In today’s briefing:
- A/H Premium Tracker (To 13 June 2025): HUGE H-Share Outperf Across The Board, “Beautiful Skew Move”
- HK Connect SOUTHBOUND Flows (To 13 June 2025); Volumes Up, TECH Down, HEALTHCARE Bought Big
- Weekly Deals Digest (15 Jun) – Haitian, Sanhua, Toyota Industries, Tryt, Fengxiang, HKBN, Mayne
- China Healthcare Weekly (Jun.15) – Outlook of GLP-1 Market, WuXi Bio’s Placement, Keymed’s Placement
- Baidu Inc.: Dealing With The Uncertain Commercial Viability of Autonomous Driving
- Alibaba’s Bold AI & Cloud Bet Is Driving Our Optimism–But It Comes at A BIG COST!
- iQIYI Inc.: Growing Its Content Ecosystem & Executing Overseas Market Expansion to Help Alter The Playing Field?
- [Quiddity Index] MV Global Uranium & Nuclear Energy Jun25 Rebalance Results: Flow Expectations
- JD.com: AI Expansion into On-Demand Retail & Food Delivery Is An Interesting New Development!
A/H Premium Tracker (To 13 June 2025): HUGE H-Share Outperf Across The Board, “Beautiful Skew Move”
- AH spreads are SHARPLY narrower. The effect is dramatic across the “skew” i.e. very wide AH premia contracted more than very narrow premia. BYD is on its own.
- This smells very much like someone knows something. I expect RMB dual counters may be in the works. Caixin had an article Friday.
- The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.
HK Connect SOUTHBOUND Flows (To 13 June 2025); Volumes Up, TECH Down, HEALTHCARE Bought Big
- Gross SOUTHBOUND volumes up to US$15+bn a day this past 5-day week. Net buying still positive but still below US$500mm/day.
- Among the top buys as a percentage of volume, HEALTHCARE, FINANCIALS, ENERGY stand out, dramatically. Among top sells, INFO TECH again. 9 weeks in a row negative. Tencent bigly sold.
- The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.
Weekly Deals Digest (15 Jun) – Haitian, Sanhua, Toyota Industries, Tryt, Fengxiang, HKBN, Mayne
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments: Foshan Haitian Flavouring & Food Company (3288 HK) and Zhejiang Sanhua Intelligent Controls (2050 HK) H share listings and CaoCao Inc (1646553D CH) IPO.
- Event-Driven developments: Toyota Industries (6201 JP), TRYT (9164 JP), With Us Corp (9696 JP), Shandong Fengxiang (9977 HK), HKBN Ltd (1310 HK), Mayne Pharma (MYX AU).
China Healthcare Weekly (Jun.15) – Outlook of GLP-1 Market, WuXi Bio’s Placement, Keymed’s Placement
- The GLP-1 market has officially transitioned from a duopoly to a state where Tirzepatide is eating away at Semaglutide’s market share, which should be a highly valued advance signal.
- WuXi Bio’s Placing price of HK$26.51-26.88/share is expansive if based on 2025 forecast.Obviously, WuXi Bio hopes to leverage the positive market sentiment to complete the placement at high share price
- Keymed plans to raise about HK$854million through a top-up placement. However, reasonable valuation for Keymed is RMB5-10 billion. In other words, the Placing Price of HK$45.48 per Share is expensive.
Baidu Inc.: Dealing With The Uncertain Commercial Viability of Autonomous Driving
- Baidu, Inc. delivered a solid performance in the first quarter of 2025, with its Baidu Core division reporting a 7% year-over-year revenue increase, reaching RMB 25.5 billion.
- This growth was primarily driven by a substantial surge in its AI cloud business, which saw a 42% increase year-over-year, contributing significantly to Baidu Core’s overall revenue.
- A notable development within this business unit is the expansion of the AI cloud’s role in Baidu’s operations, now accounting for 26% of Baidu Core’s revenue, up from 20% in the previous year.
Alibaba’s Bold AI & Cloud Bet Is Driving Our Optimism–But It Comes at A BIG COST!
- Alibaba Group delivered a mixed performance in the March quarter and for the full fiscal year 2025, showing resilience in its core operations while falling short of analyst expectations on key financial metrics.
- The company reported revenue of $32.58 billion for the quarter, marking a 7% year-over-year increase, but this fell below projections of $33.28 billion.
- Net income for the period came in at $1.71 billion, significantly lower than the anticipated $2.93 billion.
iQIYI Inc.: Growing Its Content Ecosystem & Executing Overseas Market Expansion to Help Alter The Playing Field?
- iQIYI’s first-quarter 2025 results exhibited growth across several key business segments, though certain challenges remain.
- The company experienced sequential growth in total revenues, largely attributed to their emphasis on premium content production and strong performance in long-form and micro-dramas.
- This focus has effectively positioned iQIYI as a leading platform for both long-form and short-form entertainment content, contributing positively to user engagement and content consumption.
[Quiddity Index] MV Global Uranium & Nuclear Energy Jun25 Rebalance Results: Flow Expectations
- The MV Global Uranium & Nuclear Energy index represents the performance of the biggest and the most liquid companies in the Uranium and Nuclear industries.
- Cgn Mining (1164 HK) will be an ADD and Endesa SA (ELE SM) will be a DELETE in June 2025.
- There are also some big capping flows so we expect a one-way flow of US$227mn for June 2025, which translates to a turnover of 15.7%.
JD.com: AI Expansion into On-Demand Retail & Food Delivery Is An Interesting New Development!
- In the first quarter of 2025, JD.com reported strong financial and operational performance, indicating a positive start to the year.
- The company’s total revenues increased by 16% year-over-year, showing accelerated growth compared to the previous quarter.
- This growth was broad-based, with electronics and home appliances revenue up by 17% and general merchandise revenue rising by 15%, demonstrating the strength of JD.com’s diversified product range and supply chain capabilities.
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