China

In today’s briefing:

A/H Premium Tracker (To 1 Aug 2025): HUGE SOUTHBOUND Buying Helps Beautiful Skew but Premia Up
Quiddity Leaderboard STAR 50/100 Sep25: Final Expectations; New Pair Trades
HK Connect SOUTHBOUND Flows (To 1 Aug 2025); YUGE Net Buying on Weakness (FINANCIALS & HEALTHCARE)
China Mobile (941 HK) Results on 7 Aug: Low Volatility History Faces Test
SICC A/H Listing – PHIP Updates and Thoughts on A/H Premium
Laopu Gold (6181.HK) – The Business Model, the Concerns, the Valuation Outlook
Lucror Analytics – Morning Views Asia
HKEx Consultation Paper (Conclusion) – What Matters for ECM Investors

A/H Premium Tracker (To 1 Aug 2025): HUGE SOUTHBOUND Buying Helps Beautiful Skew but Premia Up

AH premia up, erasing the previous week’s gains for Hs. “Beautiful Skew” continues in negative overall performance.
Last week I said “This is the most significant 60-day AH pair average H outperformance in five years, maybe ever. Remarkable.” This week it unwound some.
The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.

Quiddity Leaderboard STAR 50/100 Sep25: Final Expectations; New Pair Trades

By Janaghan Jeyakumar, CFA

STAR 50 Index is a tech-focused, blue-chip index in Mainland China which tracks the top 50 largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
STAR 100 index tracks the next 100 names (51st-150th ranks) and it represents the mid-cap segment of the STAR market.
In this insight, we have presented our final predictions for the STAR 50 and STAR 100 indices for the September 2025 index rebal event.

HK Connect SOUTHBOUND Flows (To 1 Aug 2025); YUGE Net Buying on Weakness (FINANCIALS & HEALTHCARE)

Gross SOUTHBOUND volumes just under US$20+bn a day this past 5-day week. Second best in months. Net buying strong at just over +US$1.5bn a day.
FINANCIALS and HEALTHCARE and now INFO TECH stand out as net buys as a % of volume. TELECOMS a net sell. Again.
Hong Kong sharply underperformed mainland shares last week, SOUTHBOUND bought big, and despite higher AH Premia, Beautiful Skew continued.

China Mobile (941 HK) Results on 7 Aug: Low Volatility History Faces Test

By Gaudenz Schneider

China Mobile (941 HK) / China Mobile (600941 CH) will release 2024 interim results on Thursday, 7 August 2025. The stock is a key constituent of the HSI and HSCEI.
Highlights: Past earnings moves have been modest, but the options skew hints at potential for surprises. Dividend decision also due.
Why Read: Helps time exposure and evaluate short-term risks ahead of results and dividend announcement for cash investors and option traders.

SICC A/H Listing – PHIP Updates and Thoughts on A/H Premium

SICC (688234 CH), a manufacturer of high-quality SiC substrates, aims to raise up to US$250m in its H-share listing.
In terms of market share, as per Frost & Sullivan, based on 2024 sales, its market share was at 16.7%.
In this note, we look at the PHIP updates and talk about the likely A/H premium.

Laopu Gold (6181.HK) – The Business Model, the Concerns, the Valuation Outlook

The value of Laopu lies in its innovation in business model,successfully breaking away from the low-profit attribute of the industry by following the pricing and operation methods of luxury goods.
However, Laopu cannot enjoy the valuation system of luxury brands because it cannot “escape” gold price cycle.So, when valuation of Laopu approaches that of luxury brands, it has overvaluation risks.
Current valuation has priced in overseas expansion, which however isn’t a done deal.During upward cycle of gold prices,it’s easy to optimistically linearly extrapolate Laopu’s growth potential.Valuation faces downward revision risk

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: Melco Resorts, Tata Motors, UPL Limited, Nissan Motor
UST yields plunged on Friday, led by the front end, as the market repriced expectations for Fed easing following a weaker than expected nonfarm payrolls report. As of Friday, Fed-dated OIS were pricing in 61 bps of rate cuts over the next three meetings in 2025 (vs. 33 bps as of Thursday). The UST curve bull steepened aggressively, with the yield on the 2Y UST declining 28 bps to 3.68%, while the yield on the 10Y UST fell 16 bps to 4.22%.
Equities retreated owing to the weak jobs numbers, continued tariff concerns, as well as after US President Donald Trump said the US was moving two nuclear submarines in response to “provocative” statements by former Russian president Dmitry Medvedev. The S&P 500 fell 1.6% to 6,238, while the Nasdaq was down 2.2% at 20,650.

