Smartkarma Daily Briefs

We had Pop Mart International (9992 HK) at the cusp of index inclusion. An increase in Postal Savings Bank of China (1658 HK)‘s FAF led to Pop Mart missing out.
Estimated one-way turnover at the rebalance is 3.18% leading to a round-trip trade of HK$3.8bn (US$489m).
There are large inflows for NetEase (9999 HK), Trip.com Group (9961 HK) and Baidu (9888 HK) due to a FAF methodology change for Secondary Listings.

CSOP Sammy ETF + Korean Retail Leverage Frenzy = Contango Basis Arb Alert

By Sanghyun Park

CSOP told Korean media this Sammy ETF product targets Korea’s local retail traders wanting leveraged or short KOSPI exposure, especially Sammy, without using Korea’s derivatives market—essentially a cross-border retail play.
Korean retail’s insanely strong demand for anything leveraged, combined with limited domestic derivatives access, makes significant local inflows very likely—far from a moonshot.
TRS use doesn’t guarantee 1:1 futures buying—depends on broker hedging. But, with Samsung futures volume surging, heavy retail flows in CSOP ETF could cause contango and a basis arb opportunity.

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May 18

Daily Brief Health Care: Classys, JTEC Corp/Osaka, Jiangsu Hengrui Medicine and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Classys: Block Deal Sale of 6% By Bain Capital Raises Overhang Concerns
JTEC Corp (3446 JP) – Continued Uplift in Performance
China Healthcare Weekly (May.18) – Trump to Lower US Drug Prices, Thoughts on Hengrui’s IPO Pricing

Classys: Block Deal Sale of 6% By Bain Capital Raises Overhang Concerns

After the market close on 16 May, Bain Capital sold about 6% stake in Classys (214150 KS) in a block deal sale.
Bain Capital sold 3.93 million shares of Classys at 57,915 won per share (this price is 10.9% discount from Classys’ closing price the previous day).
Bain Capital’s decision to sell a 6% stake in Classys via a discounted block deal, rather than offloading its entire 60.2% controlling stake, indicates a share overhang on future sales.

JTEC Corp (3446 JP) – Continued Uplift in Performance

By Astris Advisory Japan

Momentum building – With a continued recovery at the core Optical segment, and high double-digit sales growth YoY at Life Science & Equipment, we believe Q1-3 FY3/26 results indicate sustained upward momentum at JTEC.
The company has maintained FY6/25 guidance, and while this implies a back-end-loaded Q4 FY6/25, order visibility appears firm from demand on a global basis for the Optical business.
Indications of progress in the Life Science and Equipment Development segment, driven by the semiconductor initiative, are promising, even if its full earnings potential remains longer-term.

China Healthcare Weekly (May.18) – Trump to Lower US Drug Prices, Thoughts on Hengrui’s IPO Pricing

By Xinyao (Criss) Wang

Trump signed an executive order aimed at lowering prescription drug prices in the US, but the specific implementation may encounter obstacles. This is good news for China’s innovative drug assets.
Under tariff/trade war, as long as the US does not issue any bill proposing to suspend the technology exchange, licensing-out business model of China biotech will not be substantially affected.
Hengrui’s IPO in Hong Kong is not attractive from a fundamental perspective. However, the recent strong performance of Hengrui’s A-share has lifted investors’ sentiment, making them “interested” in this IPO.

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May 17

Daily Brief Quantitative Analysis: Hong Kong Buybacks Weekly (May 16th): AIA and more

By Smartkarma Daily Briefs | Daily Briefs, Quantitative Analysis

In today’s briefing:

Hong Kong Buybacks Weekly (May 16th): AIA, China Hongqiao, Cosco Shipping

Hong Kong Buybacks Weekly (May 16th): AIA, China Hongqiao, Cosco Shipping

By Ke Yan, CFA, FRM

We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on May 16th based on HKEx daily reports.
In the past 7 days, the top 3 companies that repurchased the most shares from the market were AIA (1299 HK), China Hongqiao (1378 HK), Cosco Shipping (1919 HK).
In the past 30 days, the top 3 companies that repurchased the most shares from the market were AIA (1299 HK), China Hongqiao (1378 HK), Cosco Shipping (1919 HK).

