Daily Briefs

I tally 44 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma.
Three new deal was discussed on Smartkarma this week: Dongfeng (489 HK), Austindo Nusantara Jaya (ANJT IJ), Shengjing Bank (2066 HK), and HD Heavy (329180 KS)/HD Mipo (010620 KS). .
Key updates/news took place on Santos Ltd (STO AU), Mayne Pharma (MYX AU), PointsBet Holdings (PBH AU), Carenet Inc (2150 JP), and Ashimori Industry (3526 JP).

Last Week In Event SPACE: Dongfeng Motor, Shibaura, HD Hyundai Heavy/HD Hyundai Mipo, Zijin Mining

Dongfeng Motor (489 HK) to be taken private via cash plus scrip into the backdoor listing of its EV arm.
Minebea extends its ¥6,200 TOB for Shibaura (6957 JP) to 11 September, a day after YAGEO’s ¥7,130 bid expires. Now there’s no game of chicken with Minebea. Just with METI.
The HD Hyundai Heavy Industries (329180 KS)/HD Hyundai Mipo (010620 KS) merger announcement reaffirms Seoul’s commitment to the MASGA project.

Weekly Deals Digest (31 Aug) – ENN Energy, Shengjing, Ashimori, Carenet, Shibaura, Mayne, Aux

By Arun George

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: Aux Electric (2580 HK) prices at the top of the range, Tata Capital Limited (TATACAP IN) is seeking to raise US$2.0 billion.
Event-Driven developments: Ashimori Industry (3526 JP), Carenet Inc (2150 JP), Shibaura Electronics (6957 JP), Shengjing Bank Co Ltd H (2066 HK), Mayne Pharma (MYX AU).

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Aug 31

Daily Brief Equity Bottom-Up: JFrog’s Artifactory Vision: Could It Become the World’s AI Model Registry? and more

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

In today’s briefing:

JFrog’s Artifactory Vision: Could It Become the World’s AI Model Registry?
Exxon’s Secret Russia Talks Signal Energy Market Shock Tied To Trump-Putin Peace Gambit!
Deere & Company: Precision Agriculture Technology Integration & International Market Expansion Are Propelling Its Future Growth!
China Healthcare Weekly (Aug.31) – P/R Ratio Is Meaningless, Innovent, Zylox-Tonbridge 25H1 Results
Cytokinetics vs. Camzyos: Who Will Win the Battle for HCM Patients?
Stantec Inside the Data Center Boom: What 100+ Projects Reveal About Its Future!
Taiwan Dual-Listings Monitor: TSMC Premium Remains Elevated; ASE Drops Down to Near Parity
Crocs Inc: How Are They Being Impacted By Consumer Dynamics & The Latest Market Trends?
SoundHound: Initiation of Coverage- Why Are They Dominating QSR & Could Their 14
Coherent’s Data Center Breakthrough: The 1.6-Terabyte Revolution Is Here!

JFrog’s Artifactory Vision: Could It Become the World’s AI Model Registry?

JFrog reported their financial results for the second quarter of 2025, highlighting continued growth and strategic execution.
Total revenue for the quarter was $127.2 million, marking a 23% increase year-over-year, with cloud revenue growing by 45% to $57.1 million.
This growth highlights JFrog’s successful strategy of converting customers with usage above minimum commitments into annual contracts, reinforcing the predictability of revenue streams and strategic focus on cloud services.

Exxon’s Secret Russia Talks Signal Energy Market Shock Tied To Trump-Putin Peace Gambit!

In a stunning geopolitical development, ExxonMobil has reportedly engaged in secret discussions with Rosneft—Russia’s largest state-owned energy company—regarding a potential return to the Sakhalin-1 oil and gas project.
These talks, led by Exxon Senior Vice President Neil Chapman, signal a possible energy détente between Washington and Moscow, tied to broader negotiations aimed at ending the war in Ukraine.
The meetings were held under U.S. Treasury Department licenses that allow for discussions on stranded assets and involved back-channel diplomacy, including conversations between Exxon CEO Darren Woods and former President Donald Trump.