HKEx Consultation Paper (Conclusion) – What Matters for ECM Investors

The SEHk recently issued an update in response to its consultation paper in December 2025, with new mechanisms proposed for the IPO in the future.
In this note, we summarize the conclusion by HKEx and the rules to be implemented.
We are of the view that overall, the changes will benefit ECM investors with greater certainty in allocations.

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Aug 04

Daily Brief China: Laopu Gold, CK Hutchison Holdings, Smart Share Global, Meituan, Guangzhou Innogen Pharmaceutical Group and more

In today’s briefing:

Laopu Gold (6181 HK): Potential Inclusion in Both Global Indices
Weekly Deals Digest (03 Aug) – CK Hutchison, Joy City, HKBN, Fujitec, Krosaki Harima, NSDL
Smart Share Global (EM US): Trustar Capital-Sponsored MBO a Done Deal
Smart Share Global (EM US): MBO Firmed
ECM Weekly (4 August 2025)-Meituan, LG CNS, Wuxi AppTec, SICC, NSDL, Aditya Info, GigaDevice, WeWork
Innogen (银诺医药) Pre-IPO Update: Cuts in Market Forecasts

Laopu Gold (6181 HK): Potential Inclusion in Both Global Indices

Laopu Gold (6181 HK) missed global index inclusion in May following completion of full circulation. The primary placement in May then improved chances of index inclusion in August.
The stock rose nearly 60% in the 2 months following the placement and has lost more than a third of its value from the peak in the last month.
The stock could be added to both global indices with one inclusion at the end of August and one in mid-September. That could provide short-term support for the stock.

Weekly Deals Digest (03 Aug) – CK Hutchison, Joy City, HKBN, Fujitec, Krosaki Harima, NSDL

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: NSDL (NSDL IN) is seeking to raise US$464 million.
Event-Driven developments: CK Hutchison Holdings (1 HK), Joy City Property (207 HK), HKBN Ltd (1310 HK), Fujitec Co Ltd (6406 JP), Nihon Chouzai (3341 JP), Krosaki Harima (5352 JP).

Smart Share Global (EM US): Trustar Capital-Sponsored MBO a Done Deal

Smart Share Global (EM US) has entered into a definitive merger agreement for a Trustar Capital-sponsored MBO at US$1.25 per ADS.
The proposal is conditional on regulatory approvals (low risk), shareholder approval (effectively done) and a maximum dissenting condition (likely to be waived).
This is a done deal. At the last close and for the end of December payment, the gross/annualised spread is 7.8%/20.1% (3.5%/8.7% including an ADS cancellation fee).

Smart Share Global (EM US): MBO Firmed

Nearly seven months after Smart Share (EM US), the largest provider of mobile device charging services in China, announced a preliminary non-binding proposal, a firm Offer has been entered into.
Terms remains the same as the indicative NBIO: US$0.625/share (US$1.25/ADS), a 74.8% premium to last close. The Offeror comprises a consortium led by Mars Guangyuan Cai, Chairman and CEO.
Timing from here? Perhaps three to four months, or late November completion by my estimate.

ECM Weekly (4 August 2025)-Meituan, LG CNS, Wuxi AppTec, SICC, NSDL, Aditya Info, GigaDevice, WeWork

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, India deal flow remains strong, with HK A/H listing starting to flow in again.
On the placements front, WuXi AppTec (2359 HK) undertook a mega raising, while Prosus NV (PRX NA) has begun to pare its stake in Meituan (3690 HK).

Innogen (银诺医药) Pre-IPO Update: Cuts in Market Forecasts

Innogen, a China-based near-commercial stage biotech company, is looking to raise at least USD 100 million via a Hong Kong listing. CITIC Securities and CICC are the joint sponsors.
In this note, we look at changes to the company’s PHIP prospectus.
While there is no major update to the asset lists, we do see that the market forecasts provided in the prospectus scaled down significantly.

