HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

CXMT Corporation / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cxmt-corporation" target="_blank" data-smartkarma-citation="entities:44129:1" rel="noopener">CXMT Corporation (688825 CH)</a> concluded its IPO price at Rmb8.66, and we estimate this equals 5x PER for FY26 and 3.4x for FY27.</li>
<li>It is inexpensive relative to global peers, as they are trading at an average of 8.1x and 6.1x, respectively. Normally, A-shares trade at a higher multiple than global peers. </li>
<li>Applying the Hang Seng AH premium on the IPO, there is a 74.5% upside. Aggressively, if GPU companies are used as references, it may even provide a 3x upside.</li>
</ul>



CXMT Corporation (688825 CH) concluded its IPO price at Rmb8.66, and we estimate this equals 5x PER for FY26 and 3.4x for FY27.
It is inexpensive relative to global peers, as they are trading at an average of 8.1x and 6.1x, respectively. Normally, A-shares trade at a higher multiple than global peers. 
Applying the Hang Seng AH premium on the IPO, there is a 74.5% upside. Aggressively, if GPU companies are used as references, it may even provide a 3x upside.


CXMT Corporation (688825 CH) IPO: Valuation Insight

Shanghai Enflame Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-enflame-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:50657:1" rel="noopener">Shanghai Enflame Technology (ENFLAME CH)</a>, one of the "Four Domestic GPU Little Dragons", has just been approved by the CSRC to list on the STAR market, aiming to raise Rmb6bn.</li>
<li>The company's strengths lie in its comprehensive product portfolio, differentiated architecture (DSA vs. GPGPU), strong shareholder backing, and position for China's AI self-sufficiency.</li>
<li>At 27.1x P/S for FY26 (10% share capital enlargement), Enflame is inexpensive relative to A-share peers, <a href="https://www.smartkarma.com/entities/shanghai-biren-technology-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:39934:1" rel="noopener">Biren Technology (6082 HK)</a> and <a href="https://www.smartkarma.com/entities/shanghai-iluvatar-corex-semiconductor-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:46193:1" rel="noopener">Iluvatar CoreX (9903 HK)</a>. </li>
</ul>



Shanghai Enflame Technology (ENFLAME CH), one of the "Four Domestic GPU Little Dragons", has just been approved by the CSRC to list on the STAR market, aiming to raise Rmb6bn.
The company's strengths lie in its comprehensive product portfolio, differentiated architecture (DSA vs. GPGPU), strong shareholder backing, and position for China's AI self-sufficiency.
At 27.1x P/S for FY26 (10% share capital enlargement), Enflame is inexpensive relative to A-share peers, Biren Technology (6082 HK) and Iluvatar CoreX (9903 HK). 


Shanghai Enflame (燧原科技) Pre-IPO: Key Investment Thesis

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

MetaX Integrated Circuits / Index Rebalance

<ul>
<li>The June 2026 index review results for the STAR 50 and STAR 100 indices were announced after market close on Friday 29th May 2026.</li>
<li>There will be four ADDs/DELs for the STAR 50 index and ten ADDs/DELs for the STAR 100 index.</li>
<li>We expect one-way flows of approximately US$2.1bn and US$432mn for the STAR 50 and STAR 100 index rebal events, respectively.</li>
</ul>


The June 2026 index review results for the STAR 50 and STAR 100 indices were announced after market close on Friday 29th May 2026.
There will be four ADDs/DELs for the STAR 50 index and ten ADDs/DELs for the STAR 100 index.
We expect one-way flows of approximately US$2.1bn and US$432mn for the STAR 50 and STAR 100 index rebal events, respectively.


Quiddity STAR 50/100 Jun26 Results: 7/8 Correct for STAR 50, Some Surprises Among STAR 100 ADDs

<ul>
<li>STAR 50 and STAR 100 are tech-focused, blue-chip indices in Mainland China which track the top largest and most liquid names in the STAR market of the Shanghai Stock Exchange.</li>
<li>In this insight, we have presented our final expectations for ADDs and DELs for the upcoming June 2026 index rebal event.</li>
<li>We expect over US$2.6bn combined one-way flows for STAR 50 and STAR 100 during the June 2026 index rebal event.</li>
</ul>


STAR 50 and STAR 100 are tech-focused, blue-chip indices in Mainland China which track the top largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
In this insight, we have presented our final expectations for ADDs and DELs for the upcoming June 2026 index rebal event.
We expect over US$2.6bn combined one-way flows for STAR 50 and STAR 100 during the June 2026 index rebal event.


