Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Equity Bottom-Up

<ul>
<li>Mainland China investors continued to increase their purchases of Hong Kong shares through the southbound connect platform after Trump's win. Mainland investors bought a record HK$800B of HK shares in 2024.</li>
<li>
<a href="https://www.smartkarma.com/entities/weimob-inc" target="_blank" data-smartkarma-citation="entities:27394:1" rel="noopener">Weimob Inc. (2013 HK)</a> announced it is connecting its Weimob mini-programs to Tencent's (700 HK) WeChat mini-shop. This move further integrates the SaaS company into Tencent's ecosystem.
</li>
<li>
<a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a> announced a license agreement with US-based <a href="https://www.smartkarma.com/entities/aadi-bioscience-inc" target="_blank" data-smartkarma-citation="entities:37488:1" rel="noopener">Aadi Bioscience (AADI US)</a>.  Also, Wuxi was not included in the Senate version of the BioSecure legislation improving investor sentiment.
</li>
</ul>


Mainland China investors continued to increase their purchases of Hong Kong shares through the southbound connect platform after Trump's win. Mainland investors bought a record HK$800B of HK shares in 2024.

Weimob Inc. (2013 HK) announced it is connecting its Weimob mini-programs to Tencent's (700 HK) WeChat mini-shop. This move further integrates the SaaS company into Tencent's ecosystem.


Wuxi Biologics (2269 HK) announced a license agreement with US-based Aadi Bioscience (AADI US).  Also, Wuxi was not included in the Senate version of the BioSecure legislation improving investor sentiment.



The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (December 26)

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>2024 marks another year that our "Buy the worst" strategy underperformed the HSI. The strategy yielded -1.7% YTD, against HSI's +17.9%. <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> is the only winner.</li>
<li>For 2025, the strategy will switch to <a href="https://www.smartkarma.com/entities/budweiser-brewing-co-apac-ltd" target="_blank" data-smartkarma-citation="entities:28077:1" rel="noopener">Budweiser Brewing (1876 HK)</a>, <a href="https://www.smartkarma.com/entities/chow-tai-fook-jewellery-group" target="_blank" data-smartkarma-citation="entities:549:1" rel="noopener">Chow Tai Fook (1929 HK)</a>, <a href="https://www.smartkarma.com/entities/hang-lung-properties-ltd" target="_blank" data-smartkarma-citation="entities:49:1" rel="noopener">Hang Lung Props (101 HK)</a>, <a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a>, and <a href="https://www.smartkarma.com/entities/cspc-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:229:1" rel="noopener">CSPC Pharmaceutical (1093 HK)</a>.  </li>
<li>The top five HSI winners YTD 2024 have generated an average gain of 92.7%, outperforming the HSI massively. Given their current high valuations, this is unlikely to repeat in 2025.</li>
</ul>


2024 marks another year that our "Buy the worst" strategy underperformed the HSI. The strategy yielded -1.7% YTD, against HSI's +17.9%. Meituan (3690 HK) is the only winner.
For 2025, the strategy will switch to Budweiser Brewing (1876 HK), Chow Tai Fook (1929 HK), Hang Lung Props (101 HK), Wuxi Biologics (2269 HK), and CSPC Pharmaceutical (1093 HK).  
The top five HSI winners YTD 2024 have generated an average gain of 92.7%, outperforming the HSI massively. Given their current high valuations, this is unlikely to repeat in 2025.


"Buy the Worst" HSI Strategy: Another Disappointing Year in 2024, Let's See 2025

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.

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Dec 13th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short changes in Hkex, Tracker Fund, Midea, Kuaishou, Jd, Bosideng.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Dec 13th.
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short changes in Hkex, Tracker Fund, Midea, Kuaishou, Jd, Bosideng.