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Aug 03

Daily Brief China: HKBN Ltd, CK Hutchison Holdings, WuXi AppTec and more

In today’s briefing:

HKBN (1310 HK): Pre-Cons Satisfied. Offer To Open Shortly
HKBN (1310 HK): China Mobile Satisfies the Precondition
Last Week In Event SPACE: CK Hutch, GMO Internet, Prosus/Meituan, Piedmont Lithium
China Healthcare Weekly (Aug.3)-Medical Device Valuation Repair,Deal on IBI363,WuXi AppTec Placement

HKBN (1310 HK): Pre-Cons Satisfied. Offer To Open Shortly

Almost exactly eight months after HKBN Ltd (1310 HK) announced a pre-conditional Offer, China Mobile (941 HK) has now satisfied all pre-cons.
The Offer Doc will be dispatched on or around the 12th August, at which time the Offer will be open for acceptances.
This could turn unconditional early September. Trading tight at a gross spread of 1.5%. Keep in mind a basket of peers are up 23% since the Offer was announced.

HKBN (1310 HK): China Mobile Satisfies the Precondition

The precondition for China Mobile (941 HK)’s HK$5.075 offer for HKBN Ltd (1310 HK) is satisfied. The offer is final. The offer document must be despatched by 8 August.
The HKBN CEO has commented that the China Mobile offer is not good enough, suggesting a possibility that the Board does not recommend the offer.
Nevertheless, there is a clear pathway for the offer to satisfy the 50% minimum acceptance condition and be declared unconditional. The gross/annualised spread for a 13 September payment is 1.5%/13.0%.

Last Week In Event SPACE: CK Hutch, GMO Internet, Prosus/Meituan, Piedmont Lithium

Intervention seeds participation as a PRC investor (COSCO?) is expected to join the bidding consortium for CK Hutchison Holdings (1 HK) ports.
GMO Internet Group (9449 JP) needs to sell shares in GMO Internet (4784 JP)to achieve a “float” of 35% by 31 December 2026. Recent filings show they are selling.
Prosus NV (PRX NA) has been selling Tencent (700 HK), then buying back its shares. (As has Tencent). Reportedly Prosus is now selling shares in Meituan (3690 HK).

China Healthcare Weekly (Aug.3)-Medical Device Valuation Repair,Deal on IBI363,WuXi AppTec Placement

A key point of the press conference held by the NHSA is that the selection in centralized procurement of medical devices will no longer be based on the lowest price.
Investors have high hopes for the licensing cooperation of IBI363. Our guess is a 50:50 licensing deal with MNC is expected, so as to maximize the value/potential of the drug.
Considering Li Ge’s rich experience in capital operation, WuXi AppTec’s Placement implies its H-share is already at high level.Investors can consider taking profits, as share price adjustment may be coming.

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Aug 02

Daily Brief China: Plover Bay Technologies, Joy City Property, Luckin Coffee, MGM China Holdings, BeiGene , Hang Seng Index and more

In today’s briefing:

Plover Bay (1523 HK): Slight Deceleration But Solid H1 FY25 And Optimistic Future Growth
Joy City (207 HK): Minorities Should Take The Cash
Luckin Coffee’s U.S. Invasion: A Brewing Storm for Starbucks!
Lucror Analytics – Morning Views Asia
Continue Adding Exposure to China; Short-Term Supports to for This ACWI-US Pullback
Hong Kong Single Stock Options Weekly (July 28–Aug 01): Reversal Hits, Breadth Collapses, Vol Steady

Plover Bay (1523 HK): Slight Deceleration But Solid H1 FY25 And Optimistic Future Growth

By Sameer Taneja

Plover Bay Technologies (1523 HK) reported 9.9%/13.4% YoY revenue/net profit growth, led by growth from customers in the EMEA and Asia (with the US being a drag).
Earnings were more or less in line with our preview, Plover Bay (1523 HK): Preview On Earnings For H1 2025, but revenues were slightly weaker, and margins were stronger.
The stock trades at 21.5x PE FY25e (assuming 15% growth), with a 4.4% dividend yield (assuming an 80% payout), but we acknowledge there could be upside to our earnings.

Joy City (207 HK): Minorities Should Take The Cash

Chinese property play Joy City (207 HK) has announced a Scheme buyback, with a price of $0.62/share (declared final), a 67.57% premium; but more like a 158% premium to undisturbed.
Yes, this is a 70% discount to NAV. Yet Joy City has traded at P/B of 0.14x, on average, the past five years. Earnings have trended south in that timeframe.
The IFA will likely cite liquidity and Joy City’s historical discount to NAV, and opine “reasonable”, and probably even “fair”. It is what it is for long-suffering shareholders.

