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 23rd.</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 CCB, China Mobile, Meituan, BOC, CMB, Tencent, Xiaomi.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of May 23rd.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for CCB, China Mobile, Meituan, BOC, CMB, Tencent, Xiaomi.


HK Connect Flows Weekly (May 23rd): CCB, China Mobile, Meituan, BOC, CMB, Tencent, Xiaomi

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Ahead of <a href="https://www.smartkarma.com/entities/shanghai-henlius-biotech-inc" target="_blank" data-smartkarma-citation="entities:27888:1" rel="noopener">Shanghai Henlius Biotech (2696 HK)</a>'s EGM and Court Meeting on the 22 January, the focus has shifted to Loyal Valley Capital (LVC)'s continued buying in the market.</li>
<li>After the close of market last Friday, LVC held <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0110/2025011000368.pdf" target="_blank" rel="noopener">7.8295%</a>, above the 7.826% blocking stake. That % was as at 9th January. I assume LVC are still buying.</li>
<li>Yet if you analyse how LVC has traded in and out of Henlius, they are not in it to block. They're in for the back-end scrip option.  </li>
</ul>


Ahead of Shanghai Henlius Biotech (2696 HK)'s EGM and Court Meeting on the 22 January, the focus has shifted to Loyal Valley Capital (LVC)'s continued buying in the market.
After the close of market last Friday, LVC held 7.8295%, above the 7.826% blocking stake. That % was as at 9th January. I assume LVC are still buying.
Yet if you analyse how LVC has traded in and out of Henlius, they are not in it to block. They're in for the back-end scrip option.  


Henlius (2696 HK): LVC Won't Block. Buy Here & On Weakness

<ul>
<li>After <a href="https://www.smartkarma.com/entities/shanghai-henlius-biotech-inc" target="_blank" data-smartkarma-citation="entities:27888:1" rel="noopener">Shanghai Henlius Biotech (2696 HK)</a> secured NDRC approval on the 22nd Nov; fulfilled pre-cons on the 16th December, the Circular was dispatched last night, the 22nd December. </li>
<li>The EGM/H-share class meeting will take place on the 22nd January, one day past my estimate. Settlement should be on ore around the 18th Feb, a week beyond my estimate. </li>
<li>Trading at a gross/annualised spread off 2.9%/20.3%. Still attractive here.</li>
</ul>


After Shanghai Henlius Biotech (2696 HK) secured NDRC approval on the 22nd Nov; fulfilled pre-cons on the 16th December, the Circular was dispatched last night, the 22nd December. 
The EGM/H-share class meeting will take place on the 22nd January, one day past my estimate. Settlement should be on ore around the 18th Feb, a week beyond my estimate. 
Trading at a gross/annualised spread off 2.9%/20.3%. Still attractive here.


Henlius (2696 HK): Circ Out. 22nd Jan H-Class Meeting

<ul>
<li>After the <a href="https://www.smartkarma.com/entities/china-traditional-chinese-medicine" target="_blank" data-smartkarma-citation="entities:351:1" rel="noopener">China Traditional Chinese Medicine (570 HK)</a> fiasco back in October, Hong Kong M&amp;As have received some welcome Xmas cheer of late.</li>
<li>Small-Cap <a href="https://www.smartkarma.com/entities/cm-hi-tech-cleanroom-limited" target="_blank" data-smartkarma-citation="entities:44057:1" rel="noopener">CM Hi-Tech  (2115 HK)</a> secured reg approvals in record time. Then <a href="https://www.smartkarma.com/entities/cpmc-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10427:1" rel="noopener">CPMC (906 HK)</a>'s pre-cons were satisfied on 13th December. Now <a href="https://www.smartkarma.com/entities/shanghai-henlius-biotech-inc" target="_blank" data-smartkarma-citation="entities:27888:1" rel="noopener">Shanghai Henlius (2696 HK)</a>'s pre-cons are also fulfilled. </li>
<li>Henlius' spread narrowed after securing NDRC approval on the 22nd Nov; and again after fulfilling pre-cons this week. A 3.1% gross spread is okay. This is done. Get involved.</li>
</ul>


