Brief China: Tencent (700 HK): Advertisers Get Significant Traffic from WeChat Mini-Program and more

In this briefing:

  1. Tencent (700 HK): Advertisers Get Significant Traffic from WeChat Mini-Program
  2. Trade/Investment Ideas for 2019/20 China ADR Listings
  3. Tracking the Daily COVID-19 Cases for 10 Major Countries
  4. Trade/Investment Ideas from 2019/20 IPOs
  5. Softbank’s Stake Sale Will Be a Good Litmus Test of Alibaba’s Valuation

1. Tencent (700 HK): Advertisers Get Significant Traffic from WeChat Mini-Program

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  • YH Life had 8.9 million monthly active users (MAU) on the WeChat mini-program, about 3.8 times its independent app.
  • Miss Fresh’s mini-program MAU was 3.4 times its own app.
  • Suning is the largest physical store chain for household appliance in China. The WeChat mini-program MAU is close to its own app.

Our previous coverage on Tencent:

2. Trade/Investment Ideas for 2019/20 China ADR Listings

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Since the start of 2019 till date, we have covered 96 IPOs. Despite the market turmoil over the past two months, over a third, or 40 IPOs remain above their listing price. 

In this insight, we’ll take at how some of the US ADR IPOs have been faring. 

3. Tracking the Daily COVID-19 Cases for 10 Major Countries

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In this report, we provide an update of the new cases of COVID-19 among 10 major countries, including the top 10 countries with COVID-19 cases (excluding China). From our previous report, Tracking the Daily COVID-19 Cases for 7 Major Countries (More Hope!), we have added three more countries including Switzerland, U.K., and the Netherlands due to their rapid increase in new cases in the past week. 

A combination of the U.S. Fed’s “QE Infinity,” U.S.’s $2 trillion stimulus bill, and growing optimism that the new cases of COVID-19 can be controlled in the U.S. and Europe have helped to stage turnaround of major equity markets around the world including S&P500 and KOSPI. We continue to believe that the peak daily cases of COVID-19 in the U.S. are likely to be in this 2 week period from March 23rd to April 5th. Numerous European countries included in the top 10 countries for COVID-19 cases are also likely to experience their peak daily cases during this period.

The number of COVID-19 cases has surged in the U.S. in the past week. According to the COVID Tracking Project, there were 418,810 people that were tested for this virus as of March 25th, up nearly 10x from on March 16th. As of March 25th, 15.2% of the people that were tested had positive results, up from 10.0% on March 16th. 

4. Trade/Investment Ideas from 2019/20 IPOs

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Since the start of 2019 till date, we have covered 96 IPOs. Despite the market turmoil over the past two months, over a third, or 40 IPOs remain above their listing price. 

In this insight, we’ll take a quick look at the universe overall and how some of the IPOs in Hong Kong have been fairing. 

5. Softbank’s Stake Sale Will Be a Good Litmus Test of Alibaba’s Valuation

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  • If Alibaba believes that its stock is under-priced, it is highly likely that the company would be interested in buying-back a larger portion of the stake sale.
  • Moreover, if Softbank also believes that Alibaba is under-priced, it’s likely that they would consider selling Alibaba’s shares through a forward contract, as they did four years ago. 

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