Luckin Coffee’s U.S. Invasion: A Brewing Storm for Starbucks!

By Baptista Research

Luckin Coffee reported strong financial results for the first quarter of 2025, underlining significant year-over-year growth in both revenue and profitability.
The company revealed a 41% increase in total net revenues, reaching approximately RMB 8.9 billion, mainly driven by a 42% rise in gross merchandise value (GMV) amounting to RMB 10.4 billion.
The growth in revenue was primarily fueled by expanded product sales through increased customer transactions, supported by an extensive store network.

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: MGM China, SK Hynix, Tata Steel, Vedanta Resources
Short-end UST yields rose slightly yesterday, extending Wednesday’s post-Fed curve flattening trend. The yield on the 2Y UST rose 2 bps to 3.96%, while the yield on the 10Y UST was stable at 4.38%. Equities ended the day mixed.
The S&P 500 erased a rally earlier in the day on renewed tariff concerns, declining 0.4% to 6,339. The Nasdaq closed flat at 21,122, after Microsoft and Meta Platforms reported solid results.

Continue Adding Exposure to China; Short-Term Supports to for This ACWI-US Pullback

By Joe Jasper

We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass), with Int’l Compass reports all echoing this sentiment.
We will maintain our bullish intermediate-term view as long as market dynamics remain healthy and the SPX and ACWI-US are above 6028-6059 (up from 5700-5785) and $119-$121.
$128, $125-$126, and $123-$123.50 are short-term supports to watch on ACWI-US; we will maintain our near-term bullish outlook as long as $123 support holds.

Hong Kong Single Stock Options Weekly (July 28–Aug 01): Reversal Hits, Breadth Collapses, Vol Steady

By John Ley

HSI reversed course with four straight down days to close the week sharply lower.
Breadth collapsed, with only a small fraction of names finishing higher; option volumes rose into the decline with Puts taking more than their usual share of activity.
Implied vols fell on the week, erasing last week’s gains and not showing signs of stress at this point.

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Aug 01

Daily Brief China: Joy City Property, Alibaba, GigaDevice Semiconductor , Iron Ore, Sichuan Neautus Traditional Chinese Medicine and more

In today’s briefing:

Joy City Property (207 HK): Privatisation Through a Low-Ball Share Buyback
Alibaba: Sentiment Rebounds Among GEM Funds
GigaDevice A/H Listing -Strong Long Term Record but Exposed to the Memory Cycle
[IO Technicals 2025/31] Muted Policy Support and Soft Demand Weigh on IO Prices
Pre-IPO Sichuan Neautus Traditional Chinese Medicine – The Outlook Is Not Optimistic

Joy City Property (207 HK): Privatisation Through a Low-Ball Share Buyback

Joy City Property (207 HK) announced a share buyback by way of a scheme at HK$0.62, a 67.6% premium to the last close of HK$0.37 (17 July). The offer is final.
The buyback is effectively a privatisation by the controlling shareholder, COFCO, at a significant discount to book value. The offer implies a P/B of 0.30x.
While there are mitigating factors which lower the vote risk, there are several similarities to the failed Soundwill scheme. Therefore, the vote comes with non-neligible risk.

Alibaba: Sentiment Rebounds Among GEM Funds

By Steven Holden

Ownership in Alibaba has rebounded to 76.4% of EM funds, nearing its 2020 peak and making it the second most widely held stock among GEM funds, behind only TSMC.
The past six months have seen strong momentum, with 29 new fund positions marking a 7.7% rise in participation— the third highest among all EM stocks.
Alibaba attracts broad cross-style interest, with Value funds leading on allocation size, but Growth and GARP strategies among the top holders, reflecting high and diverse conviction.

GigaDevice A/H Listing -Strong Long Term Record but Exposed to the Memory Cycle

GigaDevice Semiconductor (603986 CH) (GD), an IC design house, aims to raise around US$1bn in its H-share listing.
GD is a leading specialty memory chip and MCU company in mainland China.
In this note, we look at its past performance and other deal dynamics that might impact the listing.

[IO Technicals 2025/31] Muted Policy Support and Soft Demand Weigh on IO Prices

By Umang Agrawal

The Politburo signalled only mild policy easing on July 30, disappointing investors hoping for stronger measures to address China’s property slump.
China’s July NBS Manufacturing PMI fell, highlighting fading pre-tariff export momentum and persistently weak domestic demand conditions.
Prices are below the 9‑day moving average, and a bearish MACD crossover suggests a potential short‑term pullback.

