In today’s briefing:
- Baidu (9888 HK): Dual Primary Today, Stock Connect Next Week, Then Index Flows
- Quiddity STAR 50/100 Sep26 Results: 8/10 Correct for STAR 50; Many Surprises Among STAR100 ADDs
- Con Aero Tech (232 HK): 21st Sept SGM. “Surplus Cash” Into Focus
- Longsys (江波龙) A+H IPO: Analysis of Deal Terms
- Con Aero Tech (232 HK): SGM Vote on Disposal, Delisting and Special Div on 21 September
- Mech-Mind (梅卡曼德) IPO Trading
- SHEIN (希音) IPO Trading
- Aequitas: Shein Global Holdings IPO Trading – No Demand.. Existing Holders Took Half the Deal
- Aequitas: Shenzhen Longsys Electronics A/H Listing – It’s Cheap but Might Not Be Cheap Enough
- Yangtze Memory Technologies Co (YMTC) IPO Preview
Baidu (9888 HK): Dual Primary Today, Stock Connect Next Week, Then Index Flows
- Baidu (9888 HK) converts from a Secondary Listing to an HKEX Dual-Primary Listing on 1 September. That should lead to Southbound Stock Connect inclusion from the open on 7 September.
- Baidu (9888 HK) should be added to the CSI Hong Kong Connect Internet Index at the close on 18 September. That will add to the Southbound buying.
- Passive trackers of the HSI INDEX, HSCEI INDEX, HSTECH INDEX and HSIII Index will buy Baidu (9888 HK) at the December rebalance due to an increase in free float.
Quiddity STAR 50/100 Sep26 Results: 8/10 Correct for STAR 50; Many Surprises Among STAR100 ADDs
- The September 2026 index review results for the STAR 50 and STAR 100 indices were announced after market close on Friday 28th August 2026.
- There will be five changes for the STAR 50 index and ten changes for the STAR 100 index.
- We expect one-way flows of approximately US$1.8bn and US$593mn for the STAR 50 and STAR 100 index rebal events, respectively.
Con Aero Tech (232 HK): 21st Sept SGM. “Surplus Cash” Into Focus
- On the 5th June, Continental Aerospace Technologies (232 HK) (CAT) confirmed an SPA to sell its core business, potentially leading to a cash distribution (HK$0.419-HK$0.436/share), and subsequent winding up.
- The SPA requires reg approvals and a Scheme-like vote. 46.4% of the register is supportive. Additional dividends expected from the sale of property. And any leftover funds.
- The Circular is now out. The SGM is the 21st September. With payment of the special/property dividend (on or before) the 12th October. “Surplus cash” distribution is expected shortly thereafter.
Longsys (江波龙) A+H IPO: Analysis of Deal Terms
- Longsys, a branded memory-module maker, launched its IPO to raise USD 800m through an A+H listing. CITIC and Citi are the deal sponsors.
- In this note, we look at the deal terms and provide our thoughts on valuation for the company.
- We analyze reference A+H transactions, cornerstone and sponsor performance and assess the risk-reward of the deal.
Con Aero Tech (232 HK): SGM Vote on Disposal, Delisting and Special Div on 21 September
- The Continental Aerospace Technologies (232 HK) IFA opines that the terms of the sale of the revenue-generating business to Arcline and the disposal of the property are fair and reasonable.
- The proceeds from the Arcline sale (HK$0.4238 to HK$0.4350 per share), the property sale (HK$0.0073), and the remaining cash (HK$0.062) total between HK$0.493 and HK$0.504.
- Despite the emergence of new substantial shareholders, the SGM vote will pass. At the last close, the gross spread for the minimum and maximum offers was 3.8% and 6.2%, respectively.
Mech-Mind (梅卡曼德) IPO Trading
- Mech-Mind raised HKD 2,200.2m (USD 280.6m) in net proceeds from its global offering and will list on the HKEX on Tuesday, 1 September 2026.
- In our previous notes, we looked at the company’s fundamentals, deal terms and peer valuation.
- In this note, we provide an update for the IPO before its trading debut.
SHEIN (希音) IPO Trading
- SHEIN raised HKD 13,214m (USD 1,686m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday, September 1, 2026.
- In our previous notes, we looked at the company’s fundamentals and the deal terms.
- In this note, we provide an update for the IPO before its trading debut.
Aequitas: Shein Global Holdings IPO Trading – No Demand.. Existing Holders Took Half the Deal
- SHEIN Global Holdings (625 HK) (SHEIN), a global online fashion and lifestyle company, raised around US$1.7bn in its Hong Kong listing.
- Shein is a global online fashion and lifestyle company serving approximately 273m active customers in approximately 160 markets in 2025.
- We have looked at the company’s past performance and provided our thoughts on valuations in our previous notes. In this note, we talk about the trading dynamics.
Aequitas: Shenzhen Longsys Electronics A/H Listing – It’s Cheap but Might Not Be Cheap Enough
- Shenzhen Longsys Electronics (301308 CH) (SLE), a branded independent semiconductor memory product enterprise, is looking to raise around US$800m in its H-share listing.
- SLE designs, develops, manufactures and sells a comprehensive portfolio of memory products for edge AI and traditional consumer, enterprise and industrial applications.
- We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.
Yangtze Memory Technologies Co (YMTC) IPO Preview
- Yangtze Memory Technologies (YMTC CH) is getting ready to complete its IPO on the Shanghai Stock Exchange in late 2026/early 2027, aiming to raise about $4.9 billion.
- Implied valuation of YMTC is up to 330 billion yuan. However, there have been reports about implied valuation of YMTC closer to the 1 trillion yuan ($149 billion).
- Based on CXMT’s P/S of 19.6x and using YMTC’s estimated annual sales of 188.2 billion yuan in 2026, this suggests market cap of 3.7 trillion yuan ($548 billion) for YMTC.
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