Deere & Company: Precision Agriculture Technology Integration & International Market Expansion Are Propelling Its Future Growth!

Deere & Company’s third-quarter earnings report presents a mixed outlook for the company, marked by ongoing challenges due to global uncertainties and shifting market dynamics, tempered with strategic operational efficiencies and modest positive trends in some segments.
The segments of Production and Precision Agriculture, Small Agriculture and Turf, and Construction and Forestry each tell a distinct story of both struggle and strategic positioning.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

China Healthcare Weekly (Aug.31) – P/R Ratio Is Meaningless, Innovent, Zylox-Tonbridge 25H1 Results

By Xinyao (Criss) Wang

We strongly disagree with the valuation method of “P/R”. which is calculated by dividing market value by R&D expenses. It is still necessary to view the valuation system rationally.
Innovent surprisingly turned loss into profits for the first time in 25H1. Considering the future contribution of mazdutide and IBI363, valuation of Innovent may reach above RMB200 billion.
The logic of Zylox is import substitution. Based on strong fundamentals, if liquidity remains strong, reasonable P/E is 40-45x. Target share price is HK$25-29/share based on 2025 net profit.

Cytokinetics vs. Camzyos: Who Will Win the Battle for HCM Patients?

Cytokinetics presented its Q2 2025 earnings and strategic updates, which highlighted significant operational milestones and challenges.
The company’s focus remains on advancing its pipeline of muscle biology-focused therapies, particularly within cardiology.
A key development is the ongoing regulatory process for aficamten, a treatment for obstructive hypertrophic cardiomyopathy (oHCM).

Stantec Inside the Data Center Boom: What 100+ Projects Reveal About Its Future!

Stantec’s second quarter of 2025 presents a mixed picture, with various factors suggesting both opportunities and challenges for potential investors.
The company reported net revenue of $1.6 billion, marking a 6.9% increase compared to the previous year.
This growth was primarily driven by a 4.8% in organic growth, pointing to consistent demand across its operations, particularly in sectors like water, transportation, mining, energy, and mission-critical projects.

Taiwan Dual-Listings Monitor: TSMC Premium Remains Elevated; ASE Drops Down to Near Parity

By Vincent Fernando, CFA

TSMC: +21.8% Premium; Wait for Higher Premium Before Fresh Short of the Spread
UMC: -0.6% Discount; Wait for More Extreme ADR Spread Level
ASE: +0.4% Premium; Good Level to Go Long the ADR Spread

Crocs Inc: How Are They Being Impacted By Consumer Dynamics & The Latest Market Trends?

Crocs, Inc. reported a solid performance in the second quarter despite facing ongoing market volatility.
The company achieved revenues of $1.1 billion, reflecting a 3% growth from the previous year.
Revenues for the Crocs brand alone rose by 4%, reaching $960 million, with a notable 16% growth in international markets.

SoundHound: Initiation of Coverage- Why Are They Dominating QSR & Could Their 14

SoundHound exhibited a noteworthy performance in the second quarter of 2025, recording its strongest ever quarterly revenue of $42.7 million, a significant surge of 217% compared to the previous year.
This growth was primarily driven by substantial advancements in their diverse business verticals: automotive, AI customer service for enterprises, and AI solutions for the restaurant industry.
The company highlighted its strategic acquisition initiatives, which have effectively enhanced growth trajectories and solidified its position as a key player in the conversational AI sector.

Coherent’s Data Center Breakthrough: The 1.6-Terabyte Revolution Is Here!

Coherent Inc.’s fourth quarter and full fiscal year 2025 results reflect both strong performance and some areas of challenges.
The company experienced a robust fiscal year with revenue hitting a record $5.81 billion, marking a 23% year-over-year increase.
This growth was propelled significantly by the company’s data center and communications business, with data center revenue alone increasing by 61% from the previous year.

