Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Cross Asset Strategy

<ul>
<li>A lack of institutional investor interest in Hong Kong is a positive for once as the market is less influenced by international flows</li>
<li>Investors are disappointed by the lack of short-term stimulus plans after the Third Plenum session</li>
<li>What to do after the 17,500 level breached on the Hang Seng index?</li>
</ul>


A lack of institutional investor interest in Hong Kong is a positive for once as the market is less influenced by international flows
Investors are disappointed by the lack of short-term stimulus plans after the Third Plenum session
What to do after the 17,500 level breached on the Hang Seng index?


Nowhere to Run to Baby, Nowhere to Hide! Part 3

<ul>
<li>In the short-term, meaningful policy reforms needed out of the Third Plenum</li>
<li>Chinese data continues to be lacklustre as expected while markets tread water</li>
<li>What can we expect from the Third Plenum to galvanise the next stage</li>
</ul>


In the short-term, meaningful policy reforms needed out of the Third Plenum
Chinese data continues to be lacklustre as expected while markets tread water
What can we expect from the Third Plenum to galvanise the next stage


The Hang Seng Index Is at a Critical Juncture

<ul>
<li>Minimum correction targets  have been hit for the Hang Seng Index</li>
<li>Some potential catalysts for the resumption of the bull market</li>
<li>We highlight some suggested sector allocations for the next phase </li>
</ul>


Minimum correction targets  have been hit for the Hang Seng Index
Some potential catalysts for the resumption of the bull market
We highlight some suggested sector allocations for the next phase 


<ul>
<li>There is a chance for a correction in the HK markets as latecomers to the party get nervous</li>
<li>All the signs are pointing to a continuation of this bull market as government support measures continue to roll out.</li>
<li>Don’t get bucked off that bull by a short-term correction!</li>
</ul>


There is a chance for a correction in the HK markets as latecomers to the party get nervous
All the signs are pointing to a continuation of this bull market as government support measures continue to roll out.
Don’t get bucked off that bull by a short-term correction!


HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>Except <a href="https://www.smartkarma.com/entities/enn-energy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:316:1" rel="noopener">ENN Energy (2688 HK)</a>, many stocks in the China gas utilities sector are still underperforming the HSI and HSCEI YTD. Yet, industry fundamentals are improving. </li>
<li>More cities and counties will implement a gas price pass-through mechanism, with 90% of cities and counties to be completed by late 2024, benefiting sector profitability.  </li>
<li>Consensus forecasts are still conservative which places room for pick-up in share prices. <a href="https://www.smartkarma.com/entities/china-resources-gas-group-ltd" target="_blank" data-smartkarma-citation="entities:20525:1" rel="noopener">CR Gas (1193 HK)</a> and <a href="https://www.smartkarma.com/entities/china-gas-holdings-ltd" target="_blank" data-smartkarma-citation="entities:14315:1" rel="noopener">China Gas Holdings (384 HK)</a> are opportunities.</li>
</ul>


Except ENN Energy (2688 HK), many stocks in the China gas utilities sector are still underperforming the HSI and HSCEI YTD. Yet, industry fundamentals are improving. 
More cities and counties will implement a gas price pass-through mechanism, with 90% of cities and counties to be completed by late 2024, benefiting sector profitability.  
Consensus forecasts are still conservative which places room for pick-up in share prices. CR Gas (1193 HK) and China Gas Holdings (384 HK) are opportunities.


Hong Kong

The Hang Seng Index is a free-float capitalization-weighted index of a selection of companies from the Stock Exchange of Hong Kong. The components of the index are divided into four subindices: Commerce and Industry, Finance, Utilities, and Properties. The index was developed with a base level of 100 as of July 31, 1964.

Hang Seng Index (HSI INDEX)

Nowhere to Run to Baby, Nowhere to Hide! Part 3

Although the Hong Kong market benefits from lack of international interest, investors seek direction after Third Plenum disappointment and a...

Rikki Malik

The Hang Seng Index Is at a Critical Juncture

Third Plenum must deliver meaningful policy reforms to boost the Chinese consumer and market performance in the short-term.

Rikki Malik

Where Now for the Hong Kong Market?

Hang Seng Index has hit minimum correction targets, potential catalysts for bull market resumption and sector allocation suggestions discussed.

Rikki Malik

Don’t Let the Bull Throw You Off!

HK markets may see a correction due to nervous latecomers, but signs point to a continued bull market with government support measures in place...

Rikki Malik

China Gas Utilities: Dark Horses?

China's gas utilities sector's industry fundamentals are improving. Gas price pass-through mechanism to benefit profitability. Room for share...

Osbert Tang, CFA

Nowhere to Run to Baby, Nowhere to Hide! Part 3

​Although the Hong Kong market benefits from lack of international interest, investors seek direction after Third Plenum disappointment and a...

Rikki Malik

The Hang Seng Index Is at a Critical Juncture

​Third Plenum must deliver meaningful policy reforms to boost the Chinese consumer and market performance in the short-term.

Rikki Malik

Where Now for the Hong Kong Market?

​Hang Seng Index has hit minimum correction targets, potential catalysts for bull market resumption and sector allocation suggestions discussed.

Rikki Malik

Don’t Let the Bull Throw You Off!

​HK markets may see a correction due to nervous latecomers, but signs point to a continued bull market with government support measures in place...

Rikki Malik

China Gas Utilities: Dark Horses?

​China's gas utilities sector's industry fundamentals are improving. Gas price pass-through mechanism to benefit profitability. Room for share...

Osbert Tang, CFA

Although the Hong Kong market benefits from lack of international interest, investors seek direction after Third Plenum disappointment and a...

Third Plenum must deliver meaningful policy reforms to boost the Chinese consumer and market performance in the short-term.

Hang Seng Index has hit minimum correction targets, potential catalysts for bull market resumption and sector allocation suggestions discussed.

HK markets may see a correction due to nervous latecomers, but signs point to a continued bull market with government support measures in place...

China's gas utilities sector's industry fundamentals are improving. Gas price pass-through mechanism to benefit profitability. Room for share...