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.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of July 31st.</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 Alibaba, Smic, Xiaomi, Knowledge Atlas, Yofc, Kingboard Hldg, CCB, J&amp;T Express, China Hongqiao, China Mobile.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of July 31st.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Alibaba, Smic, Xiaomi, Knowledge Atlas, Yofc, Kingboard Hldg, CCB, J&amp;T Express, China Hongqiao, China Mobile.


HK Connect Flows Weekly (Jul 31st): Alibaba, Smic, Xiaomi, Knowledge Atlas, Yofc, Kingboard Hldg

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>The plunge in medical beauty sector last week was due to the industry-wide overhaul and investigation resulting from the increase in business bribery/tax evasion/medical malpractice/customer complaints.</li>
<li>We found an interesting phenomenon – Investors dare not buy biotech, opting instead for Traditional Chinese Medicine (TCM) companies, scientific research service companies and medical service companies.</li>
<li>If investors still want to trade CXO, here are two suggestions.</li>
</ul>


The plunge in medical beauty sector last week was due to the industry-wide overhaul and investigation resulting from the increase in business bribery/tax evasion/medical malpractice/customer complaints.
We found an interesting phenomenon – Investors dare not buy biotech, opting instead for Traditional Chinese Medicine (TCM) companies, scientific research service companies and medical service companies.
If investors still want to trade CXO, here are two suggestions.


China Healthcare Weekly (Sep.25) - CXO Trading Strategy, Plunge in Medical Beauty, Belief in Biotech

<ul>
<li>Shanghai Municipal Medical Insurance Bureau issued a policy that TAVR consumables would be reimbursed according to surgery performance, breaking the bottleneck of low demand due to the expensive TAVR surgery.</li>
<li>The COVID nucleic acid testing industry faces the problem of exit, because it is very difficult to find a corresponding scale of replacement business for these huge capacity accumulated.</li>
<li>In terms of the internationalization prospects of China biotech companies, we prefer to pick RemeGen. The same logic also applies to Keymed.</li>
</ul>


Shanghai Municipal Medical Insurance Bureau issued a policy that TAVR consumables would be reimbursed according to surgery performance, breaking the bottleneck of low demand due to the expensive TAVR surgery.
The COVID nucleic acid testing industry faces the problem of exit, because it is very difficult to find a corresponding scale of replacement business for these huge capacity accumulated.
In terms of the internationalization prospects of China biotech companies, we prefer to pick RemeGen. The same logic also applies to Keymed.


China Healthcare Weekly (May.27) - New TAVR Policy, Exiting Issue of COVID Testing, RemeGen/Keymed

<ul>
<li>Recently, the VBP results of Chinese patent medicine led by Guangdong Alliance were released.Investors had better confirm whether their products have been included in VBP before investing in related stocks.</li>
<li>The reason why domestic pharmaceutical companies lag behind foreign companies is not only the innovation capability or clinical speed, but also the ability to actively identify innovation and thinking mode.</li>
<li>There would be quite a few consolidations or acquisitions of Biotech at low prices. There could also be some delisting of Biotech in secondary market in the coming year.</li>
</ul>


Recently, the VBP results of Chinese patent medicine led by Guangdong Alliance were released.Investors had better confirm whether their products have been included in VBP before investing in related stocks.
The reason why domestic pharmaceutical companies lag behind foreign companies is not only the innovation capability or clinical speed, but also the ability to actively identify innovation and thinking mode.
There would be quite a few consolidations or acquisitions of Biotech at low prices. There could also be some delisting of Biotech in secondary market in the coming year.


China Healthcare Weekly (Apr.22) - TCM VBP Results, R&D Thinking Mode, Biotech Delisting

<ul>
<li>Last week, the focus of the 2022 Volume-Based Purchase (VBP) was finalized. We summarized the key points and major VBP projects to be promoted this year.</li>
<li>For IVD companies that seize the golden COVID-19 testing opportunity, they have already accumulated large amount of cash flow. It means M&amp;A opportunities but also bubbles in the industry. </li>
<li>The market value of a lot of medical device companies in HKEX has already been very small. Is the market overly pessimistic?</li>
</ul>


Last week, the focus of the 2022 Volume-Based Purchase (VBP) was finalized. We summarized the key points and major VBP projects to be promoted this year.
For IVD companies that seize the golden COVID-19 testing opportunity, they have already accumulated large amount of cash flow. It means M&amp;A opportunities but also bubbles in the industry. 
The market value of a lot of medical device companies in HKEX has already been very small. Is the market overly pessimistic?


China Healthcare Weekly (Apr.15)- 2022 VBP Focus, Post-COVID IVD Outlook, Undervalued Medical Device

China

Keymed Biosciences is a biotechnology company focused on the in-house discovery and development of innovative biological therapies for autoimmune diseases and oncology. Their pipeline includes over 50 programs, with key products like Kangyueda® (Stapokibart, CM310) for atopic dermatitis, chronic rhinosinusitis with nasal polyps, and seasonal allergic rhinitis. The company was founded in 2016 and is headquartered in Chengdu, China.

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Keymed Biosciences (2162 HK)

HK Connect Flows Weekly (Jul 31st): Alibaba, Smic, Xiaomi, Knowledge Atlas, Yofc, Kingboard Hldg

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Alibaba, Smic, Xiaomi, Knowledge Atlas, Yofc, Kingboard...

Ke Yan, CFA, FRM

China Healthcare Weekly (Sep.25) - CXO Trading Strategy, Plunge in Medical Beauty, Belief in Biotech

If investor still want to trade CXO,here are two suggestions; The plunge in medical beauty sector last week was due to industry-wide...

Xinyao (Criss) Wang

China Healthcare Weekly (May.27) - New TAVR Policy, Exiting Issue of COVID Testing, RemeGen/Keymed

New TAVR policy will break the low demand bottleneck due to high cost; COVID testing industry faces the problem of exit; Remegen/Keymed may have...

Xinyao (Criss) Wang

China Healthcare Weekly (Apr.22) - TCM VBP Results, R&D Thinking Mode, Biotech Delisting

Guangdong Alliance released the VBP results of TCM; The ability to identify innovation and the thinking mode is more important for Pharma; There...

Xinyao (Criss) Wang

China Healthcare Weekly (Apr.15)- 2022 VBP Focus, Post-COVID IVD Outlook, Undervalued Medical Device

The focus of 2022 VBP was finalized. In post-COVID era, how would cash-rich IVD companies with find new growth point?After continuous pullback,...

Xinyao (Criss) Wang

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52-week Range

Market Cap (USDm)

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