China and US Equity Analyst

Roger Xie

Equity Bottom-Up

<ul>
<li>The long-awaited China A-share Index future finally received approval from regulators from both Hong Kong and China (<a href="https://www.hkex.com.hk/News/News-Release/2021/210820news?sc_lang=en" target="_blank" rel="noopener">news link</a>). The to-be-launched product is MSCI China A50 Connect Index, which is different from investors' expectation of MSCI China Index future. However, we still believe the move is a game changer for <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a> derivative business as investors' increasing exposure in China A-share cash equity market and index future. This will also put a direct competition pressure on <a href="https://www.smartkarma.com/entities/singapore-exchange-ltd" target="_blank" data-smartkarma-citation="entities:1047:1" rel="noopener">SGX (SGX SP)</a> as its popular FTSE A50 Index future accounting around 17% of its total revenue. We believe offshore investors would like to gradually shift their China A-share Index exposure to <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a> from <a href="https://www.smartkarma.com/entities/singapore-exchange-ltd" target="_blank" data-smartkarma-citation="entities:1047:1" rel="noopener">SGX (SGX SP)</a> </li>
<li>We estimate that ADV (Average Daily Volume) of MSCI China A50 Connect contract will be ramped up at 1.5-2.0x the volume of FTSE A50 at its launch, given the ADT (Average Daily Turnover) of stock connect northbound (China A-share cash equity market) has reached RMB 120bn. There is increasing demands from offshore investors for hedging and speculation. In a long-run, we believe ADV of MSCI China A50 could be more than 5x of ADV of FTSE A50 as offshore investors' exposure on China A-share cash equity grows. We expect the derivative business contribution to revenue at HKEx will likely grow to 25% from current 16%, which will reshape HKEx with more balanced revenue stream from both cash equity and derivative. </li>
<li>For 1H2021, <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a> delivered a broadly in-line results. It reported 2Q2021 profits of HK$2.77bn, down 7% year-over-year. Cash equity ADT was quite strong and up 31% year-over-year, but down 34% from 1Q 2021. But the derivatives business did not have the same volume pick-up with HK derivatives ADV -5% year-over-year and LME ADV -2% year-over-year. We are the believer that HKEx will play a key role on offshore China listings. Ongoing regulatory uncertainty is likely to accelerate the Chinese ADS' to diversify their listing risk and to benefit HKEx as a preferred offshore listing venue.  We forecast <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a> Securities ADT of HK$240bn in FY 21 (excluding Stock Connect Northbound volume)  and remain bullish on <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a>  and have TP HKD 550. </li>
</ul>


The long-awaited China A-share Index future finally received approval from regulators from both Hong Kong and China (news link). The to-be-launched product is MSCI China A50 Connect Index, which is different from investors' expectation of MSCI China Index future. However, we still believe the move is a game changer for HKEX (388 HK) derivative business as investors' increasing exposure in China A-share cash equity market and index future. This will also put a direct competition pressure on SGX (SGX SP) as its popular FTSE A50 Index future accounting around 17% of its total revenue. We believe offshore investors would like to gradually shift their China A-share Index exposure to HKEX (388 HK) from SGX (SGX SP) 
We estimate that ADV (Average Daily Volume) of MSCI China A50 Connect contract will be ramped up at 1.5-2.0x the volume of FTSE A50 at its launch, given the ADT (Average Daily Turnover) of stock connect northbound (China A-share cash equity market) has reached RMB 120bn. There is increasing demands from offshore investors for hedging and speculation. In a long-run, we believe ADV of MSCI China A50 could be more than 5x of ADV of FTSE A50 as offshore investors' exposure on China A-share cash equity grows. We expect the derivative business contribution to revenue at HKEx will likely grow to 25% from current 16%, which will reshape HKEx with more balanced revenue stream from both cash equity and derivative. 
For 1H2021, HKEX (388 HK) delivered a broadly in-line results. It reported 2Q2021 profits of HK$2.77bn, down 7% year-over-year. Cash equity ADT was quite strong and up 31% year-over-year, but down 34% from 1Q 2021. But the derivatives business did not have the same volume pick-up with HK derivatives ADV -5% year-over-year and LME ADV -2% year-over-year. We are the believer that HKEx will play a key role on offshore China listings. Ongoing regulatory uncertainty is likely to accelerate the Chinese ADS' to diversify their listing risk and to benefit HKEx as a preferred offshore listing venue.  We forecast HKEX (388 HK) Securities ADT of HK$240bn in FY 21 (excluding Stock Connect Northbound volume)  and remain bullish on HKEX (388 HK)  and have TP HKD 550. 