Quiddity Leaderboard STAR 50/100 Jun26: Final Expectations; ~US$2.6bn Combined One-Way Flows

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

<ul>
<li>With the review period nearly complete, we forecast 4 constituent changes for the <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">SSE STAR50 (STAR50 INDEX)</a> and 10 constituent changes for the STAR100 Index in June.</li>
<li>Estimated turnover is 6.7% for the <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">SSE STAR50 (STAR50 INDEX)</a> and 13.9% for the STAR100 Index. The estimated round-trip net trade is CNY 20.15bn (US$2.95bn).</li>
<li>The forecast adds have outperformed the forecast deletes over the last few weeks and months. The forecast deletes have been pressured by ETF redemptions as momentum continues in the adds.</li>
</ul>


With the review period nearly complete, we forecast 4 constituent changes for the SSE STAR50 (STAR50 INDEX) and 10 constituent changes for the STAR100 Index in June.
Estimated turnover is 6.7% for the SSE STAR50 (STAR50 INDEX) and 13.9% for the STAR100 Index. The estimated round-trip net trade is CNY 20.15bn (US$2.95bn).
The forecast adds have outperformed the forecast deletes over the last few weeks and months. The forecast deletes have been pressured by ETF redemptions as momentum continues in the adds.


STAR50/STAR100 Index Rebalance Preview: Huge Outperformance, ETF Redemptions & Fast Entry Conundrum

China

MetaX Integrated Circuits (Shanghai) Co., Ltd. develops and manufactures graphics processing unit chips. The Company produces high performance artificial intelligence inference accelerators, general purpose computing accelerators, and graphics accelerators. MetaX Integrated Circuits (Shanghai) also offers graphics processing unit architecture definition services.

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MetaX Integrated Circuits (688802 CH)

CXMT Corporation (688825 CH) IPO: Valuation Insight

CXMT Corporation (688825 CH) has announced it will start trading on the Shanghai Stock Exchange's STAR Market next Monday (27 Jul 2026).

Osbert Tang, CFA

Shanghai Enflame (燧原科技) Pre-IPO: Key Investment Thesis

CSRC has just approved Shanghai Enflame Technology's application to list on the STAR market, with an aim of raising Rmb6bn. Its FY26F P/S ratio is...

Osbert Tang, CFA

Quiddity STAR 50/100 Jun26 Results: 7/8 Correct for STAR 50, Some Surprises Among STAR 100 ADDs

We predicted 7/8 STAR 50 index changes correctly. However, there were some surprises among the STAR 100 ADDs which might have been due to the...

Janaghan Jeyakumar, CFA

Quiddity Leaderboard STAR 50/100 Jun26: Final Expectations; ~US$2.6bn Combined One-Way Flows

The STAR50/100 Jun26 index review results will be confirmed after market close on Friday 29th May 2026. In this insight, we have presented our...

Janaghan Jeyakumar, CFA

STAR50/STAR100 Index Rebalance Preview: Huge Outperformance, ETF Redemptions & Fast Entry Conundrum

There could be 4 changes for the STAR50 and 10 for the STAR100 in June. Fast Entry inclusions depend on the index committee. ETF redemptions...

Brian Freitas

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CXMT Corporation (688825 CH) IPO: Valuation Insight

CXMT Corporation (688825 CH) has announced it will start trading on the Shanghai Stock Exchange's STAR Market next Monday (27 Jul 2026).

Osbert Tang, CFA

Shanghai Enflame (燧原科技) Pre-IPO: Key Investment Thesis

CSRC has just approved ​Shanghai Enflame Technology's application to list on the STAR market, with an aim of raising Rmb6bn. Its FY26F P/S ratio is...

Osbert Tang, CFA

Quiddity STAR 50/100 Jun26 Results: 7/8 Correct for STAR 50, Some Surprises Among STAR 100 ADDs

We predicted 7/8 STAR 50 index changes correctly. However, there were some surprises among the STAR 100 ADDs which might have been due to the...

Janaghan Jeyakumar, CFA

Quiddity Leaderboard STAR 50/100 Jun26: Final Expectations; ~US$2.6bn Combined One-Way Flows

The STAR50/100 Jun26 index review results will be confirmed after market close on Friday 29th May 2026. In this insight, we have presented our...

Janaghan Jeyakumar, CFA

STAR50/STAR100 Index Rebalance Preview: Huge Outperformance, ETF Redemptions & Fast Entry Conundrum

There could be 4 changes for the STAR50 and 10 for the STAR100 in June. Fast Entry inclusions depend on the index committee. ETF redemptions...

Brian Freitas

CSRC has just approved Shanghai Enflame Technology's application to list on the STAR market, with an aim of raising Rmb6bn. Its FY26F P/S ratio is...