HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>With the HSI surging 21.2% since 24 Sep and many stocks have even doubled, the strategy in the HK and China markets will move to chase the laggards.</li>
<li>Among the underperforming HSI constituents, <a href="https://www.smartkarma.com/entities/china-resources-power-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:5385:1" rel="noopener">China Resources Power (836 HK)</a> and <a href="https://www.smartkarma.com/entities/china-mobile-ltd" target="_blank" data-smartkarma-citation="entities:27:1" rel="noopener">China Mobile (941 HK)</a> are the better candidates to pick up performance. </li>
<li>For HSCEI, <a href="https://www.smartkarma.com/entities/zijin-mining-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:6358:1" rel="noopener">Zijin Mining Group Co Ltd H (2899 HK)</a> and <a href="https://www.smartkarma.com/entities/china-shenhua-energy-co-h" target="_blank" data-smartkarma-citation="entities:382:1" rel="noopener">China Shenhua Energy Co H (1088 HK)</a> have lagged but their stories are interesting and should regain momentum.</li>
</ul>


With the HSI surging 21.2% since 24 Sep and many stocks have even doubled, the strategy in the HK and China markets will move to chase the laggards.
Among the underperforming HSI constituents, China Resources Power (836 HK) and China Mobile (941 HK) are the better candidates to pick up performance. 
For HSCEI, Zijin Mining Group Co Ltd H (2899 HK) and China Shenhua Energy Co H (1088 HK) have lagged but their stories are interesting and should regain momentum.


Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

Quantitative Analysis

<ul>
<li>An overview (and output) of our machine learning-driven GEM screening model, which seeks to find the best medium-term long ideas within the top 100 stocks in the MSCI GEM Index.</li>
<li>The model is based on 1) a quantitative multifactor screening model, enhanced by two AI Technology-based approaches; 2) a Deep Neural Network model, and 3) a Recurrent Neural Network model.</li>
<li>Developed over roughly 4 years and implemented in its current state for over 3 years, the model has a solid real-world alpha-generating performance track record, discussed in detail below.</li>
</ul>


An overview (and output) of our machine learning-driven GEM screening model, which seeks to find the best medium-term long ideas within the top 100 stocks in the MSCI GEM Index.
The model is based on 1) a quantitative multifactor screening model, enhanced by two AI Technology-based approaches; 2) a Deep Neural Network model, and 3) a Recurrent Neural Network model.
Developed over roughly 4 years and implemented in its current state for over 3 years, the model has a solid real-world alpha-generating performance track record, discussed in detail below.


Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>SOUTHBOUND was a net buyer this week. But who cares. They actually net sold US$2bn of everything which was not <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group Holding (9988 HK)</a>. </li>
<li>Bigger news, of course, was China's "Bazooka" which LOOKS exciting. Stocks are up 15-20% in four days. Lots of BIG numbers are being thrown around. Not everything is "real money."</li>
<li>It takes a little sleuthing to figure out where the real money is. For that, I suggest reading <a href="https://www.smartkarma.com/insights/china-s-maybe-biggish-quasi-bazooka" target="_blank" data-smartkarma-citation="insights:160299" rel="noopener">China's [Maybe] Biggish [Quasi?] Bazooka</a> and more below.</li>
</ul>


SOUTHBOUND was a net buyer this week. But who cares. They actually net sold US$2bn of everything which was not Alibaba Group Holding (9988 HK). 
Bigger news, of course, was China's "Bazooka" which LOOKS exciting. Stocks are up 15-20% in four days. Lots of BIG numbers are being thrown around. Not everything is "real money."
It takes a little sleuthing to figure out where the real money is. For that, I suggest reading China's [Maybe] Biggish [Quasi?] Bazooka and more below.


HK Connect SOUTHBOUND Flows (To 27 Sep 2024); Everything Changed This Week

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.

