HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>With the HSI surging 21.2% since 24 Sep and many stocks have even doubled, the strategy in the HK and China markets will move to chase the laggards.</li>
<li>Among the underperforming HSI constituents, <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> and <a href="https://www.smartkarma.com/entities/china-mobile-ltd" target="_blank" data-smartkarma-citation="entities:27:1" rel="noopener">China Mobile (941 HK)</a> are the better candidates to pick up performance. </li>
<li>For HSCEI, <a href="https://www.smartkarma.com/entities/zijin-mining-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:6358:1" rel="noopener">Zijin Mining Group Co Ltd H (2899 HK)</a> and <a href="https://www.smartkarma.com/entities/china-shenhua-energy-co-h" target="_blank" data-smartkarma-citation="entities:382:1" rel="noopener">China Shenhua Energy Co H (1088 HK)</a> have lagged but their stories are interesting and should regain momentum.</li>
</ul>


With the HSI surging 21.2% since 24 Sep and many stocks have even doubled, the strategy in the HK and China markets will move to chase the laggards.
Among the underperforming HSI constituents, China Resources Power (836 HK) and China Mobile (941 HK) are the better candidates to pick up performance. 
For HSCEI, Zijin Mining Group Co Ltd H (2899 HK) and China Shenhua Energy Co H (1088 HK) have lagged but their stories are interesting and should regain momentum.


Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>Innovent Biologics Inc (1801 HK) 1H26 revenue grew over 45% YoY, as oncology segment witnessed ramp up of newly NRDL-listed products and general biomedicine portfolio expanded.</li>
<li>The global innovation pipeline is progressing smoothly. Three high-potential assets have entered global Phase 3 clinical trials, with a combined potential addressable market exceeding US$ 60B.</li>
<li>Ongoing product launches and robust pipeline will support the growth momentum of the company. Innovent aims to achieve RMB 20B product revenue in 2027 (~ RMB 35-40B by 2030).</li>
</ul>


Innovent Biologics Inc (1801 HK) 1H26 revenue grew over 45% YoY, as oncology segment witnessed ramp up of newly NRDL-listed products and general biomedicine portfolio expanded.
The global innovation pipeline is progressing smoothly. Three high-potential assets have entered global Phase 3 clinical trials, with a combined potential addressable market exceeding US$ 60B.
Ongoing product launches and robust pipeline will support the growth momentum of the company. Innovent aims to achieve RMB 20B product revenue in 2027 (~ RMB 35-40B by 2030).


Innovent Biologics (1801 HK): Unfurling The Growth Momentum, Prospective Pipeline To Take It Forward

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>Wide dispersion of returns has meant that industry sector investing  was a major performance contributor in Hong Kong</li>
<li>
<a href="https://www.smartkarma.com/entities/lygend-resources-technology" target="_blank" data-smartkarma-citation="entities:36493:1" rel="noopener">Lygend Resources &amp; Technology (2245 HK)</a> brokeout after Indonesia announced a moratorium on new nickel mining permits.  <a href="https://www.smartkarma.com/entities/sino-biopharmaceutical" target="_blank" data-smartkarma-citation="entities:230:1" rel="noopener">Sino Biopharmaceutical (1177 HK)</a> broke its falling wedge pattern after announcing results.
</li>
<li>
<a href="https://www.smartkarma.com/entities/wynn-macau-ltd" target="_blank" data-smartkarma-citation="entities:473:1" rel="noopener">Wynn Macau Ltd (1128 HK)</a> broke to a new low after announcing a disappointing 2Q EBITDA.  The sector is also affected by a crackdown on illegal money exchange operations.
</li>
</ul>


Wide dispersion of returns has meant that industry sector investing  was a major performance contributor in Hong Kong

Lygend Resources &amp; Technology (2245 HK) brokeout after Indonesia announced a moratorium on new nickel mining permits.  Sino Biopharmaceutical (1177 HK) broke its falling wedge pattern after announcing results.


Wynn Macau Ltd (1128 HK) broke to a new low after announcing a disappointing 2Q EBITDA.  The sector is also affected by a crackdown on illegal money exchange operations.



Technically Speaking, Breakouts and Breakdowns: HONG KONG (AUGUST 15)

Simcere Pharmaceutical / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/simcere-pharmaceutical-group-limited" target="_blank" data-smartkarma-citation="entities:29186:1" rel="noopener">Simcere Pharmaceutical (2096 HK)</a> reported 28% YoY revenue growth to RMB 4.6B, driven by neuroscience and autoimmune segments.</li>
<li>Sanbexin injection, company’s flagship product, accounted for approximately 35% of the market share (~31% in 2025, ~29% in 1H25) in stroke injection, covering approximately 1.07M patients.</li>
<li>The extensive pipeline reserves have huge clinical and commercialization potential. Licensing deals signed alongside strong innovative drug portfolio, pending approvals and promising future pipeline augur well for future growth.</li>
</ul>



Simcere Pharmaceutical (2096 HK) reported 28% YoY revenue growth to RMB 4.6B, driven by neuroscience and autoimmune segments.
Sanbexin injection, company’s flagship product, accounted for approximately 35% of the market share (~31% in 2025, ~29% in 1H25) in stroke injection, covering approximately 1.07M patients.
The extensive pipeline reserves have huge clinical and commercialization potential. Licensing deals signed alongside strong innovative drug portfolio, pending approvals and promising future pipeline augur well for future growth.


