HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sichuan-kelun-biotech-biopharm" target="_blank" data-smartkarma-citation="entities:40071:1" rel="noopener">Sichuan Kelun-Biotech Bio (6990 HK)</a>, <a href="https://www.smartkarma.com/entities/techtronic-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:4561:1" rel="noopener">Techtronic Ind. (669 HK)</a>, <a href="https://www.smartkarma.com/entities/vesync" target="_blank" data-smartkarma-citation="entities:31067:1" rel="noopener">Vesync (2148 HK)</a>, <a href="https://www.smartkarma.com/entities/chervon-holdings-limited" target="_blank" data-smartkarma-citation="entities:35309:1" rel="noopener">Chervon Hldgs (2285 HK)</a>, and <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec (2359 HK)</a> have a very high reliance on the US market.</li>
<li>
<a href="https://www.smartkarma.com/entities/vtech-holdings-ltd" target="_blank" data-smartkarma-citation="entities:18812:1" rel="noopener">Vtech Hldgs (303 HK)</a>, <a href="https://www.smartkarma.com/entities/samsonite-international-sa" target="_blank" data-smartkarma-citation="entities:12790:1" rel="noopener">Samsonite (1910 HK)</a>, <a href="https://www.smartkarma.com/entities/haier-smart-home-co-ltd-b3ef445f-0f54-4586-8c58-9073de98d60e" target="_blank" data-smartkarma-citation="entities:31105:1" rel="noopener">Haier Smart Home (6690 HK)</a>, and <a href="https://www.smartkarma.com/entities/tcl-multimedia-technology" target="_blank" data-smartkarma-citation="entities:15654:1" rel="noopener">Tcl Multimedia (1070 HK)</a> ranked lower on the list, but consumer cutbacks will have a bigger impact. </li>
<li>The spillover effect of a US recession to other countries will pressurise companies that have low direct exposure, like <a href="https://www.smartkarma.com/entities/orient-overseas-international" target="_blank" data-smartkarma-citation="entities:801:1" rel="noopener">Orient Overseas International (316 HK)</a> and <a href="https://www.smartkarma.com/entities/prada-s-p-a" target="_blank" data-smartkarma-citation="entities:889:1" rel="noopener">Prada S.P.A. (1913 HK)</a>.</li>
</ul>



Sichuan Kelun-Biotech Bio (6990 HK), Techtronic Ind. (669 HK), Vesync (2148 HK), Chervon Hldgs (2285 HK), and WuXi AppTec (2359 HK) have a very high reliance on the US market.

Vtech Hldgs (303 HK), Samsonite (1910 HK), Haier Smart Home (6690 HK), and Tcl Multimedia (1070 HK) ranked lower on the list, but consumer cutbacks will have a bigger impact. 
The spillover effect of a US recession to other countries will pressurise companies that have low direct exposure, like Orient Overseas International (316 HK) and Prada S.P.A. (1913 HK).


China & HK Strategy: Who Are the Victims of a US Recession?

Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

<ul>
 <li>
Dominant Market Leader Facing Severe Headwinds: <a href="https://smartkarma.com/entities/xinyi-solar-holdings-ltd">Xinyi Solar</a> is the world's largest solar glass manufacturer, commanding a significant global market share of approximately 30-32%. However, the company is currently navigating a period of intense industry-wide overcapacity, which has led to a sharp decline in solar glass prices, severely compressing profitability and revenue as seen in recent financial years.</li>
 <li>
Strategic Vertical Integration and Diversification: The company operates a dual-business model, coupling its core solar glass manufacturing with the development and operation of solar farms. This provides a stable, recurring revenue stream that partially mitigates the cyclicality of the glass business and creates an internal demand channel. The company is also expanding its overseas production footprint to counter trade risks and capture international demand.</li>
 <li>
Challenged Financials but Long-Term Positive Outlook: Recent financial performance has been weak, with significant declines in net income and margins due to market conditions. Despite this, the long-term outlook for solar energy remains robust, driven by global decarbonization efforts and supportive government policies. Xinyi's scale, cost leadership, and technological innovation position it to capitalize on the eventual market recovery.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Dominant Market Leader Facing Severe Headwinds: Xinyi Solar is the world's largest solar glass manufacturer, commanding a significant global market share of approximately 30-32%. However, the company is currently navigating a period of intense industry-wide overcapacity, which has led to a sharp decline in solar glass prices, severely compressing profitability and revenue as seen in recent financial years.
  
Strategic Vertical Integration and Diversification: The company operates a dual-business model, coupling its core solar glass manufacturing with the development and operation of solar farms. This provides a stable, recurring revenue stream that partially mitigates the cyclicality of the glass business and creates an internal demand channel. The company is also expanding its overseas production footprint to counter trade risks and capture international demand.
  
Challenged Financials but Long-Term Positive Outlook: Recent financial performance has been weak, with significant declines in net income and margins due to market conditions. Despite this, the long-term outlook for solar energy remains robust, driven by global decarbonization efforts and supportive government policies. Xinyi's scale, cost leadership, and technological innovation position it to capitalize on the eventual market recovery.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>Vehicle-To-Grid (V2G) technology is rapidly expanding, and China is at the forefront, with the world's largest EV market.  Utilizing large onboard batteries and AI chips, NEVs could soon generate tokens.</li>
<li> China holds 60% of the global ESS market and targets 180GW of new capacity by 2027. NDRC is mandating V2G integration and targets 10+GW of flexible EV storage by 2030.</li>
<li>CATL Chairman Zeng stated in June 2026 that many EVs could be turned into "token factories" by tapping their batteries and AI chips to handle AI model inference workloads.</li>
</ul>


Vehicle-To-Grid (V2G) technology is rapidly expanding, and China is at the forefront, with the world's largest EV market.  Utilizing large onboard batteries and AI chips, NEVs could soon generate tokens.
 China holds 60% of the global ESS market and targets 180GW of new capacity by 2027. NDRC is mandating V2G integration and targets 10+GW of flexible EV storage by 2030.
CATL Chairman Zeng stated in June 2026 that many EVs could be turned into "token factories" by tapping their batteries and AI chips to handle AI model inference workloads.


