Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Apr 25th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period.</li>
<li>We highlight short changes in BYD, Meituan, Jd, Kingsoft, China Mobile, CNOOC.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Apr 25th.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short changes in BYD, Meituan, Jd, Kingsoft, China Mobile, CNOOC.


HK Short Interest Weekly: BYD, Meituan, Jd, Kingsoft, China Mobile, CNOOC

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>The Hong Kong Alpha portfolio underperformed its benchmark index during April by 1.1%.  Since its inception last year, the portfolio has outperformed its benchmark by 18%.</li>
<li>Although the tech sector was hit after April 2nd, the portfolio made 2% in its tech exposure for the month.  We reduced the portfolio's volatility &amp; increased its Sharpe ratio.</li>
<li>At the end of April, sold positions that are at risk from the tariff uncertainty and increased our exposure to China domestic consumption.</li>
</ul>


The Hong Kong Alpha portfolio underperformed its benchmark index during April by 1.1%.  Since its inception last year, the portfolio has outperformed its benchmark by 18%.
Although the tech sector was hit after April 2nd, the portfolio made 2% in its tech exposure for the month.  We reduced the portfolio's volatility &amp; increased its Sharpe ratio.
At the end of April, sold positions that are at risk from the tariff uncertainty and increased our exposure to China domestic consumption.


Equity Bottom-Up

<ul>
<li>China announced game approval for the April batch. The number of games approved remained at a higher level than 2023.</li>
<li>The pace of China game approval appears to have accelerated to the same level as pre-tightening.</li>
<li>While Netease received one game approval for its domestic game, Tencent received an approval for an imported game.</li>
</ul>


China announced game approval for the April batch. The number of games approved remained at a higher level than 2023.
The pace of China game approval appears to have accelerated to the same level as pre-tightening.
While Netease received one game approval for its domestic game, Tencent received an approval for an imported game.


Tencent/Netease: One Game for Netease in April

<ul>
<li>The Hong Kong Alpha simulated portfolio returned 0.97% in March outperforming its benchmark by 1.1%.  Since inception the portfolio has outperformed Hong Kong indexes by 8% to 11%.</li>
<li>The portfolio has generated alpha while maintaining a correlation of 0.8 and a beta of 1.05.  The HK Alpha portfolio has a Sharpe ratio of 2.19 YTD.</li>
<li>On 3/31/25 we sold <a href="https://www.smartkarma.com/entities/shanghai-electric-group-company-limited-d542164d-4d5a-4ce0-b33e-5fe6bc34722c" target="_blank" data-smartkarma-citation="entities:8777:1" rel="noopener">Shanghai Electric Group Company (2727 HK)</a> , <a href="https://www.smartkarma.com/entities/citic-securities-h" target="_blank" data-smartkarma-citation="entities:463:1" rel="noopener">Citic Securities (H) (6030 HK)</a> , <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> , and <a href="https://www.smartkarma.com/entities/sunny-optical-technology-group" target="_blank" data-smartkarma-citation="entities:13363:1" rel="noopener">Sunny Optical Technology Group (2382 HK)</a></li>
</ul>


The Hong Kong Alpha simulated portfolio returned 0.97% in March outperforming its benchmark by 1.1%.  Since inception the portfolio has outperformed Hong Kong indexes by 8% to 11%.
The portfolio has generated alpha while maintaining a correlation of 0.8 and a beta of 1.05.  The HK Alpha portfolio has a Sharpe ratio of 2.19 YTD.
On 3/31/25 we sold Shanghai Electric Group Company (2727 HK) , Citic Securities (H) (6030 HK) , Sands China (1928 HK) , and Sunny Optical Technology Group (2382 HK)


<ul>
<li>China announced game approval for the March batch. The number of games approved remained at a higher level than 2023.</li>
<li>The pace of China game approval appears to have accelerated to the same level as pre-tightening. We see pick up in approval rate this month.</li>
<li>Both Tencent and Netease received approval for one game. In addition, Kingsoft received approval for its legendary Sword Heroes series.</li>
</ul>


China announced game approval for the March batch. The number of games approved remained at a higher level than 2023.
The pace of China game approval appears to have accelerated to the same level as pre-tightening. We see pick up in approval rate this month.
Both Tencent and Netease received approval for one game. In addition, Kingsoft received approval for its legendary Sword Heroes series.


Tencent/Netease: One Game Approved Each in March

China

Kingsoft Corporation Ltd. develops and markets computer software.  The Company develops role-playing computer games and security, word processing, and spreadsheet software.

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Kingsoft Corp (3888 HK)

HK Short Interest Weekly: BYD, Meituan, Jd, Kingsoft, China Mobile, CNOOC

We analyzed the latest HK SFC report for aggregate short position as of Apr 25th and highlight short interest changes in BYD, Meituan, Jd,...

Ke Yan, CFA, FRM

HONG KONG ALPHA PORTFOLIO (April 2025)

The Hong Kong Alpha portfolio underperformed its benchmark index during April by 1.1%. Since its inception last year, the portfolio has...

David Mudd

Tencent/Netease: One Game for Netease in April

We analyzed the game approval issued by NPPA for Chinese online game players for the month of April. Game approvals for large players are slow so...

Ke Yan, CFA, FRM

HONG KONG ALPHA PORTFOLIO (March 2025)

The Hong Kong Alpha portfolio returned 0.97% in March outperforming its benchmark by 1.1%. Since inception the portfolio has outperformed Hong...

David Mudd

Tencent/Netease: One Game Approved Each in March

We analyzed the game approval issued by NPPA for Chinese online game players for the month of March. Game approvals for large players are slow so...

Ke Yan, CFA, FRM

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