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Aug 31

Daily Brief Australia: Santos Ltd, Iron Ore, MMG Ltd and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

(Mostly) Asia-Pac M&A: Santos, Mayne Pharma, Shengjing Bank, Carenet, Austindo Nusantara, Ashimori
Iron Ore Giants Stay Bullish on India, China Demand Wobbles
MMG Reports Soaring Output From Peru Copper Mine

(Mostly) Asia-Pac M&A: Santos, Mayne Pharma, Shengjing Bank, Carenet, Austindo Nusantara, Ashimori

I tally 44 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma.
Three new deal was discussed on Smartkarma this week: Dongfeng (489 HK), Austindo Nusantara Jaya (ANJT IJ), Shengjing Bank (2066 HK), and HD Heavy (329180 KS)/HD Mipo (010620 KS). .
Key updates/news took place on Santos Ltd (STO AU), Mayne Pharma (MYX AU), PointsBet Holdings (PBH AU), Carenet Inc (2150 JP), and Ashimori Industry (3526 JP).

Iron Ore Giants Stay Bullish on India, China Demand Wobbles

By Umang Agrawal

Iron ore miners lift output guidance, signalling confidence despite China’s property slump and slowing steel demand.
India emerges as a critical growth driver yet cannot offset China’s structural steel demand weakness.
Rising supply from Simandou and peers heightens downside risk, keeping the iron ore outlook cautiously bearish.

MMG Reports Soaring Output From Peru Copper Mine

By Caixin Global

Chinese miner MMG Ltd. saw a dramatic surge in output at its Las Bambas copper mine in Peru in the first half of this year, helped by its efforts to improve its rocky relationship with locals.
In the six months through June, the mine produced about 210,000 tons of copper, up 67% year-on-year, with revenue from the project jumping 60% to $2 billion, according to the company’s latest earnings report.
Las Bambas accounted for nearly three-fourths of MMG’s total first-half revenue, which rose 47% to $2.8 billion.

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Aug 31

Daily Brief Macro: Iron Ore Giants Stay Bullish on India and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

Iron Ore Giants Stay Bullish on India, China Demand Wobbles
Overview #33 Ignore the Noise, Follow the Money: China’s Next Leg Higher
7 Main Reasons Driving Surging Ownership into MAG7 Stocks by Korean Investors: When Will They Sell?
CX Daily: Micro Drama Platforms Knock Down Paywalls as Viewers Lose Interest

Iron Ore Giants Stay Bullish on India, China Demand Wobbles

By Umang Agrawal

Iron ore miners lift output guidance, signalling confidence despite China’s property slump and slowing steel demand.
India emerges as a critical growth driver yet cannot offset China’s structural steel demand weakness.
Rising supply from Simandou and peers heightens downside risk, keeping the iron ore outlook cautiously bearish.

Overview #33 Ignore the Noise, Follow the Money: China’s Next Leg Higher

By Rikki Malik

A review of recent events/data impacting our investment themes and outlook
Chinese onshore markets now on a roll- will it continue?
The fight over critical materials heats up as the rally broadens out

7 Main Reasons Driving Surging Ownership into MAG7 Stocks by Korean Investors: When Will They Sell?

By Douglas Kim

In this insight, we discuss the sharp capital flight out of Korea into major stocks in the US in the past several years, especially into the MAG7 stocks.
We provide seven major reasons why Koreans’ investments in the US stocks (especially MAG7) have been surging in the past several years.
When will they sell? We provide some clues on this.

