Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyse the changes of A-H premium on 185 stocks over the last week. The average A-H premium was 85.6% as of Jun 26th.</li>
<li>The average A-H premium changed by 5.5ppt week-on-week, led by real estate, information technology, utilities and offset by communication services, energy.</li>
<li>We highlight weekly changes in A-H premium for Midea, Cmoc, Htsc, China Longyuan, Times Electric, Innocare.</li>
</ul>


We analyse the changes of A-H premium on 185 stocks over the last week. The average A-H premium was 85.6% as of Jun 26th.
The average A-H premium changed by 5.5ppt week-on-week, led by real estate, information technology, utilities and offset by communication services, energy.
We highlight weekly changes in A-H premium for Midea, Cmoc, Htsc, China Longyuan, Times Electric, Innocare.


A-H Premium Weekly (Jun 26th): Midea, Cmoc, Htsc, China Longyuan, Times Electric, Innocare

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of June 26th.</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 Kingboard, Alibaba, Kingboard Laminates, Smic, Tencent, China Mobile, CNOOC, Pop Mart Intl, Hua Hong Semi, Knowledge Atlas.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of June 26th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Kingboard, Alibaba, Kingboard Laminates, Smic, Tencent, China Mobile, CNOOC, Pop Mart Intl, Hua Hong Semi, Knowledge Atlas.


HK Connect Flows Weekly (Jun 26th): Kingboard, Alibaba, Kingboard Laminates, Smic, Tencent, CNOOC

Equity Research in HK and Mainland China

Li Tang

Thematic (Sector/Industry)

<ul>
<li>The fifth plenary session of the 19th Central Committee of the Communist Party of China (CPC) will be held from October 26 to 29 in Beijing, according to a decision made at the Politburo meeting chaired by President Xi Jinping meeting on Monday.</li>
<li>The Fifth Plenum, to be held next week (26-29 October), will most likely focus on Three major subjects: i) the steering of China’s economic growth and restructuring, ii) the development of China’s 14th Five Year Plan, and iii) the prepared political reshuffling to occur ahead of 2022, when the Standing Committee, China’s highest legislative body, is expected to step down.</li>
<li>As one of the important task, the meeting will focus on finalising the guidelines for the 14th Five Year Plan. The plan will be approved in March 2021 at the conclusion of the annual National People’s Congress meeting.</li>
</ul>


The fifth plenary session of the 19th Central Committee of the Communist Party of China (CPC) will be held from October 26 to 29 in Beijing, according to a decision made at the Politburo meeting chaired by President Xi Jinping meeting on Monday.
The Fifth Plenum, to be held next week (26-29 October), will most likely focus on Three major subjects: i) the steering of China’s economic growth and restructuring, ii) the development of China’s 14th Five Year Plan, and iii) the prepared political reshuffling to occur ahead of 2022, when the Standing Committee, China’s highest legislative body, is expected to step down.
As one of the important task, the meeting will focus on finalising the guidelines for the 14th Five Year Plan. The plan will be approved in March 2021 at the conclusion of the annual National People’s Congress meeting.


Fifth Plenum Should Focus on Economic Targets, Five Year Plan, Political Reshuffling

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Back in April of this year, China's President Xi Jinping <a href="http://paper.people.com.cn/rmrb/html/2020-04/16/nw.D110000renmrb_20200416_1-09.htm" target="_blank" rel="noopener">mentioned</a> taking the initiative to seek change and turn "crises into opportunities".
This was expanded upon in a Politburo meeting on the <a href="http://cpc.people.com.cn/n1/2020/0515/c64094-31709627.html?mc_cid=28966ada58&amp;mc_eid=902fe70bde" target="_blank" rel="noopener">14 May</a> under the guise of a "dual circulation" strategy, such that China will seek to primarily rely on "internal circulation" (domestic production, distribution, and consumption) for its future development. This "internal circulation" would be supplemented with "external circulation". 
During a 21 July <a href="https://web.archive.org/web/20200811045300/http://www.xinhuanet.com/politics/leaders/2020-07/21/c_1126267575.htm" target="_blank" rel="noopener">speech</a> to public and private business in Beijing, Xi emphasized that “We must gradually form a new development pattern with the domestic internal circulation as the main body and the domestic and international dual circulations mutually promoting each other.
When  co-hosting a China-Germany-EU leaders last week, Xi Jinping <a href="https://news.cgtn.com/news/2020-09-14/Xi-attends-China-Germany-EU-leaders-meeting-via-video-link-TMA0kfp5lK/index.html" target="_blank" rel="noopener">reiterated</a> that "China is working toward the goal of fostering a new, dual-cycle development architecture with the domestic cycle as the mainstay and with domestic and international development reinforcing each other."
This “dual circulation/cycle” strategy may form a key government initiative in the 14th Five-Year Plan (2021-2025), which is expected to be released by the National People's Congress early next year, probably March. A Communist Party leaders’ meeting next month is expected to unveil more detail on this strategy. 
Does this strategy point to China turning its back to the world and taking on a closed and self-sufficient path?