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May 17

Daily Brief ESG: Another Reason Companies Are Reluctant to Disclose in English and more

By Smartkarma Daily Briefs | Daily Briefs, ESG

In today’s briefing:

Another Reason Companies Are Reluctant to Disclose in English, and Not Just Because of the Cost

Another Reason Companies Are Reluctant to Disclose in English, and Not Just Because of the Cost

By Aki Matsumoto

Even in 93.8% of prime companies that disclose financial results in English, many disclose only summaries and financial statements in English, while few provide qualitative information and notes in English.
The belief that the company doesn’t provide sufficient information to shareholders to control AGM is common to reluctance to disclose documents in English, which are highly demand by overseas investors.
The idea of “not wanting to provide overseas investors with sufficient information,” which has ingrained in many companies, is opposed to movement to “improve the quality of dialogue with investors.”

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May 17

Daily Brief Credit: Lucror Analytics – Morning Views Asia and more

By Smartkarma Daily Briefs | Credit, Daily Briefs

In today’s briefing:

Lucror Analytics – Morning Views Asia

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

In today’s Morning Views publication we comment on developments of the following high yield issuers: Pertamina (Persero)
In the US, retail sales eased to 0.1% m-o-m (0.0% e / 1.7% revised p) in April, driven by lower car sales (after a front-loaded surge in March), as well as declines in several categories of imported items including sporting goods and apparel.
This was offset by higher spending at restaurants and bars, which accelerated for a second month.

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May 17

Daily Brief Thematic (Sector/Industry): Thematic Report: India’s Hotel Industry~ How Demand-Supply Gap and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Thematic Report: India’s Hotel Industry~ How Demand-Supply Gap, Under-Penetration Can Fuel Growth
#148 India Insight: Trump Claims India Deal, Vi Seeks AGR 30k Cr Waiver, Birla Plans FY26 Launch
AUCTUS ON FRIDAY – 16/05/2025
What’s News in Amsterdam

Thematic Report: India’s Hotel Industry~ How Demand-Supply Gap, Under-Penetration Can Fuel Growth

By Sudarshan Bhandari

The Indian hotel sector is set for growth, driven by a demand-supply gap with room demand growing 10%, while supply only increased by 7-9%.
MICE tourism is crucial, contributing 15-20% of hotel revenues, with strong future growth driven by increasing corporate events and international conferences.
Key growth triggers for Indian Hotels (IH IN) include strategic expansion through capital-light models, while Chalet Hotels Ltd (CHALET IN) focuses on asset-heavy growth and prime location investments.

#148 India Insight: Trump Claims India Deal, Vi Seeks AGR 30k Cr Waiver, Birla Plans FY26 Launch

By Sudarshan Bhandari

Donald Trump claims India proposed a zero-tariff trade deal with the US amid ongoing negotiations during tariff suspension.
Vodafone Idea (IDEA IN) files fresh Supreme Court plea seeking Rs 30,000 crore waiver on AGR dues amid financial and sector concerns.
Aditya Birla Real Estate plans Rs 14,000 crore launches in FY26, entering Mumbai redevelopment amid cautious, location-focused business development strategy.

AUCTUS ON FRIDAY – 16/05/2025

By Auctus Advisors

Chariot (CHAR LN)C: Recovering 75% WI of licences in Morocco – Energean has returned its Moroccan offshore interests to Chariot.
As a result, Chariot now holds 75% in the Lixus Offshore and Rissana Offshore licences.
Condor Energies (CDR CN)C; Target price of C$5.90 per share: Acquiring a LNG facility for Kazakhstan to deliver first LNG sale in 2Q26 – 1Q25 production in Uzbekistan was 11,179 boe/d (+6% vs. production in 4Q24).

What’s News in Amsterdam

By The IDEA!

AkzoNobel | Akzo Nobel India reports flat 4Q25 result; no news on disposal process Akzo Nobel India reported a relatively flat 4Q25 profit on Wednesday, due to weak demand and rising costs.
The consolidated net profit fell 0.3% to 1.08 billion rupees (USD 12.6m) in the quarter ended March 31.
Akzo Nobel India’s revenue from operations rose 5% to 10.22 billion rupees. Total operating costs were up 6% to 8.87 billion rupees, largely due to a 5.2%, a surge raw material costs.