HKEx (388.HK): A-Share Index Future Launch, A Game Changer for HKEx Derivative Business

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<p>Hong Kong SFC reported aggregate short position as of Aug 13. The aggregate short value for equities increased by $1,382m (+2.1%) WoW but decreased by $4,126m (-5.7%) over the preceding four weeks.</p><p>Most shorted stocks by aggregate short value of positions are Ping An Insurance (Group) Company Of China, Ltd./2318 HK($4,799m, -5.1% WoW), China Merchants Bank Co., Ltd./3968 HK($2,264m, +12.3% WoW), Zhongsheng Group Holdings Limited/881 HK($2,083m, +7.3% WoW), Tencent Holdings Limited/700 HK($1,802m, +7.3% WoW), Anta Sports Products Limited/2020 HK($1,671m, -2.5% WoW).</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/225/359/original/Hong_Kong_Market_Short_Position_Value_%28line%29_and_1W_Changes_%28bar%29_%28%24m%292021-08-22+12_32_41.png?1629622471" class="editor-image img-responsive" data-smartkarma-image-id="225359"></figure></section>

Hong Kong SFC reported aggregate short position as of Aug 13. The aggregate short value for equities increased by $1,382m (+2.1%) WoW but decreased by $4,126m (-5.7%) over the preceding four weeks.Most shorted stocks by aggregate short value of positions are Ping An Insurance (Group) Company Of China, Ltd./2318 HK($4,799m, -5.1% WoW), China Merchants Bank Co., Ltd./3968 HK($2,264m, +12.3% WoW), Zhongsheng Group Holdings Limited/881 HK($2,083m, +7.3% WoW), Tencent Holdings Limited/700 HK($1,802m, +7.3% WoW), Anta Sports Products Limited/2020 HK($1,671m, -2.5% WoW).

