Research on Tech Companies

Evelyn Zhang

Thematic (Sector/Industry)

USTR requested comments on potential exclusions of products of China subject to tariffs.
The largest exemption categories include Electrical equipment, electronic, mechanical equipment.
The household appliances have over 50% dependence on Chinese imports. 
This article combines the four tariff lists and identifies the goods most reliant on China, and consequently, potential beneficiaries of this Sino-US trade relaxation.

USTR requested comments on potential exclusions of products of China subject to tariffs.
The largest exemption categories include Electrical equipment, electronic, mechanical equipment.
The household appliances have over 50% dependence on Chinese imports. 
This article combines the four tariff lists and identifies the goods most reliant on China, and consequently, potential beneficiaries of this Sino-US trade relaxation.

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

China allocations among Global active managers have fallen to below pre 2017 levels.  Average holding weights among the 381 funds in our analysis dropped to 3.76%, underweight the MSCI All Country World index by -1.18% with just 28.3% overweight the benchmark. This allocation drop is in stark contrast to what is occurring in the USA, with allocations powering to all-time highs of 53.70%.  The difference between US and China weights are at all-time wides.The most widely held stocks are <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US), </a><a href="https://www.smartkarma.com/entities/aia-group-ltd" target="_blank" data-smartkarma-citation="entities:14895:1" rel="noopener">AIA Group Ltd (1299 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>, with the trio accounting for 40.6% of total China allocations.  If Global managers are to increase weights in China, they will likely have to broaden their investment horizons.  Comparing Global stock holdings in China with their Global Emerging Market peers suggests a number of stocks that could enter the radar of Global investors.  We highlight <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a> , <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> and <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a> as stocks lightly held by Global managers but well invested by EM active funds.

China allocations among Global active managers have fallen to below pre 2017 levels.  Average holding weights among the 381 funds in our analysis dropped to 3.76%, underweight the MSCI All Country World index by -1.18% with just 28.3% overweight the benchmark. This allocation drop is in stark contrast to what is occurring in the USA, with allocations powering to all-time highs of 53.70%.  The difference between US and China weights are at all-time wides.The most widely held stocks are Alibaba Group (BABA US), AIA Group Ltd (1299 HK) and Tencent (700 HK), with the trio accounting for 40.6% of total China allocations.  If Global managers are to increase weights in China, they will likely have to broaden their investment horizons.  Comparing Global stock holdings in China with their Global Emerging Market peers suggests a number of stocks that could enter the radar of Global investors.  We highlight Ping An Insurance (H) (2318 HK) , Meituan (3690 HK) and JD.com Inc (ADR) (JD US) as stocks lightly held by Global managers but well invested by EM active funds.

Global Funds China Fall:  Gap to US Largest in History

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>On the 14th May 2026, <a href="https://www.smartkarma.com/entities/ten-pao-group-holdings-limited" target="_blank" data-smartkarma-citation="entities:27241:1" rel="noopener">Ten Pao (1979 HK)</a>, a power-supply and charging device manufacturer, <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2026/0514/2026051401480.pdf" target="_blank" rel="noopener">announced</a> the spin-off of its 92.4091%-held charging device arm via an A-share listing.</li>
<li>Shares gained 21% on the news - which were promptly given back, and then some, with shares now down 17% from undisturbed. </li>
<li>
<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2026/0703/2026070302019.pdf" target="_blank" rel="noopener">A circular is now out</a>. A shareholder vote on the carve out has been waived. The transaction requires CSRC approval. </li>
</ul>


On the 14th May 2026, Ten Pao (1979 HK), a power-supply and charging device manufacturer, announced the spin-off of its 92.4091%-held charging device arm via an A-share listing.
Shares gained 21% on the news - which were promptly given back, and then some, with shares now down 17% from undisturbed. 

A circular is now out. A shareholder vote on the carve out has been waived. The transaction requires CSRC approval. 


