HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

CK Infrastructure Holdings / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ck-infrastructure-holdings-l" target="_blank" data-smartkarma-citation="entities:163:1" rel="noopener">CK Infrastructure Holdings (1038 HK)</a>'s share price should pick up as its portfolio of non-US infrastructure assets will become increasingly attractive.</li>
<li>Its assets will benefit from re-pricing as global inflation rates trend higher. Meanwhile, it will gain from the translation of foreign earnings back to HK$.</li>
<li>The secured 5.7% and 6.2% dividend yield for FY25F and FY26F makes CKI appealing, especially given a track record of 28 consecutive years of dividend hike.</li>
</ul>



CK Infrastructure Holdings (1038 HK)'s share price should pick up as its portfolio of non-US infrastructure assets will become increasingly attractive.
Its assets will benefit from re-pricing as global inflation rates trend higher. Meanwhile, it will gain from the translation of foreign earnings back to HK$.
The secured 5.7% and 6.2% dividend yield for FY25F and FY26F makes CKI appealing, especially given a track record of 28 consecutive years of dividend hike.


Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>As part of a US$22.8bn transaction, BlackRock, Global Infrastructure Partners and Terminal Investment, have <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0304/2025030402128.pdf" target="_blank" rel="noopener">agreed to buy</a> two contentious Panama ports from Li Ka-shing's <a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison (1 HK)</a> (CKH).</li>
<li>The transaction also includes an 80% stake in CKH's ports subsidiaries, which operate 43 ports comprising 199 berths in 23 countries.</li>
<li>CKH expects cash proceeds in excess of US$19bn. CKH's current market cap was - at the time of deal - also  ~US$19bn. </li>
</ul>


As part of a US$22.8bn transaction, BlackRock, Global Infrastructure Partners and Terminal Investment, have agreed to buy two contentious Panama ports from Li Ka-shing's CK Hutchison (1 HK) (CKH).
The transaction also includes an 80% stake in CKH's ports subsidiaries, which operate 43 ports comprising 199 berths in 23 countries.
CKH expects cash proceeds in excess of US$19bn. CKH's current market cap was - at the time of deal - also  ~US$19bn. 


Li Ka-Ching! Cheung Kong (1 HK) Offloads Panama Ports To Blackrock

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison Holdings (1 HK)</a> (CKH) is trading "cheap" as Panama's Supreme Court agrees to consider a request to nullify CKH's canal concessions. </li>
<li>Preceding my comments on CKH, <a href="https://www.smartkarma.com/entities/ck-infrastructure-holdings-l" target="_blank" data-smartkarma-citation="entities:163:1" rel="noopener">CK Infrastructure Holdings (1038 HK)</a> (coming up cheap on my monitor), and <a href="https://www.smartkarma.com/entities/power-assets-holdings-ltd" target="_blank" data-smartkarma-citation="entities:788:1" rel="noopener">Power Assets Holdings (6 HK)</a> are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>



CK Hutchison Holdings (1 HK) (CKH) is trading "cheap" as Panama's Supreme Court agrees to consider a request to nullify CKH's canal concessions. 
Preceding my comments on CKH, CK Infrastructure Holdings (1038 HK) (coming up cheap on my monitor), and Power Assets Holdings (6 HK) are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

Equity Derivatives

<ul>
<li>Broad based weakness, less than ½ of optionable stocks were up on the week with the average size of losses larger than average size of gains.</li>
<li>Total single stock Put option volume the highest in the past 4 months pushing the Put/Call ratio to a local extreme. </li>
<li>Laggards from the rally holding on, rally leaders broadly weak.</li>
</ul>


Broad based weakness, less than ½ of optionable stocks were up on the week with the average size of losses larger than average size of gains.
Total single stock Put option volume the highest in the past 4 months pushing the Put/Call ratio to a local extreme. 
Laggards from the rally holding on, rally leaders broadly weak.


Hong Kong Single Stock Options Weekly (Feb 24 – 28): Broad Deterioration

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>2024 marked our ninth year covering Equity Capital Markets in Asia-Pacific. In 2024, IPO volumes were mainly driven by India, even as Hong Kong showed signs of turning a corner.</li>
<li>We ended 2024 with an accuracy rate of 79.4% across 68 IPOs that we covered and 68.8% across 109 placements.</li>
<li>For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.</li>
</ul>


2024 marked our ninth year covering Equity Capital Markets in Asia-Pacific. In 2024, IPO volumes were mainly driven by India, even as Hong Kong showed signs of turning a corner.
We ended 2024 with an accuracy rate of 79.4% across 68 IPOs that we covered and 68.8% across 109 placements.
For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.


Aequitas 2024 IPOs and Placements Performance Review-India Driving Volumes as HK Shows Signs of Life

Hong Kong

Power Assets Holdings Limited invests in power generation, transmission and distribution as well as gas distribution. The Company has investments in Hong Kong, Australia, Canada, China, New Zealand and Thailand.

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Power Assets Holdings (6 HK)

CKI (1038 HK): It Is the Best Time

CKI is poised to perform with non-US assets becoming more attractive, benefitting from global inflation and foreign earnings translation, offering...

Osbert Tang, CFA

Li Ka-Ching! Cheung Kong (1 HK) Offloads Panama Ports To Blackrock

CKH is super cheap. This deal removes a significant overhang. You could set up a long/short with CKI. Or simply buy outright in CKH. Then buy...

David Blennerhassett

StubWorld: Cheung Kong's Geopolitics

Labelling CKH an agent of China is misplaced. But with a Panamanian court judgement potentially imminent, it's probably still too early to jump in.

David Blennerhassett

Hong Kong Single Stock Options Weekly (Feb 24 – 28): Broad Deterioration

The market saw broad weakness with less than half of optionable stocks up for the week. Put option volumes at 4-month high, pushing Put/Call ratio...

John Ley

Aequitas 2024 IPOs and Placements Performance Review-India Driving Volumes as HK Shows Signs of Life

2024 marked our ninth year covering Equity Capital Markets in Asia-Pacific. We had an accuracy rate of 79.4% for IPOs and 68.8% for placements in...

Sumeet Singh

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52-week Range

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CKI (1038 HK): It Is the Best Time

​CKI is poised to perform with non-US assets becoming more attractive, benefitting from global inflation and foreign earnings translation, offering...

Osbert Tang, CFA

Li Ka-Ching! Cheung Kong (1 HK) Offloads Panama Ports To Blackrock

CKH is super cheap. This deal removes a significant overhang. You could set up a long/short with CKI. Or simply buy outright in CKH. Then buy...

David Blennerhassett

StubWorld: Cheung Kong's Geopolitics

Labelling CKH an agent of China is misplaced. But with a Panamanian court judgement potentially imminent, it's probably still too early to jump in.

David Blennerhassett

Hong Kong Single Stock Options Weekly (Feb 24 – 28): Broad Deterioration

​The market saw broad weakness with less than half of optionable stocks up for the week. Put option volumes at 4-month high, pushing Put/Call ratio...

John Ley

Aequitas 2024 IPOs and Placements Performance Review-India Driving Volumes as HK Shows Signs of Life

2024 marked our ninth year covering Equity Capital Markets in Asia-Pacific. We had an accuracy rate of 79.4% for IPOs and 68.8% for placements in...

Sumeet Singh

CKI is poised to perform with non-US assets becoming more attractive, benefitting from global inflation and foreign earnings translation, offering...

The market saw broad weakness with less than half of optionable stocks up for the week. Put option volumes at 4-month high, pushing Put/Call ratio...