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

Shenton Research

Shenton 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 August 14th.</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 Minimax, Alibaba, Tencent, Meituan, AIA, China Life, Beone Medicines, Xiaomi, Wuxi Bio.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of August 14th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Minimax, Alibaba, Tencent, Meituan, AIA, China Life, Beone Medicines, Xiaomi, Wuxi Bio.


HK Connect Flows Weekly (Aug 14th): Minimax, Alibaba, Tencent, Meituan, AIA, China Life, Xiaomi

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>Investors appear to have lost faith in China healthcare following a plunge in CXO shares.But seeing the decline in CXO orders as indicator of industry's prosperity is a lagging view.</li>
<li>The logic of CXO is tied to biotech on the one hand and to overseas relationships on the other. But Biotech remains the cornerstone of the overall logical chain. </li>
<li>According to the primary market situation, we’re not optimistic about CXO's domestic business to achieve a significant recovery next year, but the overseas recovery/financing situation may improve a bit faster.</li>
</ul>


Investors appear to have lost faith in China healthcare following a plunge in CXO shares.But seeing the decline in CXO orders as indicator of industry's prosperity is a lagging view.
The logic of CXO is tied to biotech on the one hand and to overseas relationships on the other. But Biotech remains the cornerstone of the overall logical chain. 
According to the primary market situation, we’re not optimistic about CXO's domestic business to achieve a significant recovery next year, but the overseas recovery/financing situation may improve a bit faster.


China CXO Has Reached a Crossroads - Time to Reconsider

<ul>
<li>We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Aug 14th based on HKEx daily reports.</li>
<li>In the past 7 days, the top 3 companies that repurchased the most shares from the market were HSBC (5 HK), Link Reit (823 HK), Xiaomi (1810 HK).</li>
<li>In the past 30 days, the top 3 companies that repurchased the most shares from the market were Xiaomi (1810 HK), Link Reit (823 HK), HSBC (5 HK).</li>
</ul>


We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Aug 14th based on HKEx daily reports.
In the past 7 days, the top 3 companies that repurchased the most shares from the market were HSBC (5 HK), Link Reit (823 HK), Xiaomi (1810 HK).
In the past 30 days, the top 3 companies that repurchased the most shares from the market were Xiaomi (1810 HK), Link Reit (823 HK), HSBC (5 HK).


Hong Kong Buybacks Weekly (Aug 14th): HSBC, Link Reit, Xiaomi

<ul>
<li>The market of biopharmaceuticals and CDMO keeps growing, with CAGR of about 10%. However, CGT is the "outlier". The whole story of CGT business isn’t persuasive at the current stage.</li>
<li>Lonza is still the leader.WuXi bio has secured the second place. Samsung Biologics is catching up in terms of profit margin. Different production capacity structures can bring about different changes.</li>
<li>Industry concentration of CDMO would further increase, making it difficult for new entrants to seize orders from Top CDMOs.We advise investors not to spend too much time on small CDMOs.</li>
</ul>


The market of biopharmaceuticals and CDMO keeps growing, with CAGR of about 10%. However, CGT is the "outlier". The whole story of CGT business isn’t persuasive at the current stage.
Lonza is still the leader.WuXi bio has secured the second place. Samsung Biologics is catching up in terms of profit margin. Different production capacity structures can bring about different changes.
Industry concentration of CDMO would further increase, making it difficult for new entrants to seize orders from Top CDMOs.We advise investors not to spend too much time on small CDMOs.


A Different View on Global CDMO - The Industry Trend, the Major Players, and the Outlook

Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

Equity Derivatives

<ul>
<li>Hong Kong equities paused after a strong run, with market breadth weakening despite a continued upside skew in individual stock returns.</li>
<li>Single stock option activity fell sharply, with weaker Call trading accounting for much of the decline.</li>
<li>HSI implied volatility remains subdued relative to its recent history, while single stock implied vols remain comparatively elevated.</li>
</ul>


Hong Kong equities paused after a strong run, with market breadth weakening despite a continued upside skew in individual stock returns.
Single stock option activity fell sharply, with weaker Call trading accounting for much of the decline.
HSI implied volatility remains subdued relative to its recent history, while single stock implied vols remain comparatively elevated.


Hong Kong Single Stock Options Weekly Aug 03–07: Day-Of-Week Pattern Emerges as Volumes and Vol Fall

China

Wuxi Biologics is a global Contract Research, Development, and Manufacturing Organization (CRDMO) offering end-to-end solutions for biologics discovery, development, and manufacturing, including complex modalities like monoclonal antibodies and antibody-drug conjugates. The company provides comprehensive services from concept to commercialization, including vaccine CRDMO services. It was founded in 2010 and is headquartered in Wuxi, China.

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Wuxi Biologics (2269 HK)

HK Connect Flows Weekly (Aug 14th): Minimax, Alibaba, Tencent, Meituan, AIA, China Life, Xiaomi

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Minimax, Alibaba, Tencent, Meituan, AIA, China Life,...

Ke Yan, CFA, FRM

China CXO Has Reached a Crossroads - Time to Reconsider

Investors seem to have lost faith in China healthcare due to a plunge in CXO shares. This view is biased. It's time to clarify key logical points...

Xinyao (Criss) Wang

Hong Kong Buybacks Weekly (Aug 14th): HSBC, Link Reit, Xiaomi

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were HSBC (5 HK), Link...

Ke Yan, CFA, FRM

A Different View on Global CDMO - The Industry Trend, the Major Players, and the Outlook

After the release of 2022 annual reports by leading global CDMOs (Lonza, WuXi Bio, Samsung Biologics), we shared our different views and identified...

Xinyao (Criss) Wang

Hong Kong Single Stock Options Weekly Aug 03–07: Day-Of-Week Pattern Emerges as Volumes and Vol Fall

A weaker week for Hong Kong equities brought softer option activity and implied vols, while the recurring weakness later in the trading week...

John Ley

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52-week Range

Market Cap (USDm)

P/E

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