In today’s briefing:
- MEITUAN: End of Subsidies Is Food for Thought !!
- HSCI / HK Connect Sep 2026 Implementation: Pre-Implementation Update
- HS TECH Sep 2026 Index Rebalance: Pre-Implementation Update
- HSI Sep 2026 Index Rebalance: Pre-Implementation Update
- Merger Arb Mondays (07 Sep) – Skyworth, Z Fin, OFX, Cleanaway, EQT, European Lit, BetMakers, Kakaku
- Hua Hong Grace (1347.HK) Q2 2026 Earnings Report Review & Full Transcript
- Aequitas ECM Weekly (7 September 2026)-Shein, Mech-Mind, Longsys, Jio, Elice, Cathay, Bilibili,
- Shenzhen Intl (152 HK): Look Beyond the History
- CCSH Corporation (长江存储) Pre-IPO: Key Investment Thesis
- Shenzhen Salubris Pharmaceuticals (SLBRS HK): Synthetic Expert Call Transcript (06 Sep 2026)
MEITUAN: End of Subsidies Is Food for Thought !!
- Meituan (3690 HK) returned to profit in 2Q26 after 3 quarters of losses. The company had a net income of RMB 2.16B vs. a consensus loss of RMB 1.23B.
- Operating profit surged to RMB 2.69 bn, an 11-fold increase YOY, as easing competition allowed the company to reduce food delivery subsidies, improving unit economics across food and non-food categories.
- Meituan’s profit surge, combined with JD.com cutting promotional spending and Alibaba reducing sales and marketing expenses, adds to the evidence that China’s quick-commerce price war may be peaking.
HSCI / HK Connect Sep 2026 Implementation: Pre-Implementation Update
- HK Connect implementation will be effective on 7 Sep 2026 before market open, with 53 ADDs and 15 DELETEs.
- ADDs gained +5.2% on average over the bridge and DELETEs fell 10.9%. All 15 DELETEs closed the bridge lower.
- Historically, positive-bridge ADDs extended their gains in the first implementation week and negative-bridge ADDs were flat. DELETEs kept falling. We place each group in its historical reference set below.
HS TECH Sep 2026 Index Rebalance: Pre-Implementation Update
- The HS TECH rebalance will be effective on 7 Sep 2026 before market open, with one ADD and one DELETE.
- Iluvatar Corex’s bridge return was -5.0% and Tongcheng Travel’s was -10.0%, both following declines in the pre-announcement window.
- Both names fall into negative-bridge historical groups. Those groups mostly extended lower into the first implementation week.
HSI Sep 2026 Index Rebalance: Pre-Implementation Update
- HSI rebalance will be effective on 7 Sep 2026 before market open, with two ADDs.
- Hua Hong Grace returned -4.4% and Weichai Power -3.8% over the bridge. Both fell on the first trading day after announcement, then recovered part of the loss.
- Historically, negative-bridge ADDs declined in the first implementation week in most cases. Both names belong to that group.
Merger Arb Mondays (07 Sep) – Skyworth, Z Fin, OFX, Cleanaway, EQT, European Lit, BetMakers, Kakaku
- I summarise the latest spreads and newsflow for the merger arb situations covered across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, the Philippines, Thailand, and Chinese ADRs.
- Highest spreads: Skyworth (751 HK), Changhong Jiahua (3991 HK), European Lithium (EUR AU), Z Fin (1168 HK), OFX Group (OFX AU), Cleanaway Waste Management (CWY AU), Atlantic Lithium (A11 AU).
- Lowest spreads: Accent Group (AX1 AU), FleetPartners Group (FPR AU), Kakaku.com Inc (2371 JP), Vault Minerals Ltd (VAU AU), Ausgold Ltd (AUC AU), Japan Property Management Center (3276 JP).
