Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>Over a dozen <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hang Seng Index</a> companies (31% of index weight) report next week, along with significant portions of <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">HSCEI</a> (38%) and <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng TECH Index</a> (32%) components.</li>
<li>The four index heavy-weights <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp</a>, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent</a>, <a href="https://www.smartkarma.com/entities/china-mobile-ltd" target="_blank" data-smartkarma-citation="entities:27:1" rel="noopener">China Mobile</a>, and <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan</a> all report next week.</li>
<li>Weekly options expiring March 21 provide targeted instruments for traders looking to capitalize on earnings-related price movements.</li>
</ul>


Over a dozen Hang Seng Index companies (31% of index weight) report next week, along with significant portions of HSCEI (38%) and Hang Seng TECH Index (32%) components.
The four index heavy-weights Xiaomi Corp, Tencent, China Mobile, and Meituan all report next week.
Weekly options expiring March 21 provide targeted instruments for traders looking to capitalize on earnings-related price movements.


Dividends, Volatility, and Profits: HSI and HSCEI Heavyweights Reveal Results, 17 - 21 March

Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

Equity Bottom-Up

<ul>
<li>Valuations across Asia are mean reverting - expensive markets derating and the cheap ones rerating. We think this is likely to continue somewhat longer.</li>
<li>We think HK/China could rerate more; India and Taiwan could derate slightly further. India looks interesting. Valuation range has structurally shifted upwards. But another 5-10% relative valuation correction is warranted.</li>
<li>Principal stock choices in HK/China, Korea and India pertain to themes of domestic consumption, AI resilience and unloved sectors. Some of the companies have mitigating strategies for the tariff war.</li>
</ul>


Valuations across Asia are mean reverting - expensive markets derating and the cheap ones rerating. We think this is likely to continue somewhat longer.
We think HK/China could rerate more; India and Taiwan could derate slightly further. India looks interesting. Valuation range has structurally shifted upwards. But another 5-10% relative valuation correction is warranted.
Principal stock choices in HK/China, Korea and India pertain to themes of domestic consumption, AI resilience and unloved sectors. Some of the companies have mitigating strategies for the tariff war.


Asian Equities: Valuation Mean Reversion - The Winners and Losers

Cross Asset Strategy

<ul>
<li>As the trade war unfolds, more market volatility seems likely. In the 2018 episode China and Korea drove Asian drawdown. But today, China exports far less to America than earlier.</li>
<li>The 2025 trade war is more expansive, with larger tariffs being imposed. In 2018, the defensives and non-tradables outperformed. Similar sectors, but not the same markets could do well now.</li>
<li>Our Capital Preservation Basket presents eight cheap stocks with domestic revenue exposure and earnings estimate increases over past six months. They are from HK/China (5), Philippines (2) and Korea (1).</li>
</ul>


As the trade war unfolds, more market volatility seems likely. In the 2018 episode China and Korea drove Asian drawdown. But today, China exports far less to America than earlier.
The 2025 trade war is more expansive, with larger tariffs being imposed. In 2018, the defensives and non-tradables outperformed. Similar sectors, but not the same markets could do well now.
Our Capital Preservation Basket presents eight cheap stocks with domestic revenue exposure and earnings estimate increases over past six months. They are from HK/China (5), Philippines (2) and Korea (1).


Asian Equities: Preserving Capital in 2025 – Parallels and Contrasts from 2018

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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>Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.</li>
<li>On the IPO front, <a href="https://www.smartkarma.com/entities/mixue-group" target="_blank" data-smartkarma-citation="entities:40623:1" rel="noopener">Mixue Group (2097 HK)</a> provided some much needed relief to the HK tea chains, <a href="https://www.smartkarma.com/entities/seoul-guarantee-insurance-co" target="_blank" data-smartkarma-citation="entities:40123:1" rel="noopener">Seoul Guarantee Insurance (031210 KS)</a> might not do the same this week.</li>
<li>On the placements front, <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a>'s jumbo offering has been doing well, while <a href="https://www.smartkarma.com/entities/japan-post-bank-co-ltd" target="_blank" data-smartkarma-citation="entities:838:1" rel="noopener">Japan Post Bank (7182 JP)</a> hasn't been correcting much.</li>
</ul>


Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, Mixue Group (2097 HK) provided some much needed relief to the HK tea chains, Seoul Guarantee Insurance (031210 KS) might not do the same this week.
On the placements front, BYD (1211 HK)'s jumbo offering has been doing well, while Japan Post Bank (7182 JP) hasn't been correcting much.


