HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

China International Capital Corporation / Equity Bottom-Up

China International Capital Corporation (3908 HK)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-international-capital-corporation-ltd" target="_blank" data-smartkarma-citation="entities:1071:1" rel="noopener">CICC (3908 HK)</a>'s announced merger with <a href="https://www.smartkarma.com/entities/dongxing-securities-co-ltd" target="_blank" data-smartkarma-citation="entities:25320:1" rel="noopener">Dongxing Securities (601198 CH)</a> and <a href="https://www.smartkarma.com/entities/cinda-securities-company-limited" target="_blank" data-smartkarma-citation="entities:45389:1" rel="noopener">Cinda Securities (601059 CH)</a> will elevate it to the 3rd largest HK-listed Chinese securities company.</li>
<li>Based on our assumptions, its EPS will be diluted by 7.1%, BPS enhanced by 12.2%, and ROE lowered by 1pp for FY26, before accounting for synergy.</li>
<li>Its presence in Fujian (+616.7%), Liaoning (+500%), and Beijing (+100%) will be significantly enlarged. Additionally, it will open up potential benefits from optimisation.</li>
</ul>



CICC (3908 HK)'s announced merger with Dongxing Securities (601198 CH) and Cinda Securities (601059 CH) will elevate it to the 3rd largest HK-listed Chinese securities company.
Based on our assumptions, its EPS will be diluted by 7.1%, BPS enhanced by 12.2%, and ROE lowered by 1pp for FY26, before accounting for synergy.
Its presence in Fujian (+616.7%), Liaoning (+500%), and Beijing (+100%) will be significantly enlarged. Additionally, it will open up potential benefits from optimisation.


CICC (3908 HK): Initial Assessment of the Merger

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 analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 62.2% as of Oct 31st.</li>
<li>The average A-H premium changed by 2.3ppt week-on-week, led by consumer discretionary, information technology, financials and offset by real estate.</li>
<li>We highlight weekly changes in A-H premium for Sinotrans, Jiangxi Copper, Everbright Securities, Guangzhou Automobile.</li>
</ul>


We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 62.2% as of Oct 31st.
The average A-H premium changed by 2.3ppt week-on-week, led by consumer discretionary, information technology, financials and offset by real estate.
We highlight weekly changes in A-H premium for Sinotrans, Jiangxi Copper, Everbright Securities, Guangzhou Automobile.


A-H Premium Weekly (Oct 31st): Sinotrans, Jiangxi Copper, Everbright Securities

<ul>
<li>We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 61.1% as of Oct 17th.</li>
<li>The average A-H premium changed by 3.0ppt week-on-week, led by information technology, real estate, materials.</li>
<li>We highlight weekly changes in A-H premium for Hua Hong Semiconductor, Sinotrans, Shanghai Junshi Biosciences, China Southern Airlines.</li>
</ul>


We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 61.1% as of Oct 17th.
The average A-H premium changed by 3.0ppt week-on-week, led by information technology, real estate, materials.
We highlight weekly changes in A-H premium for Hua Hong Semiconductor, Sinotrans, Shanghai Junshi Biosciences, China Southern Airlines.


A-H Premium Weekly (Oct 17th): Hua Hong Semiconductor, Sinotrans, Shanghai Junshi Biosciences

<ul>
<li>We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 58.2% as of Oct 10th.</li>
<li>The average A-H premium changed by 1.9ppt week-on-week, led by real estate, financials, consumer discretionary and offset by utilities, information technology, communication services.</li>
<li>We highlight weekly changes in A-H premium for Cosco Shipping Development, Innocare Pharma, Shanghai Electric, SMIC, CIMC, Gf Securities.</li>
</ul>


We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 58.2% as of Oct 10th.
The average A-H premium changed by 1.9ppt week-on-week, led by real estate, financials, consumer discretionary and offset by utilities, information technology, communication services.
We highlight weekly changes in A-H premium for Cosco Shipping Development, Innocare Pharma, Shanghai Electric, SMIC, CIMC, Gf Securities.


