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.

Index Rebalance

<ul>
<li>HSIL adopted all six proposed HS TECH changes, five unchanged and one with modifications, and the new rules take effect on 7 Dec 2026.</li>
<li>Selection by market value and sales growth was adopted with modifications, adding a turnover floor for non-constituents and a minimum sales test for sales growth candidates.</li>
<li>The velocity test, innovation screening, weighting, caps and quarterly review are retained from the current rules.</li>
</ul>


HSIL adopted all six proposed HS TECH changes, five unchanged and one with modifications, and the new rules take effect on 7 Dec 2026.
Selection by market value and sales growth was adopted with modifications, adding a turnover floor for non-constituents and a minimum sales test for sales growth candidates.
The velocity test, innovation screening, weighting, caps and quarterly review are retained from the current rules.


HS TECH Consultation Conclusions: Retained and Refined Rules

Co-Founder & CEO, Newmark Risk

Nicholas Pezolano

Co-Founder & CEO

Option analytics for institutional investors

Newmark Risk

Fin-tech company focused on providing option derived analytics for institutional investors.

We handle the complexity of options data so you don't have to.

- Data and Analytics available all in one place so you can focus on Strategy Development
- Custom Solutions for your data and/or portfolio needs
- Advisory services to lend our expertise

Knowledge is something that was meant to be shared and we provide insights to our clients and to the community via posting about our research findings.

Equity Derivatives

<ul>
<li>Top Hong Kong Stock Exchange listed covered call candidates for the month of October.</li>
<li>The top 10 provide an average ~7.42% premium with a potential ~8.82% upside P&amp;L if exercised.</li>
<li>Investors with a neutral 1-month view on the underlying can seek to generate income.</li>
</ul>


Top Hong Kong Stock Exchange listed covered call candidates for the month of October.
The top 10 provide an average ~7.42% premium with a potential ~8.82% upside P&amp;L if exercised.
Investors with a neutral 1-month view on the underlying can seek to generate income.


EQD | Hong Kong October 2026 Monthly Covered Call Report

Healthcare Analyst

Wilfred Yuen

Equity Capital Markets

Iambic Therapeutics / Equity Capital Markets

<ul>
<li>Founded in 2019 and backed by NVIDIA, Iambic is a technology and clinical-stage biotech company. S1 was filed on 21 September.</li>
<li>Iambic's value creation hinges on 1) its molecular superintelligence platform (flagship AI models Enchant/NeuralPLexer), 2) pipeline: partnered/wholly-owned programs including clinical-stage IAM1363 (Type2 HER2 inhibitor), 3) a growing roster of partnerships</li>
<li>1H26 collaboration revenue and net loss amounted to US$12.8m (vs. US$3.9m in 1H25) and US$50.2m, respectively. See inside for more on Iambic AI models and IAM1363 clinical data</li>
</ul>


Founded in 2019 and backed by NVIDIA, Iambic is a technology and clinical-stage biotech company. S1 was filed on 21 September.
Iambic's value creation hinges on 1) its molecular superintelligence platform (flagship AI models Enchant/NeuralPLexer), 2) pipeline: partnered/wholly-owned programs including clinical-stage IAM1363 (Type2 HER2 inhibitor), 3) a growing roster of partnerships
1H26 collaboration revenue and net loss amounted to US$12.8m (vs. US$3.9m in 1H25) and US$50.2m, respectively. See inside for more on Iambic AI models and IAM1363 clinical data


Iambic Tx IPO First-Read: AI Models Enchant/NeuralPLexer, IAM1363 (Type II HER2i), Partnerships

Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

Cross Asset Strategy

<ul>
<li>Southbound net buying jumped sharply to US$24.2bn in September. This was the highest ever. So was the average daily trading volume of US$20.3bn. Alibaba constituted 40% of total net buying.</li>
<li>Tencent, SMIC, Meituan were bought heavily, while Xiaomi and Pop Mart continue to be sold. Investors are likely avoiding the sectors with disorderly price wars and stocks with super-premium valuations.</li>
<li>In H2'25, the biotech companies, Innovent Biologics, XTALPI and Akeso are Southbound investors' favorites. The buying momentum could continue here as long as the tailwind of frequent licensing deals lasts.</li>
</ul>


Southbound net buying jumped sharply to US$24.2bn in September. This was the highest ever. So was the average daily trading volume of US$20.3bn. Alibaba constituted 40% of total net buying.
Tencent, SMIC, Meituan were bought heavily, while Xiaomi and Pop Mart continue to be sold. Investors are likely avoiding the sectors with disorderly price wars and stocks with super-premium valuations.
In H2'25, the biotech companies, Innovent Biologics, XTALPI and Akeso are Southbound investors' favorites. The buying momentum could continue here as long as the tailwind of frequent licensing deals lasts.