Pre-IPO Sichuan Neautus Traditional Chinese Medicine – The Outlook Is Not Optimistic

Neautus is facing performance headwinds. Revenue growth rate is declining and profit margin is in downward trend. Net profit growth is lower than the revenue growth, indicating the weak profitability
VBP, increasing competition and raw materials cost are the challenges. Because of financial fraud, Neautus once failed its A-share IPO. So, there is corporate governance issue in the Company.
We’re conservative about the outlook of Neautus. It is already good for valuation to reach the industry average.Our forecast in 2025 is revenue to reach RMB1.4-1.5 billion (up 12-15% YoY).

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Jul 31

Daily Brief China: WuXi AppTec, China Hongqiao, Eastenova (Chengdu) Biotechnology, Ab&B Bio-Tech and more

In today’s briefing:

WuXi AppTec (2359 HK) Placement: Strong Momentum & Index Flows
Wuxi AppTec Placement – Momentum Is Very Strong, Though It Is a Bit Opportunistic
Asian Equity: Changes to Model Portfolio: Korea, HK/CN Overweight. India Neutral; ASEAN Underweight
Eastenova (东方妍美) Pre-IPO: Recalibration of Potentials
Pre-IPO Ab&B Bio-Tech (PHIP Updates) – Some Points Worth the Attention

WuXi AppTec (2359 HK) Placement: Strong Momentum & Index Flows

WuXi AppTec (2359 HK) is looking to raise US$650m at a price range of HK$104.16-106.4/share, a 5-7% discount from last close.
There will be passive buying from global index trackers around the time of settlement of the placement shares. Then there will be some Hang Seng Index buying in August.
Short interest in WuXi AppTec (2359 HK) has spiked and some shorts could cover into the placement. The AH premium could move higher following the placement.

Wuxi AppTec Placement – Momentum Is Very Strong, Though It Is a Bit Opportunistic

WuXi AppTec (2359 HK) aims to raise around US$650m via its H-share placement.
The stock has been on a roll this year and recently announced strong earnings as well. Although it’s now trading at its 52-week highs.
In this note, we will talk about the placement and run the deal through our ECM framework.

Asian Equity: Changes to Model Portfolio: Korea, HK/CN Overweight. India Neutral; ASEAN Underweight

By Manishi Raychaudhuri

Since inception on May 15, our Model Portfolio (up 6.2%) underperformed the MSCI Asia-ex-Japan index (up 7.87%) due to underperforming stock picks in India, ASEAN and China consumer proxies.
The main themes: China’s changing consumption and investment patterns, Korea’s improving corporate governance, continuing global infrastructure investments and India’s earnings disappointment. Korea, HK/China remain overweight; India is downgraded to Neutral.
We exclude Meituan, Titan, Infosys, Bharat Dynamics, Krafton. We include Laopu Gold, Lonking Holdings, China Hongqiao, AIA and Hyundai Engineering and Construction. We are now Neutral Industrials and Underweight Technology.

Eastenova (东方妍美) Pre-IPO: Recalibration of Potentials

Eastenova, a China-based regenerative medicine specialist, is looking to raise at least US$100 million via a Hong Kong listing. The sole bookrunner is CCBI.
In this note, we take a look at the company’s core product, XH301.
Our research suggests that recalibration of the company’s potential is necessary given the intense competition and market deceleration.

Pre-IPO Ab&B Bio-Tech (PHIP Updates) – Some Points Worth the Attention

Quadrivalent subunit influenza vaccine has been approved for market launch, but performance deteriorated due to product returns and provision for impairment of inventories.Fierce competition has intensified the pressure on profits.
Core founding shareholders have no background in vaccine R&D.Ab&B lags behind in terms of R&D capabilities/forward-looking vision, leading to insufficient depth of pipeline layout and a decline in future competitiveness.
After Series B financing, post-money valuation reached RMB4.2 billion. We think Ab&B Bio-Tech (ABB HK)’s valuation should be lower than CanSino, but would be higher than AIM Vaccine (6660 HK).

