly intensifying and evolving, which is expected to shift from the current focus solely on BMI indicators to a comprehensive patient-centered management model.</li>
<li>XW003 faces the challenge of head-to-head trials with competing drugs. There could be uncertainties in future clinical trials of XW004, XW014. Commercialization is a tough task for Sciwind’s GLP-1 pipeline.</li>
<li>The total peak sales of XW003, XW004 and XW014 could be RMB5-7 billion. Valuation of Sciwind could be lower than peers such as <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics (1801 HK), </a><a href="https://www.smartkarma.com/entities/guangzhou-innogen-pharmaceutical-group-co-ltd" target="_blank" data-smartkarma-citation="entities:44142:1" rel="noopener">Innogen (2591 HK).</a>  </li>
</ul>


Competition in the entire GLP-1 market is constantly intensifying and evolving, which is expected to shift from the current focus solely on BMI indicators to a comprehensive patient-centered management model.
XW003 faces the challenge of head-to-head trials with competing drugs. There could be uncertainties in future clinical trials of XW004, XW014. Commercialization is a tough task for Sciwind’s GLP-1 pipeline.
The total peak sales of XW003, XW004 and XW014 could be RMB5-7 billion. Valuation of Sciwind could be lower than peers such as Innovent Biologics (1801 HK), Innogen (2591 HK).  


Pre-IPO Hangzhou Sciwind Biosciences - Thoughts About the Industry and The GLP-1 Pipeline

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 December 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$50bn (US$6.4bn). There is size to trade in a lot of stocks.</li>
<li>
<a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi (1810 HK)</a> is the biggest buy due to HSIII Index inclusion and capping, while <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> is the biggest capping sell.</li>
</ul>


The December 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$50bn (US$6.4bn). There is size to trade in a lot of stocks.

Xiaomi (1810 HK) is the biggest buy due to HSIII Index inclusion and capping, while Alibaba (9988 HK) is the biggest capping sell.


HSI, HSCEI, HSTECH, HSIII, HSBIO Index Rebalance: US$6.4bn of Flows Post Capping (Dec 2025)

China

Guangzhou Innogen Pharmaceutical Group Co Ltd is a China-based company primarily engaged in the research, development, and commercialization of pharmaceutical products. The company focuses on innovative therapies for diabetes and other metabolic diseases, with its core product being Efsubaglutide Alfa (Diabegone) for type 2 diabetes. It was founded in 2014 and is headquartered in Shanghai, China.

Guangzhou Innogen Pharmaceutical (2591 HK)

Price Gauge
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Guangzhou Innogen Pharmaceutical (2591 HK)

HK Connect Flows Weekly (May 22nd): Alibaba, China Life, China Mobile, PICC P&C, SMIC, Tencent

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Alibaba, China Life, China Mobile, PICC P&C, SMIC,...

Ke Yan, CFA, FRM

Pre-IPO Eccogene - About the Pipeline and the Concerns Behind

ECC5004's oral administration advantage may not be enough to surpass existing therapies, as competition in the GLP-1 market intensifies.Eccogene's...

Xinyao (Criss) Wang

Pre-IPO Shaanxi Micot Pharmaceutical Technology - About the Pipeline and the Concerns Behind

In addition to fierce competition, Micot lacks experience in drug promotion and sales. The core drivers of valuation depend on future clinical data...

Xinyao (Criss) Wang

Pre-IPO Hangzhou Sciwind Biosciences - Thoughts About the Industry and The GLP-1 Pipeline

Due to fierce competition, Sciwind's pipeline face challenges in head-to-head trial/commercialization.Peak sales of XW003/XW004/XW014 estimated at...

Xinyao (Criss) Wang

HSI, HSCEI, HSTECH, HSIII, HSBIO Index Rebalance: US$6.4bn of Flows Post Capping (Dec 2025)

The Dec 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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HK Connect Flows Weekly (May 22nd): Alibaba, China Life, China Mobile, PICC P&C, SMIC, Tencent

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Alibaba, China Life, China Mobile, PICC P&C, SMIC,...

Ke Yan, CFA, FRM

Pre-IPO Eccogene - About the Pipeline and the Concerns Behind

​ECC5004's oral administration advantage may not be enough to surpass existing therapies, as competition in the GLP-1 market intensifies.Eccogene's...

Xinyao (Criss) Wang

Pre-IPO Shaanxi Micot Pharmaceutical Technology - About the Pipeline and the Concerns Behind

In addition to fierce competition, Micot lacks experience in drug promotion and sales. The core drivers of valuation depend on future clinical data...

Xinyao (Criss) Wang

Pre-IPO Hangzhou Sciwind Biosciences - Thoughts About the Industry and The GLP-1 Pipeline

Due to fierce competition, Sciwind's pipeline face challenges in head-to-head trial/commercialization.Peak sales of XW003/XW004/XW014 estimated at...

Xinyao (Criss) Wang

HSI, HSCEI, HSTECH, HSIII, HSBIO Index Rebalance: US$6.4bn of Flows Post Capping (Dec 2025)

The Dec 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

ECC5004's oral administration advantage may not be enough to surpass existing therapies, as competition in the GLP-1 market intensifies.Eccogene's...