CX Daily: Micro Drama Platforms Knock Down Paywalls as Viewers Lose Interest

By Caixin Global

Videos /In Depth: Micro drama platforms knock down paywalls as viewers lose interest
Energy /: China’s wind and solar power capacity has more than tripled since 2020
Education /: Top Chinese students forgo elite universities for vocational schools

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Aug 31

Daily Brief South Korea: Gemvax & Kael and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Gemvax & Kael – Rights Offering of 249 Billion Won

Gemvax & Kael – Rights Offering of 249 Billion Won

By Douglas Kim

On 29 August, Gemvax & Kael (082270 KS) (Gemvax) announced a rights offering capital raise of 249 billion won.
Gemvax will issue 6.7 million new shares in this rights offering, representing 16% of its outstanding shares.
The expected rights offering price is 37,100 won which is 13.4% lower than current price. We are negative on this rights offering.

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Aug 31

Daily Brief United States: JFrog, Exxon Mobil, Deere & Co, Cytokinetics Inc, Crocs Inc, SoundHound AI , Aptiv PLC, Coherent Inc, DLocal, Avery Dennison and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

JFrog’s Artifactory Vision: Could It Become the World’s AI Model Registry?
Exxon’s Secret Russia Talks Signal Energy Market Shock Tied To Trump-Putin Peace Gambit!
Deere & Company: Precision Agriculture Technology Integration & International Market Expansion Are Propelling Its Future Growth!
Cytokinetics vs. Camzyos: Who Will Win the Battle for HCM Patients?
Crocs Inc: How Are They Being Impacted By Consumer Dynamics & The Latest Market Trends?
SoundHound: Initiation of Coverage- Why Are They Dominating QSR & Could Their 14
Aptiv Is Splitting Up—And The Market’s About To Wake Up
Coherent’s Data Center Breakthrough: The 1.6-Terabyte Revolution Is Here!
DLocal Bets Big on Stablecoins: A Hidden Payments Power Play?
Avery Dennison’s $390 Million Flooring Adhesives Bet: Can It Stick?

JFrog’s Artifactory Vision: Could It Become the World’s AI Model Registry?

JFrog reported their financial results for the second quarter of 2025, highlighting continued growth and strategic execution.
Total revenue for the quarter was $127.2 million, marking a 23% increase year-over-year, with cloud revenue growing by 45% to $57.1 million.
This growth highlights JFrog’s successful strategy of converting customers with usage above minimum commitments into annual contracts, reinforcing the predictability of revenue streams and strategic focus on cloud services.

Exxon’s Secret Russia Talks Signal Energy Market Shock Tied To Trump-Putin Peace Gambit!

In a stunning geopolitical development, ExxonMobil has reportedly engaged in secret discussions with Rosneft—Russia’s largest state-owned energy company—regarding a potential return to the Sakhalin-1 oil and gas project.
These talks, led by Exxon Senior Vice President Neil Chapman, signal a possible energy détente between Washington and Moscow, tied to broader negotiations aimed at ending the war in Ukraine.
The meetings were held under U.S. Treasury Department licenses that allow for discussions on stranded assets and involved back-channel diplomacy, including conversations between Exxon CEO Darren Woods and former President Donald Trump.

Deere & Company: Precision Agriculture Technology Integration & International Market Expansion Are Propelling Its Future Growth!

Deere & Company’s third-quarter earnings report presents a mixed outlook for the company, marked by ongoing challenges due to global uncertainties and shifting market dynamics, tempered with strategic operational efficiencies and modest positive trends in some segments.
The segments of Production and Precision Agriculture, Small Agriculture and Turf, and Construction and Forestry each tell a distinct story of both struggle and strategic positioning.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Cytokinetics vs. Camzyos: Who Will Win the Battle for HCM Patients?

Cytokinetics presented its Q2 2025 earnings and strategic updates, which highlighted significant operational milestones and challenges.
The company’s focus remains on advancing its pipeline of muscle biology-focused therapies, particularly within cardiology.
A key development is the ongoing regulatory process for aficamten, a treatment for obstructive hypertrophic cardiomyopathy (oHCM).

Crocs Inc: How Are They Being Impacted By Consumer Dynamics & The Latest Market Trends?

