Global Asset Allocation, Politics & Governance, Ecstrat

John-Paul Smith

Global Asset Allocation, Politics & Governance

Ecstrat

Ecstrat is a consultancy advising on asset allocation between global equity markets, with a focus on the intersection of governments, geopolitics, governance and markets.
 
Over the past few years and more especially since the Great Financial Crisis (GFC), investors have become more focused on short-term market movements and real-time returns and have consequently neglected the analysis of the underlying structural themes that underpin longer term performance.
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More specifically we believe that the evolution of governance-based relationships between investors, controlling shareholders, labour and the state is one of the primary determinants of both relative and absolute performance between individual equity markets.
 
We will endeavour to provide investors with some of the context surrounding governance-related issues which encompass many different disciplines including history, economics and political science, as well as the financial metrics which are the most obvious manifestation of the structural characteristics of each market.
 
We will pay particular attention to the shifts and potential inflection points for governance in individual markets as these are often the best lead indicators for both economic and market performance.

Cross Asset Strategy

On a tactical level, both onshore and offshore listed Chinese equities are starting to appear somewhat oversold and would rally sharply if the US offered any meaningful concessions resulting in some sort of agreement in either one or both of the disputes around trade and technology. Taking a more strategic perspective however, the inexorable shift towards a more Autarkic Governance Regime implies severe costs for both the Chinese economy and equity market(s).

On a tactical level, both onshore and offshore listed Chinese equities are starting to appear somewhat oversold and would rally sharply if the US offered any meaningful concessions resulting in some sort of agreement in either one or both of the disputes around trade and technology. Taking a more strategic perspective however, the inexorable shift towards a more Autarkic Governance Regime implies severe costs for both the Chinese economy and equity market(s).

China: The Shift to a More Autarkic Governance Regime Will Hurt the Economy and Investors

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.

Equity Capital Markets

Hutchison China MediTech Ltd / Equity Capital Markets

Hutchison-China Meditech, China-based AIM and NASDAQ dual listed pharmaceutical company, is seeking to raise up to USD 500 million via a Hong Kong listing. In this insight, we will discuss the following topics:
<ul>
<li>Company background</li>
<li>Progress of clinical trials of its three key drug candidates</li>
<li>Key licensing agreements</li>
<li>Key takeaways from its financials</li>
<li>Shareholders of the company</li>
</ul>

Hutchison-China Meditech, China-based AIM and NASDAQ dual listed pharmaceutical company, is seeking to raise up to USD 500 million via a Hong Kong listing. In this insight, we will discuss the following topics:

Company background
Progress of clinical trials of its three key drug candidates
Key licensing agreements
Key takeaways from its financials
Shareholders of the company


Hutchison-China Meditech (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Thematic (Sector/Industry)

Since autumn of 2014, the HK-Shanghai Connect, and later the HK-Shenzhen Connect mechanisms have provided means for mainland investors to buy Hong Kong-listed stocks. We have been tracking the H/A relationships and the Southbound flows per name on a weekly basis and occasionally writing commentary about it since late 2016. This report provides a brief synopsis of the SOUTHBOUND flows into Hong Kong-listed stocks over the course of 2018, by sector, by average percentage change in mainland ownership of HK shares outstanding subject to the Connect mechanisms, and the top and bottom five names per sector per quarter.

Since autumn of 2014, the HK-Shanghai Connect, and later the HK-Shenzhen Connect mechanisms have provided means for mainland investors to buy Hong Kong-listed stocks. We have been tracking the H/A relationships and the Southbound flows per name on a weekly basis and occasionally writing commentary about it since late 2016. This report provides a brief synopsis of the SOUTHBOUND flows into Hong Kong-listed stocks over the course of 2018, by sector, by average percentage change in mainland ownership of HK shares outstanding subject to the Connect mechanisms, and the top and bottom five names per sector per quarter.

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.

<a href="https://www.smartkarma.com/entities/27795" target="_blank" data-smartkarma-citation="entities:27795:1">WuXi AppTec Co. Ltd. (WUXI HK)</a> is a leading global pharmaceutical R&amp;D outsourcing service provider and the largest in Asia by revenue in 2017. WuXi AppTec will open its books on Wednesday for a Hong Kong listing to raise about $1 billion.<div class="content-highlight">As is typical of Chinese-listed issuers floating in Hong Kong, WuXi AppTec’s H Shares will be offered on a discount to its A Shares. This discount is often referred to as an AH premium. Our analysis suggests that a Hong Kong IPO price range which implies an AH premium less than 25% is unattractive.</div>

WuXi AppTec Co. Ltd. (WUXI HK) is a leading global pharmaceutical R&amp;D outsourcing service provider and the largest in Asia by revenue in 2017. WuXi AppTec will open its books on Wednesday for a Hong Kong listing to raise about $1 billion.As is typical of Chinese-listed issuers floating in Hong Kong, WuXi AppTec’s H Shares will be offered on a discount to its A Shares. This discount is often referred to as an AH premium. Our analysis suggests that a Hong Kong IPO price range which implies an AH premium less than 25% is unattractive.

