Smartkarma Research Team, Smartkarma

Smartkarma Research

Smartkarma Research Team

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Event-Driven

<p>For our next Webinar, we're excited to welcome back Insight Provider <a href="https://www.smartkarma.com/profiles/brian-freitas" target="_blank" data-smartkarma-citation="accounts:4091" rel="noopener">Brian Freitas</a>, who will cover the upcoming rebalance of the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899" rel="noopener">Hong Kong Hang Seng Index (HSI INDEX)</a> as it pushes towards its target of 80 index members by mid-2022.</p>
<h3>The webinar will be hosted on Wednesday, 17 November 2021, 17:00 SGT/HKT.</h3>
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<h2><a href="https://share.hsforms.com/1H9pFZOB-RF2J00kbvMmxcw2c5gj?zoom_webinar_id=85212464246" target="_blank" rel="noopener">Register for the Webinar here</a></h2>
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<p>Brian Freitas is a highly experienced ex-delta one trader with over 17 years of experience. He was previously with Barclays, Macquarie, Credit Suisse, and BNP Paribas.</p>
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For our next Webinar, we're excited to welcome back Insight Provider Brian Freitas, who will cover the upcoming rebalance of the Hong Kong Hang Seng Index (HSI INDEX) as it pushes towards its target of 80 index members by mid-2022.
The webinar will be hosted on Wednesday, 17 November 2021, 17:00 SGT/HKT.



Register for the Webinar here




Brian Freitas is a highly experienced ex-delta one trader with over 17 years of experience. He was previously with Barclays, Macquarie, Credit Suisse, and BNP Paribas.


Smartkarma Webinar | Potential Inclusions to the Hang Seng Index (HSI INDEX)

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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.

Equity Capital Markets

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<p>ANE, an express freight network operator in China for less-than-truckload (LTL) market, raised around US$143m in its Hong Kong IPO. The company is backed by a host of financial investors including Centurium, Carlyle, CDH, CPE, NWS, Ping An, Goldman Sachs and Yili.</p>
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<div>We covered various aspects of the deal in our earlier notes,</div>
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<a href="https://www.smartkarma.com/compose/insight/59814/ANE%20Logistics%20Pre-IPO%20-%20Margins%20Expanding%20but%20Appears%20to%20Be%20Falling%20Behind" target="_blank" rel="noopener">ANE Logistics Pre-IPO - Margins expanding but appears to be falling behind,</a> </li>
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<a href="https://www.smartkarma.com/insights/ane-logistics-pre-ipo-phip-updates-underlying-growth-is-far-from-clear" target="_blank" rel="noopener">ANE Logistics Pre-IPO - PHIP updates - Underlying growth is far from clear</a> and</li>
<li><a href="https://www.smartkarma.com/insights/ane-logistics-ipo-weird-disclosures-continue" target="_blank" rel="noopener">ANE Logistics IPO - Weird Disclosures Continue</a></li>
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<p>In this note, we will talk about updates since our last note</p>
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ANE, an express freight network operator in China for less-than-truckload (LTL) market, raised around US$143m in its Hong Kong IPO. The company is backed by a host of financial investors including Centurium, Carlyle, CDH, CPE, NWS, Ping An, Goldman Sachs and Yili.

We covered various aspects of the deal in our earlier notes,



ANE Logistics Pre-IPO - Margins expanding but appears to be falling behind, 

ANE Logistics Pre-IPO - PHIP updates - Underlying growth is far from clear and
ANE Logistics IPO - Weird Disclosures Continue

