Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>Although the tech sector in Hong Kong has surged over the last couple of weeks there appears to be minimal short covering in US-listed China tech names.</li>
<li>The performance of the "Magnificent 5" China tech names has led the rally as we outlined in <a href="https://www.smartkarma.com/insights/hong-kong-the-glass-is-half-full-time-to-buy-beta" target="_blank" data-smartkarma-citation="insights:134396" rel="noopener">Hong Kong: The Glass Is Half Full, Time to BUY Beta</a> .</li>
<li>The combination of of large outstanding short positions and a significant underweight of HK/China in international funds will lead to further upside in the tech sector.</li>
</ul>


Although the tech sector in Hong Kong has surged over the last couple of weeks there appears to be minimal short covering in US-listed China tech names.
The performance of the "Magnificent 5" China tech names has led the rally as we outlined in Hong Kong: The Glass Is Half Full, Time to BUY Beta .
The combination of of large outstanding short positions and a significant underweight of HK/China in international funds will lead to further upside in the tech sector.


Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Equity Bottom-Up

<ul><li>China’s key electric-vehicle (EV) makers set monthly delivery records in September as government subsidies and price cuts gave sales in the fiercely competitive industry a boost.</li><li>BYD Co. Ltd. (<a href="https://www.smartkarma.com/002594.SZ" target="_blank" rel="noopener">002594.SZ</a> +8.21%), the country’s top EV-maker, sold 419,426 vehicles in September, according to an exchange filing Tuesday.</li><li>The figure, which consisted of 164,956 battery EVs and 252,647 plug-in hybrids, marked a 45.9% year-on-year increase and a new monthly sales record.</li></ul>

China’s key electric-vehicle (EV) makers set monthly delivery records in September as government subsidies and price cuts gave sales in the fiercely competitive industry a boost.BYD Co. Ltd. (002594.SZ +8.21%), the country’s top EV-maker, sold 419,426 vehicles in September, according to an exchange filing Tuesday.The figure, which consisted of 164,956 battery EVs and 252,647 plug-in hybrids, marked a 45.9% year-on-year increase and a new monthly sales record.

Major Chinese EV-Makers Have Record Month for Sales  

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>Since the US started sanctioning Huawei in 2017, the China tech giant has maneuvered into many new fields. This time, its HIMA (Huawei Intelligent Mobility Alliance) is showing renewed momentum;</li>
<li>China is the greatest EV market in the world. But what is being masked in the robust growth is the divergence between BEV and PHEV, and Huawei's role in PHEV;</li>
<li>We expect the trend to continue as Chery, JAC and BAIC will launch their HIMA models in 2025. Most importantly, these vendors gain share in the mid-to-high price segments.</li>
</ul>


Since the US started sanctioning Huawei in 2017, the China tech giant has maneuvered into many new fields. This time, its HIMA (Huawei Intelligent Mobility Alliance) is showing renewed momentum;
China is the greatest EV market in the world. But what is being masked in the robust growth is the divergence between BEV and PHEV, and Huawei's role in PHEV;
We expect the trend to continue as Chery, JAC and BAIC will launch their HIMA models in 2025. Most importantly, these vendors gain share in the mid-to-high price segments.


From Huawei with Vengeance: Huawei Alliance Took Shares in Chinese EV

<ul>
<li>BEKE US/BZ US/ATAT US/3690 HK/TCOM US:September Politburo Meeting Unusually Discusses Economic Topics, bodes well for catering and tourism consumption, Employment, and Real Estate(+)</li>
<li>2618 HK/002352 CH: JD and Alibaba reconcile, JD Logistics to launch on Taobao and Alipay to launch on JD.com (+/-)</li>
<li>NIO US: NIO Lowers Battery Swap Service Fees to Encourage Frequent Battery Swaps(-)</li>
</ul>


BEKE US/BZ US/ATAT US/3690 HK/TCOM US:September Politburo Meeting Unusually Discusses Economic Topics, bodes well for catering and tourism consumption, Employment, and Real Estate(+)
2618 HK/002352 CH: JD and Alibaba reconcile, JD Logistics to launch on Taobao and Alipay to launch on JD.com (+/-)
NIO US: NIO Lowers Battery Swap Service Fees to Encourage Frequent Battery Swaps(-)