Crocs, Inc. reported a solid performance in the second quarter despite facing ongoing market volatility.
The company achieved revenues of $1.1 billion, reflecting a 3% growth from the previous year.
Revenues for the Crocs brand alone rose by 4%, reaching $960 million, with a notable 16% growth in international markets.

SoundHound: Initiation of Coverage- Why Are They Dominating QSR & Could Their 14

SoundHound exhibited a noteworthy performance in the second quarter of 2025, recording its strongest ever quarterly revenue of $42.7 million, a significant surge of 217% compared to the previous year.
This growth was primarily driven by substantial advancements in their diverse business verticals: automotive, AI customer service for enterprises, and AI solutions for the restaurant industry.
The company highlighted its strategic acquisition initiatives, which have effectively enhanced growth trajectories and solidified its position as a key player in the conversational AI sector.

Aptiv Is Splitting Up—And The Market’s About To Wake Up

Aptiv is no stranger to transformation.
Once pegged as a traditional auto-parts supplier, the company is now orchestrating a strategic pivot that could redefine how Wall Street values its business.
The upcoming spin-off of its Electrical Distribution Systems (EDS) unit, slated for early 2026, aims to carve out a clearer identity for the remaining core business: a high-growth platform deeply entrenched in advanced safety, automation, electrification, and digital edge computing.

Coherent’s Data Center Breakthrough: The 1.6-Terabyte Revolution Is Here!

Coherent Inc.’s fourth quarter and full fiscal year 2025 results reflect both strong performance and some areas of challenges.
The company experienced a robust fiscal year with revenue hitting a record $5.81 billion, marking a 23% year-over-year increase.
This growth was propelled significantly by the company’s data center and communications business, with data center revenue alone increasing by 61% from the previous year.

DLocal Bets Big on Stablecoins: A Hidden Payments Power Play?

dLocal Limited’s latest earnings report for Q2 2025 highlights a period of strong financial performance, business expansion, and strategic enhancements, although it is tempered by certain macroeconomic risks and strategic decisions impacting the bottom line.
On the positive side, the company posted record results across its key financial metrics.
Total Payment Volume (TPV) reached an all-time high of $9.2 billion, marking a 53% year-over-year increase.

Avery Dennison’s $390 Million Flooring Adhesives Bet: Can It Stick?

Avery Dennison Corporation, a global materials science and manufacturing company, reported its second quarter results ending June 28, 2025.
The company delivered adjusted earnings per share (EPS) of $2.42, aligning with the previous year’s results.
This performance was achieved amid a challenging macroeconomic environment, characterized by trade policy changes impacting its operations, especially within the apparel and retail sectors.

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Aug 31

Daily Brief India: InterGlobe Aviation Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

Quiddity Leaderboard BSE SENSEX Dec25: Tech Mahindra Likely to Escape Sensex Deletion

Quiddity Leaderboard BSE SENSEX Dec25: Tech Mahindra Likely to Escape Sensex Deletion

By Janaghan Jeyakumar, CFA

BSE SENSEX represents the 30 largest stocks listed in the Bombay Stock Exchange (BSE) of India.
In this insight, we take a look at the Potential ADDs/DELs for the BSE SENSEX Index in the December 2025 index rebal event.
As things stand, there will be no index changes for the BSE SENSEX index.

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Aug 31

Most Read: Xiaomi, BYD, CaoCao, Pop Mart, China Telecom (H), Giant Biogene, Horizon Robotics, Fast Retailing, Santos Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Hang Seng Internet & IT Index (HSIII): Methodology Change & Impact
HSTECH Index Rebalance: No Constituent Changes; Float/Capping Changes Lead to US$4bn Trade
HSCI Index Rebalance: 24 Adds, 22 Deletes, Changes to Southbound Stock Connect & BIG Outperformance
HSCEI Index Rebalance: Pop Mart Pops Ahead of Double Index Inclusion
Hang Seng Index (HSI) Rebalance: Pop Mart, China Telecom, JD Logistics Added to Get to 88 Members
Hang Seng Biotech Index Rebalance: 1 Add & 21 Deletes as Methodology Changes
Hang Seng Internet & IT Index (HSIII) Rebalance: 3 Changes; Big FAF Increase for Horizon Robotics
Fast Retailing (9983 JP) Tactical Outlook: Turning OVERSOLD, Potential BUY Ahead of Sep-25 Rebalance
HEW: Policy Under Pressure
(Mostly) Asia-Pac M&A: Santos, Mayne Pharma, Shengjing Bank, Carenet, Austindo Nusantara, Ashimori