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 analysed the earning revision of component stocks of HSI in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on AIA, LI AUTO, PING AN, ICBC, ORIENT OVERSEAS (INTERNATIONAL), LONGFOR, WEICHAI POWER, BIDU.</li>
</ul>


We analysed the earning revision of component stocks of HSI in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on AIA, LI AUTO, PING AN, ICBC, ORIENT OVERSEAS (INTERNATIONAL), LONGFOR, WEICHAI POWER, BIDU.


HSI Index Earning Revision (Sep): AIA, LI AUTO, PING AN, ICBC, ORIENT OVERSEAS (INTERNATIONAL), BIDU

Cross Asset Strategy

<ul>
<li>The Hong Kong market is consolidating with rotational buying into value and high dividend factor investments.  Mainland buying has slowed and diversified away from tech into low volatility names.</li>
<li>After leading the market for nine months, growth and momentum factors turned down sharply in October.  The energy sector is showing increased strength and momentum, while tech and healthcare lag.</li>
<li>
<a href="https://www.smartkarma.com/entities/xinyi-solar-holdings-ltd" target="_blank" data-smartkarma-citation="entities:318:1" rel="noopener">Xinyi Solar Holdings (968 HK)</a> had a technical breakout after forming a Golden Cross with a rebound off its 50 day-moving-average. The share price is benefiting from anti-involution policies.
</li>
</ul>


The Hong Kong market is consolidating with rotational buying into value and high dividend factor investments.  Mainland buying has slowed and diversified away from tech into low volatility names.
After leading the market for nine months, growth and momentum factors turned down sharply in October.  The energy sector is showing increased strength and momentum, while tech and healthcare lag.

Xinyi Solar Holdings (968 HK) had a technical breakout after forming a Golden Cross with a rebound off its 50 day-moving-average. The share price is benefiting from anti-involution policies.



Technically Speaking Breakouts & Breakdowns - HONG KONG (November 10)

China

Xinyi Solar produces and sells solar glass products, including ultra-clear patterned, back, and anti-reflective coating solar glasses. The company also develops, operates, and manages solar farms, generating solar power. It was founded in 2008 and is headquartered in Wuhu, the People's Republic of China.

Price Gauge
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Xinyi Solar (968 HK)

China & HK Strategy: Who Are the Victims of a US Recession?

Reliance on the US market varies among HK-listed companies, with some having high direct exposure to a recession. Those with low direct exposure...

Osbert Tang, CFA

Primer: Xinyi Solar (968 HK) - May 2026

Dominant Market Leader Facing Severe Headwinds: Xinyi Solar is the world's largest solar glass manufacturer, commanding a significant global...

αSK Primers

EVs: THE NEW AI TOKEN FACTORIES

Guoxia Tech (2655 HK) has surged 53% over 2 days on high volume. The driver is a continuation of the AI-linked energy storage re-rating that began...

David Mudd

HSI Index Earning Revision (Sep): AIA, LI AUTO, PING AN, ICBC, ORIENT OVERSEAS (INTERNATIONAL), BIDU

We analyzed HSI's consensus for Sep 2026 and highlighted changes of EPS in AIA, LI AUTO, PING AN, ICBC, ORIENT OVERSEAS (INTERNATIONAL), LONGFOR,...

Ke Yan, CFA, FRM

Technically Speaking Breakouts & Breakdowns - HONG KONG (November 10)

The Hong Kong market is consolidating with rotational buying into value and high dividend factor investments. Mainland buying has slowed and...

David Mudd

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China & HK Strategy: Who Are the Victims of a US Recession?

​Reliance on the US market varies among HK-listed companies, with some having high direct exposure to a recession. Those with low direct exposure...

Osbert Tang, CFA

Primer: Xinyi Solar (968 HK) - May 2026

Dominant Market Leader Facing Severe Headwinds: Xinyi Solar is the world's largest solar glass manufacturer, commanding a significant global...

αSK Primers

EVs: THE NEW AI TOKEN FACTORIES

Guoxia Tech (2655 HK) has surged 53% over 2 days on high volume. The driver is a continuation of the AI-linked energy storage re-rating that began...

David Mudd

HSI Index Earning Revision (Sep): AIA, LI AUTO, PING AN, ICBC, ORIENT OVERSEAS (INTERNATIONAL), BIDU

We analyzed HSI's consensus for Sep 2026 and highlighted changes of EPS in AIA, LI AUTO, PING AN, ICBC, ORIENT OVERSEAS (INTERNATIONAL), LONGFOR,...

Ke Yan, CFA, FRM

Technically Speaking Breakouts & Breakdowns - HONG KONG (November 10)

The Hong Kong market is consolidating with rotational buying into value and high dividend factor investments. Mainland buying has slowed and...

David Mudd

Reliance on the US market varies among HK-listed companies, with some having high direct exposure to a recession. Those with low direct exposure...