Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Equity Bottom-Up

<ul>
<li>Hong Kong tech sector leads the market higher with increased momentum and lower volatility.  Short selling has abated with unwind of HKD carry trade.</li>
<li>
<a href="https://www.smartkarma.com/entities/sands-china-ltd" target="_blank" data-smartkarma-citation="entities:182:1" rel="noopener">Sands China (1928 HK)</a> had a breakout from a Falling Wedge pattern. The share price broke above its short-term averages with increasing momentum.
</li>
<li>
<a href="https://www.smartkarma.com/entities/china-feihe-ltd" target="_blank" data-smartkarma-citation="entities:24413:1" rel="noopener">China Feihe (6186 HK)</a> broke out from its downtrend with a Reversal from its U-Shaped Bottom.  <a href="https://www.smartkarma.com/entities/techtronic-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:4561:1" rel="noopener">Techtronic Industries (669 HK)</a> broke out to a new YTD high.
</li>
</ul>


Hong Kong tech sector leads the market higher with increased momentum and lower volatility.  Short selling has abated with unwind of HKD carry trade.

Sands China (1928 HK) had a breakout from a Falling Wedge pattern. The share price broke above its short-term averages with increasing momentum.


China Feihe (6186 HK) broke out from its downtrend with a Reversal from its U-Shaped Bottom.  Techtronic Industries (669 HK) broke out to a new YTD high.



Technically Speaking, Breakouts and Breakdowns: HONG KONG (SEPTEMBER 23)

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>
<a href="https://www.smartkarma.com/entities/haier-smart-home-co-ltd-b3ef445f-0f54-4586-8c58-9073de98d60e" target="_blank" data-smartkarma-citation="entities:31105:1" rel="noopener">Haier Smart Home (6690 HK)</a> is less exposed to China's real estate market than one would have thought. Despite poor property industry, HSH still generated 12.9% earnings growth in 3Q23.</li>
<li>We are delighted to see further margin pick-up in 2Q23-3Q23, thanks to digitalisation and better efficiency. We believe such a trend can be sustained over the next 12-18 months. </li>
<li>More innovative products will drive market share, and better margin can support a 13% 3-year earnings CAGR. ROE is high at 17-8% despite net cash (8.8% of share price).   </li>
</ul>



Haier Smart Home (6690 HK) is less exposed to China's real estate market than one would have thought. Despite poor property industry, HSH still generated 12.9% earnings growth in 3Q23.
We are delighted to see further margin pick-up in 2Q23-3Q23, thanks to digitalisation and better efficiency. We believe such a trend can be sustained over the next 12-18 months. 
More innovative products will drive market share, and better margin can support a 13% 3-year earnings CAGR. ROE is high at 17-8% despite net cash (8.8% of share price).   


Cross Asset Strategy

<ul>
<li>Hong Kong market pullbacks with global markets due to war and oil price uncertainty.  HSI fell below 200 DMA but holds well above long-term support.</li>
<li>Value and dividend yield factors are outperforming in 2026.  The energy sector has overtaken the materials sector as the top performer year-to-date, with a 24% return.</li>
<li>
<a href="https://www.smartkarma.com/entities/techtronic-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:4561:1" rel="noopener">Techtronic Industries (669 HK)</a> is rated BUY by UBS and OVERWEIGHT by JP Morgan.   It is pursuing Asia and Latin America, aiming to be the dominant brand in these regions.
</li>
</ul>


Hong Kong market pullbacks with global markets due to war and oil price uncertainty.  HSI fell below 200 DMA but holds well above long-term support.
Value and dividend yield factors are outperforming in 2026.  The energy sector has overtaken the materials sector as the top performer year-to-date, with a 24% return.

Techtronic Industries (669 HK) is rated BUY by UBS and OVERWEIGHT by JP Morgan.   It is pursuing Asia and Latin America, aiming to be the dominant brand in these regions.