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May 17

Daily Brief Event-Driven: [Japan M&A] TechnoPro Holdings (6028) May Be Up For Grabs and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

[Japan M&A] TechnoPro Holdings (6028) May Be Up For Grabs
ESR (1821 HK): Pre-Cons Done. Scheme Doc By 22nd May
LG Chem: To Issue Exchangeable Bond Worth US$1 Billion
OneConnect Financial (6638 HK/OCFT US): Ping An Firms Offer @ HK$2.068/Share
Mayne Pharma’s Merger with Cosette Pharmaceuticals: Navigating FDA Concerns, Shareholder Approval, and Market Reactions
Under Review: Banking on Politics in BBVA’s Bid for Sabadell

[Japan M&A] TechnoPro Holdings (6028) May Be Up For Grabs

By Travis Lundy

Technopro Holdings (6028 JP) is a temp/contract staffing platform which specialises in engineering staff (IT engineers far more than machinery, construction, chemicals). The company has been growing.
Overnight, an article appeared in MergerMarket – a high-dollar M&A-related news service – saying the company was going through a sale process. The company confirmed it was one possibility.
The stock went limit up. This quick writeup looks at the framework of the idea, and possibilities.

ESR (1821 HK): Pre-Cons Done. Scheme Doc By 22nd May

Back on the 4th December 204, Starwood/Warburg Pincus Consortium announced a firm pre-conditional Offer for ESR Group (1821 HK) at HK$13/share (best & final), by way of a Scheme.
The list of pre-cons was extensive. Last night (15th May), ESR announced the satisfaction of all pre-cons.
The Scheme Doc is now required to be dispatched by the 22nd May, suggesting payment around mid-July. Assuming no dispatch delays.

LG Chem: To Issue Exchangeable Bond Worth US$1 Billion

On 15 May, LG Chem announced that it plans to issue foreign currency exchangeable bond worth US$1 billion using shares of its subsidiary LG Energy Solution as the underlying asset.
The purpose of this EB issue is to repay the amount of EB issued two years ago.
The exchange price premium was lowered from 130% in 2023 to 110-115% this time, and the maturity has been shortened from 7 years to 3 years.

OneConnect Financial (6638 HK/OCFT US): Ping An Firms Offer @ HK$2.068/Share

By Special Situation Investments

Back on 3rd March, dual-listed OneConnect Financial (6638 HK/OFT US), a digital retail banking/commercial banking/digital insurance play, announced a non-binding proposal from Ping An, OneConnect’s controlling shareholder with 32.12%.
By way of a Scheme, Ping An offered HK$2.068/share, or US$7.98/ADS, a 72.33% premium to last close, and a 131.66% premium to the 30-day average. The price was final.
SAMR has now signed off on the deal and terms are now firmed. M&G is supportive (1.98% of shares out, ~8% of disinterested shares). Perhaps mid-September completion.

Mayne Pharma’s Merger with Cosette Pharmaceuticals: Navigating FDA Concerns, Shareholder Approval, and Market Reactions

Mayne Pharma’s acquisition by Cosette Pharmaceuticals at A$7.40/share faces a 14% spread, with closing expected in 1.5 months.
The FDA issued an Untitled Letter to Mayne Pharma about Nexstellis promotional materials, but it is unlikely to trigger a material adverse effect.
Shareholder approval for the merger appears likely, with key stakeholders supporting the deal and a vote scheduled for June 18.

Under Review: Banking on Politics in BBVA’s Bid for Sabadell

By Jesus Rodriguez Aguilar

BBVA’s hostile bid for Sabadell has cleared regulatory hurdles but faces political resistance (public consultation ending today 16 May), with final Government review pending by June 26.
A potential Sabadell–Abanca merger appears unlikely; Escotet would be the top shareholder (~33–36%) in such a deal, but Abanca has publicly denied interest.
The offer trades at a negative gross spread, suggesting market doubts or expectations of a sweetened bid — supporting a long SAB / short BBVA pair trade setup.