After the China Traditional Chinese Medicine (570 HK) fiasco back in October, Hong Kong M&amp;As have received some welcome Xmas cheer of late.
Small-Cap CM Hi-Tech  (2115 HK) secured reg approvals in record time. Then CPMC (906 HK)'s pre-cons were satisfied on 13th December. Now Shanghai Henlius (2696 HK)'s pre-cons are also fulfilled. 
Henlius' spread narrowed after securing NDRC approval on the 22nd Nov; and again after fulfilling pre-cons this week. A 3.1% gross spread is okay. This is done. Get involved.


Henlius (2696 HK): This Should Trade Tighter. Get Involved

<ul>
<li>On the 24th June, <a href="https://www.smartkarma.com/entities/shanghai-fosun-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:8045:1" rel="noopener">Fosun Pharmaceutical (2196 HK)</a> made a HK$24.60/share Offer, in cash, for H-shares not held in <a href="https://www.smartkarma.com/entities/shanghai-henlius-biotech-inc" target="_blank" data-smartkarma-citation="entities:27888:1" rel="noopener">Shanghai Henlius Biotech (2696 HK)</a>. A scrip alternative was subsequently afforded.</li>
<li>This is a pre-conditional Offer, subject to NDRC, Mofcom and SAFE - followed by a Scheme-like vote for independent H-shareholders. Henlius has announced that NDRC approval has now been secured.</li>
<li>Trading at a massive gross spread of ~21.5% compared to ~10% just prior to <a href="https://www.smartkarma.com/entities/china-traditional-chinese-medicine" target="_blank" data-smartkarma-citation="entities:351:1" rel="noopener">China Traditional Chinese Medicine (570 HK)</a>'s capitulation. This is excessive.</li>
</ul>


On the 24th June, Fosun Pharmaceutical (2196 HK) made a HK$24.60/share Offer, in cash, for H-shares not held in Shanghai Henlius Biotech (2696 HK). A scrip alternative was subsequently afforded.
This is a pre-conditional Offer, subject to NDRC, Mofcom and SAFE - followed by a Scheme-like vote for independent H-shareholders. Henlius has announced that NDRC approval has now been secured.
Trading at a massive gross spread of ~21.5% compared to ~10% just prior to China Traditional Chinese Medicine (570 HK)'s capitulation. This is excessive.


Henlius (2696 HK): The Spread Should Narrow After NDRC Approval

China

Sunshine Insurance Group Co. Ltd. is a Chinese company primarily engaged in providing a wide range of insurance products, including life, health, accident, and property and casualty insurance. It also offers asset management and healthcare services. The company was founded in 2005 and is headquartered in Wan Chai, Hong Kong.

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Sunshine Insurance (6963 HK)

HK Connect Flows Weekly (May 23rd): CCB, China Mobile, Meituan, BOC, CMB, Tencent, Xiaomi

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for CCB, China Mobile, Meituan, BOC, CMB, Tencent, Xiaomi.

Ke Yan, CFA, FRM

Henlius (2696 HK): LVC Won't Block. Buy Here & On Weakness

Trading wide at a 11.8% gross spread (using today's opening print) with expected payment around the third week of Feb. That's a buy here. I'd pay...

David Blennerhassett

Henlius (2696 HK): Circ Out. 22nd Jan H-Class Meeting

Currently at a 2.9% gross spread with expected payment around the third week of Feb. I'd pay up to HK$24.10/share for a 15% annualised spread.

David Blennerhassett

Henlius (2696 HK): This Should Trade Tighter. Get Involved

A 3.1% gross spread with expected payment around mid-Feb is okay. I'd pay up to HK$24.10/share for a 15% annualised spread. This is done. Get...

David Blennerhassett

Henlius (2696 HK): The Spread Should Narrow After NDRC Approval

Currently trading at an excessive gross/annualised spread of 21.5%/39.6%, assuming late-June payment. I'd get involved here. I'd pay up to HK$22.70...

David Blennerhassett

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