Daily Brief China: Alibaba Group, China Construction Bank H, Country Garden Holdings Co and more

In today’s briefing:

Last Week in Event SPACE: Mapletree, Alibaba, Australian Unity Office
China Banks – Stick with Quality at Attractive Valuations
ECM Weekly (31st Jul 2022) – Soosan, WCP, GDRs, Yancoal, Country Garden, Legend Biotech, MEP, PSMC

Last Week in Event SPACE: Mapletree, Alibaba, Australian Unity Office

Given recent corporate events in S-REIT land, there could be some considerable money to be allocated to the sector near-term
Alibaba (ADR) (BABA US) / Alibaba Group (9988 HK) issued an announcement it would pursue a primary listing on the HKEX. This will make BABA Southbound-eligible
At 0.81x newly-lowered book value, Australian Unity Office Fund (AOF AU) is trading at a relatively low multiple.

Chinese banks are out of favour given the China GDP growth concerns and property sector headwinds; yet we see selective opportunities in the stronger, higher return banks
Our core picks are unchanged, with the core holding being CCB, and also PSBC; both have healthy credit quality and coverage, double digit ROEs and are attractive on valuations
We remain negative on China Minsheng due to its low ROE, poor delinquency and NPL coverage, and its relatively high exposures to real estate relative to its peers

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
There were no major IPO launches during the week. Soosan will list early next week.
There were a number of placements/blocks across the region, including GDR launches for Swiss listing.

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