Viet Capital Securities Joint Stock Company

Luan Nguyen

Thematic (Sector/Industry)

<p>The motels industry’s growth rate in revenue decreased 4.0% in 2015 set a value of $21 billion. Over the last five years, revenue decreased by 0.6% annually. The Motel industry faces intense competition from other accommodation service providers in China such as hotels. Tourists tend to stay in hotels, in particular big cities. Revenue of the Motel industry in China will annually decrease by 2.5% in the five years through 2020, mainly because of increasing competition from budget and family hotels.</p>

The motels industry’s growth rate in revenue decreased 4.0% in 2015 set a value of $21 billion. Over the last five years, revenue decreased by 0.6% annually. The Motel industry faces intense competition from other accommodation service providers in China such as hotels. Tourists tend to stay in hotels, in particular big cities. Revenue of the Motel industry in China will annually decrease by 2.5% in the five years through 2020, mainly because of increasing competition from budget and family hotels.

<p>The fast food restaurant industry in China is going to generate $135.6 billion in 2016, up 8.3% compared with 2015. The revenue is projected to increase 6.8% per year, with a value of $188.6 billion in 2021. While China’s economy is slowing down, the industry is maturing and growing slowly.</p>

The fast food restaurant industry in China is going to generate $135.6 billion in 2016, up 8.3% compared with 2015. The revenue is projected to increase 6.8% per year, with a value of $188.6 billion in 2021. While China’s economy is slowing down, the industry is maturing and growing slowly.

Founder, Riedel Research

David Riedel

Founder

Independent equity research on GEM Markets

Riedel Research

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<ul>
<li> In August the MNI China Consumer Sentiment Indicator (CSI) dropped to a very depressed level of 111.5, well under the threshold of 116 indicating consumers are in a state of panic.</li>
<li>A large part of the weakness stems from severe flooding (the worst since 1998) in northern and central China. It is estimated that floods have resulted in $33 billion in losses.</li>
<li>We believe that weakness seen in the CSI during August is the result of panic among consumers in reaction to the flood and not a reflection of…</li>
</ul>


 In August the MNI China Consumer Sentiment Indicator (CSI) dropped to a very depressed level of 111.5, well under the threshold of 116 indicating consumers are in a state of panic.
A large part of the weakness stems from severe flooding (the worst since 1998) in northern and central China. It is estimated that floods have resulted in $33 billion in losses.
We believe that weakness seen in the CSI during August is the result of panic among consumers in reaction to the flood and not a reflection of…


China Consumer Sentiment Drops in August As Flood Causes Panic - Actual Impact Insignificant

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.

Quantitative Analysis

<ul>
<li>We analyze the 1Q2026 Shanghai/Shenzhen northbound Connect flows with our data engine as the exchange changed the rule to only disclose north bound position once a quarter.</li>
<li>We estimate that the outflows in 1Q2026 were US$1,441 million and holdings were US$379 billion.</li>
<li>We highlight flows for CATL, ZHONGJI INNOLIGHT, SUZHOU TFC OPTICAL COMMUNICATION, EOPTOLINK TECHNOLOGY, ZHEJIANG CENTURY HUATONG, Luxshare Precision.</li>
</ul>


We analyze the 1Q2026 Shanghai/Shenzhen northbound Connect flows with our data engine as the exchange changed the rule to only disclose north bound position once a quarter.
We estimate that the outflows in 1Q2026 were US$1,441 million and holdings were US$379 billion.
We highlight flows for CATL, ZHONGJI INNOLIGHT, SUZHOU TFC OPTICAL COMMUNICATION, EOPTOLINK TECHNOLOGY, ZHEJIANG CENTURY HUATONG, Luxshare Precision.


Northbound Flows (1Q2026): CATL, CATL, ZHONGJI INNOLIGHT, ZHONGJI INNOLIGHT

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

Zhejiang Century Huatong A / Index Rebalance

<ul>
<li>With the review period complete, there could be 50 changes for the <a href="https://www.smartkarma.com/entities/csi-smallcap-500-index-shang" target="_blank" data-smartkarma-citation="entities:35347:1" rel="noopener">CSI Smallcap 500 Index</a> and 100 changes for the CSI 1000 Index in December.</li>
<li>There are a lot of migrations expected between the two indices and the impacts for those stocks are lower with much of the flow cancelling out.</li>
<li>The forecast adds have drifted lower versus the forecast deletes over the last few months, driven partly by the huge inflows into mainland China ETFs tracking the indices. </li>
</ul>


With the review period complete, there could be 50 changes for the CSI Smallcap 500 Index and 100 changes for the CSI 1000 Index in December.
There are a lot of migrations expected between the two indices and the impacts for those stocks are lower with much of the flow cancelling out.
The forecast adds have drifted lower versus the forecast deletes over the last few months, driven partly by the huge inflows into mainland China ETFs tracking the indices. 


CSI 500/1000 Index Rebalance Preview: Migrations & Outright Changes

China

Zhejiang Century Huatong Group Co., Ltd. develops, manufactures and sells automotive plastic parts and molds.

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Zhejiang Century Huatong A (002602 CH)

Motels Industry Is in Decline

The motels industry’s growth rate in revenue decreased 4.0% in 2015 set a value of $21 billion. Over the last five years, revenue decreased by 0.6%...

Luan Nguyen

Fast Food in China Is Maturing

The fast food restaurant industry in China is going to generate $135.6 billion in 2016, up 8.3% compared with 2015. The revenue is projected to...

Luan Nguyen

China Consumer Sentiment Drops in August As Flood Causes Panic - Actual Impact Insignificant

In August the MNI China Consumer Sentiment Indicator (CSI) dropped to a very depressed level of 111.5, well under the threshold of 116 indicating...

David Riedel

Northbound Flows (1Q2026): CATL, CATL, ZHONGJI INNOLIGHT, ZHONGJI INNOLIGHT

We analyzed Northbound connect data for 1Q2026 and highlight flows for CATL, ZHONGJI INNOLIGHT, SUZHOU TFC OPTICAL COMMUNICATION.

Ke Yan, CFA, FRM

CSI 500/1000 Index Rebalance Preview: Migrations & Outright Changes

We forecast 50 CSI500 and 100 CSI1000 changes. The net passive 1-way trade across both indices is CNY18.1bn (US$2.52bn). The adds have...

Brian Freitas

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52-week Range

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