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May 17

Daily Brief Equity Bottom-Up: Pan American Silver — Strong Q125 and more

By Smartkarma Daily Briefs | Daily Briefs, Equity Bottom-Up

In today’s briefing:

Pan American Silver — Strong Q125, MAG Silver acquisition
IndusInd Bank- Never Ending Trouble
New Horizon Aircraft Ltd (HOVR) – Targeting Regional Air Mobility Market, PT at US$2
TSI Holdings: Strong Growth in BPS and Aggressive Record of Share Buybacks
Asian Paints: Navigating Growth Challenges Amid Evolving Industry Dynamics
GMDC (GMDC IN): Steady Core Performance with Hidden Asset Optionality
Cyber Security Cloud Inc (4493 JP): Q1 FY12/25 flash update
Dic Corp (4631 JP): Q1 FY12/25 flash update
Akzo Nobel India [India M&A]: JSW Likely Buyer – Investors Should Assess Strategic Impact
France Bed Holdings (7840 JP): Full-year FY03/25 flash update

Pan American Silver — Strong Q125, MAG Silver acquisition

By Edison Investment Research

Pan American Silver (PAAS) delivered strong quarterly results, with higher commodity prices boosting revenues and lowering costs. Q125 EBITDA was US$330m, just 5% shy of the seasonally strongest Q4 number, as costs were markedly below and production was in line with quarterly guidance for both segments. The company maintained its FY25 operating outlook, which points to seasonally strong quarters ahead. PAAS also announced a proposed acquisition of MAG Silver (MAG), valuing the company at US$2.1bn. MAG owns 44% in a top-tier Juanicipio silver operation in Mexico. In this note, we provide an initial take on the transaction, while keeping our revised estimates and valuation of PAAS on a standalone basis.

IndusInd Bank- Never Ending Trouble

By Nitin Mangal

Indusind Bank (IIB IN) does not seem to be able to get out of hot water.
In yet another accounting and governance pothole, the bank has disclosed a surprising take on interest income, which was overstated by INR 6.7 bn.
The internal audit department also reported unsubstantiated balances of INR 6 bn in other assets, which was netted off with liabilities.

New Horizon Aircraft Ltd (HOVR) – Targeting Regional Air Mobility Market, PT at US$2

By Garvit Bhandari

New Horizon Aircraft is a Canada-based aviation company specializing in the development of hybrid electric Vertical Takeoff and Landing (eVTOL) aircraft
HOVR’s flagship aircraft, the Cavorite X7 is likely to be commercially available in the next 24 to 36 months. HOVR has already completed the development of a 50%-scale prototype.
The timeline looks achievable, and the Company has already committed to supplying five Cavorite X7 to Air Chile Ltd by the end of 2028.

TSI Holdings: Strong Growth in BPS and Aggressive Record of Share Buybacks

Tsi Holdings (3608 JP) is a leading apparel company in Japan. Net cash was 45 billion yen at end of February 2025, representing 58% of its current market cap.
The company has an excellent record of increasing its BPS, reducing outstanding shares, and buying back shares. Valuations have become more attractive.
Its share price has had a nice pullback in the past three months (down 22% from its peak levels in February 2025).

Asian Paints: Navigating Growth Challenges Amid Evolving Industry Dynamics

By Rahul Jain

Q4 FY25 volumes grew 1.8%, value declined; FY26 guidance is for low growth with 18–20% margins supported by integration and cost control.
Grasim and JSW are aggressively expanding with large capex and dealer networks, intensifying pricing pressure in decorative paints.
Stock corrected 15–20% but still trades at ~55x P/E, which remains expensive given slowing growth and rising competitive risks.

GMDC (GMDC IN): Steady Core Performance with Hidden Asset Optionality

By Rahul Jain

GMDC delivered strong FY25 results with 8MT of lignite sales and Rs992 crore in EBITDA, its second-best performance.
The company is focused on scaling lignite and coal volumes through new mines within Gujarat and Odisha. It also plans to diversify into rare earths and critical minerals.
While valuations appear slightly elevated, upside optionality exists from the revival of Akrimota power plant and operationalization of new mines.

