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

DZT Research

DZT 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>Primary conversion. Baidu (9888 HK) announced on 16 Jul 2026 that its board approved pursuing dual-primary conversion. This note assesses the Connect path, conditions, and timeline.</li>
<li>ADD timing. Baidu retains WVR through conversion, so the ADD path runs through the regular semi-annual cycle. We assess whether the September 2026 regular batch ADD is attainable.</li>
<li>Trading perspective. Prior Connect ADD cases show positive southbound flows in all five peers and positive 10-day returns in all five.</li>
</ul>


Primary conversion. Baidu (9888 HK) announced on 16 Jul 2026 that its board approved pursuing dual-primary conversion. This note assesses the Connect path, conditions, and timeline.
ADD timing. Baidu retains WVR through conversion, so the ADD path runs through the regular semi-annual cycle. We assess whether the September 2026 regular batch ADD is attainable.
Trading perspective. Prior Connect ADD cases show positive southbound flows in all five peers and positive 10-day returns in all five.


Baidu-SW: Primary Conversion and Connect Inclusion Timeline Analysis

<ul>
<li>NetEase (9999 HK) announced on 26 Jun 2026 that its HK primary conversion will be effective on 30 Jun 2026. This note assesses the Connect eligibility path and inclusion timeline.</li>
<li>NetEase has no WVR, but Alibaba's recent regular-cycle ADD keeps September as the base case.</li>
<li>Prior Connect ADD cases show southbound inflows after ADD and positive returns post inclusion.</li>
</ul>


NetEase (9999 HK) announced on 26 Jun 2026 that its HK primary conversion will be effective on 30 Jun 2026. This note assesses the Connect eligibility path and inclusion timeline.
NetEase has no WVR, but Alibaba's recent regular-cycle ADD keeps September as the base case.
Prior Connect ADD cases show southbound inflows after ADD and positive returns post inclusion.


NetEase: Primary Conversion and Connect Inclusion Analysis

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Zenshine Pharmaceuticals (Nanjing) Group / Equity Capital Markets

Zenshine Pharmaceuticals (Nanjing) Group (ZPN HK)

<ul>
<li>The future competitive landscape of the influenza drug market is deteriorating, and Zenshine is facing significant competitive pressure. Despite the cooperation with<a href="https://www.smartkarma.com/entities/hubei-jumpcan-pharmaceut-a" target="_blank" data-smartkarma-citation="entities:9182:1" rel="noopener"> Jumpcan Pharmaceut</a>ical, the commercialization outlook is highly uncertain.</li>
<li>Zenshine's financial situation is highly dependent on the sales performance of sebaloxavir marboxil. If commercialization fails, it will pose a direct threat to the Company's survival.</li>
<li>This is vastly different from the valuation of other biotech with validated products on the market. So, we think valuation of Zenshine would be lower than the industry average P/S.</li>
</ul>


The future competitive landscape of the influenza drug market is deteriorating, and Zenshine is facing significant competitive pressure. Despite the cooperation with Jumpcan Pharmaceutical, the commercialization outlook is highly uncertain.
Zenshine's financial situation is highly dependent on the sales performance of sebaloxavir marboxil. If commercialization fails, it will pose a direct threat to the Company's survival.
This is vastly different from the valuation of other biotech with validated products on the market. So, we think valuation of Zenshine would be lower than the industry average P/S.


Pre-IPO Zenshine Pharmaceuticals (Nanjing) Group - The Core Product Faces Significant Challenges

IMPACT Therapeutics / Equity Capital Markets

<ul>
<li>After being officially included in NRDL in 2026, the retail price of Senaparib will be significantly reduced, which will have a “compression effect” on the sales in the short term.</li>
<li>The peak sales forecast of Senaparib in Chinese and global market would be RMB1.6 billion-2.2 billion, US$200 million-400 million, respectively. So, total peak sales of Senaparib is RMB3.2 billion-5 billion.</li>
<li>Investors should pay attention to how much revenue/profit actually belongs to IMPACT according to the sharing ratio stipulated in cooperation agreement. Reasonable valuation of IMPACT could be RMB1.6 billion-3.8 billion </li>
</ul>


After being officially included in NRDL in 2026, the retail price of Senaparib will be significantly reduced, which will have a “compression effect” on the sales in the short term.
The peak sales forecast of Senaparib in Chinese and global market would be RMB1.6 billion-2.2 billion, US$200 million-400 million, respectively. So, total peak sales of Senaparib is RMB3.2 billion-5 billion.
Investors should pay attention to how much revenue/profit actually belongs to IMPACT according to the sharing ratio stipulated in cooperation agreement. Reasonable valuation of IMPACT could be RMB1.6 billion-3.8 billion 