Hua Hong Grace (1347.HK) Q2 2026 Earnings Report Review & Full Transcript
- Hua Hong Grace (1347.HK) reported Q2 2026 revenue of $717.5 million, up 26.8% YoY and 8.6% QoQ, a record high and easily beating the guided midpoint of $695 million
- Gross margin reached 16.5%, up 5.6 percentage points YoY and 3.5 points QoQ, clearing the top end of the 14-16% guide.
- Looking ahead, the company forecasted current quarter revenues of $775 million at the midpoint, a roughly 8% sequential increase. Gross margin is expected to be ~17%, marginally up QoQ.
Aequitas ECM Weekly (7 September 2026)-Shein, Mech-Mind, Longsys, Jio, Elice, Cathay, Bilibili,
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the IPO front, both SHEIN Global Holdings (625 HK) and Mech-Mind Robotics Technologies failed to do much.
- On the placement front, deals continued to flow in across the region, throughout the week.
Shenzhen Intl (152 HK): Look Beyond the History
- Shenzhen International (152 HK)‘s loss-making 1H26 is disappointing, but looking ahead, the potential profit recovery in 2H26 is more important.
- It may potentially book a significant gain from the South China Logistics Park transformation in 2H26, possibly leading to an attractive dividend yield of 8.7%.
- Its 0.33x 12-month forward P/B, 2SD below average, has already discounted the market concerns. Stripping out Shenzhen Expressway (600548 CH) , its other assets are free.
CCSH Corporation (长江存储) Pre-IPO: Key Investment Thesis
- CCSH Corporation (CCSH CH) aims to raise Rmb33bn in its IPO in the A-share STAR market. The Shanghai Stock Exchange has accepted its application and started enquiries.
- Its leadership position will ride on the encouraging industry outlook. It has the technological strength and a comprehensive product mix which fits well into China’s tech self-reliance push.
- While loss-making in FY23, it turned into a net profit of Rmb14.2bn in FY25. For 1Q26, net profit reached Rmb33.4bn, or 135% higher than FY25, highlighting its profitability.
Shenzhen Salubris Pharmaceuticals (SLBRS HK): Synthetic Expert Call Transcript (06 Sep 2026)
- The S086 (Xinchaotuo) Commercial Execution is the Real Growth Driver: Following its May 2025 NMPA approval for primary hypertension and its subsequent December 2025 inclusion in the National Reimbursement Drug List (NRDL), S086 has become Salubris’s primary growth engine. Along with Enarodustat (Enaro), innovative formulation revenues grew 26.84% year-on-year in the first half of 2026, offsetting the commoditized legacy generic portfolio.
- The JK07 Phase II Clinical Disappointment Redraws the Valuation Curve: In May 2026, the interim data release for the RENEU-HF Phase II trial of JK07 (an NRG-1 fusion protein) revealed that the primary endpoint of Left Ventricular Ejection Fraction (LVEF) improvement at 26 weeks did not achieve statistical significance over placebo. While Salubris highlighted positive subjective KCCQ score improvements, the lack of robust structural efficacy significantly increases the regulatory risk and delays both the domestic and U.S. clinical pathways.
- HKEX Listing Resubmission Points to Urgent Liquidity Needs: On September 3, 2026, Salubris resubmitted its listing application to the Main Board of the HKEX, sponsored by Goldman Sachs, Citigroup, and CITIC Securities, after its initial February 2026 filing lapsed in August. The push for Hong Kong capital is driven by a desire to fund expensive global clinical trials and provide a dedicated offshore capital runway, amidst close scrutiny from the CSRC regarding overseas capital allocations.
Disclaimer: The following transcripts are synthetic, AI-generated on demand, and compiled exclusively from public data sources; no real-word experts were actually interviewed. This content is designed to highlight potential market mispricings, explore compelling lines of inquiry, and suggest strategic questions rather than present verified facts. All specific financial metrics and data points, including market shares, TAM, margins, and growth rates, are AI-estimated approximations. They may be inaccurate and must be independently verified.
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