Cyber Security Cloud Inc (4493 JP): Q1 FY12/25 flash update

By Shared Research

Revenue increased to JPY1.2bn (+24.4% YoY), driven by growth in WafCharm and CloudFastener, with ARR at JPY4.5bn (+30.9% YoY).
Operating profit declined to JPY241mn (-23.6% YoY) due to increased operating expenses, including personnel and outsourcing costs.
Shadankun’s ARR reached JPY1.7bn (+6.1% YoY) with a user count of 1,322 companies and a churn rate of 1.06%.

Dic Corp (4631 JP): Q1 FY12/25 flash update

By Shared Research

Consolidated sales reached JPY262.1bn (+2.5% YoY), with operating profit at JPY13.1bn (+54.0% YoY), driven by market recovery.
Segment sales varied, with packaging inks declining in Asia, while jet inks for digital printing increased significantly.
Operating profit rose in Japan and overseas, supported by cost savings and stable sales prices across product lines.

Akzo Nobel India [India M&A]: JSW Likely Buyer – Investors Should Assess Strategic Impact

By Rahul Jain

Akzo Nobel N.V. earlier announced its plans to exit India to focus on core markets where it holds a position of “differentiating scale.
JSW Paints has reportedly entered exclusive talks to acquire Akzo India, edging out Advent–Indigo and Pidilite.
Shareholders may tender in the open offer or stay invested for potential upside via JSW which has a long stellar track-record.

France Bed Holdings (7840 JP): Full-year FY03/25 flash update

By Shared Research

FY03/25 revenue was JPY60.6bn (+2.4% YoY), operating profit JPY4.7bn (+2.4% YoY), net income JPY2.9bn (-6.0% YoY).
Medical Services revenue rose 4.2% YoY, Home Furnishing and Health revenue decreased 1.3% YoY, with GPM at 54.6%.
FY03/26 forecast: revenue JPY62.3bn (+2.9% YoY), operating profit JPY4.8bn (+1.1% YoY), net income JPY3.1bn (+3.5% YoY).

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May 17

Daily Brief Macro: HEW: Dovish Arguments Ageing Poorly and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

HEW: Dovish Arguments Ageing Poorly
Bitcoin, Buffett, and the Barbarians at the Gate | Ep. #020 – The New Barbarians Podcast
173: The End of US Equity Dominance? With Chris Wood, Global Strategist and Author of ‘Greed and …
Fixed Income: The US-China Détente: Implications for Asia
[IO Technical 2025/20] Bullish Momentum Builds
China Economics: Tough Times Despite Positive Trade Talks
OPEC, EIA, and IEA Deliver Mixed Signals Amid Trade Uncertainty and Oversupply Concerns
Soybean Surge: Is the Momentum Ripe for More Gains?
CX Daily: China’s Public Hospitals Face Debt Crisis Amid Health Care Reforms
Tunisia, May 16th 2025 ,

HEW: Dovish Arguments Ageing Poorly

By Phil Rush

Equity and rates market prices normalised further as data remains too resilient to prompt cuts, and US trade policy still seems to be reversing its destructive aspects.
UK GDP boomed beyond expectations again, albeit amid residual seasonality. US CPI data were soft and stable, as companies appeared to have smoothed the tariff shock.
Next week’s UK inflation data could compound the pressure by exceeding the consensus to reach 3.4% on the CPI. The flash PMIs and RBA decision are other timely highlights.

Bitcoin, Buffett, and the Barbarians at the Gate | Ep. #020 – The New Barbarians Podcast

By William Mann

Market experiencing steepening yield curve, potentially indicating higher inflation and stronger growth
Stocks rallying, with significant moves in earnings yield and small caps
Asia and Europe markets up, Dow, S&P, Nasdaq, and Russell all posting gains; Gold and Bitcoin down, Oil up, Vix down

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

173: The End of US Equity Dominance? With Chris Wood, Global Strategist and Author of ‘Greed and …

By The Money Maze Podcast

US stock market dependency on world index has increased significantly, reaching around 65-67%
Tariffs implemented by Trump have had a bearish impact on stock market
Small cap underperformance in US market is at its highest in 25 years, leading to interesting valuation opportunities