On Ten Pao (1979 HK)'s Proposed A-Share Spin-Off

<ul>
<li>Priced at RM10.11/share, <a href="https://www.smartkarma.com/entities/china-resources-new-energy-holdings-company-limited" target="_blank" data-smartkarma-citation="entities:50306:1" rel="noopener">China Resources New Energy (001248 CH)</a> (CRNE) appeared fairly priced on a trailing P/B; to possibly "cheap" on a trailing PER metric, depending on your forecast viewpoint. </li>
<li>However, at ~700x oversubscribed, and given CRNE is part of the vast SOE China Resources Holdings, a pop on debut was a safe bet. CRNE is now up 109%.</li>
<li>
<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 81.8% stake in CRNE accounts for 307% of its market cap. And places the discount to NAV at ~74%,  That's not sustainable. </li>
</ul>


Priced at RM10.11/share, China Resources New Energy (001248 CH) (CRNE) appeared fairly priced on a trailing P/B; to possibly "cheap" on a trailing PER metric, depending on your forecast viewpoint. 
However, at ~700x oversubscribed, and given CRNE is part of the vast SOE China Resources Holdings, a pop on debut was a safe bet. CRNE is now up 109%.

China Resources Power (836 HK)'s 81.8% stake in CRNE accounts for 307% of its market cap. And places the discount to NAV at ~74%,  That's not sustainable. 


Buy CR Power (836 HK) As CRNE (More Than) Doubles On Debut

<ul>
<li>Back 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 was lodged on the 10th June, with a tentative listing early July. CRNE's 1Q26 profit was down 28%, with a forecast drop of at least 19% in 1H26E. </li>
<li>
CRNE has been priced at RM10.11/share, raising US$3.8bn, with a post-money market cap of US$20.8bn. CRNE's peer basket is down 21% in the past month. CRP is down 10%.</li>
</ul>


Back 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 was lodged on the 10th June, with a tentative listing early July. CRNE's 1Q26 profit was down 28%, with a forecast drop of at least 19% in 1H26E. 

CRNE has been priced at RM10.11/share, raising US$3.8bn, with a post-money market cap of US$20.8bn. CRNE's peer basket is down 21% in the past month. CRP is down 10%.


Update On CR Power (836 HK)'s Clean Energy Spin-Off

Hong Kong

WH Group is the world's largest pork company, operating across China, the US, and Europe. It integrates hog production, slaughtering, and the processing and distribution of packaged meats and fresh pork. The company's core business includes a wide range of packaged meat products and fresh pork. Headquartered in Hong Kong, the company traces its origins back to 1958.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

WH Group (288 HK)

A Truce in Trade War?

USTR requested comments on potential exclusions of products of China subject to tariffs. We analyze the potential beneficiaries of this Sino-US...

Evelyn Zhang

Global Funds China Fall: Gap to US Largest in History

China allocations among Global active funds have fallen to below pre 2017 levels. Average holding weights among the 381 funds in our analysis...

Steven Holden

Buy CR Power (836 HK) As CRNE (More Than) Doubles On Debut

CRP has barely registered CRNE's bigly price gain on debut. The question is whether it will. CRP is totally misproced versus its holding in CRNE....

David Blennerhassett

Update On CR Power (836 HK)'s Clean Energy Spin-Off

CR Power is a BUY after 81.81%-held (after over-allotment) China Resources New Energy Group (001248 CH) opened at RMB21.60 versus an IPO price of...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

A Truce in Trade War?

USTR requested comments on potential exclusions of products of China subject to tariffs. We analyze the potential beneficiaries of this Sino-US...

Evelyn Zhang

Global Funds China Fall: Gap to US Largest in History

China allocations among Global active funds have fallen to below pre 2017 levels. Average holding weights among the 381 funds in our analysis...

Steven Holden

On Ten Pao (1979 HK)'s Proposed A-Share Spin-Off

If illiquid, long-dated, events are your thing, keep tabs on this stock. The spin-off may be worth upward of HK$7.6bn - or ~160% of Ten Pao's...

David Blennerhassett

Buy CR Power (836 HK) As CRNE (More Than) Doubles On Debut

CRP has barely registered CRNE's bigly price gain on debut. The question is whether it will. CRP is totally misproced versus its holding in CRNE....

David Blennerhassett

Update On CR Power (836 HK)'s Clean Energy Spin-Off

CR Power is a BUY after 81.81%-held (after over-allotment) China Resources New Energy Group (001248 CH) opened at RMB21.60 versus an IPO price of...

David Blennerhassett