In this note, we will talk about updates since our last note


ANE Logistics IPO Trading - No Demand, We Would Stay Clear

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<p>Hang Seng Indexes will announce the results of the December 2021 review of the Hang Seng Family of Indexes on 19 November. The constituent changes will be effective after the close of trading on 3 December.</p><p>The review period for the December rebalance ended on 30 September and stocks that have at least 3 month of trading history by the review meeting date are eligible for inclusion in the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hong Kong Hang Seng Index (HSI INDEX)</a>.</p><p>With Hang Seng Indexes looking to get up to 80 <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hong Kong Hang Seng Index (HSI INDEX)</a> members by mid-2022, there could be 20 inclusions over the next 3 index rebalances.</p><p>As of the close on 3 November, index turnover is 1.3% from capping and other changes to the current index constituents. That gives the index committee a lot of room to add some big stocks to the index without increasing the turnover to levels seen at the last two rebalances in June and September.</p><p>We identify 12 stocks that could be added to the index based on market coverage and the impact of recent regulatory changes. Of the 12 stocks, 8 are higher probability changes and 4 are lower probability.</p><p>All 12 inclusions will result in a one-way turnover of 6.37% while the inclusion of the 8 high probability changes will result in a one-way turnover of 4.98%.</p><p>There is large short interest on most of the stocks and index inclusion could set off a round of short covering and could drive the stocks higher.</p>

Hang Seng Indexes will announce the results of the December 2021 review of the Hang Seng Family of Indexes on 19 November. The constituent changes will be effective after the close of trading on 3 December.The review period for the December rebalance ended on 30 September and stocks that have at least 3 month of trading history by the review meeting date are eligible for inclusion in the Hong Kong Hang Seng Index (HSI INDEX).With Hang Seng Indexes looking to get up to 80 Hong Kong Hang Seng Index (HSI INDEX) members by mid-2022, there could be 20 inclusions over the next 3 index rebalances.As of the close on 3 November, index turnover is 1.3% from capping and other changes to the current index constituents. That gives the index committee a lot of room to add some big stocks to the index without increasing the turnover to levels seen at the last two rebalances in June and September.We identify 12 stocks that could be added to the index based on market coverage and the impact of recent regulatory changes. Of the 12 stocks, 8 are higher probability changes and 4 are lower probability.All 12 inclusions will result in a one-way turnover of 6.37% while the inclusion of the 8 high probability changes will result in a one-way turnover of 4.98%.There is large short interest on most of the stocks and index inclusion could set off a round of short covering and could drive the stocks higher.

Hang Seng Index Rebalance Preview: The Road to 80 Constituents

<p>ANE, an express freight network operator in China for less-than-truckload (LTL) market, aims to raise around US$174m in its Hong Kong IPO. The company is backed by a host of financial investors including Centurium, Carlyle, CDH, CPE, NWS, Ping An, Goldman Sachs and Yili.</p><p>As per iResearch, ANE’s network was the largest in China in terms of total freight volume over 2017-20 with a market share of 17.2% in 2020.</p><p>By Dec 2020, it had collaborated with approximately 26,400 freight partners and agents to serve 3.6m shippers across approximately 96% of the counties and townships in China. Both the freight partners and freight agents operate under its brand and are required to adhere to its service guidelines and policies. ANE’s overall volume and top line growth has been decent. However, not all of its offerings have been growing, while some of its revenue growth was driven by accounting changes. </p><p>We covered various aspects of the deal in our earlier notes, <a href="https://www.smartkarma.com/compose/insight/59814/ANE%20Logistics%20Pre-IPO%20-%20Margins%20Expanding%20but%20Appears%20to%20Be%20Falling%20Behind" target="_blank" rel="noopener">ANE Logistics Pre-IPO - Margins expanding but appears to be falling behind</a> and <a href="https://www.smartkarma.com/insights/ane-logistics-pre-ipo-phip-updates-underlying-growth-is-far-from-clear" target="_blank" rel="noopener">ANE Logistics Pre-IPO - PHIP updates - Underlying growth is far from clear</a>.  In this note, we will talk about updates since our last note and valuations.</p>