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Fixed Income: The US-China Détente: Implications for Asia

By At Any Rate

US and China have seen reduction in tariffs, with US tariffs on China now around 41%
The macro impact of this reduction includes potential growth for the full year and quarterly profile
Fiscal stimulus and monetary easing may need to be adjusted based on the current tariff situation

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

[IO Technical 2025/20] Bullish Momentum Builds

By Pranay Yadav

Iron ore futures surged to a six-week high as U.S.-China trade tensions eased, with both nations agreeing to sharply reduce tariffs for 90 days, boosting market sentiment and commodity demand.
Underlying demand remains weak, with China’s steel consumption pressured by a cooling property sector and ongoing structural shifts across its broader economic landscape.
On the technical front, the outlook is turning increasingly bullish as prices are holding above key moving averages.

China Economics: Tough Times Despite Positive Trade Talks

By Manu Bhaskaran

The US and China have taken on a more constructive approach to their trade differences. Tariff rates will be immediately reduced significantly, and further talks will be held as well.
Still, the fundamental misalignment in interests and contradictory negotiating styles make elusive a substantive deal that restores bilateral trade to its pre-escalation level.
For China, falling export profitability and rising protectionism will limit further export growth. Economic recovery is held back by frailty in manufacturing and consumption.

OPEC, EIA, and IEA Deliver Mixed Signals Amid Trade Uncertainty and Oversupply Concerns

By Suhas Reddy

OPEC held its 2025 and 2026 demand growth forecasts steady. The IEA’s upward revision reflects a catch-up adjustment for 2024, not a fundamental shift in its forward outlook.
The EIA raised its demand growth forecast by 7.8% for 2025 but cut estimates by 13.5% for 2026. Meanwhile, it raised supply forecasts and projected inventory builds for both years.
The EIA expects Henry Hub prices to rise in 2025 and 2026 from current levels, though it revised its 2025 forecast 3.5% lower and lifted 2026 estimates by 4.3%.

Soybean Surge: Is the Momentum Ripe for More Gains?

By Srinidhi Raghavendra

After falling to a 2025 low, Bean prices have rallied strongly to clock a nine-month high. Macro conditions augur well for the rally to be sustained.
Implied vols on bean options have dropped even as prices rise. Spike in skew points to reduced demand for downside risk hinting at upward price buoyancy.
Technical charts paint a broadly bullish picture with potential for rally ahead remaining intact. However, the bullish momentum might take a breather in the near term.

CX Daily: China’s Public Hospitals Face Debt Crisis Amid Health Care Reforms

By Caixin Global

Hospitals /In Depth: China’s public hospitals face debt crisis amid health care reforms
Rare earth /China resumes rare earth exports under tight controls as global prices soar
Autos /China’s auto boom in Russia cools as tariffs, taxes and geopolitics bite

Tunisia, May 16th 2025 ,

By Denis Collot

What is a bit of extra cash between friends ? Do numbers mean anything anymore ?
Long before Trump’s visit to the Gulf, promises of incredible investments were flying around.
Now that the President touched ground we see a bit better. Saudi Arabia was first to fire and it will be 600 bn $ of commitments.

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May 17

Most Read: BYD, Pop Mart International Group L, SK Square , Contemporary Amperex Technology, Technopro Holdings, LG Energy Solution, ESR Group , Oneconnect Financial Technology, Mayne Pharma and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

HSTECH Index Rebalance Preview: BYD (1211 HK) Could Replace China Literature (772 HK); Huge Trade
Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for June25
FXI Rebalance Preview: Pop Mart (9992 HK) Pops Up Again
A Practical Guide to Stub Arb Trade in the Korean Stock Market
CATL (3750 HK): Powered by the PetroDollar. HK Offer Overview and Valuations.
[Japan M&A] TechnoPro Holdings (6028) May Be Up For Grabs
LG Chem: To Issue Exchangeable Bond Worth US$1 Billion
ESR (1821 HK): Pre-Cons Done. Scheme Doc By 22nd May
OneConnect Financial (6638 HK/OCFT US): Ping An Firms Offer @ HK$2.068/Share
Mayne Pharma’s Merger with Cosette Pharmaceuticals: Navigating FDA Concerns, Shareholder Approval, and Market Reactions

HSTECH Index Rebalance Preview: BYD (1211 HK) Could Replace China Literature (772 HK); Huge Trade

The review period for the June rebalance of the HSTECH INDEX ended on 31 March, the changes will be announced on 16 May and implemented on 6 June.
Following the launch of the God’s Eye ADAS, BYD (1211 HK) could become eligible for index inclusion after meeting the Autonomous theme and Innovation screening.
The inclusion of BYD (1211 HK) in the index could result in China Literature (772 HK) being deleted from the index in June.

Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for June25

Post market close on Friday, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 6 June.
With no constituent changes, one-way turnover will be 1.9% with 3 stocks being capped and FAF changes for a few stocks due to a methodology change for Secondary Listings.
We highlight 7 stocks that have a higher probability of being added to the index. Everything depends on the index committee, and we would not be surprised by zero changes.

FXI Rebalance Preview: Pop Mart (9992 HK) Pops Up Again

With two days left in the review period, Pop Mart International Group L (9992 HK) could replace China Railway Group Ltd H (390 HK) in the FXI ETF in June.
The inclusion of Pop Mart International Group L (9992 HK) in the iShares China Large-Cap (FXI) (FXI US) will add to the potential inclusion of the stock in other indices.
Short interest has been increasing in both stocks. Multiple index inclusions could result in short covering in Pop Mart while China Railway Group‘s stock price has been bouncing off its lows.

A Practical Guide to Stub Arb Trade in the Korean Stock Market

By Sanghyun Park

Due to NAV accuracy issues, locals favor sigma plays within ±2σ bands over classic stub trades, with aggressive traders rotating longs and shorts around ±1σ.
Avoid trending divergence periods; these eight targets usually mean-revert well, but H1 this year showed unusually deep divergence—important to consider for current sigma plays.
As of today, no 20-day MA sigmas trigger trades, but holding company strength drives price ratios—a trend likely lasting post-election—suggesting ±2σ sigma plays with longs in holdcos.

CATL (3750 HK): Powered by the PetroDollar. HK Offer Overview and Valuations.

By Devi Subhakesan

Contemporary Amperex Technology (CATL) (300750 CH) has offered118 million shares in Hong Kong, priced at HKD263 per share, a modest discount to its A share price.
More than half of the USD4 Billion Hong Kong share offering has already been subscribed by cornerstone investors.
Middle Eastern sovereign wealth funds are amongst CATL’s key corner stone investors while the deal excluded US onshore investors given the mounting geopolitical tensions.

[Japan M&A] TechnoPro Holdings (6028) May Be Up For Grabs

By Travis Lundy

Technopro Holdings (6028 JP) is a temp/contract staffing platform which specialises in engineering staff (IT engineers far more than machinery, construction, chemicals). The company has been growing.
Overnight, an article appeared in MergerMarket – a high-dollar M&A-related news service – saying the company was going through a sale process. The company confirmed it was one possibility.
The stock went limit up. This quick writeup looks at the framework of the idea, and possibilities.

LG Chem: To Issue Exchangeable Bond Worth US$1 Billion

On 15 May, LG Chem announced that it plans to issue foreign currency exchangeable bond worth US$1 billion using shares of its subsidiary LG Energy Solution as the underlying asset.
The purpose of this EB issue is to repay the amount of EB issued two years ago.
The exchange price premium was lowered from 130% in 2023 to 110-115% this time, and the maturity has been shortened from 7 years to 3 years.

ESR (1821 HK): Pre-Cons Done. Scheme Doc By 22nd May

Back on the 4th December 204, Starwood/Warburg Pincus Consortium announced a firm pre-conditional Offer for ESR Group (1821 HK) at HK$13/share (best & final), by way of a Scheme.
The list of pre-cons was extensive. Last night (15th May), ESR announced the satisfaction of all pre-cons.
The Scheme Doc is now required to be dispatched by the 22nd May, suggesting payment around mid-July. Assuming no dispatch delays.

OneConnect Financial (6638 HK/OCFT US): Ping An Firms Offer @ HK$2.068/Share