HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>YTD, H-share securities companies outperformed the HSI and HSCEI, but valuations are still undemanding at 12.7x and 11.7x PERs for FY25 and FY26.</li>
<li>2H25F earnings for the sector are too conservative at -2.5%, compared with 64.9% YoY growth in 1H25. There is significant earnings upgrade potential after the 3Q25 result announcements.</li>
<li>
<a href="https://www.smartkarma.com/entities/china-international-capital-corporation-ltd" target="_blank" data-smartkarma-citation="entities:1071:1" rel="noopener">China International Capital Corporation (3908 HK)</a>, <a href="https://www.smartkarma.com/entities/china-galaxy-securities-co-h" target="_blank" data-smartkarma-citation="entities:165:1" rel="noopener">China Galaxy Securities (H) (6881 HK)</a>, <a href="https://www.smartkarma.com/entities/everbright-securities-h" target="_blank" data-smartkarma-citation="entities:22736:1" rel="noopener">Everbright Securities (H) (6178 HK)</a>, and <a href="https://www.smartkarma.com/entities/csc-financial-co-ltd-115216b6-b1c3-42f3-a314-a7ed93ea0b8e" target="_blank" data-smartkarma-citation="entities:23710:1" rel="noopener">CSC Financial (6066 HK)</a> appear interesting.</li>
</ul>


YTD, H-share securities companies outperformed the HSI and HSCEI, but valuations are still undemanding at 12.7x and 11.7x PERs for FY25 and FY26.
2H25F earnings for the sector are too conservative at -2.5%, compared with 64.9% YoY growth in 1H25. There is significant earnings upgrade potential after the 3Q25 result announcements.

China International Capital Corporation (3908 HK), China Galaxy Securities (H) (6881 HK), Everbright Securities (H) (6178 HK), and CSC Financial (6066 HK) appear interesting.


China Strategy: Interesting H-Share Securities Companies

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 58.0% as of Aug 22nd.</li>
<li>The average A-H premium changed by 3.6ppt week-on-week, led by consumer staples, real estate, materials.</li>
<li>We highlight weekly changes in A-H premium for Air China, Cosco Shipping Development, Ganfeng Lithium, Fuyao Glass.</li>
</ul>


We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 58.0% as of Aug 22nd.
The average A-H premium changed by 3.6ppt week-on-week, led by consumer staples, real estate, materials.
We highlight weekly changes in A-H premium for Air China, Cosco Shipping Development, Ganfeng Lithium, Fuyao Glass.


A-H Premium Weekly (Aug 22nd): Air China, Cosco Shipping Development, Ganfeng Lithium, Fuyao Glass

<ul>
<li>We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 54.6% as of Aug 15th.</li>
<li>The average A-H premium changed by -4.2ppt week-on-week, led by real estate, financials, materials.</li>
<li>We highlight weekly changes in A-H premium for MCC, Jiangxi Copper, Ganfeng Lithium, Csc Financial, Fosun Pharma.</li>
</ul>


We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 54.6% as of Aug 15th.
The average A-H premium changed by -4.2ppt week-on-week, led by real estate, financials, materials.
We highlight weekly changes in A-H premium for MCC, Jiangxi Copper, Ganfeng Lithium, Csc Financial, Fosun Pharma.


A-H Premium Weekly (Aug 15th): MCC, Jiangxi Copper, Ganfeng Lithium, Csc Financial, Fosun Pharma

<ul>
<li>We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 58.9% as of Aug 8th.</li>
<li>The average A-H premium changed by -2.3ppt week-on-week, led by materials, health care, utilities.</li>
<li>We highlight weekly changes in A-H premium for Metallurgical Corporation Of China, Shandong Gold Mining, China Shenhua Energy, Tianqi Lithium.</li>
</ul>


We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 58.9% as of Aug 8th.
The average A-H premium changed by -2.3ppt week-on-week, led by materials, health care, utilities.
We highlight weekly changes in A-H premium for Metallurgical Corporation Of China, Shandong Gold Mining, China Shenhua Energy, Tianqi Lithium.