Back in April of this year, China's President Xi Jinping mentioned taking the initiative to seek change and turn "crises into opportunities".
This was expanded upon in a Politburo meeting on the 14 May under the guise of a "dual circulation" strategy, such that China will seek to primarily rely on "internal circulation" (domestic production, distribution, and consumption) for its future development. This "internal circulation" would be supplemented with "external circulation". 
During a 21 July speech to public and private business in Beijing, Xi emphasized that “We must gradually form a new development pattern with the domestic internal circulation as the main body and the domestic and international dual circulations mutually promoting each other.
When  co-hosting a China-Germany-EU leaders last week, Xi Jinping reiterated that "China is working toward the goal of fostering a new, dual-cycle development architecture with the domestic cycle as the mainstay and with domestic and international development reinforcing each other."
This “dual circulation/cycle” strategy may form a key government initiative in the 14th Five-Year Plan (2021-2025), which is expected to be released by the National People's Congress early next year, probably March. A Communist Party leaders’ meeting next month is expected to unveil more detail on this strategy. 
Does this strategy point to China turning its back to the world and taking on a closed and self-sufficient path?

China's Dual Circulation: Hedged Integration

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Circuit Fabology Microelectronics Equipment / Equity Capital Markets

Circuit Fabology Microelectronics Equipment (9630 HK)

Circuit Fabology Microelectronics Equipment

<ul>
<li>
<a href="https://www.smartkarma.com/entities/circuit-fabology-microelectronics-equipment-co-ltd" target="_blank" data-smartkarma-citation="entities:48834:1" rel="noopener">Circuit Fabology Microelectronics Equipment (9630 HK)</a> priced its H Share at HK$252.73, raising HK$3,245 million (US$414 million) in gross proceeds. The H Share will be listed tomorrow.</li>
<li>I discussed the H Share listing in <a href="https://www.smartkarma.com/insights/circuit-fabology-h-share-listing-9630-hk-the-investment-case" target="_blank" data-smartkarma-citation="insights:243438" rel="noopener">Circuit Fabology H Share Listing (9630 HK): The Investment Case</a> and <a href="https://www.smartkarma.com/insights/circuit-fabology-h-share-listing-9630-hk-valuation-insights" target="_blank" data-smartkarma-citation="insights:243623" rel="noopener">Circuit Fabology H Share Listing (9630 HK): Valuation Insights</a>. </li>
<li>The grey market price is up 76%, partly due to A Shares rising 20% since the prospectus was released. The international oversubscription rate was the highest of large AH listings. </li>
</ul>



Circuit Fabology Microelectronics Equipment (9630 HK) priced its H Share at HK$252.73, raising HK$3,245 million (US$414 million) in gross proceeds. The H Share will be listed tomorrow.
I discussed the H Share listing in Circuit Fabology H Share Listing (9630 HK): The Investment Case and Circuit Fabology H Share Listing (9630 HK): Valuation Insights. 
The grey market price is up 76%, partly due to A Shares rising 20% since the prospectus was released. The international oversubscription rate was the highest of large AH listings. 


Circuit Fabology H Share Listing (9630 HK): Trading Debut

China

SF Holding Co., Ltd. is a leading Chinese multinational integrated logistics service provider. It offers a comprehensive suite of services including express delivery, freight, cold chain logistics, intra-city on-demand delivery, international express, international freight and forwarding, and supply chain management. The company is headquartered in Shenzhen, China, and was founded in 1993.

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SF Holding (6936 HK)

A-H Premium Weekly (Jun 26th): Midea, Cmoc, Htsc, China Longyuan, Times Electric, Innocare

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Midea, Cmoc, Htsc, China Longyuan, Times Electric, Innocare.

Ke Yan, CFA, FRM

HK Connect Flows Weekly (Jun 26th): Kingboard, Alibaba, Kingboard Laminates, Smic, Tencent, CNOOC

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Kingboard (148 HK), Alibaba (9988 HK), Kingboard...

Ke Yan, CFA, FRM

Fifth Plenum Should Focus on Economic Targets, Five Year Plan, Political Reshuffling

The fifth plenary session of the 19th Central Committee of the Communist Party of China (CPC) will be held from October 26 to 29 in Beijing,...

Li Tang

China's Dual Circulation: Hedged Integration

Back in April, Xi Jinping

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

A-H Premium Weekly (Jun 26th): Midea, Cmoc, Htsc, China Longyuan, Times Electric, Innocare

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Midea, Cmoc, Htsc, China Longyuan, Times Electric, Innocare.

Ke Yan, CFA, FRM

HK Connect Flows Weekly (Jun 26th): Kingboard, Alibaba, Kingboard Laminates, Smic, Tencent, CNOOC

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Kingboard (148 HK), Alibaba (9988 HK), Kingboard...

Ke Yan, CFA, FRM

Fifth Plenum Should Focus on Economic Targets, Five Year Plan, Political Reshuffling

The fifth plenary session of the 19th Central Committee of the Communist Party of China (CPC) will be held from October 26 to 29 in Beijing,...

Li Tang

China's Dual Circulation: Hedged Integration

Back in April, Xi Jinping

David Blennerhassett

Circuit Fabology H Share Listing (9630 HK): Trading Debut

Circuit Fabology priced its H Share at HK$252.73, raising HK$3,245 million (US$414 million) in gross proceeds. The international oversubscription...

Arun George