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Jul 30

Daily Brief China: CK Hutchison Holdings, China Huarong Asset Management, WuXi AppTec, Ab&B Bio-Tech, SJM Holdings and more

In today’s briefing:

CKH (1 HK): Intervention Towards Securing Participation
China Citic Financial (2799 HK): Global Index Inclusion as Valuation Blows Out
WuXi AppTec (2359.HK/603259.CH) 25H1 – The Turning Point of Performance Has Been Confirmed
Ab&B Bio-Tech (中慧生物) Pre-IPO: PHIP Updates Suggest Competition Intensifying
WuXi AppTec (2359 HK): Accelerated Growth and Margin Improvement in 1H; Full-Year Guidance Raise
Lucror Analytics – Morning Views Asia

CKH (1 HK): Intervention Towards Securing Participation

Inviting a PRC investor to join the bidding consortium as a significant member, as opposed to a majority player, appears the panacea to get this port deal over the line.
Although CK Hutchison Holdings (1 HK) stopped short of naming the investor, China’s state-owned shipping conglomerate Cosco is widely expected/rumoured to join BlackRock and Swiss-Italian shipping company MSC.
Participation through effective intervention? Cosco’s involvement should all-but seal Chinese regulatory approvals. The green light from the US administration, the EU, and other jurisdictions, will pivot off how much involvement.

China Citic Financial (2799 HK): Global Index Inclusion as Valuation Blows Out

A doubling of the stock price over the last 4 months could lead to China Huarong Asset Management (2799 HK)‘s inclusion in a global index in August.
China Huarong Asset Management (2799 HK) has outperformed its closest peer and trades at a much higher price to book.
China Huarong Asset Management (2799 HK) was added to Southbound Stock Connect in March and investors have been buying the stock via the link.

WuXi AppTec (2359.HK/603259.CH) 25H1 – The Turning Point of Performance Has Been Confirmed

The trend of performance reversal of WuXi AppTec is clear. The core driving force comes from the explosive growth of TIDES business and the disposal of WuXi XDC shares.
Based on strong performance in 25H1, WuXi AppTec expects full-year total revenue of RMB42.5-43.5 billion, up from the prior RMB41.5-43.0 billion. We shared our forecast for the next three years
There is a “valuation discount” to reflect geopolitical risks. WuXi AppTec (A-share) is expected to have more upside as the next stage of rise may come more from A-share market

Ab&B Bio-Tech (中慧生物) Pre-IPO: PHIP Updates Suggest Competition Intensifying

China-Based vaccine biopharmaceutical company Ab&B is looking to raise at least US$100 million via a Hong Kong listing. The joint book runners are CITIC and CMBI.
In our previous insight, we looked at the story that the company is trying to sell and the influenza vaccine market.
In this insight, we look at the latest updates in its PHIP filing.

WuXi AppTec (2359 HK): Accelerated Growth and Margin Improvement in 1H; Full-Year Guidance Raise

By Tina Banerjee

WuXi AppTec (2359 HK) has announced better-than-expected 1H25 result, with revenue increasing 21% YoY to RMB21B and adjusted net profit jumping 44% YoY to RMB6B.
1H result was mainly driven by late‑stage clinical and commercial projects. Amid continuous capacity expansion, order backlog reached RMB57B as of June 30, 2025, up 37% YoY.
With ongoing demand of the customers and solid execution demonstrated by CRDMO business model in 1H25, Wuxi AppTech raised 2025 revenue growth guidance to 13–17% from 10–15%.

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: SJM Holdings, Yinson Production, Adani Green Energy
Long-end UST yields rose slightly yesterday, with no macro catalysts and following mixed results for auctions of 2Y and 2Y notes. The yield on the 2Y UST was unchanged at 3.93%, while the yield on the 10Y UST rose 2 bps to 4.41%.
Equities held steady at record high levels following the US-EU trade agreement, and on expectations of an extension of the US-China trade truce. The S&P 500 was flat at 6,390, while the Nasdaq was up 0.3% at 21,179.

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Jul 29

Daily Brief China: Guangzhou Automobile Group, GF Securities (H), Great Wall Motor, Laopu Gold, Anta Sports Products, Eastroc Beverage Group, Jiangsu Hengrui Pharmaceuticals and more

In today’s briefing:

A/H Premium Tracker (To 25 July 2025): “Beautiful Skew” Raging Onward
GF Securities (1776 HK): Global Index Inclusion as Sector Rallies
HK Connect SOUTHBOUND Flows (To 25 July 2025); Multi-Month High Volumes, Net Buying of Financials
Laopu Gold (6181 HK): Strong Earnings, Soft Share Price – What’s Driving the Disconnect?
Anta (2020 HK): Company Estimates Higher Growth Due to Acquisition
Eastroc Beverage Group – High Growth in 25H1 Continues but Concerns Begin to Emerge
Jiangsu Hengrui Pharmaceuticals (1276 HK): Is HRS-9821 Licensing Deal with GSK Good Enough?