WuXi AppTech IPO Update: Figuring Out the Right AH Premium

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Bottom-Up

Sinopharm Group Co Ltd H / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/32" target="_blank" data-smartkarma-citation="entities:32:1">Sinopharm Group Co H (1099 HK)</a> 's pending acquisition of a majority interest in China National Scientific Instruments and Materials Co. Ltd. ("CNSIM") from CNPGC marks a major expansion of its medical device distribution business and signals that the rollout of the "two-invoice" policy for medical devices should pick up in earnest.  The new policy poses some transition risks for medical device manufacturers. The magnitude of the impact is difficult to quantify because data from pilot programs is limited and anecdotal.
We view Sinopharm's acquisition of CNSIM favorably, but tag this Insight as bearish because of the heightened risk for medical device companies.

Sinopharm Group Co H (1099 HK) 's pending acquisition of a majority interest in China National Scientific Instruments and Materials Co. Ltd. ("CNSIM") from CNPGC marks a major expansion of its medical device distribution business and signals that the rollout of the "two-invoice" policy for medical devices should pick up in earnest.  The new policy poses some transition risks for medical device manufacturers. The magnitude of the impact is difficult to quantify because data from pilot programs is limited and anecdotal.
We view Sinopharm's acquisition of CNSIM favorably, but tag this Insight as bearish because of the heightened risk for medical device companies.

China Medical Devices: "Two-Invoice" Is Coming

China

Shanghai Pharmaceuticals Holding Co., Ltd manufactures pharmaceuticals. The Company develops and sells chemical and Chinese traditional medicines, healthcare products, and other products. Shanghai Pharmaceuticals Holding markets its products throughout China.

Shanghai Pharmaceuticals Holding (601607 CH)

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Shanghai Pharmaceuticals Holding (601607 CH)

China: The Shift to a More Autarkic Governance Regime Will Hurt the Economy and Investors

On a tactical level, both onshore and offshore listed Chinese equities are starting to appear somewhat oversold and would rally sharply if the US...

John-Paul Smith

2018 HK-Connect SouthBound In a Nutshell

Since autumn of 2014, the HK-Shanghai Connect, and later the HK-Shenzhen Connect mechanisms have provided means for mainland investors to buy Hong...

Travis Lundy

WuXi AppTech IPO Update: Figuring Out the Right AH Premium

WuXi AppTec Co. Ltd. (WUXI HK) is a leading global pharmaceutical R&D outsourcing service provider and the largest in Asia by revenue in 2017....

Arun George

China Medical Devices: "Two-Invoice" Is Coming

Sinopharm Group Co H (1099 HK) 's pending acquisition of a majority interest in China National Scientific Instruments and Materials Co. Ltd....

Kemp Dolliver, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China: The Shift to a More Autarkic Governance Regime Will Hurt the Economy and Investors

On a tactical level, both onshore and offshore listed Chinese equities are starting to appear somewhat oversold and would rally sharply if the US...

John-Paul Smith

Hutchison-China Meditech (和黄医药) H-Share Listing: MNC Partnerships Endorsed Its R&D Capabilities

Hutchison-China Meditech, China-based AIM and NASDAQ dual listed pharmaceutical company, is seeking to raise up to USD 500 million via a Hong Kong...

Ke Yan, CFA, FRM

2018 HK-Connect SouthBound In a Nutshell

Since autumn of 2014, the HK-Shanghai Connect, and later the HK-Shenzhen Connect mechanisms have provided means for mainland investors to buy Hong...

Travis Lundy

WuXi AppTech IPO Update: Figuring Out the Right AH Premium

WuXi AppTec Co. Ltd. (WUXI HK) is a leading global pharmaceutical R&D outsourcing service provider and the largest in Asia by revenue in 2017....

Arun George

China Medical Devices: "Two-Invoice" Is Coming

Sinopharm Group Co H (1099 HK) 's pending acquisition of a majority interest in China National Scientific Instruments and Materials Co. Ltd....

Kemp Dolliver, CFA