HK Short Interest: Kuaishou and Netease Short Covers

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<div><p>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</p></div><div><p>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>, <a href="https://www.smartkarma.com/entities/geely-automobile-holdings-ltd" target="_blank" data-smartkarma-citation="entities:127:1" rel="noopener">Geely Auto (175 HK)</a>, <a href="https://www.smartkarma.com/entities/postal-savings-bank-of-china" target="_blank" data-smartkarma-citation="entities:22848:1" rel="noopener">Postal Savings Bank of China (1658 HK)</a>, <a href="https://www.smartkarma.com/entities/cansino-biologics-inc" target="_blank" data-smartkarma-citation="entities:27739:1" rel="noopener">CanSino Biologics Inc (6185 HK)</a> and <a href="https://www.smartkarma.com/entities/zhongan-online-p-c-insurance-co-ltd" target="_blank" data-smartkarma-citation="entities:23681:1" rel="noopener">ZhongAn Online P&amp;C Insurance (6060 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a>, <a href="https://www.smartkarma.com/entities/beijing-kuaishou-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29725:1" rel="noopener">Kuaishou Technology (1024 HK)</a>, <a href="https://www.smartkarma.com/entities/netease" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase (9999 HK)</a>, <a href="https://www.smartkarma.com/entities/country-garden-services-holdings-company-limited" target="_blank" data-smartkarma-citation="entities:27343:1" rel="noopener">Country Garden Services Holdings (6098 HK)</a> and <a href="https://www.smartkarma.com/entities/china-overseas-land-invest" target="_blank" data-smartkarma-citation="entities:419:1" rel="noopener">China Overseas Land &amp; Investment Ltd (688 HK)</a>. Shorts increased in the Consumer Discretionary, Health Care, Information Technology and Financials sectors while decreasing in the Communication Services, Real Estate and Consumer Staples sectors.</p></div><div><p>In Japan, stocks increased on <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>, <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a>, <a href="https://www.smartkarma.com/entities/yaskawa-electric-corp" target="_blank" data-smartkarma-citation="entities:2458:1" rel="noopener">Yaskawa Electric (6506 JP)</a>, <a href="https://www.smartkarma.com/entities/odakyu-electric-railway-co-ltd" target="_blank" data-smartkarma-citation="entities:5405:1" rel="noopener">Odakyu Electric Railway (9007 JP)</a> and <a href="https://www.smartkarma.com/entities/mitsui-osk-lines-ltd" target="_blank" data-smartkarma-citation="entities:20717:1" rel="noopener">Mitsui Osk Lines (9104 JP)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/freee-kk" target="_blank" data-smartkarma-citation="entities:28424:1" rel="noopener">freee (4478 JP)</a>, <a href="https://www.smartkarma.com/entities/sharp-corp" target="_blank" data-smartkarma-citation="entities:391:1" rel="noopener">Sharp Corp (6753 JP)</a>, <a href="https://www.smartkarma.com/entities/kawasaki-kisen-kaisha-ltd" target="_blank" data-smartkarma-citation="entities:3548:1" rel="noopener">Kawasaki Kisen Kaisha (9107 JP)</a>, <a href="https://www.smartkarma.com/entities/nabtesco-corp" target="_blank" data-smartkarma-citation="entities:13176:1" rel="noopener">Nabtesco Corp (6268 JP)</a> and <a href="https://www.smartkarma.com/entities/tokyo-electric-power-co-inc" target="_blank" data-smartkarma-citation="entities:15457:1" rel="noopener">Tokyo Electric Power Co (9501 JP)</a>. Shorts increased in the Industrials, Financials and Information Technology sectors.</p></div><div><p>In Korea, shorts increased on <a href="https://www.smartkarma.com/entities/ncsoft-corp" target="_blank" data-smartkarma-citation="entities:5169:1" rel="noopener">NCSOFT Corp (036570 KS)</a>, <a href="https://www.smartkarma.com/entities/netmarble-corporation" target="_blank" data-smartkarma-citation="entities:22839:1" rel="noopener">Netmarble Corporation (251270 KS)</a>, <a href="https://www.smartkarma.com/entities/db-hitek-co-ltd" target="_blank" data-smartkarma-citation="entities:18926:1" rel="noopener">DB Hitek Co., Ltd. (000990 KS)</a>, <a href="https://www.smartkarma.com/entities/sk-telecom-co-ltd-bbccd86c-474d-4a4d-946d-10e911a225a2" target="_blank" data-smartkarma-citation="entities:395:1" rel="noopener">SK Telecom (017670 KS)</a> and <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/amorepacific-corp" target="_blank" data-smartkarma-citation="entities:20854:1" rel="noopener">Amorepacific Corp (090430 KS)</a>, <a href="https://www.smartkarma.com/entities/kakao-corp" target="_blank" data-smartkarma-citation="entities:15002:1" rel="noopener">Kakao Corp (035720 KS)</a>, <a href="https://www.smartkarma.com/entities/sk-innovation-co-ltd" target="_blank" data-smartkarma-citation="entities:1268:1" rel="noopener">SK Innovation (096770 KS)</a>, <a href="https://www.smartkarma.com/entities/lg-household-health-care" target="_blank" data-smartkarma-citation="entities:6501:1" rel="noopener">LG Household &amp; Health Care (051900 KS)</a> and <a href="https://www.smartkarma.com/entities/kt-corp" target="_blank" data-smartkarma-citation="entities:1112:1" rel="noopener">KT Corp (030200 KS)</a>.</p></div><div><p>In Taiwan, shorts increased on <a href="https://www.smartkarma.com/entities/yageo-corporation" target="_blank" data-smartkarma-citation="entities:13212:1" rel="noopener">Yageo Corporation (2327 TT)</a>, <a href="https://www.smartkarma.com/entities/mediatek-inc" target="_blank" data-smartkarma-citation="entities:772:1" rel="noopener">Mediatek Inc (2454 TT)</a>, <a href="https://www.smartkarma.com/entities/evergreen-marine-corp-ltd" target="_blank" data-smartkarma-citation="entities:15428:1" rel="noopener">Evergreen Marine Corp (2603 TT)</a>, <a href="https://www.smartkarma.com/entities/innolux-corp" target="_blank" data-smartkarma-citation="entities:4509:1" rel="noopener">Innolux Corp (3481 TT)</a> and <a href="https://www.smartkarma.com/entities/nuvoton-technology-corp" target="_blank" data-smartkarma-citation="entities:15913:1" rel="noopener">Nuvoton Technology (4919 TT)</a> while shorts covered on <a href="https://www.smartkarma.com/entities/taiwan-cement" target="_blank" data-smartkarma-citation="entities:19736:1" rel="noopener">Taiwan Cement (1101 TT)</a>, <a href="https://www.smartkarma.com/entities/ctbc-financial-holding-co-ltd" target="_blank" data-smartkarma-citation="entities:436:1" rel="noopener">Ctbc Financial Holding (2891 TT)</a>, <a href="https://www.smartkarma.com/entities/yang-ming-marine-transport" target="_blank" data-smartkarma-citation="entities:8502:1" rel="noopener">Yang Ming Marine Transport (2609 TT)</a>, <a href="https://www.smartkarma.com/entities/nanya-technology-corp" target="_blank" data-smartkarma-citation="entities:3269:1" rel="noopener">Nanya Technology (2408 TT)</a> and <a href="https://www.smartkarma.com/entities/wan-hai-lines-ltd" target="_blank" data-smartkarma-citation="entities:14262:1" rel="noopener">Wan Hai Lines (2615 TT)</a>.</p></div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on Meituan (3690 HK), Geely Auto (175 HK), Postal Savings Bank of China (1658 HK), CanSino Biologics Inc (6185 HK) and ZhongAn Online P&amp;C Insurance (6060 HK) while there was short covering on Ping An Insurance (H) (2318 HK), Kuaishou Technology (1024 HK), NetEase (9999 HK), Country Garden Services Holdings (6098 HK) and China Overseas Land &amp; Investment Ltd (688 HK). Shorts increased in the Consumer Discretionary, Health Care, Information Technology and Financials sectors while decreasing in the Communication Services, Real Estate and Consumer Staples sectors.In Japan, stocks increased on Japan Post Bank (7182 JP), Toshiba Corp (6502 JP), Yaskawa Electric (6506 JP), Odakyu Electric Railway (9007 JP) and Mitsui Osk Lines (9104 JP) while there was short covering on freee (4478 JP), Sharp Corp (6753 JP), Kawasaki Kisen Kaisha (9107 JP), Nabtesco Corp (6268 JP) and Tokyo Electric Power Co (9501 JP). Shorts increased in the Industrials, Financials and Information Technology sectors.In Korea, shorts increased on NCSOFT Corp (036570 KS), Netmarble Corporation (251270 KS), DB Hitek Co., Ltd. (000990 KS), SK Telecom (017670 KS) and Samsung Electronics (005930 KS) while shorts were covered on Amorepacific Corp (090430 KS), Kakao Corp (035720 KS), SK Innovation (096770 KS), LG Household &amp; Health Care (051900 KS) and KT Corp (030200 KS).In Taiwan, shorts increased on Yageo Corporation (2327 TT), Mediatek Inc (2454 TT), Evergreen Marine Corp (2603 TT), Innolux Corp (3481 TT) and Nuvoton Technology (4919 TT) while shorts covered on Taiwan Cement (1101 TT), Ctbc Financial Holding (2891 TT), Yang Ming Marine Transport (2609 TT), Nanya Technology (2408 TT) and Wan Hai Lines (2615 TT).