[Blue Lotus Daily]:BEKE US/BZ US/ATAT US/3690 HK/TCOM US/2618 HK/002352 CH/NIO US/XPEV US/1211 HK

<ul>
<li>MNSO US: MINISO Acquires 29.4% Stake in Yonghui Superstores for RMB6.3 Billion, Becoming Its Largest Shareholder(-)</li>
<li>BEKE US:Stimulus monetary policies bodes well for real estate and consumption(+)</li>
<li>BEKE US:Chongqing Agency Decco Real Estate Joins Beike, Bodes Well for Market Share Gains(+)</li>
</ul>


MNSO US: MINISO Acquires 29.4% Stake in Yonghui Superstores for RMB6.3 Billion, Becoming Its Largest Shareholder(-)
BEKE US:Stimulus monetary policies bodes well for real estate and consumption(+)
BEKE US:Chongqing Agency Decco Real Estate Joins Beike, Bodes Well for Market Share Gains(+)


[Blue Lotus Daily]:MNSO US/BEKE US/LKNCY US/XPEV US / LI US/ NIO US/1211 HK/NIO US /1810 HK/

China

NIO Inc. manufactures and sells automobiles. The Company offers electric vehicles and parts, as well as provides battery charging services. NIO serves customers worldwide.

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NIO (NIO US)

HK/China: THE BIG SHORT (SQUEEZE)

Even though HK/China tech names have surged, short positions have not covered. The large underweight position in HK/China by international funds...

David Mudd

Major Chinese EV-Makers Have Record Month for Sales

China’s key electric-vehicle (EV) makers set monthly delivery records in September as government subsidies and price cuts gave sales in the...

Caixin Global

From Huawei with Vengeance: Huawei Alliance Took Shares in Chinese EV

Chinese EV market was driven mostly by PHEV in 2023-24 and will continue to be so in 2025. Huawei and partners are gaining share in PHEV in mid-to...

Blue Lotus Research Institute

[Blue Lotus Daily]:BEKE US/BZ US/ATAT US/3690 HK/TCOM US/2618 HK/002352 CH/NIO US/XPEV US/1211 HK

Chinese companies discuss economic topics, JD and Alibaba reconcile for cross-platform launches, NIO lowers battery swap fees.

Blue Lotus Research Institute

[Blue Lotus Daily]:MNSO US/BEKE US/LKNCY US/XPEV US / LI US/ NIO US/1211 HK/NIO US /1810 HK/

MINISO acquires majority stake in Yonghui Superstores, Beike benefits from stimulus policies and market share gains with Decco Real Estate...

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HK/China: THE BIG SHORT (SQUEEZE)

Even though HK/China tech names have surged, short positions have not covered. The large underweight position in HK/China by international funds...

David Mudd

Major Chinese EV-Makers Have Record Month for Sales

China’s key electric-vehicle (EV) makers set monthly delivery records in September as government subsidies and price cuts gave sales in the...

Caixin Global

From Huawei with Vengeance: Huawei Alliance Took Shares in Chinese EV

Chinese EV market was driven mostly by PHEV in 2023-24 and will continue to be so in 2025. Huawei and partners are gaining share in PHEV in mid-to...

Blue Lotus Research Institute

[Blue Lotus Daily]:BEKE US/BZ US/ATAT US/3690 HK/TCOM US/2618 HK/002352 CH/NIO US/XPEV US/1211 HK

​Chinese companies discuss economic topics, JD and Alibaba reconcile for cross-platform launches, NIO lowers battery swap fees.

Blue Lotus Research Institute

[Blue Lotus Daily]:MNSO US/BEKE US/LKNCY US/XPEV US / LI US/ NIO US/1211 HK/NIO US /1810 HK/

​MINISO acquires majority stake in Yonghui Superstores, Beike benefits from stimulus policies and market share gains with Decco Real Estate...

Blue Lotus Research Institute

Chinese companies discuss economic topics, JD and Alibaba reconcile for cross-platform launches, NIO lowers battery swap fees.

MINISO acquires majority stake in Yonghui Superstores, Beike benefits from stimulus policies and market share gains with Decco Real Estate...