HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

Biren Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-biren-intelligent-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:39934:1" rel="noopener">Shanghai Biren Intelligent Tech (6082 HK)</a> is expected to receive an overwhelming response in its Hong Kong IPO. The public offer is reported to be at least 513.2x oversubscribed.</li>
<li>Since it will remain loss-making in FY27F, we calculate its fair value at HK$21.72 by applying the average HA discount and a 20% discount to its peer P/S multiple.  </li>
<li>Given that its FY27F revenue is smaller than MetaX Integrated Circuit (688802 CH), MetaX's P/S of 41.8x serves as Biren's ceiling, and any price over HK$23.75 appears expensive. </li>
</ul>



Shanghai Biren Intelligent Tech (6082 HK) is expected to receive an overwhelming response in its Hong Kong IPO. The public offer is reported to be at least 513.2x oversubscribed.
Since it will remain loss-making in FY27F, we calculate its fair value at HK$21.72 by applying the average HA discount and a 20% discount to its peer P/S multiple.  
Given that its FY27F revenue is smaller than MetaX Integrated Circuit (688802 CH), MetaX's P/S of 41.8x serves as Biren's ceiling, and any price over HK$23.75 appears expensive. 


Biren Technology (6082 HK) IPO: What Valuations?

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>Biren Technology, a Shanghai-based fabless chip design company that develops intelligent processors for GPU and DSA computation architectures, filed to go public in Hong Kong.  </li>
<li>Biren Technology was founded in 2019 by CEO &amp; Chairman Mr. Wen Zhang, who previously worked at AI software company SenseTime Group Inc.   </li>
<li>This is a red-hot upcoming IPO to watch, in my view. Moore Threads and MetaX Integrated Circuits have recently raised $1.1B and ~$600M in their public share offerings in Shanghai.</li>
</ul>


Biren Technology, a Shanghai-based fabless chip design company that develops intelligent processors for GPU and DSA computation architectures, filed to go public in Hong Kong.  
Biren Technology was founded in 2019 by CEO &amp; Chairman Mr. Wen Zhang, who previously worked at AI software company SenseTime Group Inc.   
This is a red-hot upcoming IPO to watch, in my view. Moore Threads and MetaX Integrated Circuits have recently raised $1.1B and ~$600M in their public share offerings in Shanghai.


Biren Technology IPO: China’s “NVIDIA Moment” and The Rise of a Homegrown AI Chip Champion

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

Shanghai Haohai Biological Tec / Index Rebalance

Shanghai Haohai Biological Tec (688366 CH)

<ul>
<li>The December 2025 index review results for the STAR 50 and STAR 100 indices were announced after market close on Friday 28th November 2025.</li>
<li>There will be two changes for the STAR 50 index and eight changes for the STAR 100 index.</li>
<li>We expect one-way flows of approximately US$1.4bn and US$516mn for the STAR 50 and STAR 100 index rebal events, respectively.</li>
</ul>


The December 2025 index review results for the STAR 50 and STAR 100 indices were announced after market close on Friday 28th November 2025.
There will be two changes for the STAR 50 index and eight changes for the STAR 100 index.
We expect one-way flows of approximately US$1.4bn and US$516mn for the STAR 50 and STAR 100 index rebal events, respectively.


Quiddity STAR 50/100 Dec25 Results: 19/20 Changes Correctly Predicted; ~US$2bn Combined One-Way Flow

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

Dawning Information Industry C / Index Rebalance

Dawning Information Industry C (603019 CH)

<ul>
<li>There are 4 constituent changes for the <a href="https://www.smartkarma.com/entities/shanghai-stock-exchange-sse-50-a-share-index" target="_blank" data-smartkarma-citation="entities:31073:1" rel="noopener">SSE50 Index (SSE50 INDEX)</a> that will be implemented at the close on 12 December.</li>
<li>
<a href="https://www.smartkarma.com/entities/dawning-information-industry-c" target="_blank" data-smartkarma-citation="entities:25380:1" rel="noopener">Dawning Information Industry C (603019 CH)</a> is a surprise add given the upcoming merger with <a href="https://www.smartkarma.com/entities/hygon-information-technology-c" target="_blank" data-smartkarma-citation="entities:36366:1" rel="noopener">Hygon Information Technology C (688041 CH)</a>. </li>
<li>The <a href="https://www.smartkarma.com/entities/shanghai-stock-exchange-sse-50-a-share-index" target="_blank" data-smartkarma-citation="entities:31073:1" rel="noopener">SSE50 Index</a> adds have underperformed the deletes over the last couple of months and there could be outperformance from here as positioning builds ahead of the implementation of the changes.</li>
</ul>


There are 4 constituent changes for the SSE50 Index (SSE50 INDEX) that will be implemented at the close on 12 December.

Dawning Information Industry C (603019 CH) is a surprise add given the upcoming merger with Hygon Information Technology C (688041 CH). 
The SSE50 Index adds have underperformed the deletes over the last couple of months and there could be outperformance from here as positioning builds ahead of the implementation of the changes.


