Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Global indexes remain overwhelmingly positive which is supported by the fact that there is a dearth of breakdowns. Overall our big picture view remains unchanged; overhead longer-term resistance on the MSCI EM, EAFE, and ACWI ex-US indexes (all priced in local currency) is something to be aware of, however if the ACWI-US is above $70 our intermediate-term outlook remains bullish and we suggest buying any dips. In today's report we highlight attractive charts within defensives (Consumer Staples &amp; Utilities), cyclicals (Consumer Discretionary, Energy, Financial, &amp; Materials), and in-between Sectors (Communications, Services, &amp; Health Care)

Global indexes remain overwhelmingly positive which is supported by the fact that there is a dearth of breakdowns. Overall our big picture view remains unchanged; overhead longer-term resistance on the MSCI EM, EAFE, and ACWI ex-US indexes (all priced in local currency) is something to be aware of, however if the ACWI-US is above $70 our intermediate-term outlook remains bullish and we suggest buying any dips. In today's report we highlight attractive charts within defensives (Consumer Staples &amp; Utilities), cyclicals (Consumer Discretionary, Energy, Financial, &amp; Materials), and in-between Sectors (Communications, Services, &amp; Health Care)

Global Equity Strategy: Stick With Technology

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 June 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 Tencent, Kingboard, Knowledge Atlas, Alibaba, Smic, Yangtze Optical Fibre And-H, Kingboard Laminates, China Hongqiao, Ke, Kingdee.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of June 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 Tencent, Kingboard, Knowledge Atlas, Alibaba, Smic, Yangtze Optical Fibre And-H, Kingboard Laminates, China Hongqiao, Ke, Kingdee.


HK Connect Flows Weekly (Jun 12th): Tencent, Kingboard, Knowledge Atlas, Alibaba, Smic, Ke, Kingdee

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/swire-pacific-limited-class-a" target="_blank" data-smartkarma-citation="entities:10433:1" rel="noopener">Swire Pacific (19 HK)</a> seeks to further dilute its stake in <a href="https://www.smartkarma.com/entities/cathay-pacific-airways-limited" target="_blank" data-smartkarma-citation="entities:243:1" rel="noopener">Cathay Pacific (293 HK)</a> via a hybrid block placement. </li>
<li>
<a href="https://www.smartkarma.com/entities/shinsegae-co-ltd" target="_blank" data-smartkarma-citation="entities:20987:1" rel="noopener">Shinsegae (004170 KS)</a> is set take full ownership of its e-commerce platform SSG.com, in a punchy deal worth US$1bn.</li>
<li>The catalyst earlier this week in <a href="https://www.smartkarma.com/entities/kingsoft-corporation-ltd" target="_blank" data-smartkarma-citation="entities:492:1" rel="noopener">Kingsoft (3888 HK)</a> appears irrational exuberance for <a href="https://www.smartkarma.com/entities/xiaomi-corporation-class-b" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi (1810 HK)</a> (marginally) increasing its stake.</li>
</ul>



Swire Pacific (19 HK) seeks to further dilute its stake in Cathay Pacific (293 HK) via a hybrid block placement. 

Shinsegae (004170 KS) is set take full ownership of its e-commerce platform SSG.com, in a punchy deal worth US$1bn.
The catalyst earlier this week in Kingsoft (3888 HK) appears irrational exuberance for Xiaomi (1810 HK) (marginally) increasing its stake.


Last Week In Event SPACE: Swire Pacific/ Cathay, Shinsegae, Kingsoft, China Resources Power

<ul>
<li>On the 15th May 2026, the CSRC approved SOE-backed power play <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 A-share listing of its renewable energy unit, China Resources New Energy Group (CRNE).</li>
<li>CRNE's prospectus has now been lodged, with a tentative listing late June/early July. </li>
<li>CRNE's 1Q26 profit was down 28%, with a forecast drop of at least 19% in 1H26E.  CRNE's peer basket is down 21% in the past month. CRP is down 6%.</li>
</ul>


On the 15th May 2026, the CSRC approved SOE-backed power play China Resources Power (836 HK)'s A-share listing of its renewable energy unit, China Resources New Energy Group (CRNE).
CRNE's prospectus has now been lodged, with a tentative listing late June/early July. 
CRNE's 1Q26 profit was down 28%, with a forecast drop of at least 19% in 1H26E.  CRNE's peer basket is down 21% in the past month. CRP is down 6%.


CR Power (836 HK): Profit And Sector Dip Clouds Clean Energy Spin-Off

Index Rebalance

<ul>
<li>HSTECH June 2026 rebalance takes effect on 8 Jun 2026. Two ADDs and two DELETEs enter implementation on that date.</li>
<li>MINIMAX-W fell through the bridge. KNOWLEDGE ATLAS was flat. Both DELETEs rose over the same period.</li>
<li>Historical first-week outcomes showed weak ADD precedent. Positive-bridge DELETEs showed a small first-week gain.</li>
</ul>


HSTECH June 2026 rebalance takes effect on 8 Jun 2026. Two ADDs and two DELETEs enter implementation on that date.
MINIMAX-W fell through the bridge. KNOWLEDGE ATLAS was flat. Both DELETEs rose over the same period.
Historical first-week outcomes showed weak ADD precedent. Positive-bridge DELETEs showed a small first-week gain.


HS TECH June 2026 Rebalance: Pre-Implementation Update

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)

Global Equity Strategy: Stick With Technology

Global indexes remain overwhelmingly positive which is supported by the fact that there is a dearth of breakdowns. Overall our big picture view...

Vermilion Research

HK Connect Flows Weekly (Jun 12th): Tencent, Kingboard, Knowledge Atlas, Alibaba, Smic, Ke, Kingdee

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Tencent (700 HK), Kingboard (148 HK), Knowledge Atlas...

Ke Yan, CFA, FRM

Last Week In Event SPACE: Swire Pacific/ Cathay, Shinsegae, Kingsoft, China Resources Power

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

CR Power (836 HK): Profit And Sector Dip Clouds Clean Energy Spin-Off

Forward guidance for CRNE is not optimum. There's still material upside here; however, what holding company discount is applicable?

David Blennerhassett

HS TECH June 2026 Rebalance: Pre-Implementation Update

HSTECH enters the implementation phase on 8 Jun 2026. We update post-announcement stock performance and discuss implementation trades.

Ke Yan, CFA, FRM

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