Hang Seng Internet & IT Index (HSIII): Methodology Change & Impact

Last evening, Hang Seng announced a methodology change for the Hang Seng Internet & Information Technology Index (HSIII Index) with implementation in two phases.
The capping methodology will be updated at the September rebalance and the turnover and sector requirements will be updated at the December rebalance.
The updated capping scheme increases turnover and flow in September, while there could be one constituent change for the index at the December rebalance.

HSTECH Index Rebalance: No Constituent Changes; Float/Capping Changes Lead to US$4bn Trade

There are no constituent changes for the Hang Seng TECH Index (HSTECH INDEX) in September. However, there are float and capping changes.
Estimated one-way turnover is 6.3% leading to a round-trip trade of HK$31.1bn (US$4bn). There is plenty to buy in Horizon Robotics (9660 HK), BYD (1211 HK) and Meituan (3690 HK).
Short interest is elevated in some of the stocks with large flows and shorts could be active in the stocks over the next couple of weeks.

HSCI Index Rebalance: 24 Adds, 22 Deletes, Changes to Southbound Stock Connect & BIG Outperformance

There are 24 adds and 22 deletes for the Hang Seng Composite Index (HSCI) at the September rebalance to take the number of index constituents up to 504.
We expect 20 of the 24 HSCI inclusions to be Stock Connect adds from the open on 8 September. 19 of the 22 deletions could be removed from Stock Connect.
On average, stocks that are expected to be added to Southbound Stock Connect have outperformed stocks that are expected to be removed from Southbound Stock Connect.

HSCEI Index Rebalance: Pop Mart Pops Ahead of Double Index Inclusion

As forecast, Pop Mart (9992 HK) will replace J&T Global Express (1519 HK) in the Hang Seng China Enterprises Index (HSCEI INDEX) at the close on 5 September.
Estimated one-way turnover at the rebalance is 3% resulting in a round-trip trade of HK$4.8bn (US$612m). The final capping will use the close of trading on 2 September.
Pop Mart is also being added to the Hang Seng Index (HSI INDEX) and that marks the end of inclusion in major indices for the stock.

Hang Seng Index (HSI) Rebalance: Pop Mart, China Telecom, JD Logistics Added to Get to 88 Members

China Telecom (H) (728 HK), JD Logistics (2618 HK) and Pop Mart (9992 HK) will be added to the Hang Seng Index (HSI INDEX) at the close on 5 September.
Estimated one-way turnover is 2.5% and the estimated round-trip trade is HK$11.25bn (US$1.44bn). The official capping will be done based on closing prices from 2 September.
At 88 constituents, we near the 100-index member target. The target is likely to be reached by early-2027 – maybe 2026 given mainland companies listing of H-shares on the HKEX.

Hang Seng Biotech Index Rebalance: 1 Add & 21 Deletes as Methodology Changes

There is 1 add and 21 deletions for the Hang Seng Biotech Index (HSHKBIO Index) at the September rebalance.
Estimated one-way turnover at the rebalance is 11.25% resulting in a round-trip trade of HK$1.77bn (US$226m).
The deletes have underperformed the HSHKBIO Index since the start of the year with the gap opening up over the last two months following the announcement of the methodology change.

