Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

Equity Bottom-Up

<ul>
<li>The US$10.23bn net inflow through the Southbound Stock Connect in June marked a near-doubling from the May slump (US$5.85 bn), though it's still lower than the 15-month average (US$12.1 bn).</li>
<li>Investors bought high dividend yield SOEs heavily (e.g. China Construction Bank), and sold Tencent, Xiaomi, Alibaba. Healthcare companies - Innovent Biologics and CSPC Pharma were bought, underscoring investors' defensive stance.</li>
<li>Investors' dividend yield fascination seems unabated.  Some technology stocks (Tencent) do not seem overbought. Despite large buying, EV and ecommerce heavyweights (Meituan) are declining. Investors' appetite in them could slump.</li>
</ul>


The US$10.23bn net inflow through the Southbound Stock Connect in June marked a near-doubling from the May slump (US$5.85 bn), though it's still lower than the 15-month average (US$12.1 bn).
Investors bought high dividend yield SOEs heavily (e.g. China Construction Bank), and sold Tencent, Xiaomi, Alibaba. Healthcare companies - Innovent Biologics and CSPC Pharma were bought, underscoring investors' defensive stance.
Investors' dividend yield fascination seems unabated.  Some technology stocks (Tencent) do not seem overbought. Despite large buying, EV and ecommerce heavyweights (Meituan) are declining. Investors' appetite in them could slump.


Asian Equities: Southbound Monthly - June Acceleration; Old Getting Sold, Dividends the New Darling

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>China announced game approval for the June batch. The number of games approved remained at a higher level than 2023.</li>
<li>The pace of China game approval appears to have accelerated to the same level as pre-tightening.</li>
<li>In June, Tencent received approval for a domestic game. The company, with Netease and Kingsoft, also received approval for one imported game each.</li>
</ul>


China announced game approval for the June batch. The number of games approved remained at a higher level than 2023.
The pace of China game approval appears to have accelerated to the same level as pre-tightening.
In June, Tencent received approval for a domestic game. The company, with Netease and Kingsoft, also received approval for one imported game each.


Tencent/Netease: One Approval for Tencent in June

Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>
Context: Over the past five trading days, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.</li>
<li>
Highlights: With 20% of all strategies traded being Diagonal or Calendar Spreads, this remains a popular strategy. Directional positioning does not exhibit a bullish or bearish bias.</li>
<li>
Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies,</li>
</ul>



Context: Over the past five trading days, Tencent (700 HK) multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.

Highlights: With 20% of all strategies traded being Diagonal or Calendar Spreads, this remains a popular strategy. Directional positioning does not exhibit a bullish or bearish bias.

Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies,


Tencent (700 HK): Top Trades and Strategy Insights from Options Trading

<ul>
<li>Of our seven quantitative stock baskets, four have operated for more than three months. We measure the performances of these four - Consistent Compounders, SMID Compounders, Dividend Yielders, Indian Mid-Caps.</li>
<li>Consistent Compounders, though up since inception, has underperformed MXASJ mildly. SMID Compounders has underperformed sharply. Asian Dividend Yielders has outperformed handsomely and Indian Mid-Caps, by a stupendous margin.</li>
<li>We think the Indian mid-cap basket could take a short-term breather. The Dividend Yield basket could outperform, as investors’ preference for yields in uncertain times could continue for now.</li>
</ul>


Of our seven quantitative stock baskets, four have operated for more than three months. We measure the performances of these four - Consistent Compounders, SMID Compounders, Dividend Yielders, Indian Mid-Caps.
Consistent Compounders, though up since inception, has underperformed MXASJ mildly. SMID Compounders has underperformed sharply. Asian Dividend Yielders has outperformed handsomely and Indian Mid-Caps, by a stupendous margin.
We think the Indian mid-cap basket could take a short-term breather. The Dividend Yield basket could outperform, as investors’ preference for yields in uncertain times could continue for now.


