Smartkarma Daily Briefs

• Retailers /hoteliers will welcome the return of Chinese travellers, with ~US$250bn in annual spending. That should bode well for mall operators like Swire Properties and, in turn, Swire Pacific.
• Preceding my comments on Swire are the current setup/unwind tables for Asia-Pacific Holdcos. 
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• H World Group (HTHT US) aims to raise around US$260m via a follow-on ADS offering.
• The company plans to use the proceeds mostly for investment. This will be the first deal by the company post its H-share listing in 2020.
• In this note, we will talk about the deal dynamics and  run the deal through our ECM framework.

• China Internet Investment Finance Holdings (810 HK) (CII), an investment manager, is currently suspended pursuant to the Hong Kong Code on Takeovers and Mergers. 
• CII has thrice responded to unusual price action in its share price in the past four months. Shares are up a staggering ~1,000% in the past six months.
• This insight provides some background information on CII. Trading at 64x book value, this is one avoidable company. 

• Company’s second largest shareholder General Atlantic sold out entire holdings at 5.9% to 6.4% discount to Monday close. 
• The placement reflected mainly General Atlantic’s attempt to time market to recoup a 10-year investment instead of any negative read of company fundamentals, in our view.
• Recent newsflow continues pointing to steady recovery in all business lines of Xiabu group.  Its valuation discount relative to peers  has not captured strong turnaround prospects. Sector top pick. 

• China Education Group (CEG) completed the placement of HKD1.61bn on Jan 9.
• CEG used to do 2-3 M&As per year and had a decent track record.
• CEG also has chances to acquire public companies or their assets.

• In this note, we will take a look at the Asia Pacific IPO pipeline for 2023, starting with Hong Kong. 
• This list has been compiled on a best effort basis from tracking the company filings and through various other sources.
• The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• China Jinmao Holdings
• Sunac China Holdings
• Sunny Optical