ECM Weekly (10th Mar 2025) - BYD, Japan Post, Mixue, Sanhua, Chifeng, Nanshan, Goertek, Travel Food

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Gross SOUTHBOUND volumes dropped somewhat but still high. NET buying by SOUTHBOUND was HK$35bn which is still quite strong. Round-tripping volume down 20% week-on-week.</li>
<li>The flows here are still striking. &gt;20% of the top 100 most liquid Southbound eligible stocks saw SOUTHBOUND buy more than 10% of weekly volume. </li>
<li>It feels like there is some common understanding among SOUTHBOUND investors which I do not understand. The numbers are big/growing.</li>
</ul>


Gross SOUTHBOUND volumes dropped somewhat but still high. NET buying by SOUTHBOUND was HK$35bn which is still quite strong. Round-tripping volume down 20% week-on-week.
The flows here are still striking. &gt;20% of the top 100 most liquid Southbound eligible stocks saw SOUTHBOUND buy more than 10% of weekly volume. 
It feels like there is some common understanding among SOUTHBOUND investors which I do not understand. The numbers are big/growing.


HK Connect SOUTHBOUND Flows (To 7 Mar 2025); Big Volumes, Big Net; Tech, Banks, and Telecoms

China

Meituan operates as a web based shopping platform for locally found consumer products and retail services. The Company offers deals of the day by selling vouchers on local services and entertainment, dining, delivery, and other services. Meituan provides its services throughout China.

Price Gauge
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Meituan (3690 HK)

Dividends, Volatility, and Profits: HSI and HSCEI Heavyweights Reveal Results, 17 - 21 March

Key Hang Seng Index companies reporting next week, including heavyweights Xiaomi, Tencent, China Mobile, and Meituan, offer trading opportunities.

Gaudenz Schneider

Asian Equities: Valuation Mean Reversion - The Winners and Losers

Asian valn mean reversion i.e. expensive markets derating & cheap ones rerating, could sustain. HK/China & KR may rerate more. India looks...

Manishi Raychaudhuri

Asian Equities: Preserving Capital in 2025 – Parallels and Contrasts from 2018

Volatility could rise as trade war escalates. But China exports much less to US now, Korea & Taiwan much more. Our Capital Preservation Basket has...

Manishi Raychaudhuri

ECM Weekly (10th Mar 2025) - BYD, Japan Post, Mixue, Sanhua, Chifeng, Nanshan, Goertek, Travel Food

Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.

Sumeet Singh

HK Connect SOUTHBOUND Flows (To 7 Mar 2025); Big Volumes, Big Net; Tech, Banks, and Telecoms

HK Connect SOUTHBOUND investors bought another HK$35bn on a net basis while trading high gross volumes again. Tech led, but banks were among the...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Dividends, Volatility, and Profits: HSI and HSCEI Heavyweights Reveal Results, 17 - 21 March

​Key Hang Seng Index companies reporting next week, including heavyweights Xiaomi, Tencent, China Mobile, and Meituan, offer trading opportunities.

Gaudenz Schneider

Asian Equities: Valuation Mean Reversion - The Winners and Losers

​Asian valn mean reversion i.e. expensive markets derating & cheap ones rerating, could sustain. HK/China & KR may rerate more. India looks...

Manishi Raychaudhuri

Asian Equities: Preserving Capital in 2025 – Parallels and Contrasts from 2018

​Volatility could rise as trade war escalates. But China exports much less to US now, Korea & Taiwan much more. Our Capital Preservation Basket has...

Manishi Raychaudhuri

ECM Weekly (10th Mar 2025) - BYD, Japan Post, Mixue, Sanhua, Chifeng, Nanshan, Goertek, Travel Food

Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.

Sumeet Singh

HK Connect SOUTHBOUND Flows (To 7 Mar 2025); Big Volumes, Big Net; Tech, Banks, and Telecoms

HK Connect SOUTHBOUND investors bought another HK$35bn on a net basis while trading high gross volumes again. Tech led, but banks were among the...

Travis Lundy

Key Hang Seng Index companies reporting next week, including heavyweights Xiaomi, Tencent, China Mobile, and Meituan, offer trading opportunities.

Asian valn mean reversion i.e. expensive markets derating & cheap ones rerating, could sustain. HK/China & KR may rerate more. India looks...

Volatility could rise as trade war escalates. But China exports much less to US now, Korea & Taiwan much more. Our Capital Preservation Basket has...