China/Asia TMT

Shawn Yang

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>We recently conducted a round of interviews of Chinese start-up gaming companies, and we see an overall loosening in the regulatory environment, although near-term hit titles are still absent.</li>
<li>We are positive on Tencent because of the increasing possibility of DNF mobile launch. We raise NetEase’s TP to US$ 99, and it’s one of our top picks now</li>
<li>Other gaming companies that have upward trends include Kingsoft, Lingxi Games (under Alibaba), Koei Tecmo, Nexon, and Mihoyo. Companies with a downward trend include BILI and Garena (under SEA).  </li>
</ul>


We recently conducted a round of interviews of Chinese start-up gaming companies, and we see an overall loosening in the regulatory environment, although near-term hit titles are still absent.
We are positive on Tencent because of the increasing possibility of DNF mobile launch. We raise NetEase’s TP to US$ 99, and it’s one of our top picks now
Other gaming companies that have upward trends include Kingsoft, Lingxi Games (under Alibaba), Koei Tecmo, Nexon, and Mihoyo. Companies with a downward trend include BILI and Garena (under SEA).  


[Gaming Sector Update]: Top Picks Are Tencent and NetEase, Positive to Kingsoft, Koei Tecmo, Nexon.

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 July 17th.</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 Knowledge Atlas, Alibaba, Ntes, Iluvatar Corex, Gigadevice, Kingboard Laminates, Tencent, Sinopec, Hua Hong Semi.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of July 17th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Knowledge Atlas, Alibaba, Ntes, Iluvatar Corex, Gigadevice, Kingboard Laminates, Tencent, Sinopec, Hua Hong Semi.


HK Connect Flows Weekly (Jul 17th): Knowledge Atlas, Alibaba, Ntes, Iluvatar Corex, Gigadevice

Index Rebalance

<ul>
<li>HSTECH June 2026 added KNOWLEDGE ATLAS and MINIMAX-W and deleted KINGSOFT and KINGDEE INT'L. All event windows through the fourth post-implementation week are complete.</li>
<li>Both ADDs fell in the first implementation week, far beyond the historical ADD first-week means. KNOWLEDGE ATLAS then gained +46.8% in weeks two to four.</li>
<li>The positive-bridge DELETE rebound held for KINGSOFT at +3.9% but missed for KINGDEE INT'L at -12.3%.</li>
</ul>


HSTECH June 2026 added KNOWLEDGE ATLAS and MINIMAX-W and deleted KINGSOFT and KINGDEE INT'L. All event windows through the fourth post-implementation week are complete.
Both ADDs fell in the first implementation week, far beyond the historical ADD first-week means. KNOWLEDGE ATLAS then gained +46.8% in weeks two to four.
The positive-bridge DELETE rebound held for KINGSOFT at +3.9% but missed for KINGDEE INT'L at -12.3%.


HS TECH June 2026 Rebalance: Post-Implementation Review

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>On the 14th May 2026, <a href="https://www.smartkarma.com/entities/ten-pao-group-holdings-limited" target="_blank" data-smartkarma-citation="entities:27241:1" rel="noopener">Ten Pao (1979 HK)</a>, a power-supply and charging device manufacturer, <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2026/0514/2026051401480.pdf" target="_blank" rel="noopener">announced</a> the spin-off of its 92.4091%-held charging device arm via an A-share listing.</li>
<li>Shares gained 21% on the news - which were promptly given back, and then some, with shares now down 17% from undisturbed. </li>
<li>
<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2026/0703/2026070302019.pdf" target="_blank" rel="noopener">A circular is now out</a>. A shareholder vote on the carve out has been waived. The transaction requires CSRC approval. </li>
</ul>


On the 14th May 2026, Ten Pao (1979 HK), a power-supply and charging device manufacturer, announced the spin-off of its 92.4091%-held charging device arm via an A-share listing.
Shares gained 21% on the news - which were promptly given back, and then some, with shares now down 17% from undisturbed. 

A circular is now out. A shareholder vote on the carve out has been waived. The transaction requires CSRC approval. 