ANE, an express freight network operator in China for less-than-truckload (LTL) market, aims to raise around US$174m in its Hong Kong IPO. The company is backed by a host of financial investors including Centurium, Carlyle, CDH, CPE, NWS, Ping An, Goldman Sachs and Yili.As per iResearch, ANE’s network was the largest in China in terms of total freight volume over 2017-20 with a market share of 17.2% in 2020.By Dec 2020, it had collaborated with approximately 26,400 freight partners and agents to serve 3.6m shippers across approximately 96% of the counties and townships in China. Both the freight partners and freight agents operate under its brand and are required to adhere to its service guidelines and policies. ANE’s overall volume and top line growth has been decent. However, not all of its offerings have been growing, while some of its revenue growth was driven by accounting changes. We covered various aspects of the deal in our earlier notes, ANE Logistics Pre-IPO - Margins expanding but appears to be falling behind and ANE Logistics Pre-IPO - PHIP updates - Underlying growth is far from clear.  In this note, we will talk about updates since our last note and valuations.

ANE Logistics IPO - Weird Disclosures Continue

<p>Li Ning aims to raise around US$1bn via a top-up placement in Hong Kong. The company has been doing well over the past year and most of the past deals in the name have done well too.</p><p>We have covered the previous placements in:</p><ul>
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<a href="https://www.smartkarma.com/insights/li-ning-placement-viva-china-selling-small-deal-size-and-overhang-is-manageable" target="_blank" data-smartkarma-citation="insights:37995" rel="noopener">Li Ning Placement - Viva China Selling - Small Deal Size and Overhang Is Manageable</a> </li>
<li dir="ltr" aria-level="1"><p><a href="https://www.smartkarma.com/insights/li-ning-placement-expectations-adjusted-overhang-removed" target="_blank" data-smartkarma-citation="insights:11323" rel="noopener">Li Ning Placement - Expectations Adjusted, Overhang Removed</a></p></li>
<li dir="ltr" aria-level="1"><p><a href="https://www.smartkarma.com/insights/li-ning-just-the-start-of-tpg-exit" target="_blank" data-smartkarma-citation="insights:8239" rel="noopener">Li Ning - Just the Start of TPG Exit</a></p></li>
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Li Ning aims to raise around US$1bn via a top-up placement in Hong Kong. The company has been doing well over the past year and most of the past deals in the name have done well too.We have covered the previous placements in:

Li Ning Placement - Viva China Selling - Small Deal Size and Overhang Is Manageable 
Li Ning Placement - Expectations Adjusted, Overhang Removed
Li Ning - Just the Start of TPG Exit


Li Ning Placement - Momentum Remains Strong. Past Deals Have Done Well.

China

JD.com, Inc. is an online direct sales company in China. The Company offers a wide selection of products through its website and mobile applications. JD.com sells appliances, computers, digital products, communication products, garments, books, and household items to consumers and vendors.

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JD.com (9618 HK)

Smartkarma Webinar | Potential Inclusions to the Hang Seng Index (HSI INDEX)

On Wednesday, 17 November, 5pm SGT, join our webinar with Brian Freitas, who will cover the upcoming rebalance of the Hong Kong Hang Seng Index.

Smartkarma Research

ANE Logistics IPO Trading - No Demand, We Would Stay Clear

ANE, an express freight network operator in China for less-than-truckload (LTL) market, raised around US$143m in its Hong Kong IPO. The company is...

Sumeet Singh

Hang Seng Index Rebalance Preview: The Road to 80 Constituents

The HSI has 60 members and the target is to reach 80 constituents over the next 3 rebalances. There could be a lot of stocks added at the Dec rebal...

Brian Freitas

ANE Logistics IPO - Weird Disclosures Continue

ANE, an express freight network operator in China for less-than-truckload (LTL) market, aims to raise around US$174m in its Hong Kong IPO. The...

Sumeet Singh

Li Ning Placement - Momentum Remains Strong. Past Deals Have Done Well.

Li Ning aims to raise around US$1bn via a top-up placement in Hong Kong. The company has been doing well over the past year and most of the past...

Sumeet Singh

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