In today’s briefing:
- GAPack (468 HK): Hong Kong’s Takeovers Code Needs A PUSU Rule
- Scams of 2024: From Digital Frauds to Corporate Collapses
- EQD | Hong Kong Single Stock Options Weekly December 23 – 27
- The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (December 26)
- China Shineway Pharmaceutical (2877 HK) – The Outlook Is Deteriorating
- HK CEO & Director Dealings (31st Dec 2024): Weimob Inc., Midea Real Estate, Pharmaron Beijing
GAPack (468 HK): Hong Kong’s Takeovers Code Needs A PUSU Rule
- In the UK, once a Bidder is named in a possible offer announcement, the Bidder has 28 days to either announce a firm Offer intention or walk away.
- This is known as a ‘put up or shut up’ or ‘PUSU’ deadline. Hong Kong’s takeover rules has no such provision.
- It’s ~21 weeks since co-founders Jeff Bi and Gang Hong tabled a non-binding Offer. With no firm Offer in sight, AND contesting a SAMR ruling, they should fold their tent.
Scams of 2024: From Digital Frauds to Corporate Collapses
- 2024 witnessed an unprecedented rise in financial crimes, including an 8x surge in Indian banking fraud, massive cryptocurrency heists, and large-scale corporate fraud like Evergrande’s $78 billion scandal.
- These scams exposed vulnerabilities in technology, governance, and public awareness, underscoring the urgent need for robust regulatory frameworks, enhanced corporate accountability, and public education.
- The evolving sophistication of financial crimes highlights the necessity for vigilance, technological resilience, and proactive measures by individuals, businesses, and governments to mitigate risks in an interconnected world.
EQD | Hong Kong Single Stock Options Weekly December 23 – 27
- Call volumes dominate tradng across single stocks with the Put/Call ratio hitting its 3rd lowest level since the beginning of November. Volumes continue trend lower in place since early November.
- Auto companies seeing big increases in option volumes with Li Auto and Great Wall Motor moving in opposite directions since the middle of the month.
- We add 2 new tables showing the largest volume increases across Puts and Calls – a conveient way to view unusual changes in trading activity.
The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (December 26)
- Mainland China investors continued to increase their purchases of Hong Kong shares through the southbound connect platform after Trump’s win. Mainland investors bought a record HK$800B of HK shares in 2024.
- Weimob Inc. (2013 HK) announced it is connecting its Weimob mini-programs to Tencent’s (700 HK) WeChat mini-shop. This move further integrates the SaaS company into Tencent’s ecosystem.
- Wuxi Biologics (2269 HK) announced a license agreement with US-based Aadi Bioscience (AADI US). Also, Wuxi was not included in the Senate version of the BioSecure legislation improving investor sentiment.
China Shineway Pharmaceutical (2877 HK) – The Outlook Is Deteriorating
- Shineway’s 24Q1-Q3 performance is disappointing. So, we adjusted our forecast- 2024 Revenue could be about RMB3.7-4 billion, down 11-18% YoY. Net profit could reach about RMB1.05-1.1 billion, up 8-13% YoY.
- VBP is the biggest headwinds – Injection products/TCM formula granules/OTC medications all face VBP, which brings uncertainties to future performance. It’s uncertain whether the 2025 performance will rebound as expected.
- Shineway seems to have lost growth momentum after COVID-19.Considering large cash balance, it doesn’t make much sense to hold the Company long term if it doesn’t significantly raise its dividend.
HK CEO & Director Dealings (31st Dec 2024): Weimob Inc., Midea Real Estate, Pharmaron Beijing
- The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
- Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
- The key stocks mentioned in this regular insight include: Weimob Inc. (2013 HK), Midea Real Estate Holding (3990 HK), and Pharmaron Beijing (3759 HK).
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