Asian Equities: Southbound Monthly- Below September's BABA Exuberance Biotech Continued to Flourish

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lenovo-group-ltd" target="_blank" data-smartkarma-citation="entities:13359:1" rel="noopener">Lenovo (992 HK)</a>, <a href="https://www.smartkarma.com/entities/aac-technologies-holdings-inc" target="_blank" data-smartkarma-citation="entities:6544:1" rel="noopener">AAC Technologies Holdings (2018 HK)</a>, <a href="https://www.smartkarma.com/entities/byd-electronic-international-co-ltd" target="_blank" data-smartkarma-citation="entities:1927:1" rel="noopener">BYD Electronics (285 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 Technology (1070 HK)</a> are the prime beneficiaries of Trump's tariff exemption.</li>
<li>On average, they have 24.5% of revenue from the US market, and their share price has collapsed 19.8% MTD. They are well set to have a decent rebound.</li>
<li>There will be speculations that more exemptions in other sectors will be granted, and the big losers will see a relief rally. </li>
</ul>



Lenovo (992 HK), AAC Technologies Holdings (2018 HK), BYD Electronics (285 HK), and Tcl Multimedia Technology (1070 HK) are the prime beneficiaries of Trump's tariff exemption.
On average, they have 24.5% of revenue from the US market, and their share price has collapsed 19.8% MTD. They are well set to have a decent rebound.
There will be speculations that more exemptions in other sectors will be granted, and the big losers will see a relief rally. 


China & HK Strategy: Tariff Exemption Beneficiaries

China

XtalPi is a biotechnology company that leverages artificial intelligence, quantum physics, and robotics to provide research and development solutions for early-stage drug discovery and material science. Its services include drug discovery solutions and intelligent automation solutions, offering products like XmartChem and PatSight. The company was founded in 2015 and is headquartered in Shenzhen, China.

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XtalPi (2228 HK)

HS TECH Consultation Conclusions: Retained and Refined Rules

HSIL adopted all six HS TECH proposals and added two new screens to constituent selection. We set out which rules are retained and which are refined.

Ke Yan, CFA, FRM

EQD | Hong Kong October 2026 Monthly Covered Call Report

Ten HKEX covered calls for October averaging ~7.42% premium, as single-stock implied vol moves 3.6 points back above realized after dipping below...

Nicholas Pezolano

Iambic Tx IPO First-Read: AI Models Enchant/NeuralPLexer, IAM1363 (Type II HER2i), Partnerships

NVIDIA-backed AI drug discovery Iambic Tx filed S1 last week. Our first-take: 1) its flagship AI models Enchant/NeuralPLexer, 2) clinical-stage...

Wilfred Yuen

Asian Equities: Southbound Monthly- Below September's BABA Exuberance Biotech Continued to Flourish

Southbound net buying hits record high in September at $24.2bn, with Alibaba leading the way. Investors favor biotech companies in H2'25, while...

Manishi Raychaudhuri

China & HK Strategy: Tariff Exemption Beneficiaries

Lenovo, AAC Technologies, BYD Electronics, and Tcl Multimedia are set to benefit from Trump's tariff exemption, with potential for a rebound in...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

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Dividend (Yield)

HS TECH Consultation Conclusions: Retained and Refined Rules

HSIL adopted all six HS TECH proposals and added two new screens to constituent selection. We set out which rules are retained and which are refined.

Ke Yan, CFA, FRM

EQD | Hong Kong October 2026 Monthly Covered Call Report

Ten HKEX covered calls for October averaging ~7.42% premium, as single-stock implied vol moves 3.6 points back above realized after dipping below...

Nicholas Pezolano

Iambic Tx IPO First-Read: AI Models Enchant/NeuralPLexer, IAM1363 (Type II HER2i), Partnerships

NVIDIA-backed AI drug discovery Iambic Tx filed S1 last week. Our first-take: 1) its flagship AI models Enchant/NeuralPLexer, 2) clinical-stage...

Wilfred Yuen

Asian Equities: Southbound Monthly- Below September's BABA Exuberance Biotech Continued to Flourish

​Southbound net buying hits record high in September at $24.2bn, with Alibaba leading the way. Investors favor biotech companies in H2'25, while...

Manishi Raychaudhuri

China & HK Strategy: Tariff Exemption Beneficiaries

​Lenovo, AAC Technologies, BYD Electronics, and Tcl Multimedia are set to benefit from Trump's tariff exemption, with potential for a rebound in...

Osbert Tang, CFA

Southbound net buying hits record high in September at $24.2bn, with Alibaba leading the way. Investors favor biotech companies in H2'25, while...

Lenovo, AAC Technologies, BYD Electronics, and Tcl Multimedia are set to benefit from Trump's tariff exemption, with potential for a rebound in...