Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of April 12th.</li>
<li>We estimate the weekly outflows to be US$1,587.8 million, led by consumer staples, consumer discretionary, health care, and offset by materials.</li>
<li>We highlight flows for Boe Technology, Moutai, China Tourism, Gree Electric Appliances.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of April 12th.
We estimate the weekly outflows to be US$1,587.8 million, led by consumer staples, consumer discretionary, health care, and offset by materials.
We highlight flows for Boe Technology, Moutai, China Tourism, Gree Electric Appliances.


Northbound Flows (Apr 12th): Boe Technology, Moutai, China Tourism, Gree Electric Appliances

CHINA - Healthcare, Steel, Autos, Education, Research From Beijing

Scott Laprise/ 乐天虎

CHINA - Healthcare, Steel, Autos, Education

Thematic (Sector/Industry)

<p>This is a big topic that I find myself addressing to investors each quarter for the past 10 years as a steel analyst from where I live in Beijing, China. No steel production cuts have been made by the government and none are expected in the near term. </p><p>The evidence for this view is clear looking at crude steel production data, we see record high levels of production out of China in September.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/016/382/original/crude%20steel.png?1479190556" class="editor-image img-responsive" data-smartkarma-image-id="16382"></figure><div class="content-caption">Figure 1: World Crude Steel Production - 139m tonnes in September up 2% YoY</div><div class="content-remarks"><p>Source: <a href="http://www.worldsteel.org/media-centre/press-releases/2016/September-2016-crude-steel-production.html" target="_blank">http://www.worldsteel.o</a>…</p></div>

This is a big topic that I find myself addressing to investors each quarter for the past 10 years as a steel analyst from where I live in Beijing, China. No steel production cuts have been made by the government and none are expected in the near term. The evidence for this view is clear looking at crude steel production data, we see record high levels of production out of China in September.Figure 1: World Crude Steel Production - 139m tonnes in September up 2% YoYSource: http://www.worldsteel.o…

Steel in China- No Government Capacity Shutdown

Founder Evidente. Top rated quantitative analyst, Evidente

Sam Ferraro

Founder Evidente. Top rated quantitative analyst

Evidente

Evidente is an independent financial education firm that delivers innovative financial advice to wholesale investors, including active long only funds, hedge funds, pension funds, and sovereign wealth funds, in Australia and globally.  Drawing on academic research in asset pricing, behavioural finance and portfolio construction, Evidente provides wholesale investors with commercial solutions to stock selection and asset allocation decisions across equities and other asset classes.

<ul><li>In this post, Evidente draws on recent analysis undertaken by the RBA of developments in China's residential property markets.  Thanks to a number of government policies implemented since 2014, there has been a substantial pick-up in conditions since the start of the year, particularly an acceleration in residential sales, as measured by floor space sold.</li><li>The strong pick-up has supported the renewed strength in global commodity prices, but has probably contributed to key growing vulnerabilities and risks, around leverage of property developers, the still large stock of unsold housing inventory and annual growth in house prices that appears close to a peak if history is any guide. </li><li>Against this backdrop, Evidente's model portfolio retains a substantial underweight in the Materials sector, with overweights in RIO, BSL and MND representing the key exposures.  </li></ul>

In this post, Evidente draws on recent analysis undertaken by the RBA of developments in China's residential property markets.  Thanks to a number of government policies implemented since 2014, there has been a substantial pick-up in conditions since the start of the year, particularly an acceleration in residential sales, as measured by floor space sold.The strong pick-up has supported the renewed strength in global commodity prices, but has probably contributed to key growing vulnerabilities and risks, around leverage of property developers, the still large stock of unsold housing inventory and annual growth in house prices that appears close to a peak if history is any guide. Against this backdrop, Evidente's model portfolio retains a substantial underweight in the Materials sector, with overweights in RIO, BSL and MND representing the key exposures.  

China Housing: Strong Recovery but Debt and Vulnerabilities Rise

China Macroeconomics & Academia

Christopher Balding

Macroeconomics

<p>As we have noted numerous time before, the result of so much money and credit creation is that there is a lot more capital chasing fewer and fewer good investment options.  Furthermore, given the spillovers into global markets, bubbles in China can create rapid price increases elsewhere.</p><p>This leads to two specific conclusions when looking for trading opportunities.  First, look for short opportunities in Chinese assets that have seen large rapid price increases.  This has happened repeatedly to…</p>

As we have noted numerous time before, the result of so much money and credit creation is that there is a lot more capital chasing fewer and fewer good investment options.  Furthermore, given the spillovers into global markets, bubbles in China can create rapid price increases elsewhere.This leads to two specific conclusions when looking for trading opportunities.  First, look for short opportunities in Chinese assets that have seen large rapid price increases.  This has happened repeatedly to…

Silver Is the Latest Chinese Little Short

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

<ul><li class="p1">The recent rally in bulk commodity miners will end in tears.</li><li class="p1">Iron ore has risen to $60 per tonne from a bottom of $37 in December, with leveraged mining stocks more than doubling from recent lows.</li><li class="p1">We expect falling Chinese steel demand and rising Chinese steel scrap availability to cut iron ore prices by half.</li><li class="p1">Shares of several heavily indebted producers are likely to fall by more than 50%.</li><li class="p1">Our long-run forecasts are $30 per tonne for iron ore (versus consensus $55) and $75 per tonne for metallurgical coal (versus consensus $110).</li></ul><p><em>Analysts: David Wang, Daniel Rohr, Mathew Hodge &amp; Andrew Lane</em></p>

The recent rally in bulk commodity miners will end in tears.Iron ore has risen to $60 per tonne from a bottom of $37 in December, with leveraged mining stocks more than doubling from recent lows.We expect falling Chinese steel demand and rising Chinese steel scrap availability to cut iron ore prices by half.Shares of several heavily indebted producers are likely to fall by more than 50%.Our long-run forecasts are $30 per tonne for iron ore (versus consensus $55) and $75 per tonne for metallurgical coal (versus consensus $110).Analysts: David Wang, Daniel Rohr, Mathew Hodge &amp; Andrew Lane

Dawn of the Scrap Age: Iron Ore and Met Coal Will Suffer as China's Scrap Supply Rises.

China

Yunnan Copper Co., Ltd. manufactures and processes electrolytic copper. The Comp any's products include tough cathode, copper wire base, gold,  silver, sulphuric acid, and other byproducts.

Yunnan Copper Co Ltd A (000878 CH)

Northbound Flows (Apr 12th): Boe Technology, Moutai, China Tourism, Gree Electric Appliances

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Boe Technology, Moutai, China Tourism, Gree...

Ke Yan, CFA, FRM

Steel in China- No Government Capacity Shutdown

This is a big topic that I find myself addressing to investors each quarter for the past 10 years as a steel analyst from where I live in Beijing,...

Scott Laprise/ 乐天虎

China Housing: Strong Recovery but Debt and Vulnerabilities Rise

In this post, Evidente draws on recent analysis undertaken by the RBA of developments in China's residential property markets. Thanks to a number...

Sam Ferraro

Silver Is the Latest Chinese Little Short

As we have noted numerous time before, the result of so much money and credit creation is that there is a lot more capital chasing fewer and fewer...

Christopher Balding

Dawn of the Scrap Age: Iron Ore and Met Coal Will Suffer as China's Scrap Supply Rises.

The recent rally in bulk commodity miners will end in tears. Iron ore has risen to $60 per tonne from a bottom of $37 in December, with leveraged...

Morningstar, Inc.