On Ten Pao (1979 HK)'s Proposed A-Share Spin-Off

<ul>
<li>Priced at RM10.11/share, <a href="https://www.smartkarma.com/entities/china-resources-new-energy-holdings-company-limited" target="_blank" data-smartkarma-citation="entities:50306:1" rel="noopener">China Resources New Energy (001248 CH)</a> (CRNE) appeared fairly priced on a trailing P/B; to possibly "cheap" on a trailing PER metric, depending on your forecast viewpoint. </li>
<li>However, at ~700x oversubscribed, and given CRNE is part of the vast SOE China Resources Holdings, a pop on debut was a safe bet. CRNE is now up 109%.</li>
<li>
<a href="https://www.smartkarma.com/entities/china-resources-power-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:5385:1" rel="noopener">China Resources Power (836 HK)</a>'s 81.8% stake in CRNE accounts for 307% of its market cap. And places the discount to NAV at ~74%,  That's not sustainable. </li>
</ul>


Priced at RM10.11/share, China Resources New Energy (001248 CH) (CRNE) appeared fairly priced on a trailing P/B; to possibly "cheap" on a trailing PER metric, depending on your forecast viewpoint. 
However, at ~700x oversubscribed, and given CRNE is part of the vast SOE China Resources Holdings, a pop on debut was a safe bet. CRNE is now up 109%.

China Resources Power (836 HK)'s 81.8% stake in CRNE accounts for 307% of its market cap. And places the discount to NAV at ~74%,  That's not sustainable. 


Buy CR Power (836 HK) As CRNE (More Than) Doubles On Debut

China

Kingsoft is a Chinese software and internet services company that develops office software, cloud services, and online games. Its key products include the WPS Office suite (WPS Office, WPS 365, WPS AI) and various PC and mobile games like JX Online 3. The company was founded in 1988 and is headquartered in Beijing, China.

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Kingsoft (3888 HK)

[Gaming Sector Update]: Top Picks Are Tencent and NetEase, Positive to Kingsoft, Koei Tecmo, Nexon.

We recently conducted a round of interviews of Chinese start-up gaming companies. Our top picks are Tencent and NetEase. We are also positive to...

Blue Lotus Research Institute

HK Connect Flows Weekly (Jul 17th): Knowledge Atlas, Alibaba, Ntes, Iluvatar Corex, Gigadevice

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Knowledge Atlas (2513 HK), Alibaba (9988 HK), Ntes (9999...

Ke Yan, CFA, FRM

HS TECH June 2026 Rebalance: Post-Implementation Review

HSTECH June 2026 rebalance has passed the first post-implementation month. We review what worked, what did not, and how current results compare...

Ke Yan, CFA, FRM

Buy CR Power (836 HK) As CRNE (More Than) Doubles On Debut

CRP has barely registered CRNE's bigly price gain on debut. The question is whether it will. CRP is totally misproced versus its holding in CRNE....

David Blennerhassett

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[Gaming Sector Update]: Top Picks Are Tencent and NetEase, Positive to Kingsoft, Koei Tecmo, Nexon.

We recently conducted a round of interviews of Chinese start-up gaming companies. Our top picks are Tencent and NetEase. We are also positive to...

Blue Lotus Research Institute

HK Connect Flows Weekly (Jul 17th): Knowledge Atlas, Alibaba, Ntes, Iluvatar Corex, Gigadevice

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Knowledge Atlas (2513 HK), Alibaba (9988 HK), Ntes (9999...

Ke Yan, CFA, FRM

HS TECH June 2026 Rebalance: Post-Implementation Review

HSTECH June 2026 rebalance has passed the first post-implementation month. We review what worked, what did not, and how current results compare...

Ke Yan, CFA, FRM

On Ten Pao (1979 HK)'s Proposed A-Share Spin-Off

If illiquid, long-dated, events are your thing, keep tabs on this stock. The spin-off may be worth upward of HK$7.6bn - or ~160% of Ten Pao's...

David Blennerhassett

Buy CR Power (836 HK) As CRNE (More Than) Doubles On Debut

CRP has barely registered CRNE's bigly price gain on debut. The question is whether it will. CRP is totally misproced versus its holding in CRNE....

David Blennerhassett