Asia Shorts: Meituan, Geely, Kuaishou, COLI, Toshiba, Freee, NCSOFT, SK Tel, Yang Ming, Wan Hai, EMC

Research on Tech Companies

Evelyn Zhang

Thematic (Sector/Industry)

<ul>
<li>The gaming sector is not the focus of Chinese regulators. Current regulations focus on protecting minors from addiction, limiting playing time, IDing minors, and in-game payments</li>
<li>In worst case scenario, if regulators introduce more stringent policies, there would be little impact on gaming companies’ revenue. In 4Q20, only 6.0% and 3.2% of <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> ’s China online games gross receipts came from minors aged under 18 and under 16, respectively. We expect <a href="https://www.smartkarma.com/entities/netease" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase (9999 HK)</a>  to have similar gross receipts breakdown.</li>
<li>I think <a href="https://www.smartkarma.com/entities/netease" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase (9999 HK)</a> will benefit from Anti-trust law on Cloud Music, especially after government injunction ordering <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>  to lift exclusive copyright of online music </li>
</ul>


The gaming sector is not the focus of Chinese regulators. Current regulations focus on protecting minors from addiction, limiting playing time, IDing minors, and in-game payments
In worst case scenario, if regulators introduce more stringent policies, there would be little impact on gaming companies’ revenue. In 4Q20, only 6.0% and 3.2% of Tencent (700 HK) ’s China online games gross receipts came from minors aged under 18 and under 16, respectively. We expect NetEase (9999 HK)  to have similar gross receipts breakdown.
I think NetEase (9999 HK) will benefit from Anti-trust law on Cloud Music, especially after government injunction ordering Tencent (700 HK)  to lift exclusive copyright of online music 


Will Online Games Become the Next Education and Training Industry?

Global TMT analyst with Asia ex-Japan focus.

