HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Event-Driven

Beijing Tiantan Biological Products / Event-Driven

<ul>
<li>Tiantan plans to acquire 100% equity of Zhongyuan Ruide from CSL Behring ASIA PACIFIC LIMITED for US$185 million, so as to consolidate its leading position in blood products industry.</li>
<li>BeiGene is accused of trade secrets theft by AbbVie. Considering AbbVie is good at using legal means to profit for itself, this lawsuit may become full of uncertainty in US.</li>
<li>The House passed BIOSECURE Act to make drug companies stop doing business with Chinese CXO.The probability of this Bill passing is high. We recommend prepare for worst-case scenario in advance.</li>
</ul>


Tiantan plans to acquire 100% equity of Zhongyuan Ruide from CSL Behring ASIA PACIFIC LIMITED for US$185 million, so as to consolidate its leading position in blood products industry.
BeiGene is accused of trade secrets theft by AbbVie. Considering AbbVie is good at using legal means to profit for itself, this lawsuit may become full of uncertainty in US.
The House passed BIOSECURE Act to make drug companies stop doing business with Chinese CXO.The probability of this Bill passing is high. We recommend prepare for worst-case scenario in advance.


China Healthcare Weekly (Sep15)- Tiantan's New Deal, BeiGene-AbbVie Lawsuit, BIOSECURE Act Will Pass

Market & Forensics Analyst, Beat the Street

Nimish Maheshwari

Market & Forensics Analyst

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Thematic (Sector/Industry)

<ul>
<li>The U.S. House passed the Biosecure Act, mandating U.S. pharma firms to cut ties with specific Chinese biotechs by 2032.</li>
<li>This opens opportunities for Indian CDMOs, positioning them as viable alternatives due to geopolitical alignment and regulatory quality.</li>
<li>India’s CDMOs could see substantial growth, benefiting from increased global diversification efforts away from China.</li>
</ul>


The U.S. House passed the Biosecure Act, mandating U.S. pharma firms to cut ties with specific Chinese biotechs by 2032.
This opens opportunities for Indian CDMOs, positioning them as viable alternatives due to geopolitical alignment and regulatory quality.
India’s CDMOs could see substantial growth, benefiting from increased global diversification efforts away from China.


The US Biosecure Act: A Boon for Indian CDMO Players?

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>The Midea Group (300 HK) IPO is being offered at a price range of HK$52-54.8/share, a discount of 20.9%-25% to <a href="https://www.smartkarma.com/entities/midea-group-co-ltd-a" target="_blank" data-smartkarma-citation="entities:16185:1" rel="noopener">Midea Group</a>. That will raise US$3.28bn-US$3.46bn for the company.</li>
<li>Midea Group (300 HK) will not get Fast Entry to the HSCI but will be added to Southbound Stock Connect on 14 October once the price stabilisation period has ended.</li>
<li>Midea Group (300 HK) should get Fast Entry to one global index and that could lead to inclusion in the <a href="https://www.smartkarma.com/entities/ishares-china-large-cap-etf" target="_blank" data-smartkarma-citation="entities:766:1" rel="noopener">iShares China Large-Cap (FXI) (FXI US)</a> too.</li>
</ul>


The Midea Group (300 HK) IPO is being offered at a price range of HK$52-54.8/share, a discount of 20.9%-25% to Midea Group. That will raise US$3.28bn-US$3.46bn for the company.
Midea Group (300 HK) will not get Fast Entry to the HSCI but will be added to Southbound Stock Connect on 14 October once the price stabilisation period has ended.
Midea Group (300 HK) should get Fast Entry to one global index and that could lead to inclusion in the iShares China Large-Cap (FXI) (FXI US) too.


Midea Group (300 HK): IPO Open Now; Upcoming Index Flows

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>SOUTHBOUND was a net seller the prior week for HK$1.5bn, the first week in 29 where SB was a net seller. It was all ETFs. Stocks were a net buy.</li>
<li>This week, they reverted to net buying. Financials and Utilities were strong net buys. ETFs again a net sell. Total SOUTHBOUND volumes also picked up. </li>
<li>SOEs, SOE Banks, Energy, Utilities, and finally <a href="https://www.smartkarma.com/entities/anta-sports-products-ltd" target="_blank" data-smartkarma-citation="entities:10261:1" rel="noopener">Anta Sports Products (2020 HK)</a> saw net buying after salutary earnings.</li>
</ul>


SOUTHBOUND was a net seller the prior week for HK$1.5bn, the first week in 29 where SB was a net seller. It was all ETFs. Stocks were a net buy.
This week, they reverted to net buying. Financials and Utilities were strong net buys. ETFs again a net sell. Total SOUTHBOUND volumes also picked up. 
SOEs, SOE Banks, Energy, Utilities, and finally Anta Sports Products (2020 HK) saw net buying after salutary earnings.


