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 analyzed the changes in margin trading positions of A-share stocks as of May 29th. The aggregated net margin trading position is USD394,952m.</li>
<li>We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.</li>
<li>We highlight net margin buy/sell changes in INDUSTRIAL BANK, ANHUI JIANGHUAI AUTOMOBILE, KUANG-CHI TECHNOLOGIES, GCH TECHNOLOGY, BOE.</li>
</ul>


We analyzed the changes in margin trading positions of A-share stocks as of May 29th. The aggregated net margin trading position is USD394,952m.
We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.
We highlight net margin buy/sell changes in INDUSTRIAL BANK, ANHUI JIANGHUAI AUTOMOBILE, KUANG-CHI TECHNOLOGIES, GCH TECHNOLOGY, BOE.


A-Share Margin Trading Weekly (May 29th): INDUSTRIAL BANK, ANHUI JIANGHUAI AUTOMOBILE, BOE

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

Victory Giant Technology -A / Equity Capital Markets

<ul>
<li>Chinese PCB manufacturer for AI and High-performance computing, <a href="https://www.smartkarma.com/entities/victory-giant-technology-a" target="_blank" data-smartkarma-citation="entities:25395:1" rel="noopener">Victory Giant Technology -A (300476 CH)</a> has announced the terms for its H-share offering and plans to raise around US$2.2bn.</li>
<li>Victory Giant’s shares are priced at a significant discount to its A-shares and our analysis suggests that implied valuation is cheap vs both domestic and global peers.</li>
<li>The company’s earnings have seen strong growth in the recent years highlighting its deepening presence in the rapidly growing AI and high-performance computing segments.</li>
</ul>


Chinese PCB manufacturer for AI and High-performance computing, Victory Giant Technology -A (300476 CH) has announced the terms for its H-share offering and plans to raise around US$2.2bn.
Victory Giant’s shares are priced at a significant discount to its A-shares and our analysis suggests that implied valuation is cheap vs both domestic and global peers.
The company’s earnings have seen strong growth in the recent years highlighting its deepening presence in the rapidly growing AI and high-performance computing segments.


Victory Giant H-Share Listing: High-Growth AI Player at a Compelling Discount

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

GigaDevice Semiconductor  / Index Rebalance

<ul>
<li>With the review period complete, there are 5 non-constituents in direct inclusion zone and 5 current constituents in direct deletion zone. However, as usual, there will be discretion used.</li>
<li>5 changes result in a one-way turnover of 6.4%, leading to a round-trip trade of CNY 13bn (US$1.9bn). Index arb balances will increase the impact on the stocks.</li>
<li>Impact on the forecast adds varies between 0.2-0.3x ADV while the impact on the forecast deletes is a lot higher at 0.5-1.9x ADV. Index arb balance will further increase flow/impact.</li>
</ul>


With the review period complete, there are 5 non-constituents in direct inclusion zone and 5 current constituents in direct deletion zone. However, as usual, there will be discretion used.
5 changes result in a one-way turnover of 6.4%, leading to a round-trip trade of CNY 13bn (US$1.9bn). Index arb balances will increase the impact on the stocks.
Impact on the forecast adds varies between 0.2-0.3x ADV while the impact on the forecast deletes is a lot higher at 0.5-1.9x ADV. Index arb balance will further increase flow/impact.


SSE50 Index Rebalance Preview: Forecast Changes & Borderline Names for June

<ul>
<li>We analysed the earning revision of component stocks of CSI 300 in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on Wuxi Apptec, Eoptolink Technology, Ping An Insurance, Muyuan Foods, China Vanke, Jinko Solar, Xinjiang Daqo.</li>
</ul>


We analysed the earning revision of component stocks of CSI 300 in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on Wuxi Apptec, Eoptolink Technology, Ping An Insurance, Muyuan Foods, China Vanke, Jinko Solar, Xinjiang Daqo.


CSI 300 Index Earning Revision (Jul): Wuxi Apptec, Eoptolink Technology, Ping An Insurance

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Shengyi Tech announced its 1H25 preliminary earnings.</li><li>The company projected 1H25 NP to surge by 50%-56% YoY, reaching RMB1.40bnRMB1.45bn.</li><li>2Q NP alone is estimated to be RMB836mn-RMB886mn, implying 55%-64% YoY/48%-57% QoQ growth, and exceeding Bloomberg consensus of RMB611mn by 37%-45%. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Shengyi Tech announced its 1H25 preliminary earnings.The company projected 1H25 NP to surge by 50%-56% YoY, reaching RMB1.40bnRMB1.45bn.2Q NP alone is estimated to be RMB836mn-RMB886mn, implying 55%-64% YoY/48%-57% QoQ growth, and exceeding Bloomberg consensus of RMB611mn by 37%-45%. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Shengyi Tech (600183 CH) - Strong 1H25 Results Underscore AI-Driven Strength

China

Shengyi Technology Co., Ltd. manufactures and markets electronic components. The Company's products include copper coated panels, printed circuit boards, and other related products.

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Shengyi Technology (600183 CH)

SSE50 Index Rebalance Preview: Forecast Changes & Borderline Names for June

There could be 5 changes. Estimated one-way turnover is 6.4% and round-trip trade is CNY 13bn (US$1.9bn). Index arb balance will increase flow and...

Brian Freitas

CSI 300 Index Earning Revision (Jul): Wuxi Apptec, Eoptolink Technology, Ping An Insurance

We analyzed CSI 300's consensus for Jul 2025 and highlighted changes of EPS in Wuxi Apptec, Eoptolink Technology, Ping An Insurance, Muyuan Foods,...

Ke Yan, CFA, FRM

Shengyi Tech (600183 CH) - Strong 1H25 Results Underscore AI-Driven Strength

Shengyi Tech announced its 1H25 preliminary earnings. The company projected 1H25 NP to surge by 50%-56% YoY, reaching RMB1.40bnRMB1.45

CMB International

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

A-Share Margin Trading Weekly (May 29th): INDUSTRIAL BANK, ANHUI JIANGHUAI AUTOMOBILE, BOE

We analyzed A-share margin trading positions report for the past week and highlighted INDUSTRIAL BANK, ANHUI JIANGHUAI AUTOMOBILE, KUANG-CHI...

Ke Yan, CFA, FRM

Victory Giant H-Share Listing: High-Growth AI Player at a Compelling Discount

​Chinese PCB manufacturer Victory Giant Technology -A (300476 CH) plans to raise US$2.2bn through H-share offering. Shares are priced at a discount...

Shifara Samsudeen, FCMA, CGMA

SSE50 Index Rebalance Preview: Forecast Changes & Borderline Names for June

There could be 5 changes. Estimated one-way turnover is 6.4% and round-trip trade is CNY 13bn (US$1.9bn). Index arb balance will increase flow and...

Brian Freitas

CSI 300 Index Earning Revision (Jul): Wuxi Apptec, Eoptolink Technology, Ping An Insurance

We analyzed CSI 300's consensus for Jul 2025 and highlighted changes of EPS in Wuxi Apptec, Eoptolink Technology, Ping An Insurance, Muyuan Foods,...

Ke Yan, CFA, FRM

Shengyi Tech (600183 CH) - Strong 1H25 Results Underscore AI-Driven Strength

Shengyi Tech announced its 1H25 preliminary earnings. The company projected 1H25 NP to surge by 50%-56% YoY, reaching RMB1.40bnRMB1.45

CMB International

Chinese PCB manufacturer Victory Giant Technology -A (300476 CH) plans to raise US$2.2bn through H-share offering. Shares are priced at a discount...