HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

We see the joint announcement by five ministries/departments on the development of postal and express industry in the Guangdong-Hong Kong-Macau Greater Bay Area has positive implications on many of the logistics operators in China in the medium to long term. The supporting initiatives range from the strengthening of the strategic hubs of Guangzhou and Shenzhen airports to encouraging more industry consolidations.While many companies are expected to benefit from these GBA postal and express policies, we highlight some of the most important ones in this Insight - <a href="https://www.smartkarma.com/entities/guangzhou-baiyun-international-airport" target="_blank" data-smartkarma-citation="entities:10819:1" rel="noopener">Guangzhou Baiyun International Airport (600004 CH)</a> (GBIA) and <a href="https://www.smartkarma.com/entities/shenzhen-airport-co-ltd" target="_blank" data-smartkarma-citation="entities:15522:1" rel="noopener">Shenzhen Airport Co A (000089 CH)</a>, <a href="https://www.smartkarma.com/entities/china-southern-airlines-co-ltd" target="_blank" data-smartkarma-citation="entities:1078:1" rel="noopener">China Southern Airlines (1055 HK)</a>, <a href="https://www.smartkarma.com/entities/sinotrans-limited-h" target="_blank" data-smartkarma-citation="entities:1321:1" rel="noopener">Sinotrans (598 HK)</a>, <a href="https://www.smartkarma.com/entities/kerry-logistics-network-ltd" target="_blank" data-smartkarma-citation="entities:367:1" rel="noopener">Kerry Logistics Network (636 HK)</a>, <a href="https://www.smartkarma.com/entities/shenzhen-intl-holdings" target="_blank" data-smartkarma-citation="entities:9:1" rel="noopener">Shenzhen Intl (152 HK)</a> and <a href="https://www.smartkarma.com/entities/maanshan-dingtai-rare-a" target="_blank" data-smartkarma-citation="entities:4128:1" rel="noopener">S.F. Holding (002352 CH)</a>.

We see the joint announcement by five ministries/departments on the development of postal and express industry in the Guangdong-Hong Kong-Macau Greater Bay Area has positive implications on many of the logistics operators in China in the medium to long term. The supporting initiatives range from the strengthening of the strategic hubs of Guangzhou and Shenzhen airports to encouraging more industry consolidations.While many companies are expected to benefit from these GBA postal and express policies, we highlight some of the most important ones in this Insight - Guangzhou Baiyun International Airport (600004 CH) (GBIA) and Shenzhen Airport Co A (000089 CH), China Southern Airlines (1055 HK), Sinotrans (598 HK), Kerry Logistics Network (636 HK), Shenzhen Intl (152 HK) and S.F. Holding (002352 CH).

China Logistics: Key Beneficiaries of China's Greater Bay Area Postal and Express Development

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>On the 15th May 2026, the CSRC approved SOE-backed power play <a href="https://www.smartkarma.com/entities/china-resources-power-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:5385:1" rel="noopener">China Resources Power (836 HK)</a>'s A-share listing of its renewable energy unit, China Resources New Energy Group (CRNE).</li>
<li>CRNE's prospectus has now been lodged, with a tentative listing late June/early July. </li>
<li>CRNE's 1Q26 profit was down 28%, with a forecast drop of at least 19% in 1H26E.  CRNE's peer basket is down 21% in the past month. CRP is down 6%.</li>
</ul>


On the 15th May 2026, the CSRC approved SOE-backed power play China Resources Power (836 HK)'s A-share listing of its renewable energy unit, China Resources New Energy Group (CRNE).
CRNE's prospectus has now been lodged, with a tentative listing late June/early July. 
CRNE's 1Q26 profit was down 28%, with a forecast drop of at least 19% in 1H26E.  CRNE's peer basket is down 21% in the past month. CRP is down 6%.


CR Power (836 HK): Profit And Sector Dip Clouds Clean Energy Spin-Off

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 analyze the weekly Hong Kong Connect flows with our data engine for holding position as of May 29th.</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 Alibaba, SMIC, Tencent, Petrochina, Yofc, China Resources Land, AIA.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of May 29th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Alibaba, SMIC, Tencent, Petrochina, Yofc, China Resources Land, AIA.


