HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>Many have missed out on the 14%, or 2,300 points, rally of the HSI in the last 9 trading days. There are still several stocks that look interesting now.</li>
<li>
<a href="https://www.smartkarma.com/entities/li-auto-inc-3dbe6187-544f-40dd-b9f9-72fba9c0110e" target="_blank" data-smartkarma-citation="entities:33811:1" rel="noopener">Li Auto (2015 HK)</a>, <a href="https://www.smartkarma.com/entities/link-reit" target="_blank" data-smartkarma-citation="entities:872:1" rel="noopener">Link REIT (823 HK)</a>, <a href="https://www.smartkarma.com/entities/china-mengniu-dairy-co" target="_blank" data-smartkarma-citation="entities:354:1" rel="noopener">China Mengniu Dairy Co (2319 HK)</a>, <a href="https://www.smartkarma.com/entities/hang-lung-properties-ltd" target="_blank" data-smartkarma-citation="entities:49:1" rel="noopener">Hang Lung Properties (101 HK)</a> and <a href="https://www.smartkarma.com/entities/galaxy-entertainment-group-limited" target="_blank" data-smartkarma-citation="entities:806:1" rel="noopener">Galaxy Entertainment Group (27 HK)</a> are massive laggards YTD.</li>
<li>As they have only experienced limited rebounds from the 19-Apr trough, they are set to catch up. Also, their earnings prospects look positive this year. </li>
</ul>


Many have missed out on the 14%, or 2,300 points, rally of the HSI in the last 9 trading days. There are still several stocks that look interesting now.

Li Auto (2015 HK), Link REIT (823 HK), China Mengniu Dairy Co (2319 HK), Hang Lung Properties (101 HK) and Galaxy Entertainment Group (27 HK) are massive laggards YTD.
As they have only experienced limited rebounds from the 19-Apr trough, they are set to catch up. Also, their earnings prospects look positive this year. 


HK Strategy: Where Are the Short-Term Opportunities?

<ul>
<li>With US inflation figures higher than expectations, there is an increase in risk that the Fed's next move may be a hike.  Some HSI constituents are set to benefit.</li>
<li>
<a href="https://www.smartkarma.com/entities/orient-overseas-international" target="_blank" data-smartkarma-citation="entities:801:1" rel="noopener">Orient Overseas International (316 HK)</a>, <a href="https://www.smartkarma.com/entities/budweiser-brewing-co-apac-ltd" target="_blank" data-smartkarma-citation="entities:28077:1" rel="noopener">Budweiser Brewing APAC (1876 HK),</a> and <a href="https://www.smartkarma.com/entities/galaxy-entertainment-group-limited" target="_blank" data-smartkarma-citation="entities:806:1" rel="noopener">Galaxy Entertainment Group (27 HK)</a> have significant USD net cash position and will be gainers.</li>
<li>
<a href="https://www.smartkarma.com/entities/sunny-optical-technology-group" target="_blank" data-smartkarma-citation="entities:13363:1" rel="noopener">Sunny Optical Technology Group (2382 HK)</a> and <a href="https://www.smartkarma.com/entities/haier-smart-home-co-ltd-b3ef445f-0f54-4586-8c58-9073de98d60e" target="_blank" data-smartkarma-citation="entities:31105:1" rel="noopener">Haier Smart Home (6690 HK)</a> have large China operations but they are net long on USD balance and this will make them beneficiaries.</li>
</ul>


With US inflation figures higher than expectations, there is an increase in risk that the Fed's next move may be a hike.  Some HSI constituents are set to benefit.

Orient Overseas International (316 HK), Budweiser Brewing APAC (1876 HK), and Galaxy Entertainment Group (27 HK) have significant USD net cash position and will be gainers.

Sunny Optical Technology Group (2382 HK) and Haier Smart Home (6690 HK) have large China operations but they are net long on USD balance and this will make them beneficiaries.


HK Strategy: What Are the Winners if US Hike Rates Instead of Cut?

Asia Pac ECM and Index Rebal, DZT 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 Apr 2nd.</li>
<li>Top short increases and decreases were tabulated for one week and four week period.</li>
<li>We highlight short changes in Tencent, Hansoh Pharmaceutical, HSBC, CNOOC, Petrochina, Yankuang Energy, Central New Energy.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Apr 2nd.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short changes in Tencent, Hansoh Pharmaceutical, HSBC, CNOOC, Petrochina, Yankuang Energy, Central New Energy.


HK Short Interest Weekly: Tencent, Hansoh Pharmaceutical, HSBC, CNOOC, Petrochina

Asia biased macro & technical analysis, Untying The Gordian Knot

Untying The Gordian Knot

Asia biased macro & technical analysis

A differentiated process with a primary focus on Asia. Technical Analysis as core and Macro drivers that could bring the view to fruition & changes that could make the idea fall apart. The objective is to be the best in class, hence corner shop.