Mitchell Kim

<p>I have turned more positive on Tencent shares recently (please see <a href="https://www.smartkarma.com/insights/tencent-700-hk-when-to-catch-a-falling-knife" target="_blank" data-smartkarma-citation="insights:55148" rel="noopener">Tencent (700 HK): When to Catch a Falling Knife</a>) after the share price plummeted from the peak in March.  While we may still see some residual regulatory measures rumbling through the China tech industry after the September 1 adoption of the new Data Privacy Law, Tencent's more reasonable value should mitigate further downside risks, in my view. </p><p><em>Three reasons why I am able to exhale comfortably on Tencent: </em></p><ul>
<li>
<strong>Tencent's overall revenue grew 20% YoY. </strong> This growth would normally be mediocre by Tencent's standards, but in comparison to the extraordinary growth year 2020, this is solid.  </li>
<li>
<strong>Fintech business remains unencumbered. </strong> Fintech now makes up 30% of Tencent's total revenues and the segment gross margin was 32%, an increase of 3.1% points. </li>
<li>
<strong>Tencent shares trade at 23.5x FY21 consensus earnings.</strong> This is inexpensive and suggests that at least some of the regulatory risks are priced in.  </li>
</ul><p><strong>The key risk remains on whether Tencent would be required to transfer user data as part of the data privacy law measures.  I do not believe this is the case. </strong>        </p>

I have turned more positive on Tencent shares recently (please see Tencent (700 HK): When to Catch a Falling Knife) after the share price plummeted from the peak in March.  While we may still see some residual regulatory measures rumbling through the China tech industry after the September 1 adoption of the new Data Privacy Law, Tencent's more reasonable value should mitigate further downside risks, in my view. Three reasons why I am able to exhale comfortably on Tencent: 

Tencent's overall revenue grew 20% YoY.  This growth would normally be mediocre by Tencent's standards, but in comparison to the extraordinary growth year 2020, this is solid.  

Fintech business remains unencumbered.  Fintech now makes up 30% of Tencent's total revenues and the segment gross margin was 32%, an increase of 3.1% points. 

Tencent shares trade at 23.5x FY21 consensus earnings. This is inexpensive and suggests that at least some of the regulatory risks are priced in.  
The key risk remains on whether Tencent would be required to transfer user data as part of the data privacy law measures.  I do not believe this is the case.         

Tencent (700 HK): No Longer Roaring, but the Price Is Right

China

NetEase, Inc. operates as an leading internet technology company providing online services including content, community, communication, and commerce. The Company develops and operates online games, electronic commerce, internet media, innovative business, and other businesses. NetEase expands its businesses to Japan, North American, and other other international markets.

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NetEase (9999 HK)

HK Short Interest: Kuaishou and Netease Short Covers

We highlight WoW short cover of Kuaishou and Netease based on the latest Hong Kong SFC short position report. We also highlight 4W short position...

Ke Yan, CFA, FRM

Asia Shorts: Meituan, Geely, Kuaishou, COLI, Toshiba, Freee, NCSOFT, SK Tel, Yang Ming, Wan Hai, EMC

The Insight looks at large short interest movements across HK, Japan, Korea and Taiwan stocks and highlights large increases/decreases in shorts to...

Brian Freitas

Will Online Games Become the Next Education and Training Industry?

Beat the stamped or buy the dip? When the Chinese gaming stocks nosedived following Xinhua’s Spiritual Opium article, I argue that Gaming industry...

Evelyn Zhang

Tencent (700 HK): No Longer Roaring, but the Price Is Right

Tencent's engine is no longer roaring but current valuations appear reasonable enough to weather through the regulatory uncertainty. 2Q was a...

Mitchell Kim

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HKEx (388.HK): A-Share Index Future Launch, A Game Changer for HKEx Derivative Business

We expect China A-share index future will reshape HKEx with more balanced revenue stream from both cash equity and derivative. We remain bullish on...

Roger Xie

HK Short Interest: Kuaishou and Netease Short Covers

We highlight WoW short cover of Kuaishou and Netease based on the latest Hong Kong SFC short position report. We also highlight 4W short position...

Ke Yan, CFA, FRM

Asia Shorts: Meituan, Geely, Kuaishou, COLI, Toshiba, Freee, NCSOFT, SK Tel, Yang Ming, Wan Hai, EMC

The Insight looks at large short interest movements across HK, Japan, Korea and Taiwan stocks and highlights large increases/decreases in shorts to...

Brian Freitas

Will Online Games Become the Next Education and Training Industry?

Beat the stamped or buy the dip? When the Chinese gaming stocks nosedived following Xinhua’s Spiritual Opium article, I argue that Gaming industry...

Evelyn Zhang

Tencent (700 HK): No Longer Roaring, but the Price Is Right

Tencent's engine is no longer roaring but current valuations appear reasonable enough to weather through the regulatory uncertainty. 2Q was a...

Mitchell Kim