A-H Premium Weekly (Oct 10th): Cosco Shipping Development, Innocare Pharma, Shanghai Electric, SMIC

<ul>
<li>We analysed the earning revision of component stocks of CSI 300 in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on CHINA EASTERN AIRLINES, CSSC, BYD, GREE ELECTRIC APPLIANCES, NATIONAL SILICON INDUSTRY, Xinjiang Daqo, BankComm, CHINA SHIPBUILDING INDUSTRY, Cssc, BYD, China Shipbuilding Industry, Bankcomm.</li>
</ul>


We analysed the earning revision of component stocks of CSI 300 in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on CHINA EASTERN AIRLINES, CSSC, BYD, GREE ELECTRIC APPLIANCES, NATIONAL SILICON INDUSTRY, Xinjiang Daqo, BankComm, CHINA SHIPBUILDING INDUSTRY, Cssc, BYD, China Shipbuilding Industry, Bankcomm.


CSI 300 Index Earning Revision (Sep): CHINA EASTERN AIRLINES, BYD, GREE ELECTRIC APPLIANCES

China

Huatai Securities is a leading technology-driven and fully integrated securities firm offering comprehensive financial services. Its core businesses include wealth management, institutional services, investment management, and international business, providing brokerage, investment banking, and asset management solutions. The company was founded in 1991 and is headquartered in Nanjing, China.

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

Huatai Securities (6886 HK)

CICC (3908 HK): Initial Assessment of the Merger

CICC's merger with Dongxing and Cinda will make it the 3rd largest Chinese securities company, with diluted EPS, enhanced BPS, and lowered ROE for...

Osbert Tang, CFA

A-H Premium Weekly (Oct 31st): Sinotrans, Jiangxi Copper, Everbright Securities

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Sinotrans, Jiangxi Copper, Everbright Securities, Guangzhou...

Ke Yan, CFA, FRM

A-H Premium Weekly (Oct 17th): Hua Hong Semiconductor, Sinotrans, Shanghai Junshi Biosciences

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Hua Hong Semiconductor, Sinotrans, Shanghai Junshi...

Ke Yan, CFA, FRM

A-H Premium Weekly (Oct 10th): Cosco Shipping Development, Innocare Pharma, Shanghai Electric, SMIC

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Cosco Shipping Development, Innocare Pharma, Shanghai...

Ke Yan, CFA, FRM

CSI 300 Index Earning Revision (Sep): CHINA EASTERN AIRLINES, BYD, GREE ELECTRIC APPLIANCES

We analyzed CSI 300's consensus for Sep 2025 and highlighted changes of EPS in CHINA EASTERN AIRLINES (600115 CH), CSSC (600150 CH), BYD (002594...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

CICC (3908 HK): Initial Assessment of the Merger

​CICC's merger with Dongxing and Cinda will make it the 3rd largest Chinese securities company, with diluted EPS, enhanced BPS, and lowered ROE for...

Osbert Tang, CFA

A-H Premium Weekly (Oct 31st): Sinotrans, Jiangxi Copper, Everbright Securities

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Sinotrans, Jiangxi Copper, Everbright Securities, Guangzhou...

Ke Yan, CFA, FRM

A-H Premium Weekly (Oct 17th): Hua Hong Semiconductor, Sinotrans, Shanghai Junshi Biosciences

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Hua Hong Semiconductor, Sinotrans, Shanghai Junshi...

Ke Yan, CFA, FRM

A-H Premium Weekly (Oct 10th): Cosco Shipping Development, Innocare Pharma, Shanghai Electric, SMIC

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Cosco Shipping Development, Innocare Pharma, Shanghai...

Ke Yan, CFA, FRM

CSI 300 Index Earning Revision (Sep): CHINA EASTERN AIRLINES, BYD, GREE ELECTRIC APPLIANCES

We analyzed CSI 300's consensus for Sep 2025 and highlighted changes of EPS in CHINA EASTERN AIRLINES (600115 CH), CSSC (600150 CH), BYD (002594...

Ke Yan, CFA, FRM

CICC's merger with Dongxing and Cinda will make it the 3rd largest Chinese securities company, with diluted EPS, enhanced BPS, and lowered ROE for...