Daily Brief China: Contemporary Amperex Technology (CATL), Bestechnic Shanghai , China Mobile, Melco Resorts & Entertainment, CNY, Cosco Shipping Energy Transportation Co. Ltd. (H) and more

• Contemporary Amperex Technology (CATL) (300750 CH) could raise up to US$5.1bn in its H-share listing if the Offer Size Adjustment Option and the Overallotment Option are both exercised.
• There is a huge allocation to cornerstone investors that is locked up for 6 months. That significantly reduces float and the probability of Fast Entry inclusion to global indexes.
• CATL (3750 HK) will be added to Southbound Stock Connect from the open of trading on 16 June following the end of the Price Stabilisation period.

• Contemporary Amperex Technology (CATL) (300750 CH) , one of the world’s largest battery solutions providers, aims to raise around US$4bn in its H-share listing.
• CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
• We have looked at the company’s past performance in our earlier notes. In this note, we talk about the IPO pricing.

• Contemporary Amperex Technology (CATL) (300750 CH) has launched its H Share listing at a maximum price of HK$263. Pricing will be on 19 May, and the listing on 20 May.
• I discussed the H Share listing in CATL H Share Listing: The Investment Case, CATL H Share Listing: AH Discount Views, CATL H Share Listing: PHIP Reinforces the Investment Case.
• Our valuation analysis suggests that the low AH discount can be justified. We would participate in the listing.

• With the review period complete, we forecast 1 change for the SSE STAR50 (STAR50 INDEX) and 4 changes for the STAR100 Index in June.
• We estimate turnover of 2.26% for the SSE STAR50 (STAR50 INDEX) and 5.05% for the STAR100 Index. The estimated round-trip trade is CNY 8.1bn (US$1.11bn).
• There are multiple stocks that are forecast adds or deletes for other indices and the passive flows will be a lot larger than just for the STAR50/STAR100 indices.

• Contemporary Amperex Technology (CATL) (300750 CH)  , one of the world’s largest battery solutions providers, aims to raise around US$4bn in its H-share listing.
• CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
• In this note, we talk about the IPO pricing and how it compares to some of the past listings.

• Our previous insight indicated a potential buy opportunity immediately followed by higher prices, but China Mobile (941 HK) hasn’t really rallied much since our signal was released, 2 weeks ago.
• Monday, news about a US-China tariffs deal sent global stocks sharply higher. However, the stock closed the day at 84.25, our model’s Q2 profit target (i.e. not a strong rally…).
• Our time model also indicates an overbought state (74% probability of reversal): we’re not bearish on the stock, but in this insight we will discuss a few tactical scenarios.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Melco Resorts, Tata Steel, Tata Motors
• US President Donald Trump wrote in a Truth Social post on Sunday hat the US had “a very good meeting with China in Switzerland”, with “great progress made”. Meanwhile, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer described “substantial progress”, adding that further details would be announced today.
• Chinese Vice-Premier He Lifeng highlighted that the talks were “candid, in-depth and constructive” on issues of concern to both countries, adding that the meeting “achieved substantial progress” and “reached important consensus”.

• Initial bearish outlook on Asian effects due to President Trump’s tariff storm
• Unexpected multi sigma moves in Asian currencies, sparking speculation of currency accord
• Uncertainty surrounding flow types, behavior of Asian exporters, and Asian central banks, with key questions hanging over China’s influence on Asian FX appreciation

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• The whole sector has been derated as the oil prices collapsed
• The capital cycle story is still intact and gets stronger as time passes
• There is a margin of safety in the current valuations