Technical Analysis

Hong Kong Exchanges and Clearing / Technical Analysis

Hong Kong Exchanges and Clearing (388 HK)

<ul><li>A better way to think of the Hong Kong Market in the current cycle is that it has both US &amp; China's economic headwinds and requires sharply lower rates and currency to correct macro imbalances.</li><li>HKMA should be cutting interest rates, but it cannot do so due to the currency peg.</li><li>Over the last 12-18 months, Hong Kong developers have enjoyed stability in expectations of reopening borders, investment demand, strong balance sheet compared to mainland developers, and low funding costs (HIBOR). These tailwinds are now headwinds.</li></ul>

A better way to think of the Hong Kong Market in the current cycle is that it has both US &amp; China's economic headwinds and requires sharply lower rates and currency to correct macro imbalances.HKMA should be cutting interest rates, but it cannot do so due to the currency peg.Over the last 12-18 months, Hong Kong developers have enjoyed stability in expectations of reopening borders, investment demand, strong balance sheet compared to mainland developers, and low funding costs (HIBOR). These tailwinds are now headwinds.

Hang Seng Index Constituents 16th June 2022

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Mar 13th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period.</li>
<li>We highlight short changes in Tencent, Alibaba, CNOOC, Petrochina, Cmoc, Yankuang Energy, Sinopec, CSPC Pharma.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Mar 13th.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short changes in Tencent, Alibaba, CNOOC, Petrochina, Cmoc, Yankuang Energy, Sinopec, CSPC Pharma.


HK Short Interest Weekly: Tencent, Alibaba, CNOOC, Petrochina, Cmoc, Yankuang Energy, Sinopec

Hong Kong

Henderson Land Development is a leading property developer with core businesses in property development, property investment, project management, construction, property management, and financial services. The company creates high-quality new homes and commercial developments, including city landmarks such as The Henderson and the International Finance Centre complex in Hong Kong, and World Financial Centre (WFC) in Beijing. It was founded in 1976 and is headquartered in Hong Kong.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
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Henderson Land Development (12 HK)

HK Strategy: Where Are the Short-Term Opportunities?

Li Auto, Link REIT, China Mengniu, Hang Lung Properties, and Galaxy Entertainment are massive laggards YTD but the recent rebound from the trough...

Osbert Tang, CFA

HK Strategy: What Are the Winners if US Hike Rates Instead of Cut?

HSI constituents like Orient Overseas, Budweiser Brewing, Galaxy Entertainment, Sunny Optical, and Haier Smart Home are set to gain in case the...

Osbert Tang, CFA

HK Short Interest Weekly: Tencent, Hansoh Pharmaceutical, HSBC, CNOOC, Petrochina

We analyzed the latest HK SFC report for aggregate short position as of Apr 2nd and highlight short interest changes in Tencent (700 HK), Hansoh...

Ke Yan, CFA, FRM

Hang Seng Index Constituents 16th June 2022

A better way to think of the Hong Kong Market in the current cycle is that it has both US & China's economic headwinds and requires sharply...

Untying The Gordian Knot

HK Short Interest Weekly: Tencent, Alibaba, CNOOC, Petrochina, Cmoc, Yankuang Energy, Sinopec

We analyzed the latest HK SFC report for aggregate short position as of Mar 13th and highlight short interest changes in Tencent, Alibaba, CNOOC,...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HK Strategy: Where Are the Short-Term Opportunities?

Li Auto, Link REIT, China Mengniu, Hang Lung Properties, and Galaxy Entertainment are massive laggards YTD but the recent rebound from the trough...

Osbert Tang, CFA

HK Strategy: What Are the Winners if US Hike Rates Instead of Cut?

​HSI constituents like Orient Overseas, Budweiser Brewing, Galaxy Entertainment, Sunny Optical, and Haier Smart Home are set to gain in case the...

Osbert Tang, CFA

HK Short Interest Weekly: Tencent, Hansoh Pharmaceutical, HSBC, CNOOC, Petrochina

We analyzed the latest HK SFC report for aggregate short position as of Apr 2nd and highlight short interest changes in Tencent (700 HK), Hansoh...

Ke Yan, CFA, FRM

Hang Seng Index Constituents 16th June 2022

A better way to think of the Hong Kong Market in the current cycle is that it has both US & China's economic headwinds and requires sharply...

Untying The Gordian Knot

HK Short Interest Weekly: Tencent, Alibaba, CNOOC, Petrochina, Cmoc, Yankuang Energy, Sinopec

We analyzed the latest HK SFC report for aggregate short position as of Mar 13th and highlight short interest changes in Tencent, Alibaba, CNOOC,...

Ke Yan, CFA, FRM

HSI constituents like Orient Overseas, Budweiser Brewing, Galaxy Entertainment, Sunny Optical, and Haier Smart Home are set to gain in case the...