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 analyze the weekly Hong Kong Connect flows with our data engine for holding position as of January 2nd.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent Biologics, Ck Infrastructure.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of January 2nd.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent Biologics, Ck Infrastructure.


HK Connect Flows Weekly (Jan 2nd): China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent Biologics

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Guangdong Rong Tai Pharmaceutical / Equity Capital Markets

Guangdong Rong Tai Pharmaceutical (RTP HK)

<ul>
<li>As a digital circulation platform, Rong Tai’s business essence is a “middleman”, with limited added value and a naturally lower profit margin than that of R&amp;D-oriented pharmaceutical companies.</li>
<li>Rong Tai’s profitability is disappointing. It’s difficult for the Company to bring decent returns to investors. This actually reflects from the side the flaws of Rong Tai's business model/channel resources.</li>
<li>Reasonable valuation is RMB1.6bn, lower than post-money valuation after Series B Financing(RMB2.7bn). If market sentiment is pessimistic at the time of IPO, there could be big downward space for valuation.</li>
</ul>


As a digital circulation platform, Rong Tai’s business essence is a “middleman”, with limited added value and a naturally lower profit margin than that of R&amp;D-oriented pharmaceutical companies.
Rong Tai’s profitability is disappointing. It’s difficult for the Company to bring decent returns to investors. This actually reflects from the side the flaws of Rong Tai's business model/channel resources.
Reasonable valuation is RMB1.6bn, lower than post-money valuation after Series B Financing(RMB2.7bn). If market sentiment is pessimistic at the time of IPO, there could be big downward space for valuation.


Pre-IPO Guangdong Rong Tai Pharmaceutical - Low Profitability Is a Pain Point

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 19th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Xiaomi, Meituan, Alibaba, Ping An Insurance, Ke, China Mobile, Hua Hong Semiconductor, Petrochina, SMIC, HKEx.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 19th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Xiaomi, Meituan, Alibaba, Ping An Insurance, Ke, China Mobile, Hua Hong Semiconductor, Petrochina, SMIC, HKEx.


HK Connect Flows Weekly (Dec 19th): Xiaomi, Meituan, Alibaba, Ping An Insurance, Ke, China Mobile

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 12th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Xiaomi, Tencent, CMB, Alibaba, Zhejiang Leapmotor Technology, BYD.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 12th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Xiaomi, Tencent, CMB, Alibaba, Zhejiang Leapmotor Technology, BYD.


HK Connect Flows Weekly (Dec 12th): Xiaomi Inflows & Tencent/Alibaba Outflows

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>There are 2 constituent changes for the CSI Hong Kong Connect Internet Index in December. Plus there are large capping changes for some stocks.</li>
<li>Estimated one-way turnover at the rebalance is 11.9% and the round-trip trade is HK$26.6bn (US$3.4bn). There are 16 stocks with more than 1x ADV to trade.</li>
<li>The adds drifted lower vs the deletes in September and October but have started outperforming in December. There could be more outperformance following announcement of the index changes.</li>
</ul>


There are 2 constituent changes for the CSI Hong Kong Connect Internet Index in December. Plus there are large capping changes for some stocks.
Estimated one-way turnover at the rebalance is 11.9% and the round-trip trade is HK$26.6bn (US$3.4bn). There are 16 stocks with more than 1x ADV to trade.
The adds drifted lower vs the deletes in September and October but have started outperforming in December. There could be more outperformance following announcement of the index changes.


CSI Hong Kong Connect Internet Index Rebalance: Large Flows & Impact on Friday

China

JD Health International Inc. is a Chinese online healthcare platform and retail pharmacy. It provides pharmaceutical and healthcare products, internet healthcare services, health management, and intelligent healthcare solutions. The company was founded in February 2014 and is headquartered in Beijing, China.

Price Gauge
52-week Range	0.00 - 0.00
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Dividend (Yield)	0.00

JD Health (6618 HK)

HK Connect Flows Weekly (Jan 2nd): China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent Biologics

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent...

Ke Yan, CFA, FRM

Pre-IPO Guangdong Rong Tai Pharmaceutical - Low Profitability Is a Pain Point

Rong Tai's digital circulation platform operates as a "middleman" with limited added value,leading to low profitability/potential downward...

Xinyao (Criss) Wang

HK Connect Flows Weekly (Dec 19th): Xiaomi, Meituan, Alibaba, Ping An Insurance, Ke, China Mobile

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Xiaomi, Meituan, Alibaba, Ping An Insurance, Ke, China...

Ke Yan, CFA, FRM

HK Connect Flows Weekly (Dec 12th): Xiaomi Inflows & Tencent/Alibaba Outflows

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Xiaomi, Tencent, CMB, Alibaba, Zhejiang Leapmotor...

Ke Yan, CFA, FRM

CSI Hong Kong Connect Internet Index Rebalance: Large Flows & Impact on Friday

There are 2 constituent changes for the index in Dec. Plus there are a lot of capping changes. Estimated one-way turnover at the rebalance is 11.9%...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HK Connect Flows Weekly (Jan 2nd): China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent Biologics

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent...

Ke Yan, CFA, FRM

Pre-IPO Guangdong Rong Tai Pharmaceutical - Low Profitability Is a Pain Point

​Rong Tai's digital circulation platform operates as a "middleman" with limited added value,leading to low profitability/potential downward...

Xinyao (Criss) Wang

HK Connect Flows Weekly (Dec 19th): Xiaomi, Meituan, Alibaba, Ping An Insurance, Ke, China Mobile

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Xiaomi, Meituan, Alibaba, Ping An Insurance, Ke, China...

Ke Yan, CFA, FRM

HK Connect Flows Weekly (Dec 12th): Xiaomi Inflows & Tencent/Alibaba Outflows

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Xiaomi, Tencent, CMB, Alibaba, Zhejiang Leapmotor...

Ke Yan, CFA, FRM

CSI Hong Kong Connect Internet Index Rebalance: Large Flows & Impact on Friday

There are 2 constituent changes for the index in Dec. Plus there are a lot of capping changes. Estimated one-way turnover at the rebalance is 11.9%...

Brian Freitas

Rong Tai's digital circulation platform operates as a "middleman" with limited added value,leading to low profitability/potential downward...