Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>We see 28 potential inclusions to the HSCI in September, plus another 9 stocks that are close to the inclusion cutoff. Some stocks are already a part of Stock Connect.</li>
<li>There could be 22 deletions from the index on market cap, liquidity and prolonged suspension. Most of the deletions would be moved to the 'sell-only' Southbound Stock Connect list.</li>
<li>Some of the stocks that remain in the HSCI could move to the 'sell-only' Southbound Stock Connect list since their average market cap drops below HKD 5bn.</li>
</ul>


We see 28 potential inclusions to the HSCI in September, plus another 9 stocks that are close to the inclusion cutoff. Some stocks are already a part of Stock Connect.
There could be 22 deletions from the index on market cap, liquidity and prolonged suspension. Most of the deletions would be moved to the 'sell-only' Southbound Stock Connect list.
Some of the stocks that remain in the HSCI could move to the 'sell-only' Southbound Stock Connect list since their average market cap drops below HKD 5bn.


HSCI Index Rebalance and Stock Connect: Potential Changes in September

China CITIC Financial Asset Management / Index Rebalance

China CITIC Financial Asset Management (2799 HK)

<ul>
<li>We see seven new listings as potential inclusions to the HSCI in June. One is already a part of Connect while five will be added to Southbound Stock Connect.</li>
<li>We see 19 potential changes to the HSCI in September. Seven of the deletions are on market cap, four on liquidity, and eight due to prolonged trading suspension.</li>
<li>Some of the potential deletions have large Southbound holdings and some of these could be trimmed over the next couple of months.</li>
</ul>


We see seven new listings as potential inclusions to the HSCI in June. One is already a part of Connect while five will be added to Southbound Stock Connect.
We see 19 potential changes to the HSCI in September. Seven of the deletions are on market cap, four on liquidity, and eight due to prolonged trading suspension.
Some of the potential deletions have large Southbound holdings and some of these could be trimmed over the next couple of months.


HSCI Index Rebalance and Stock Connect: Potential Changes in June and September

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>Akeso has a very high starting point, and was regarded as the leader of domestic second-tier biotech companies. However, in current unfavorable market sentiment, it’s necessary to re-examine the Company.</li>
<li>In Akeso’s pipeline, there are some valuable and differentiated candidates, especially in the field of bispecific antibodies. Its R&amp;D capability is also well recognized.</li>
<li>However, due to the rich pipeline, related clinical trials will drain money fast. So, investors are advised to be cautious until Akeso has ensured sustainable and stable cash flow.</li>
</ul>


Akeso has a very high starting point, and was regarded as the leader of domestic second-tier biotech companies. However, in current unfavorable market sentiment, it’s necessary to re-examine the Company.
In Akeso’s pipeline, there are some valuable and differentiated candidates, especially in the field of bispecific antibodies. Its R&amp;D capability is also well recognized.
However, due to the rich pipeline, related clinical trials will drain money fast. So, investors are advised to be cautious until Akeso has ensured sustainable and stable cash flow.


Akeso Biopharma Inc (9926.HK) - Caution Is Advised Until Sufficient Financing Is Secured

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

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.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/green-tea-group" target="_blank" data-smartkarma-citation="entities:34599:1" rel="noopener">Green Tea Group (GT HK)</a> is looking to raise about US$150m in its upcoming Hong Kong IPO. </li>
<li>Green Tea Group is a restaurant chain operator for fusion cuisine in China. </li>
<li>As of the latest practicable date (LPD), it had a restaurant network of 236 restaurants covering 18 provinces, four municipalities and three autonomous regions in the PRC.</li>
</ul>



Green Tea Group (GT HK) is looking to raise about US$150m in its upcoming Hong Kong IPO. 
Green Tea Group is a restaurant chain operator for fusion cuisine in China. 
As of the latest practicable date (LPD), it had a restaurant network of 236 restaurants covering 18 provinces, four municipalities and three autonomous regions in the PRC.


Green Tea Group Pre-IPO - Growing for the Sake of Growth

Jinmao Property Services / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jinmao-property-services" target="_blank" data-smartkarma-citation="entities:34170:1" rel="noopener">Jinmao Property Services (816 HK)</a> raised around US$105m in its Hong Kong IPO. </li>
<li>In our view, the firm doesn’t deserve to trade at a premium to peers given its weaker margins and slower growth in FY20. </li>
<li>In this note, we will look at the trading dynamics and current valuation.</li>
</ul>



Jinmao Property Services (816 HK) raised around US$105m in its Hong Kong IPO. 
In our view, the firm doesn’t deserve to trade at a premium to peers given its weaker margins and slower growth in FY20. 
In this note, we will look at the trading dynamics and current valuation.


Jinmao Property Services IPO Trading - Expect a Modest Debut with Low Liquidity

China

Lepu Biopharma Co. Ltd. is an innovation-driven biopharmaceutical company focused on discovering, developing, and commercializing drug candidates in anti-tumor targeted therapy and oncology immunotherapy. The company's pipeline includes ADCs, immunotherapies, and oncolytic virus drugs, with commercial products like Puyouheng and Meiyouheng. It was founded in 2018 and is headquartered in Shanghai, China.

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Lepu Biopharma (2157 HK)

HSCI Index Rebalance and Stock Connect: Potential Changes in September

We see 28 potential adds and 9 close adds for the HSCI in September. There are 22 potential deletes on market cap, liquidity and prolonged...

Brian Freitas

HSCI Index Rebalance and Stock Connect: Potential Changes in June and September

We forecast 7 adds to the HSCI in June. For the September rebalance, we forecast 19 adds & 19 deletes (7 on mkt cap, 4 on liquidity, 8 on long...

Brian Freitas

Akeso Biopharma Inc (9926.HK) - Caution Is Advised Until Sufficient Financing Is Secured

Akeso has a high starting point, with strong R&D capability and valuable pipeline. However, related clinical trials will drain money fast....

Xinyao (Criss) Wang

Green Tea Group Pre-IPO - Growing for the Sake of Growth

Green Tea Group (GT HK) is looking to raise about US$150m in its upcoming Hong Kong IPO. Green Tea Group is a restaurant chain operator for fusion...

Clarence Chu

Jinmao Property Services IPO Trading - Expect a Modest Debut with Low Liquidity

Jinmao Property Services (816 HK) raised around US$105m in its Hong Kong IPO. In this note, we will look at the trading dynamics and current...

Clarence Chu

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