Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Equity Bottom-Up

B3  - Brasil Bolsa Balcao / Equity Bottom-Up

<ul>
<li>We stick with Brazilian exchange B3 as our buy pick, as the scorecard indicates; data represents the highest share of total revenues versus peers and its post-trade revenues are understated</li>
<li>We downgrade Hong Kong Exchange to a neutral from buy, after its strong share price performance YTD; we feel much growth potential is discounted at current valuations</li>
<li>We downgrade BSE to a sell rating as it trades on rich fundamental valuations making it vulnerable to negative earnings surprises; its EBITDA margin no longer lags its peer group</li>
</ul>


We stick with Brazilian exchange B3 as our buy pick, as the scorecard indicates; data represents the highest share of total revenues versus peers and its post-trade revenues are understated
We downgrade Hong Kong Exchange to a neutral from buy, after its strong share price performance YTD; we feel much growth potential is discounted at current valuations
We downgrade BSE to a sell rating as it trades on rich fundamental valuations making it vulnerable to negative earnings surprises; its EBITDA margin no longer lags its peer group


GEM Exchanges –Scorecard Confirms Brazilian Exchange B3 (B3SA3 BZ) As Our Top Pick

Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

Cross Asset Strategy

<ul>
<li>Amid the uncertainty surrounding the trade negotiations, Asian economies will have to provide fiscal and monetary boost to their domestic economies. They can't rely on exports to sustain their growth.</li>
<li>Asian economies shall likely provide more monetary stimuli than fiscal. Rapidly declining inflation affords their central banks larger wiggle room. China, Korea India, Indonesia, Philippines have room to cut rates.</li>
<li>Fiscal stimulus is more contentious. China and Indonesia have articulated targets of expanding fiscal deficit and public debt. Korea's low public debt and low bond yield affords some fiscal room. </li>
</ul>


Amid the uncertainty surrounding the trade negotiations, Asian economies will have to provide fiscal and monetary boost to their domestic economies. They can't rely on exports to sustain their growth.
Asian economies shall likely provide more monetary stimuli than fiscal. Rapidly declining inflation affords their central banks larger wiggle room. China, Korea India, Indonesia, Philippines have room to cut rates.
Fiscal stimulus is more contentious. China and Indonesia have articulated targets of expanding fiscal deficit and public debt. Korea's low public debt and low bond yield affords some fiscal room. 


Asian Equities: More Policy Stimuli Coming. Watch Out for China, Korea, India and ASEAN Pockets

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

Event-Driven

<ul>
<li>We see 281 Chinese companies listed on U.S Stock Exchanges with a total market cap of US$869bn. 32 of these companies are listed on the <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a>. </li>
<li>If the rumours of Chinese stocks being delisted from U.S. Exchanges gathers steam, we could see a wave of secondary listings in Hong Kong.</li>
<li>
<a href="https://www.smartkarma.com/entities/pdd-holdings-inc" target="_blank" data-smartkarma-citation="entities:27250:1" rel="noopener">PDD Holdings</a>, <a href="https://www.smartkarma.com/entities/full-truck-alliance-co-ltd" target="_blank" data-smartkarma-citation="entities:33429:1" rel="noopener">Full Truck Alliance</a>, <a href="https://www.smartkarma.com/entities/vipshop-holdings-ltd-adr" target="_blank" data-smartkarma-citation="entities:1088:1" rel="noopener">Vipshop Holdings</a>, <a href="https://www.smartkarma.com/entities/tal-education-group" target="_blank" data-smartkarma-citation="entities:1124:1" rel="noopener">TAL Education</a> and <a href="https://www.smartkarma.com/entities/zeekr-intelligent-technology-holding" target="_blank" data-smartkarma-citation="entities:36785:1" rel="noopener">ZEEKR</a> are the largest China ADRs with no HK listing and could come under pressure.</li>
</ul>


We see 281 Chinese companies listed on U.S Stock Exchanges with a total market cap of US$869bn. 32 of these companies are listed on the HKEX (388 HK). 
If the rumours of Chinese stocks being delisted from U.S. Exchanges gathers steam, we could see a wave of secondary listings in Hong Kong.

PDD Holdings, Full Truck Alliance, Vipshop Holdings, TAL Education and ZEEKR are the largest China ADRs with no HK listing and could come under pressure.


What if China ADRs Are Delisted from US Exchanges?

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sichuan-kelun-biotech-biopharm" target="_blank" data-smartkarma-citation="entities:40071:1" rel="noopener">Sichuan Kelun-Biotech Bio (6990 HK)</a>, <a href="https://www.smartkarma.com/entities/techtronic-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:4561:1" rel="noopener">Techtronic Ind. (669 HK)</a>, <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 Hldgs (2285 HK)</a>, and <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec (2359 HK)</a> have a very high reliance on the US market.</li>
<li>
<a href="https://www.smartkarma.com/entities/vtech-holdings-ltd" target="_blank" data-smartkarma-citation="entities:18812:1" rel="noopener">Vtech Hldgs (303 HK)</a>, <a href="https://www.smartkarma.com/entities/samsonite-international-sa" target="_blank" data-smartkarma-citation="entities:12790:1" rel="noopener">Samsonite (1910 HK)</a>, <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>, and <a href="https://www.smartkarma.com/entities/tcl-multimedia-technology" target="_blank" data-smartkarma-citation="entities:15654:1" rel="noopener">Tcl Multimedia (1070 HK)</a> ranked lower on the list, but consumer cutbacks will have a bigger impact. </li>
<li>The spillover effect of a US recession to other countries will pressurise companies that have low direct exposure, like <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> and <a href="https://www.smartkarma.com/entities/prada-s-p-a" target="_blank" data-smartkarma-citation="entities:889:1" rel="noopener">Prada S.P.A. (1913 HK)</a>.</li>
</ul>



Sichuan Kelun-Biotech Bio (6990 HK), Techtronic Ind. (669 HK), Vesync (2148 HK), Chervon Hldgs (2285 HK), and WuXi AppTec (2359 HK) have a very high reliance on the US market.