SSE50 Index Rebalance: 4 Changes a Side & US$2.2bn Trade

Verisilicon Microelectronics S / Index Rebalance

Verisilicon Microelectronics S (688521 CH)

<ul>
<li>There could be one change for the CNI Semiconductor Chips Index with <a href="https://www.smartkarma.com/entities/verisilicon-microelectronics-s" target="_blank" data-smartkarma-citation="entities:32183:1" rel="noopener">Verisilicon Microelectronics S (688521 CH)</a> replacing <a href="https://www.smartkarma.com/entities/tianshui-huatian-technolog-a" target="_blank" data-smartkarma-citation="entities:20708:1" rel="noopener">Tianshui Huatian Technology Co, Ltd. (002185 CH)</a>. </li>
<li>Passive trackers will need to buy 0.5x ADV in <a href="https://www.smartkarma.com/entities/verisilicon-microelectronics-s" target="_blank" data-smartkarma-citation="entities:32183:1" rel="noopener">Verisilicon Microelectronics S (688521 CH)</a> and sell 0.4x ADV in <a href="https://www.smartkarma.com/entities/tianshui-huatian-technolog-a" target="_blank" data-smartkarma-citation="entities:20708:1" rel="noopener">Tianshui Huatian Technology Co, Ltd. (002185 CH)</a>. </li>
<li>There will be large selling in <a href="https://www.smartkarma.com/entities/cambricon-technologies-corp-lt" target="_blank" data-smartkarma-citation="entities:31068:1" rel="noopener">Cambricon Technologies Lt (688256 CH)</a> due to capping while there will be smaller inflows for the other index constituents.</li>
</ul>


There could be one change for the CNI Semiconductor Chips Index with Verisilicon Microelectronics S (688521 CH) replacing Tianshui Huatian Technology Co, Ltd. (002185 CH). 
Passive trackers will need to buy 0.5x ADV in Verisilicon Microelectronics S (688521 CH) and sell 0.4x ADV in Tianshui Huatian Technology Co, Ltd. (002185 CH). 
There will be large selling in Cambricon Technologies Lt (688256 CH) due to capping while there will be smaller inflows for the other index constituents.


CNI Semiconductor Chips Index Rebalance Preview: One Set of Changes in December

China

Hygon Information Technology Co., Ltd. manufactures and distributes computer components. The Company produces high end processors, deep computing processors, accelerators, calculator chips, and other related products. Hygon Information Technology markets its products worldwide.

Hygon Information Technology C (688041 CH)

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Hygon Information Technology C (688041 CH)

Biren Technology (6082 HK) IPO: What Valuations?

Biren's HK IPO is expected to be heavily oversubscribed, but its fair value is calculated to be HK$21.72. Anything above HK$23.75 is expensive...

Osbert Tang, CFA

Biren Technology IPO: China’s “NVIDIA Moment” and The Rise of a Homegrown AI Chip Champion

Shanghai-based fabless chip design company Biren Technology plans to go public in Hong Kong in January, following blockbuster offerings by Moore...

Andrei Zakharov

Quiddity STAR 50/100 Dec25 Results: 19/20 Changes Correctly Predicted; ~US$2bn Combined One-Way Flow

We correctly predicted 19 out of 20 confirmed index changes. All of the ADDs/DELs except for STAR 100 DEL Shanghai Haohai Biological Tec (688366...

Janaghan Jeyakumar, CFA

SSE50 Index Rebalance: 4 Changes a Side & US$2.2bn Trade

There are 4 changes for the SSE50 Index in Dec. Dawning is the surprise addition and could move closer to the merger ratio implied price. Estimated...

Brian Freitas

CNI Semiconductor Chips Index Rebalance Preview: One Set of Changes in December

Verisilicon could replace Tianshui Huatian in the index in Dec. Verisilicon is an expected add to a few other indices at the same time and flow...

Brian Freitas

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Biren Technology (6082 HK) IPO: What Valuations?

​Biren's HK IPO is expected to be heavily oversubscribed, but its fair value is calculated to be HK$21.72. Anything above HK$23.75 is expensive...

Osbert Tang, CFA

Biren Technology IPO: China’s “NVIDIA Moment” and The Rise of a Homegrown AI Chip Champion

​Shanghai-based fabless chip design company Biren Technology plans to go public in Hong Kong in January, following blockbuster offerings by Moore...

Andrei Zakharov

Quiddity STAR 50/100 Dec25 Results: 19/20 Changes Correctly Predicted; ~US$2bn Combined One-Way Flow

We correctly predicted 19 out of 20 confirmed index changes. All of the ADDs/DELs except for STAR 100 DEL Shanghai Haohai Biological Tec (688366...

Janaghan Jeyakumar, CFA

SSE50 Index Rebalance: 4 Changes a Side & US$2.2bn Trade

There are 4 changes for the SSE50 Index in Dec. Dawning is the surprise addition and could move closer to the merger ratio implied price. Estimated...

Brian Freitas

CNI Semiconductor Chips Index Rebalance Preview: One Set of Changes in December

Verisilicon could replace Tianshui Huatian in the index in Dec. Verisilicon is an expected add to a few other indices at the same time and flow...

Brian Freitas

Biren's HK IPO is expected to be heavily oversubscribed, but its fair value is calculated to be HK$21.72. Anything above HK$23.75 is expensive...

Shanghai-based fabless chip design company Biren Technology plans to go public in Hong Kong in January, following blockbuster offerings by Moore...