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 157 stocks over the last week. The average A-H premium was 54.6% as of Aug 15th.</li>
<li>The average A-H premium changed by -4.2ppt week-on-week, led by real estate, financials, materials.</li>
<li>We highlight weekly changes in A-H premium for MCC, Jiangxi Copper, Ganfeng Lithium, Csc Financial, Fosun Pharma.</li>
</ul>


We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 54.6% as of Aug 15th.
The average A-H premium changed by -4.2ppt week-on-week, led by real estate, financials, materials.
We highlight weekly changes in A-H premium for MCC, Jiangxi Copper, Ganfeng Lithium, Csc Financial, Fosun Pharma.


A-H Premium Weekly (Aug 15th): MCC, Jiangxi Copper, Ganfeng Lithium, Csc Financial, Fosun Pharma

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>A methodology change for the Hang Seng Biotech Index (HSHKBIO Index) will result in 20 deletions at the close of trading on 5 September.</li>
<li>Estimated one-way turnover at the rebalance is 9.5% resulting in a round-trip trade of HK$1.3bn (US$162m). Passive trackers need to sell between 0.05-1x ADV in the deletes.</li>
<li>The forecast deletes have underperformed the other index constituents since the start of the year but there has been little movement since the announcement of the methodology change.</li>
</ul>


A methodology change for the Hang Seng Biotech Index (HSHKBIO Index) will result in 20 deletions at the close of trading on 5 September.
Estimated one-way turnover at the rebalance is 9.5% resulting in a round-trip trade of HK$1.3bn (US$162m). Passive trackers need to sell between 0.05-1x ADV in the deletes.
The forecast deletes have underperformed the other index constituents since the start of the year but there has been little movement since the announcement of the methodology change.


Hang Seng Biotech Index Rebalance Preview: Methodology Change Leads to 20 Deletions

<ul>
<li>We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 61.4% as of Aug 1st.</li>
<li>The average A-H premium changed by 3.6ppt week-on-week, led by real estate, consumer staples, health care and offset by materials.</li>
<li>We highlight weekly changes in A-H premium for China Telecom, CIMC, Anjoy Food, China Everbright Bank, Zhengzhou Coal Mining Machinery, BYD.</li>
</ul>


We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 61.4% as of Aug 1st.
The average A-H premium changed by 3.6ppt week-on-week, led by real estate, consumer staples, health care and offset by materials.
We highlight weekly changes in A-H premium for China Telecom, CIMC, Anjoy Food, China Everbright Bank, Zhengzhou Coal Mining Machinery, BYD.


A-H Premium Weekly (Aug 1st): China Telecom, CIMC, Anjoy Food, China Everbright Bank

<ul>
<li>We analyse the changes of A-H premium on 156 stocks over the last week. The average A-H premium was 70.1% as of Jun 27th.</li>
<li>The average A-H premium changed by -2.3ppt week-on-week, led by consumer staples, financials, communication services and offset by information technology.</li>
<li>We highlight weekly changes in A-H premium for China Shenhua Energy, Bank Of Zhengzhou, Guolian Minsheng Securities, Shenwan Hongyuan, Jiangxi Copper, Cmoc.</li>
</ul>


We analyse the changes of A-H premium on 156 stocks over the last week. The average A-H premium was 70.1% as of Jun 27th.
The average A-H premium changed by -2.3ppt week-on-week, led by consumer staples, financials, communication services and offset by information technology.
We highlight weekly changes in A-H premium for China Shenhua Energy, Bank Of Zhengzhou, Guolian Minsheng Securities, Shenwan Hongyuan, Jiangxi Copper, Cmoc.


A-H Premium Weekly (Jun 27th): China Shenhua Energy, Bank Of Zhengzhou, Guolian Minsheng Securities

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

Jiangsu Hengrui Pharmaceuticals / Equity Capital Markets

Jiangsu Hengrui Pharmaceuticals (1276 HK)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jiangsu-hengrui-pharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:44224:1" rel="noopener">Jiangsu Hengrui Pharmaceuticals (1276 HK)</a> has launched its H Share listing at HK$41.45 to HK$44.05 per H Share. Pricing will be on 21 May.</li>
<li>I discussed the H Share listing in <em><strong><a href="https://www.smartkarma.com/insights/jiangsu-hengrui-pharma-h-share-listing-the-investment-case" target="_blank" data-smartkarma-citation="insights:185190" rel="noopener">Jiangsu Hengrui Pharma H Share Listing: The Investment Case</a></strong></em>. </li>
<li>The proposed AH discount can be argued as either light or attractive. I lean toward the latter and would participate in the H Share listing.</li>
</ul>



Jiangsu Hengrui Pharmaceuticals (1276 HK) has launched its H Share listing at HK$41.45 to HK$44.05 per H Share. Pricing will be on 21 May.
I discussed the H Share listing in Jiangsu Hengrui Pharma H Share Listing: The Investment Case. 
The proposed AH discount can be argued as either light or attractive. I lean toward the latter and would participate in the H Share listing.


Jiangsu Hengrui Pharma H Share Listing (1276 HK): Valuation Insights

China

Shanghai Pharmaceuticals is a large pharmaceutical group engaged in the research and development, manufacturing, distribution, and retail of pharmaceutical and healthcare products. The company offers a broad portfolio including traditional Chinese and chemical drugs, and provides medical logistics and supply chain solutions. It was founded in 1994 and is headquartered in Shanghai, China.

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Shanghai Pharmaceuticals (2607 HK)

A-H Premium Weekly (Aug 15th): MCC, Jiangxi Copper, Ganfeng Lithium, Csc Financial, Fosun Pharma

We analyzed A-H premium changes in the past week and highlight A-H premium changes for MCC, Jiangxi Copper, Ganfeng Lithium, Csc Financial, Fosun...

Ke Yan, CFA, FRM

Hang Seng Biotech Index Rebalance Preview: Methodology Change Leads to 20 Deletions

A methodology change could lead to 20 deletions in Sep. Estimated one-way turnover at the rebalance is 9.5% resulting in a round-trip trade of...

Brian Freitas

A-H Premium Weekly (Aug 1st): China Telecom, CIMC, Anjoy Food, China Everbright Bank

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Telecom, CIMC, Anjoy Food, China Everbright Bank,...

Ke Yan, CFA, FRM

A-H Premium Weekly (Jun 27th): China Shenhua Energy, Bank Of Zhengzhou, Guolian Minsheng Securities

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Shenhua Energy, Bank Of Zhengzhou, Guolian Minsheng...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

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Dividend (Yield)