A-H Premium Weekly (Aug 8th): Metallurgical Corporation Of China, Shandong Gold Mining

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>Following a rally in the stock over the last 4 months, <a href="https://www.smartkarma.com/entities/gf-securities-co-ltd-h" target="_blank" data-smartkarma-citation="entities:338:1" rel="noopener">GF Securities (H) (1776 HK)</a> could be added to a global index in August.</li>
<li>
<a href="https://www.smartkarma.com/entities/gf-securities-co-ltd-h" target="_blank" data-smartkarma-citation="entities:338:1" rel="noopener">GF Securities (H) (1776 HK)</a>' peers have also rallied over the same time frame and the stock trades in line with its peers on various valuation metrics.</li>
<li>Positioning in the stock is in line with its peers and shorts have continued to increase as the stock price has moved higher.</li>
</ul>


Following a rally in the stock over the last 4 months, GF Securities (H) (1776 HK) could be added to a global index in August.

GF Securities (H) (1776 HK)' peers have also rallied over the same time frame and the stock trades in line with its peers on various valuation metrics.
Positioning in the stock is in line with its peers and shorts have continued to increase as the stock price has moved higher.


GF Securities (1776 HK): Global Index Inclusion as Sector Rallies

China

Huatai Securities Co., Ltd. provides financial company. The Company provides securities brokerage services, research consulting services, investment banking and direct investment services, fixed-income services and asset management services.

Price Gauge
52-week Range	0.00 - 0.00
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Huatai Securities Co Ltd (A) (601688 CH)

A-H Premium Weekly (Aug 22nd): Air China, Cosco Shipping Development, Ganfeng Lithium, Fuyao Glass

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Air China, Cosco Shipping Development, Ganfeng Lithium,...

Ke Yan, CFA, FRM

A-H Premium Weekly (Aug 15th): MCC, Jiangxi Copper, Ganfeng Lithium, Csc Financial, Fosun Pharma

We analyzed A-H premium changes in the past week and highlight A-H premium changes for MCC, Jiangxi Copper, Ganfeng Lithium, Csc Financial, Fosun...

Ke Yan, CFA, FRM

A-H Premium Weekly (Aug 8th): Metallurgical Corporation Of China, Shandong Gold Mining

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Metallurgical Corporation Of China, Shandong Gold Mining,...

Ke Yan, CFA, FRM

GF Securities (1776 HK): Global Index Inclusion as Sector Rallies

GF Securities could be added to a global index in August. GF Sec has outperformed most of its peers but still trades at cheaper valuations than...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China Strategy: Interesting H-Share Securities Companies

​H-share securities companies show strong performance and potential for earnings upgrades, with undemanding valuations. CICC, China Galaxy,...

Osbert Tang, CFA

A-H Premium Weekly (Aug 22nd): Air China, Cosco Shipping Development, Ganfeng Lithium, Fuyao Glass

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Air China, Cosco Shipping Development, Ganfeng Lithium,...

Ke Yan, CFA, FRM

A-H Premium Weekly (Aug 15th): MCC, Jiangxi Copper, Ganfeng Lithium, Csc Financial, Fosun Pharma

We analyzed A-H premium changes in the past week and highlight A-H premium changes for MCC, Jiangxi Copper, Ganfeng Lithium, Csc Financial, Fosun...

Ke Yan, CFA, FRM

A-H Premium Weekly (Aug 8th): Metallurgical Corporation Of China, Shandong Gold Mining

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Metallurgical Corporation Of China, Shandong Gold Mining,...

Ke Yan, CFA, FRM

GF Securities (1776 HK): Global Index Inclusion as Sector Rallies

GF Securities could be added to a global index in August. GF Sec has outperformed most of its peers but still trades at cheaper valuations than...

Brian Freitas

H-share securities companies show strong performance and potential for earnings upgrades, with undemanding valuations. CICC, China Galaxy,...