HK Connect Flows Weekly (May 29th): Alibaba, SMIC, Tencent, Petrochina, Yofc, China Resources Land

<ul>
<li>A fortnight after the Shenzhen Stock Exchange approved SOE-backed power play <a href="https://www.smartkarma.com/entities/china-resources-power-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:5385:1" rel="noopener">China Resources Power (836 HK)</a> (CRP)'s A-share listing of its renewable energy unit, CSRC approval is now satisfied.</li>
<li>
The process has taken over three years. Since that time, CRP's earnings and attributable installed capacity, is now evenly split between its thermal and renewable energy segments.</li>
<li>With CSRC and SZSE approvals in the bag, the final stretch should move relatively quickly.</li>
</ul>


A fortnight after the Shenzhen Stock Exchange approved SOE-backed power play China Resources Power (836 HK) (CRP)'s A-share listing of its renewable energy unit, CSRC approval is now satisfied.

The process has taken over three years. Since that time, CRP's earnings and attributable installed capacity, is now evenly split between its thermal and renewable energy segments.
With CSRC and SZSE approvals in the bag, the final stretch should move relatively quickly.


CR Power (836 HK): CSRC Clears Clean Energy Spin-Off

<ul>
<li>After two years and change, SOE-backed power play <a href="https://www.smartkarma.com/entities/china-resources-power-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:5385:1" rel="noopener">China Resources Power (836 HK)</a> has now announced the Shenzhen Stock Exchange has approved the A-share listing off its renewable energy unit.</li>
<li>Earnings, and attributable installed capacity, is now evenly split between CRP's thermal and renewable energy segments. </li>
<li>Shenzhen (&amp; Shanghai) renewable energy peers trade at significantly higher multiples to HK-listed plays. Assuming the spin-off occurs, there remains material upside to CRP here. </li>
</ul>


After two years and change, SOE-backed power play China Resources Power (836 HK) has now announced the Shenzhen Stock Exchange has approved the A-share listing off its renewable energy unit.
Earnings, and attributable installed capacity, is now evenly split between CRP's thermal and renewable energy segments. 
Shenzhen (&amp; Shanghai) renewable energy peers trade at significantly higher multiples to HK-listed plays. Assuming the spin-off occurs, there remains material upside to CRP here. 


CR Power (836 HK): Still Upside From Expected Clean Energy Spin-Off

Hong Kong

Shenzhen International Holdings Limited invests in, constructs, and operates logistics infrastructure facilities, including logistics parks, toll roads, and ports. The company also provides third-party logistics services, logistics information services, and general environmental protection businesses, offering value-added services like intelligent warehousing and integrated cold chain solutions. The company is headquartered in Hong Kong.

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Shenzhen International (152 HK)

China Logistics: Key Beneficiaries of China's Greater Bay Area Postal and Express Development

China's support of postal and express industry development in the Greater Bay Area has positive implications on many logistics companies. We...

Osbert Tang, CFA

CR Power (836 HK): Profit And Sector Dip Clouds Clean Energy Spin-Off

Forward guidance for CRNE is not optimum. There's still material upside here; however, what holding company discount is applicable?

David Blennerhassett

HK Connect Flows Weekly (May 29th): Alibaba, SMIC, Tencent, Petrochina, Yofc, China Resources Land

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Alibaba, SMIC, Tencent, Petrochina, Yofc, China Resources...

Ke Yan, CFA, FRM

CR Power (836 HK): CSRC Clears Clean Energy Spin-Off

There is material upside to CRP's share price here, even assigning a large holding company discount. CRP's current metrics are not demanding. CRP...

David Blennerhassett

CR Power (836 HK): Still Upside From Expected Clean Energy Spin-Off

Even assigning a hefty holding company discount, there remains considerable upside to CRP's share price here, should the spin-off unfold. CRP's...

David Blennerhassett

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