Vtech Hldgs (303 HK), Samsonite (1910 HK), Haier Smart Home (6690 HK), and Tcl Multimedia (1070 HK) ranked lower on the list, but consumer cutbacks will have a bigger impact. 
The spillover effect of a US recession to other countries will pressurise companies that have low direct exposure, like Orient Overseas International (316 HK) and Prada S.P.A. (1913 HK).


China & HK Strategy: Who Are the Victims of a US Recession?

Co-Founder & CEO, Newmark Risk

Nicholas Pezolano

Co-Founder & CEO

Option analytics for institutional investors

Newmark Risk

Fin-tech company focused on providing option derived analytics for institutional investors.

We handle the complexity of options data so you don't have to.

- Data and Analytics available all in one place so you can focus on Strategy Development
- Custom Solutions for your data and/or portfolio needs
- Advisory services to lend our expertise

Knowledge is something that was meant to be shared and we provide insights to our clients and to the community via posting about our research findings.

Quantitative Analysis

<ul>
<li>HKEX has launched weekly stock options for 10 listed equities on 2024-11-04.</li>
<li>We explore recent HKEX volume trends and believe this may be a positive catalyst for HKEX.</li>
<li>HKEX may prove to be a catalyst for more equity option product development in the region.</li>
</ul>


HKEX has launched weekly stock options for 10 listed equities on 2024-11-04.
We explore recent HKEX volume trends and believe this may be a positive catalyst for HKEX.
HKEX may prove to be a catalyst for more equity option product development in the region.


EQD | HKEX Weekly Equity Options off to a Strong Start

Hong Kong

Hong Kong Exchanges & Clearing Limited owns and operates the stock exchange, futures exchange, and their related clearing houses in Hong Kong.  The Company provides the trading platforms for a range of cash and derivatives products and the facilities for processing trades.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

HKEX (388 HK)

GEM Exchanges –Scorecard Confirms Brazilian Exchange B3 (B3SA3 BZ) As Our Top Pick

In GEM exchanges, stick with B3 as our buy due to attractive value and low PEG, downgrade HKEx to neutral, and downgrade BSE to sell due to rich...

Victor Galliano

Asian Equities: More Policy Stimuli Coming. Watch Out for China, Korea, India and ASEAN Pockets

CPI & core inflation are nosediving in APAC barring Japan, indicating weak consumption demand. The latest is India's CPI at 1.55%. Policy stimulus ...

Manishi Raychaudhuri

What if China ADRs Are Delisted from US Exchanges?

The escalating tariff wars have increased calls in the U.S for Chinese companies to be delisted. While there have been few mentions of an...

Brian Freitas

China & HK Strategy: Who Are the Victims of a US Recession?

Reliance on the US market varies among HK-listed companies, with some having high direct exposure to a recession. Those with low direct exposure...

Osbert Tang, CFA

EQD | HKEX Weekly Equity Options off to a Strong Start

HKEX introduces weekly stock options, potentially boosting volume and driving further equity option product development in the region.

Nicholas Pezolano

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

GEM Exchanges –Scorecard Confirms Brazilian Exchange B3 (B3SA3 BZ) As Our Top Pick

​In GEM exchanges, stick with B3 as our buy due to attractive value and low PEG, downgrade HKEx to neutral, and downgrade BSE to sell due to rich...

Victor Galliano

Asian Equities: More Policy Stimuli Coming. Watch Out for China, Korea, India and ASEAN Pockets

CPI & core inflation are nosediving in APAC barring Japan, indicating weak consumption demand. The latest is India's CPI at 1.55%. Policy stimulus ...

Manishi Raychaudhuri

What if China ADRs Are Delisted from US Exchanges?

The escalating tariff wars have increased calls in the U.S for Chinese companies to be delisted. While there have been few mentions of an...

Brian Freitas

China & HK Strategy: Who Are the Victims of a US Recession?

​Reliance on the US market varies among HK-listed companies, with some having high direct exposure to a recession. Those with low direct exposure...

Osbert Tang, CFA

EQD | HKEX Weekly Equity Options off to a Strong Start

​HKEX introduces weekly stock options, potentially boosting volume and driving further equity option product development in the region.

Nicholas Pezolano

In GEM exchanges, stick with B3 as our buy due to attractive value and low PEG, downgrade HKEx to neutral, and downgrade BSE to sell due to rich...

Reliance on the US market varies among HK-listed companies, with some having high direct exposure to a recession. Those with low direct exposure...

HKEX introduces weekly stock options, potentially boosting volume and driving further equity option product development in the region.