Hang Seng Internet & IT Index (HSIII) Rebalance: 3 Changes; Big FAF Increase for Horizon Robotics

There will be 3 changes for the Hang Seng Internet & Information Technology Index (HSIII Index) at the September rebalance.
Estimated one-way turnover at the rebalance is 10.3% resulting in a round-trip trade of HK$6.4bn (US$818m). There are a bunch of stocks with over 0.5x ADV to trade.
There is a huge FAF increase for Horizon Robotics and that will bring passive buying from the HSTECH trackers too. The stock is being added to a global index on Tuesday.

Fast Retailing (9983 JP) Tactical Outlook: Turning OVERSOLD, Potential BUY Ahead of Sep-25 Rebalance

By Nico Rosti

In his recent insight, Brian Freitas stated that Fast Retailing (9983 JP)‘s CPAF will stay the same at the September 25 Nikkei 225 Index rebalance.
The stock is turning oversold—not yet extreme, but notable. Historically, this short-term downtrend pattern often reversed after two weeks of declines; we are now in the second consecutive week lower.
Monitor the 47150 support level: the stock is trading at 47810 at the moment of writing, if it goes at or below 47150 it will start to be clearly oversold.

HEW: Policy Under Pressure

By Phil Rush

President Trump’s attempt to fire Governor Cook, potentially gaining a supportive majority on the Fed, raises the risk that US policy overstimulates the economy.
Policy peers should not be pressured to mirror mistakes. The ECB faces data that keep accumulating hawkish pressures, but others are more susceptible, like the BOK.
Non-farm payroll data provide the last hope of blocking a Fed rate cut in September. Meanwhile, a rise in EA inflation to 2.1% should help rule out another ECB rate cut.

(Mostly) Asia-Pac M&A: Santos, Mayne Pharma, Shengjing Bank, Carenet, Austindo Nusantara, Ashimori

I tally 44 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma.
Three new deal was discussed on Smartkarma this week: Dongfeng (489 HK), Austindo Nusantara Jaya (ANJT IJ), Shengjing Bank (2066 HK), and HD Heavy (329180 KS)/HD Mipo (010620 KS). .
Key updates/news took place on Santos Ltd (STO AU), Mayne Pharma (MYX AU), PointsBet Holdings (PBH AU), Carenet Inc (2150 JP), and Ashimori Industry (3526 JP).

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Aug 31

Daily Brief China: Tencent, Cambricon Technologies Lt, Zylox-Tonbridge Medical Technology, DiDi Global, Giant Network Group Co Ltd, ENN Energy, Dongfeng Motor, Legend Biotech Corp, NetEase and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

Tencent’s Uzbekistan Bet: The Beginning Of “Digital Silk Road”?
STAR50/STAR100 Index Rebalance: Changes & Capping Lead to US$3.3bn Trade
China Healthcare Weekly (Aug.31) – P/R Ratio Is Meaningless, Innovent, Zylox-Tonbridge 25H1 Results
Didi Global Q225 Results | Domestic Business Strong | Why a 2025 Listing Still Makes Sense
Sticking With China; Bullish Outlook Intact. Buys in Consumer Discretionary, Materials, and Tech
Weekly Deals Digest (31 Aug) – ENN Energy, Shengjing, Ashimori, Carenet, Shibaura, Mayne, Aux
Last Week In Event SPACE: Dongfeng Motor, Shibaura, HD Hyundai Heavy/HD Hyundai Mipo, Zijin Mining
Legend Biotech’s 136% Sales Surge Signals Explosive CARVYKTI Momentum; How Long Will It Last?
NetEase: Can Its Latest AI Innovation Propel It Into the Next Era of Gaming Leadership?

Tencent’s Uzbekistan Bet: The Beginning Of “Digital Silk Road”?