Pre-IPO IMPACT Therapeutics (PHIP Updates) - Some Points Worth the Attention

<ul>
<li>Impact Therapeutics, a China-based near-commercial-stage biopharma company, is looking to raise at least USD 100 million via a Hong Kong listing. GS and CICC are the joint sponsors.</li>
<li>In our previous note, we looked at the company’s core products, senaparib/IMP4297, and key products IMP1734 and IMP9064. We also looked at the company’s pre-IPO investors and management team.</li>
<li>In this note, we look at the latest prospectus and analyze changes in the company's pipeline and competitive landscapes.</li>
</ul>


Impact Therapeutics, a China-based near-commercial-stage biopharma company, is looking to raise at least USD 100 million via a Hong Kong listing. GS and CICC are the joint sponsors.
In our previous note, we looked at the company’s core products, senaparib/IMP4297, and key products IMP1734 and IMP9064. We also looked at the company’s pre-IPO investors and management team.
In this note, we look at the latest prospectus and analyze changes in the company's pipeline and competitive landscapes.


Impact Therapeutics (英派药业) Pre-IPO: Post Senaparib Commercialization, What's Next?

China

Zai Lab is an innovative, research-based, commercial-stage biopharmaceutical company focused on discovering, developing, and commercializing innovative products for oncology, immunology, neuroscience, and infectious diseases. The company has commercialized products such as Zejula, Optune, Qinlock, Nuzyra, and Vyvgart in China. Zai Lab was founded in 2014 and is headquartered in Shanghai, China, and Cambridge, Massachusetts, USA.

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Zai Lab (9688 HK)

Baidu-SW: Primary Conversion and Connect Inclusion Timeline Analysis

Baidu confirmed it will pursue conversion to dual-primary listing, effective within 2026. WVR precedent points to a regular-cycle Connect ADD, and...

Ke Yan, CFA, FRM

NetEase: Primary Conversion and Connect Inclusion Analysis

NetEase (9999 HK) announced HK primary conversion effective 30 Jun 2026. Non-WVR precedent points to possible ad-hoc Connect ADD, but September is...

Ke Yan, CFA, FRM

Pre-IPO Zenshine Pharmaceuticals (Nanjing) Group - The Core Product Faces Significant Challenges

Zenshine faces intense competition in the influenza drug market, with uncertain commercialization outlook for sebaloxavir marboxil, which...

Xinyao (Criss) Wang

Pre-IPO IMPACT Therapeutics (PHIP Updates) - Some Points Worth the Attention

The IPO pricing of IMPACT is HK$19.75-21.75/share, with market value of HK$5.45bn-6bn (or RMB4.75bn-5.24bn) and P/S of 7-14.9x based on our peak...

Xinyao (Criss) Wang

Impact Therapeutics (英派药业) Pre-IPO: Post Senaparib Commercialization, What's Next?

Impact Therapeutics PHIP updates: advances senaparib to NRDL reimbursement. IMP1734 readout later this year is the single event that determines...

Ke Yan, CFA, FRM

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Baidu-SW: Primary Conversion and Connect Inclusion Timeline Analysis

Baidu confirmed it will pursue conversion to dual-primary listing, effective within 2026. WVR precedent points to a regular-cycle Connect ADD, and...

Ke Yan, CFA, FRM

NetEase: Primary Conversion and Connect Inclusion Analysis

NetEase (9999 HK) announced HK primary conversion effective 30 Jun 2026. Non-WVR precedent points to possible ad-hoc Connect ADD, but September is...

Ke Yan, CFA, FRM

Pre-IPO Zenshine Pharmaceuticals (Nanjing) Group - The Core Product Faces Significant Challenges

​Zenshine faces intense competition in the influenza drug market, with uncertain commercialization outlook for sebaloxavir marboxil, which...

Xinyao (Criss) Wang

Pre-IPO IMPACT Therapeutics (PHIP Updates) - Some Points Worth the Attention

The IPO pricing of IMPACT is HK$19.75-21.75/share, with market value of HK$5.45bn-6bn (or RMB4.75bn-5.24bn) and P/S of 7-14.9x based on our peak...

Xinyao (Criss) Wang

Impact Therapeutics (英派药业) Pre-IPO: Post Senaparib Commercialization, What's Next?

Impact Therapeutics PHIP updates: advances senaparib to NRDL reimbursement. IMP1734 readout later this year is the single event that determines...

Ke Yan, CFA, FRM

Zenshine faces intense competition in the influenza drug market, with uncertain commercialization outlook for sebaloxavir marboxil, which...