A/H Premium Tracker (To 25 July 2025): “Beautiful Skew” Raging Onward

AH premia down again among liquid names but “beautiful skew” of wide premia converging more than narrow premia continues bigly. It still pays well to be long wide H discounts.
This is the most significant 60-day AH pair average H outperformance in five years, maybe ever. Remarkable.
The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.

GF Securities (1776 HK): Global Index Inclusion as Sector Rallies

Following a rally in the stock over the last 4 months, GF Securities (H) (1776 HK) could be added to a global index in August.
GF Securities (H) (1776 HK)‘ peers have also rallied over the same time frame and the stock trades in line with its peers on various valuation metrics.
Positioning in the stock is in line with its peers and shorts have continued to increase as the stock price has moved higher.

HK Connect SOUTHBOUND Flows (To 25 July 2025); Multi-Month High Volumes, Net Buying of Financials

Gross SOUTHBOUND volumes US$20+bn a day this past 5-day week. Best in months. Net buying strong at +US$800mm a day.
Among the top buys as a percentage of volume, Non-bank FINANCIALS stood out, dramatically. Tech-y CONSUMER DISCRETIONARY was sold. SOEs stand out on the sell side. Again.
The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.

Laopu Gold (6181 HK): Strong Earnings, Soft Share Price – What’s Driving the Disconnect?

By Devi Subhakesan

Laopu Gold (6181 HK)’s stock has fallen nearly 30% since its July 8 peak and declined another 4% yesterday despite an upbeat 1H2025 profit update.
The company’s positive profit alert reported revenues and profits up more than 2.5x year-on-year, exceeding market expectations.
The ongoing share price weakness despite strong results likely reflects a combination of technical factors, such as lock-up related selling, and broader fundamental concerns.

Anta (2020 HK): Company Estimates Higher Growth Due to Acquisition

By Ming Lu

Anta expects “other brands” revenue will increase by “60-65%” YoY in 1H25.
We believe Anta finished the consolidation of Jack Wolfskin within June.
We conclude the stock will have an upside of 28% for the next twelve months.

Eastroc Beverage Group – High Growth in 25H1 Continues but Concerns Begin to Emerge

Both revenue and net profit of Eastroc maintain a high-speed growth trend in 25H1, which is impressive against the backdrop of the overall stabilization of the food and beverage industry.
The mid-term dividend payout ratio is high, which is relatively rare among growth-oriented food and beverage companies. Valuation of Eastroc should be higher than Nongfu Spring, China Resources Beverage.
However, inflation may drive up raw material prices. Eastroc’s profit may face pressure once products sales fail to grow as fast as expected.We updated our forecast for next three years

Jiangsu Hengrui Pharmaceuticals (1276 HK): Is HRS-9821 Licensing Deal with GSK Good Enough?

By Tina Banerjee

Jiangsu Hengrui Pharmaceuticals (1276 HK) entered into agreements with GSK, granting an exclusive worldwide right of HRS-9821, a small molecule, PDE3/PDE4 inhibitor in clinical development for the treatment of COPD.
The only similar products available worldwide is Verona Pharma’s Ohtuvayre (ensifentrine) which was approved for marketing by the FDA in June 2024 for maintenance therapy of COPD.
The COPD segment has seen increased activity over the last one year in terms of drug approvals, acquisitions, and licensing agreements. This reiterates the growing potential of the COPD market.

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Jul 28

Daily Brief China: GDS Holdings , China Traditional Chinese Medicine, Tencent and more

In today’s briefing:

GDS Holdings (9698 HK): Global Index Inclusion as Shorts Build Up
China TCM (570.HK) – About the 25H1 Profit Warning and the Outlook
ECM Weekly (28 July 2025) – MMC, Pine Lags, Prestige, Veritas, Daehan, Kasumigaseki, NSDL, GNI

GDS Holdings (9698 HK): Global Index Inclusion as Shorts Build Up

Following a rally in the stock over the last 3 months, GDS Holdings (9698 HK) / GDS Holdings (ADR) (GDS US) could be added to a global index in August.
Short interest in GDS Holdings (9698 HK) has been increasing. Add the short interest in GDS Holdings (ADR) (GDS US) and the number is pretty big.
Despite the recent rally, GDS Holdings (9698 HK) trades cheaper than its closest peer and there could be opportunities to enter market neutral trades.