Simcere Pharma (2096 HK): Sanbexin Increase Market Share; Prospective Pipeline, Approvals Holds Key

<ul>
<li>Surging by 19.4% since the trough on 19-Apr, the HSI is now only 3.2% shy away from the psychological resistance of 20,000. We look at some potential profit-taking names. </li>
<li>Heavy-Weights like <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> and <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> are among the best-performing ones YTD and since the trough. Hence they are more exposed, particularly for Meituan.</li>
<li>
<a href="https://www.smartkarma.com/entities/haidilao-international-holding" target="_blank" data-smartkarma-citation="entities:27044:1" rel="noopener">Haidilao International Holding (6862 HK)</a> and <a href="https://www.smartkarma.com/entities/enn-energy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:316:1" rel="noopener">ENN Energy (2688 HK)</a> are another two on the list. Their valuations are no longer inexpensive relative to 3-year earnings CAGR.</li>
</ul>


Surging by 19.4% since the trough on 19-Apr, the HSI is now only 3.2% shy away from the psychological resistance of 20,000. We look at some potential profit-taking names. 
Heavy-Weights like Meituan (3690 HK) and Tencent (700 HK) are among the best-performing ones YTD and since the trough. Hence they are more exposed, particularly for Meituan.

Haidilao International Holding (6862 HK) and ENN Energy (2688 HK) are another two on the list. Their valuations are no longer inexpensive relative to 3-year earnings CAGR.


HK Strategy: To Sell or Not to Sell, that Is the Question

Hong Kong

Sino Biopharmaceutical is a leading, innovation-driven pharmaceutical conglomerate in China, focusing on the research, development, manufacturing, and sale of pharmaceutical products. The company specializes in therapeutic areas such as oncology, hepatology, respiratory, and cardiovascular diseases, offering both modernized Chinese and Western medicines. It was founded in 2000 and is headquartered in Wanchai, Hong Kong.

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Sino Biopharmaceutical (1177 HK)

China & HK Strategy: What to Grab?

Hong Kong and China markets are seeing a surge, prompting a shift towards chasing underperforming stocks like CR Power and China Mobile in HSI,...

Osbert Tang, CFA

Innovent Biologics (1801 HK): Unfurling The Growth Momentum, Prospective Pipeline To Take It Forward

Innovent Biologics Inc (1801 HK) 1H26 revenue grew over 45% YoY. The global innovation pipeline is progressing smoothly. Aims to achieve RMB 20B...

Tina Banerjee

Technically Speaking, Breakouts and Breakdowns: HONG KONG (AUGUST 15)

Successful returns in Hong Kong has meant getting the industry right! Lygend benefits from moratorium on new nickel mine permits. Sino Bio RX...

David Mudd

HK Strategy: To Sell or Not to Sell, that Is the Question

HSI surges by 19.4% nearing the 20,000 resistance, potential profit-taking names include Meituan, Tencent, Haidilao, and ENN Energy due to strong...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China & HK Strategy: What to Grab?

​Hong Kong and China markets are seeing a surge, prompting a shift towards chasing underperforming stocks like CR Power and China Mobile in HSI,...

Osbert Tang, CFA

Innovent Biologics (1801 HK): Unfurling The Growth Momentum, Prospective Pipeline To Take It Forward

Innovent Biologics Inc (1801 HK) 1H26 revenue grew over 45% YoY. The global innovation pipeline is progressing smoothly. Aims to achieve RMB 20B...

Tina Banerjee

Technically Speaking, Breakouts and Breakdowns: HONG KONG (AUGUST 15)

Successful returns in Hong Kong has meant getting the industry right! Lygend benefits from moratorium on new nickel mine permits. Sino Bio RX...

David Mudd

Simcere Pharma (2096 HK): Sanbexin Increase Market Share; Prospective Pipeline, Approvals Holds Key

Simcere Pharma reported 28% YoY revenue growth to RMB 4.6B, driven by neuroscience and autoimmune segments. Licensing deals, pending approvals and...

Tina Banerjee

HK Strategy: To Sell or Not to Sell, that Is the Question

​HSI surges by 19.4% nearing the 20,000 resistance, potential profit-taking names include Meituan, Tencent, Haidilao, and ENN Energy due to strong...

Osbert Tang, CFA

Hong Kong and China markets are seeing a surge, prompting a shift towards chasing underperforming stocks like CR Power and China Mobile in HSI,...

HSI surges by 19.4% nearing the 20,000 resistance, potential profit-taking names include Meituan, Tencent, Haidilao, and ENN Energy due to strong...