Asian Equity: Performance of Our Quant Baskets: Indian MidCaps, Asian Dividend Yields Rule the Roost

<ul>
<li>Onshore Chinese investors’ purchases of HK equity through the Southbound Connect accelerated rapidly after China's September stimulus. Despite net selling in early May, the onshore bullishness seems sustainable for now.</li>
<li>Onshore investors prefer internet platforms (Tencent, Alibaba), technology and consumer discretionaries (Xiaomi, SMIC, China Mobile), and lately EVs (Li Auto, XPeng). High dividend SOE banks were bought earlier, not recently.</li>
<li>Our "China Twelve" stocks and focus themes closely align with onshore investors' preferences. 6 out of 12 figure in the "top bought" Southbound list - reaffirming our bullishness on them.</li>
</ul>


Onshore Chinese investors’ purchases of HK equity through the Southbound Connect accelerated rapidly after China's September stimulus. Despite net selling in early May, the onshore bullishness seems sustainable for now.
Onshore investors prefer internet platforms (Tencent, Alibaba), technology and consumer discretionaries (Xiaomi, SMIC, China Mobile), and lately EVs (Li Auto, XPeng). High dividend SOE banks were bought earlier, not recently.
Our "China Twelve" stocks and focus themes closely align with onshore investors' preferences. 6 out of 12 figure in the "top bought" Southbound list - reaffirming our bullishness on them.


Asian Equities: Southbound Trades Re-Affirm Our China Preferences

China

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

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Tencent Holdings (ADR) (TCEHY US)

Asian Equities: Southbound Monthly - June Acceleration; Old Getting Sold, Dividends the New Darling

June saw a surge in net inflow through Southbound Stock Connect, with investors favoring high dividend yield SOEs & defensive healthcare stocks...

Manishi Raychaudhuri

Tencent/Netease: One Approval for Tencent in June

China approves a higher number of games in June, with Tencent and other companies receiving approvals for both domestic and imported games. We are...

Ke Yan, CFA, FRM

Tencent (700 HK): Top Trades and Strategy Insights from Options Trading

Tencent's multi-leg option trades reveal a diverse range of strategies. Insights on market sentiment and actionable examples provided.

Gaudenz Schneider

Asian Equity: Performance of Our Quant Baskets: Indian MidCaps, Asian Dividend Yields Rule the Roost

Our quant basket performance: Consistent Compounders underperforms, SMID Compounders lags, Div Ylds outperform, Indian Mid-Caps excel. The last...

Manishi Raychaudhuri

Asian Equities: Southbound Trades Re-Affirm Our China Preferences

In May, net buying of HK-listed stocks cratered to $5.8bn from the previous 3 month’s $20-21bn range. Avg daily turnover dropped to $12bn from the...

Manishi Raychaudhuri

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Asian Equities: Southbound Monthly - June Acceleration; Old Getting Sold, Dividends the New Darling

​June saw a surge in net inflow through Southbound Stock Connect, with investors favoring high dividend yield SOEs & defensive healthcare stocks...

Manishi Raychaudhuri

Tencent/Netease: One Approval for Tencent in June

​China approves a higher number of games in June, with Tencent and other companies receiving approvals for both domestic and imported games. We are...

Ke Yan, CFA, FRM

Tencent (700 HK): Top Trades and Strategy Insights from Options Trading

​Tencent's multi-leg option trades reveal a diverse range of strategies. Insights on market sentiment and actionable examples provided.

Gaudenz Schneider

Asian Equity: Performance of Our Quant Baskets: Indian MidCaps, Asian Dividend Yields Rule the Roost

​Our quant basket performance: Consistent Compounders underperforms, SMID Compounders lags, Div Ylds outperform, Indian Mid-Caps excel. The last...

Manishi Raychaudhuri

Asian Equities: Southbound Trades Re-Affirm Our China Preferences

In May, net buying of HK-listed stocks cratered to $5.8bn from the previous 3 month’s $20-21bn range. Avg daily turnover dropped to $12bn from the...

Manishi Raychaudhuri

June saw a surge in net inflow through Southbound Stock Connect, with investors favoring high dividend yield SOEs & defensive healthcare stocks...

China approves a higher number of games in June, with Tencent and other companies receiving approvals for both domestic and imported games. We are...

Tencent's multi-leg option trades reveal a diverse range of strategies. Insights on market sentiment and actionable examples provided.

Our quant basket performance: Consistent Compounders underperforms, SMID Compounders lags, Div Ylds outperform, Indian Mid-Caps excel. The last...