Brief China: Jiumaojiu (九毛九) Trading – Off to a Great Start with 638x Oversubscription and more

In this briefing:

  1. Jiumaojiu (九毛九) Trading – Off to a Great Start with 638x Oversubscription
  2. Shanghai/​​​​​​Shenzhen Connect Flows: Foreigners Buying Moutai, Gree, Yanghe
  3. HK Connect Flows: Chinese Buying Xiaomi, Tencent, Meituan
  4. GDS Placement – Momentum Is Still Strong but Don’t Expect the Same Kind of Returns
  5. Hong Kong Buyback Weekly: Pax Global, Xinyi Glass, Man Wah

1. Jiumaojiu (九毛九) Trading – Off to a Great Start with 638x Oversubscription

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Jiumaojiu (9922 HK) raised about US$283m at HK$6.60 per share, the top end of its IPO price range. We have previously covered the IPO in:

In this insight, we will look at the IPO deal dynamics and updated valuation.

2. Shanghai/​​​​​​Shenzhen Connect Flows: Foreigners Buying Moutai, Gree, Yanghe

Northbound sector inflow %28one week, usd m%292020 01 14%2012 34 56

In our weekly Shanghai/Shenzhen Connect Ideas series, we aim to help our investors understand the flow of northbound trades via the Shanghai and Shenzhen Connect, as analyzed by our proprietary data engine and highlight interesting trade ideas. 

In this insight, we go through YTD weekly inflows into the A-share market via Shanghai/Shenzhen connect, and top inflows and top three outflows. We will also cover inflows and holdings by sectors, after which we will highlight top five inflows and outflows on a relative basis for large-cap and mid-cap stocks: stocks with a market capitalization above USD 5 billion, and those between USD 1 billion and USD 5 billion.

We highlight top inflows into Kweichow Moutai (600519 CH), Gree Electric Appliances (000651 CH), and Jiangsu Yanghe Brewery A (002304 CH), as well as outflows from Shanghai International Airport Co, Ltd. (600009 CH), Zhejiang Sanhua Co Ltd A (002050 CH), and China United Network A (600050 CH).

3. HK Connect Flows: Chinese Buying Xiaomi, Tencent, Meituan

Ping an insurance %28group%29 company of china, ltd. %282318 hk%29 weekly southbound inflow2020 01 14%2014 19 55

In our weekly HK Connect Flow series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine, and highlight interesting observations.

In a Hong Kong exchange report released in July, the exchange highlighted that flows from mainland China accounted for 12% of the total trading volume in the market and is ahead of the US investors’ 10% and UK investors’ 7% share respectively. 

We split the stocks eligible for the Hong Kong Connect trade into three groups: HSCEI component stocks, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.

We highlight top inflows into Xiaomi Corp (1810 HK), Tencent Holdings (700 HK), and Meituan Dianping (3690 HK), as well outflows from Ping An Insurance (H) (2318 HK), China Merchants Bank H (3968 HK), China Construction Bank H (939 HK).

4. GDS Placement – Momentum Is Still Strong but Don’t Expect the Same Kind of Returns

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Shareholder(s) of Gds Holdings (Adr) (GDS US) is looking to sell 7.9m ADS.  We have previously looked at the company’s IPO and placement in:

Overall, the deal still scored well on the framework , albeit borderline,  owing to good track record and strong price momentum but got weighed down by poor deal dynamics and relatively expensive valuation.

5. Hong Kong Buyback Weekly: Pax Global, Xinyi Glass, Man Wah

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods. 

In the past 7 days, the top 3 companies that repurchased the most shares from the market were Pax Global Technology Limited (327 HK) (HKD 31.1 million worth of buybacks), Xinyi Glass Holdings Limited (868 HK) (HKD 30.1 million worth of buybacks), Man Wah Holdings Limited (1999 HK) (HKD 20.3 million worth of buybacks). 

In the past 30 days, the top 3 companies that repurchased the most shares from the market were Bosideng International Holdings Limited (3998 HK) (HKD 124.9 million worth of buybacks), Jacobson Pharma (2633 HK) (HKD 96.2 million worth of buybacks), Duiba (1753 HK) (HKD 35.3 million worth of buybacks). 

In the past 90 days, the top 3 companies that repurchased the most shares from the market were Xiaomi Corporation (1810 HK) (HKD 1,014.4 million worth of buybacks), Jacobson Pharma (2633 HK) (HKD 127.6 million worth of buybacks), Bosideng International Holdings Limited (3998 HK) (HKD 124.9 million worth of buybacks). 

In the past year, the top 3 companies that repurchased the most shares from the market were Xiaomi Corporation (1810 HK) (HKD 3,114.2 million worth of buybacks), Tencent Holdings Limited (700 HK) (HKD 1,125.6 million worth of buybacks), E-House (China) Enterprise Holdings Limited (2048 HK) (HKD 832.0 million worth of buybacks). 

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