China TCM (570.HK) – About the 25H1 Profit Warning and the Outlook

China TCM’s Profit Warning indicates a weak 25H1 results. Performance downturn is longer-than-expected. But as an industry leader, China TCM will enhance its bargaining power by integrating the industrial chain.
Investors have reignited interest in betting on privatization of China TCM and potential merger with Taiji, as deadline is approaching.Privatization price may be lower considering China TCM’s weak 25H1 results.
HK$0.84-2.17/Share is the reasonable share price range at this stage.The catalyst for China TCM’s share price is CNPGC may announce how to address the horizontal competition issue within three months.

ECM Weekly (28 July 2025) – MMC, Pine Lags, Prestige, Veritas, Daehan, Kasumigaseki, NSDL, GNI

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, we had a look at a number of deals that are in the pipeline.
On the placements front, it was a relatively quiet week with a few primary raisings.

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✓ Company Data and News
✓ Events & Webinars

Jul 27

Daily Brief China: JD.com , Tencent, HSBC Holdings, CK Hutchison Holdings, Everest Medicines and more

In today’s briefing:

JD.com Splashes Cash on Robotics AI Startups
Last Week In Event SPACE: Prosus/Tencent, Japan Post Bank, CK Holdings, Seven & I
HSBC (5 HK) Earnings on 30 July: Price Action and Option Strategies
Weekly Deals Digest (27 Jul) – CK Hutchison, Pacific Industrial, FHT, Abacus, PointsBet, NSDL
China Healthcare Weekly (Jul.27)-The Turning Point of Tigermed and CRO, Everest Medicines’ Placement

JD.com Splashes Cash on Robotics AI Startups

By Caixin Global

Three robotics startups announced Monday they had completed funding rounds led by JD.com Inc., signaling the Chinese e-commerce giant is accelerating its push into the burgeoning, much-hyped field of embodied artificial intelligence (AI).
Embodied AI — which refers to intelligent systems with physical forms that interact with the real world, such as robots and self-driving cars — has recently become a battleground for tech firms. As JD.com is a relative latecomer, it’s making an aggressive effort to catch up with rivals like Meituan and Lenovo Group Ltd.
While supporters of the tech say it’s set to reshape industries from logistics to consumer households, others warn that the technology is a long way off mass adoption and that many firms in the space lack a viable commercial model.

Last Week In Event SPACE: Prosus/Tencent, Japan Post Bank, CK Holdings, Seven & I

Prosus NV (PRX NA) is elevated vs. Tencent (700 HK) as the accretion trade unfolds.
As rates go up, investors may opt for direct exposure to Japan Post Bank (7182 JP), as opposed to Japan Post Holdings (6178 JP) indirectly, contributing to short squeezing JPB.
Expect near-term weakness in CK Hutchison Holdings (1 HK), IF the exclusivity with Blackrock/MSC ends this weekend without resolution.

HSBC (5 HK) Earnings on 30 July: Price Action and Option Strategies

By Gaudenz Schneider

Context: Index heavyweight HSBC (5 HK) / HSBC (HSBA LN) is set to report Interim Results 2025 on 30 July at 12:00 HKT — during the Hong Kong trading lunch break.
Expected Move: Historical data reveals HSBC‘s announcement-day moves are significantly larger than average, with options currently pricing in a remarkably aligned ± 2.2% implied move.
Actionable Strategies: Understand the potential for amplified volatility and explore actionable option strategies leveraging the distinctive term structure around earnings.

Weekly Deals Digest (27 Jul) – CK Hutchison, Pacific Industrial, FHT, Abacus, PointsBet, NSDL

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: NSDL (NSDL IN) is seeking to raise US$464 million.
Event-Driven developments: CK Hutchison Holdings (1 HK), Pacific Industrial (7250 JP), Frasers Hospitality Trust (FHT SP), Abacus Storage King (ASK AU), PointsBet Holdings (PBH AU), New World Resources (NWC AU).

China Healthcare Weekly (Jul.27)-The Turning Point of Tigermed and CRO, Everest Medicines’ Placement