BUY/SELL/HOLD: Hong Kong Market Update (March 10)

<ul>
<li>Hong Kong had a strong January performance which saw a continuation of material sector outperformance.  China saw ETF outflows as the National Team sole and margin requirements were tightened.</li>
<li>Hong Kong's market continues to enjoy net inflows with the most active IPO market in the world.  </li>
<li>
<a href="https://www.smartkarma.com/entities/aux-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:45549:1" rel="noopener">Aux Electric (2580 HK)</a> share price is under pressure ahead of its lockup expiration on March 1st.  The HVAC supplier's share price has declined by 30% since its IPO.
</li>
</ul>


Hong Kong had a strong January performance which saw a continuation of material sector outperformance.  China saw ETF outflows as the National Team sole and margin requirements were tightened.
Hong Kong's market continues to enjoy net inflows with the most active IPO market in the world.  

Aux Electric (2580 HK) share price is under pressure ahead of its lockup expiration on March 1st.  The HVAC supplier's share price has declined by 30% since its IPO.



The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (February 22)

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

Shenton Research

Shenton 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.

Index Rebalance

Beijing DeepZero Technology / Index Rebalance

<ul>
<li>HK Connect's September 2026 implementation had 53 ADDs and 15 DELETEs. We review the first implementation week vs history.</li>
<li>ADDs fell in the first implementation week, vs the historical pattern of a first-week gain. Implementation day accounted for most of the average first-week drop.</li>
<li>DELETEs fell further than the historical first-week decline, except Low-vel DELETEs.</li>
</ul>


HK Connect's September 2026 implementation had 53 ADDs and 15 DELETEs. We review the first implementation week vs history.
ADDs fell in the first implementation week, vs the historical pattern of a first-week gain. Implementation day accounted for most of the average first-week drop.
DELETEs fell further than the historical first-week decline, except Low-vel DELETEs.


HSCI / HK Connect Sep 2026: Post-Implementation Review

Hong Kong

JS Global Lifestyle Company Limited designs, manufactures, and sells small household appliances globally, including cleaning, food preparation, and cooking products under brands like Joyoung, Shark, and Ninja. The company was founded in 1994 and is headquartered in Hong Kong.

Price Gauge
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JS Global Lifestyle (1691 HK)

Technically Speaking, Breakouts and Breakdowns: HONG KONG (SEPTEMBER 23)

Hong Kong tech sector is key to lead the market higher. Lower volatility & decreased short selling volume provide tailwinds for HSTECH index. Sands...

David Mudd

Haier Smart Home (6690 HK): Stays Smart

Haier Smart Home is less exposed to real estate market than expected. Digitalisation and efficiency improvements are driving margin; and...

Osbert Tang, CFA

BUY/SELL/HOLD: Hong Kong Market Update (March 10)

Hong Kong market pullbacks with global markets due to war and oil price uncertainty. HSI fell below 200 DMA but holds well above long-term support.

David Mudd

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (February 22)

Hong Kong had a strong January performance which saw a continuation of material sector outperformance. China saw ETF outflows as the National Team...

David Mudd

HSCI / HK Connect Sep 2026: Post-Implementation Review

HK Connect Sep 2026 implementation has passed the first post-implementation week. We review what worked, what did not, and how current results...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Technically Speaking, Breakouts and Breakdowns: HONG KONG (SEPTEMBER 23)

Hong Kong tech sector is key to lead the market higher. Lower volatility & decreased short selling volume provide tailwinds for HSTECH index. Sands...

David Mudd

Haier Smart Home (6690 HK): Stays Smart

​Haier Smart Home is less exposed to real estate market than expected. Digitalisation and efficiency improvements are driving margin; and...

Osbert Tang, CFA

BUY/SELL/HOLD: Hong Kong Market Update (March 10)

Hong Kong market pullbacks with global markets due to war and oil price uncertainty. HSI fell below 200 DMA but holds well above long-term support.

David Mudd

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (February 22)

Hong Kong had a strong January performance which saw a continuation of material sector outperformance. China saw ETF outflows as the National Team...

David Mudd

HSCI / HK Connect Sep 2026: Post-Implementation Review

HK Connect Sep 2026 implementation has passed the first post-implementation week. We review what worked, what did not, and how current results...

Ke Yan, CFA, FRM

Haier Smart Home is less exposed to real estate market than expected. Digitalisation and efficiency improvements are driving margin; and...