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of September 20th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Alibaba (9988 HK), Meituan (3690 HK).</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of September 20th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Alibaba (9988 HK), Meituan (3690 HK).


Hong Kong Connect Flows (Sep 20th): Alibaba, Meituan

<ul>
<li>We analyse the changes of A-H premium on 146 stocks over the last week. The average A-H premium was 113.3% as of Sep 13th.</li>
<li>The average A-H premium changed by 1.3ppt week-on-week, led by energy, utilities, industrials and offset by health care, consumer staples.</li>
<li>We highlight weekly changes in A-H premium for SINOPEC, China Coal Energy, PetroChina, GAC Group, Tigermed, CanSinoBIO, SMIC, Hua Hong Semi, Shanghai Pharma.</li>
</ul>


We analyse the changes of A-H premium on 146 stocks over the last week. The average A-H premium was 113.3% as of Sep 13th.
The average A-H premium changed by 1.3ppt week-on-week, led by energy, utilities, industrials and offset by health care, consumer staples.
We highlight weekly changes in A-H premium for SINOPEC, China Coal Energy, PetroChina, GAC Group, Tigermed, CanSinoBIO, SMIC, Hua Hong Semi, Shanghai Pharma.


A-H Premium Weekly (Sep 13th): Sinopec, China Coal Energy, PetroChina, GAC, Tigermed

China

PetroChina Company Limited operates as an oil and gas company. The Company offers crude oil and oil products exploration, development, production and marketing. PetroChina also markets petrochemical products and derivative chemicals.

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PetroChina (601857 CH)

China & HK Strategy: What to Grab?

Hong Kong and China markets are seeing a surge, prompting a shift towards chasing underperforming stocks like CR Power and China Mobile in HSI,...

Osbert Tang, CFA

Screening for GEMs: October 2024

This insight provides an overview of our, machine learning-driven, proprietary GEM screening model, based on a Multifactor model, a Deep Neural...

Wium Malan, CFA

HK Connect SOUTHBOUND Flows (To 27 Sep 2024); Everything Changed This Week

HK SOUTHBOUND Connect flows remain positive, but they remain strong for Alibaba and negative for other tech - particularly Kuaioshou, Meituan, and...

Travis Lundy

Hong Kong Connect Flows (Sep 20th): Alibaba, Meituan

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Alibaba (9988 HK), Meituan (3690 HK).

Ke Yan, CFA, FRM

A-H Premium Weekly (Sep 13th): Sinopec, China Coal Energy, PetroChina, GAC, Tigermed

We analyzed A-H premium changes in the past week and highlight A-H premium changes for SINOPEC, China Coal Energy, PetroChina, GAC Group, Tigermed,...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China & HK Strategy: What to Grab?

​Hong Kong and China markets are seeing a surge, prompting a shift towards chasing underperforming stocks like CR Power and China Mobile in HSI,...

Osbert Tang, CFA

Screening for GEMs: October 2024

This insight provides an overview of our, machine learning-driven, proprietary GEM screening model, based on a Multifactor model, a Deep Neural...

Wium Malan, CFA

HK Connect SOUTHBOUND Flows (To 27 Sep 2024); Everything Changed This Week

HK SOUTHBOUND Connect flows remain positive, but they remain strong for Alibaba and negative for other tech - particularly Kuaioshou, Meituan, and...

Travis Lundy

Hong Kong Connect Flows (Sep 20th): Alibaba, Meituan

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Alibaba (9988 HK), Meituan (3690 HK).

Ke Yan, CFA, FRM

A-H Premium Weekly (Sep 13th): Sinopec, China Coal Energy, PetroChina, GAC, Tigermed

We analyzed A-H premium changes in the past week and highlight A-H premium changes for SINOPEC, China Coal Energy, PetroChina, GAC Group, Tigermed,...

Ke Yan, CFA, FRM

Hong Kong and China markets are seeing a surge, prompting a shift towards chasing underperforming stocks like CR Power and China Mobile in HSI,...