HK Connect SOUTHBOUND Flows (To 30 Aug 2024); Weak Econ Data, But a Rebound in SB Net Buys

Equity Bottom-Up

<ul>
<li>WuXi XDC’s YoY revenue growth rate fell to double-digit while it was kept triple-digit growth rate in previous periods. How much revenue generated from backlog isn’t within WuXi XDC’s control. </li>
<li>The significance of healthy growth of the global ADC market is that the good story of ADC CXO is able to continue. So, WuXi XDC’s short-term performance growth is guaranteed.</li>
<li>The establishment of an independent biopharmaceutical supply chain based on US national security concerns is inevitable. So, WuXi XDC’s stock price performance is more influenced by geopolitical conflicts than fundamentals. </li>
</ul>


WuXi XDC’s YoY revenue growth rate fell to double-digit while it was kept triple-digit growth rate in previous periods. How much revenue generated from backlog isn’t within WuXi XDC’s control. 
The significance of healthy growth of the global ADC market is that the good story of ADC CXO is able to continue. So, WuXi XDC’s short-term performance growth is guaranteed.
The establishment of an independent biopharmaceutical supply chain based on US national security concerns is inevitable. So, WuXi XDC’s stock price performance is more influenced by geopolitical conflicts than fundamentals. 


WuXi XDC Cayman (2268.HK) 24H1- High Growth of ADC Market Ensures Investment Logic, but Risks Remain

China

WuXi AppTec Co., Ltd. manufactures medical products. The Company produces biological agents, antibodies, biological diagnostic reagents, and other products. WuXi AppTec also provides biological analysis, technical study, and other services.

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WuXi AppTec (603259 CH)

China Healthcare Weekly (Sep15)- Tiantan's New Deal, BeiGene-AbbVie Lawsuit, BIOSECURE Act Will Pass

Tiantan to acquire Zhongyuan Ruide for $185 million from CSL Behring. BeiGene is accused of trade secrets theft by AbbVie. The chances of...

Xinyao (Criss) Wang

The US Biosecure Act: A Boon for Indian CDMO Players?

The Biosecure Act passed by the U.S. House could boost Indian CDMOs as alternative to Chinese biotechs by 2032, leading to potential growth...

Nimish Maheshwari

Midea Group (300 HK): IPO Open Now; Upcoming Index Flows

Midea Group is offering the H-shares at a 20.9-25% discount to the A-shares and is expected to list on 17 Sep. The H-shares could get Fast Entry to...

Brian Freitas

HK Connect SOUTHBOUND Flows (To 30 Aug 2024); Weak Econ Data, But a Rebound in SB Net Buys

SOUTHBOUND Connect flows picked up to the positive side again after the buy streak was broken the week before. Gross flows picked up. Econ data was...

Travis Lundy

WuXi XDC Cayman (2268.HK) 24H1- High Growth of ADC Market Ensures Investment Logic, but Risks Remain

Global ADC market growth ensures short-term performance stability,but WuXi XDC faces challenges due to factors beyond its control.Geopolitical...

Xinyao (Criss) Wang

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52-week Range

Market Cap (USDm)

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China Healthcare Weekly (Sep15)- Tiantan's New Deal, BeiGene-AbbVie Lawsuit, BIOSECURE Act Will Pass

​Tiantan to acquire Zhongyuan Ruide for $185 million from CSL Behring. BeiGene is accused of trade secrets theft by AbbVie. The chances of...

Xinyao (Criss) Wang

The US Biosecure Act: A Boon for Indian CDMO Players?

​The Biosecure Act passed by the U.S. House could boost Indian CDMOs as alternative to Chinese biotechs by 2032, leading to potential growth...

Nimish Maheshwari

Midea Group (300 HK): IPO Open Now; Upcoming Index Flows

Midea Group is offering the H-shares at a 20.9-25% discount to the A-shares and is expected to list on 17 Sep. The H-shares could get Fast Entry to...

Brian Freitas

HK Connect SOUTHBOUND Flows (To 30 Aug 2024); Weak Econ Data, But a Rebound in SB Net Buys

SOUTHBOUND Connect flows picked up to the positive side again after the buy streak was broken the week before. Gross flows picked up. Econ data was...

Travis Lundy

WuXi XDC Cayman (2268.HK) 24H1- High Growth of ADC Market Ensures Investment Logic, but Risks Remain

​Global ADC market growth ensures short-term performance stability,but WuXi XDC faces challenges due to factors beyond its control.Geopolitical...

Xinyao (Criss) Wang

Tiantan to acquire Zhongyuan Ruide for $185 million from CSL Behring. BeiGene is accused of trade secrets theft by AbbVie. The chances of...

The Biosecure Act passed by the U.S. House could boost Indian CDMOs as alternative to Chinese biotechs by 2032, leading to potential growth...

Global ADC market growth ensures short-term performance stability,but WuXi XDC faces challenges due to factors beyond its control.Geopolitical...