HK Short Interest Weekly: Hkex, Tracker Fund, Midea, Kuaishou, Jd, Bosideng

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

<ul>
<li>In this insight we chart the progress of China's tourism recovery vs pre-pandemic levels</li>
<li>In October 2024, Chinese outbound (international) demand finally reached pre-Covid levels</li>
<li>The recovery in domestic activity was completed earlier and more quickly than outbound</li>
</ul>


In this insight we chart the progress of China's tourism recovery vs pre-pandemic levels
In October 2024, Chinese outbound (international) demand finally reached pre-Covid levels
The recovery in domestic activity was completed earlier and more quickly than outbound


Monthly Chinese Tourism Tracker | Five Easy Charts Showing China's Tourism Recovery To Date

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Dec 6th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short changes in Xpeng, Jd, Meituan, Tracker Fund, HSBC.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Dec 6th.
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short changes in Xpeng, Jd, Meituan, Tracker Fund, HSBC.


HK Short Interest Weekly: Midea, Xpeng, Jd, Meituan, Tracker Fund, HSBC

China

Trip.com Group Limited provides online travel agency services. The Company offers mobile applications, hotel reservations, flight ticketing, package tours, corporate travel management, and train ticketing services. Trip.com Group provides services worldwide.

Price Gauge
52-week Range	0.00 - 0.00
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Dividend (Yield)	0.00

Trip.com Group (9961 HK)

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (December 26)

Mainland investors are increasing their buying of HK shares after Trump's election win. Mainlanders bought a record HK$800B of shares this year and...

David Mudd

"Buy the Worst" HSI Strategy: Another Disappointing Year in 2024, Let's See 2025

The 2024 "Buy the worst" strategy has underperformed HSI, and the new picks for 2025 are Budweiser APAC, Chow Tai Fook, Hang Lung Properties, Wuxi...

Osbert Tang, CFA

HK Short Interest Weekly: Hkex, Tracker Fund, Midea, Kuaishou, Jd, Bosideng

We analyzed the latest HK SFC report for aggregate short position as of Dec 13th and highlight short interest changes in Hkex, Tracker Fund, Midea,...

Ke Yan, CFA, FRM

Monthly Chinese Tourism Tracker | Five Easy Charts Showing China's Tourism Recovery To Date

In this insight we illustrate the trajectory of China's ongoing recovery in outbound and domestic travel activity in five easy charts.

Tracking Traffic

HK Short Interest Weekly: Midea, Xpeng, Jd, Meituan, Tracker Fund, HSBC

We analyzed the latest HK SFC report for aggregate short position as of Dec 6th and highlight short interest changes in Xpeng, Jd, Meituan, Tracker...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (December 26)

Mainland investors are increasing their buying of HK shares after Trump's election win. Mainlanders bought a record HK$800B of shares this year and...

David Mudd

"Buy the Worst" HSI Strategy: Another Disappointing Year in 2024, Let's See 2025

​The 2024 "Buy the worst" strategy has underperformed HSI, and the new picks for 2025 are Budweiser APAC, Chow Tai Fook, Hang Lung Properties, Wuxi...

Osbert Tang, CFA

HK Short Interest Weekly: Hkex, Tracker Fund, Midea, Kuaishou, Jd, Bosideng

We analyzed the latest HK SFC report for aggregate short position as of Dec 13th and highlight short interest changes in Hkex, Tracker Fund, Midea,...

Ke Yan, CFA, FRM

Monthly Chinese Tourism Tracker | Five Easy Charts Showing China's Tourism Recovery To Date

In this insight we illustrate the trajectory of China's ongoing recovery in outbound and domestic travel activity in five easy charts.

Tracking Traffic

HK Short Interest Weekly: Midea, Xpeng, Jd, Meituan, Tracker Fund, HSBC

We analyzed the latest HK SFC report for aggregate short position as of Dec 6th and highlight short interest changes in Xpeng, Jd, Meituan, Tracker...

Ke Yan, CFA, FRM

The 2024 "Buy the worst" strategy has underperformed HSI, and the new picks for 2025 are Budweiser APAC, Chow Tai Fook, Hang Lung Properties, Wuxi...