By Alec Tseung

Tencent’s recent investment in Uzum marks the first investment by a Chinese tech giant in a local Central Asian startup, signaling a fundamental strategic pivot in the region.
Central Asia now presents potential markets for Chinese tech companies, beyond just infrastructure or commodity-focused opportunities, following the execution of the earlier phases of the Belt & Road Initiative.
Given Uzbekistan’s larger population and more diversified economy, it is generally seen as better fitted for tech companies’ growth, esp. B2C platforms, compared to Kazakhstan (a raw materials giant).

STAR50/STAR100 Index Rebalance: Changes & Capping Lead to US$3.3bn Trade

There is 1 constituent change for the STAR50 INDEX and 5 changes for the STAR100 Index at the next rebalance that will be implemented at the close on 12 September.
We estimate one-way turnover of 6.1% for the SSE STAR50 (STAR50 INDEX) resulting in a round-trip trade of CNY 23.8bn (US$3.3bn).
There will be huge capping outflows for Cambricon Technologies Lt (688256 CH) following the massive rally in the stock over the last couple of months.

China Healthcare Weekly (Aug.31) – P/R Ratio Is Meaningless, Innovent, Zylox-Tonbridge 25H1 Results

By Xinyao (Criss) Wang

We strongly disagree with the valuation method of “P/R”. which is calculated by dividing market value by R&D expenses. It is still necessary to view the valuation system rationally.
Innovent surprisingly turned loss into profits for the first time in 25H1. Considering the future contribution of mazdutide and IBI363, valuation of Innovent may reach above RMB200 billion.
The logic of Zylox is import substitution. Based on strong fundamentals, if liquidity remains strong, reasonable P/E is 40-45x. Target share price is HK$25-29/share based on 2025 net profit.

Didi Global Q225 Results | Domestic Business Strong | Why a 2025 Listing Still Makes Sense

By Daniel Hellberg

Q225 saw solid growth & improving margins, driven by strength in China business
Lawsuit settlement hit net result in Q225, but investors shrugged off the news
We still think Didi could pursue a new listing later in 2025, probably in HK

Sticking With China; Bullish Outlook Intact. Buys in Consumer Discretionary, Materials, and Tech

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 and $119-$121.
We remain overweight/continue to have a major focus on China (Shanghai Composite). It continues to offer the most attractive opportunities, with a significant number of today’s recommendations coming from China.

Weekly Deals Digest (31 Aug) – ENN Energy, Shengjing, Ashimori, Carenet, Shibaura, Mayne, Aux

By Arun George

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: Aux Electric (2580 HK) prices at the top of the range, Tata Capital Limited (TATACAP IN) is seeking to raise US$2.0 billion.
Event-Driven developments: Ashimori Industry (3526 JP), Carenet Inc (2150 JP), Shibaura Electronics (6957 JP), Shengjing Bank Co Ltd H (2066 HK), Mayne Pharma (MYX AU).

Last Week In Event SPACE: Dongfeng Motor, Shibaura, HD Hyundai Heavy/HD Hyundai Mipo, Zijin Mining

Dongfeng Motor (489 HK) to be taken private via cash plus scrip into the backdoor listing of its EV arm.
Minebea extends its ¥6,200 TOB for Shibaura (6957 JP) to 11 September, a day after YAGEO’s ¥7,130 bid expires. Now there’s no game of chicken with Minebea. Just with METI.
The HD Hyundai Heavy Industries (329180 KS)/HD Hyundai Mipo (010620 KS) merger announcement reaffirms Seoul’s commitment to the MASGA project.

Legend Biotech’s 136% Sales Surge Signals Explosive CARVYKTI Momentum; How Long Will It Last?

Legend Biotech Corporation’s second quarter of 2025 was marked by significant milestones and notable financial and operational achievements, balanced by some ongoing challenges.
On the positive side, the company reported substantial growth in CARVYKTI sales, reaching $439 million, an increase of 136% year-over-year.
This robust growth underscores the rapid uptake of CARVYKTI, primarily driven by its expansion in second to fourthline settings for multiple myeloma treatments.

NetEase: Can Its Latest AI Innovation Propel It Into the Next Era of Gaming Leadership?