Daily Brief China: Guotai Junan Securities , Verisilicon Microelectronics S, Hang Seng Index, BeiGene , Agricultural Bank Of China, Alibaba, CNGR Advanced Material, Zijin Gold and more

• There could be 23 changes for the CSI A500 Index at the December rebalance. Turnover is estimated at 2.9% and the round-trip trade is around US$1.6bn.
• There is a fair amount of balance between sectors with Consumer Discretionary and Health Care expected to lose index spots to Industrials, Information Technology and Materials.
• The forecast adds outperformed the forecast deletes from June-September but have given up gains since then. Position in stocks that will have same-way flows from passive trackers of other indices.

• There could be up to 4 constituent changes for the STAR&CHINEXT 50 Index in December. The announcement of the changes will be made after market close on 28 November.
• There will be between 0.1-0.35x ADV to trade in the changes but some of the forecast adds will have same-way flow from passive trackers of other indices.
• The forecast adds outperformed the forecast deletes in July and August before giving up all the gains (and more) in a near one-way move over the last month.

• A tactical snapshot of the Asian indices and stocks we cover.
• Multiple Asian stocks we track are flashing oversold signals—creating tactical long setups worth considerin.
• We find no overbought stocks or indices in Asia at present. US equities show the same pattern, indicating a synchronized global market pullback

• BeiGene (6160 HK) reported 3Q25 revenues of $1.4B, up 40% YoY (9M25 Revenue: $3.8B, up 43%), driven primarily by growth in Brukinsa sales in the U.S. and Europe.
• In 3Q25, US sale of Brukinsa was $738.7M, up 46% YoY. For four consequtive quarters now, Brukinsa outpaced its closest competitor Calquence which reported US revenue of $612M in 3Q25.
• BeOne now expects 2025 revenue to be in the range of $5.1–5.3B (up 34–39% YoY) compared to the previous revenue guidance of $5.0–5.3B.

• Hs outperformed As on average, slightly, within the AH pair universe. Last week’s reco gained vs the A on the week, but not Monday close to Friday. Stay long.
• There are nine new recos this week after a bunch of trades were closed last week.
• The data tables below update on a daily basis in the Tools section of Smartkarma. The Southbound Flow Monitor and AH Pairs Monitor are both there – free – for all SK readers.

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, all markets were in full throttle mode going into the year end.
• On the placements front, there were a number of deals across the region.

• CNGR Advanced Material (2579 HK)‘s IPO price was fixed at the low end at HK$34.00. However, valuation is inexpensive, and initial price weakness is a long-term opportunity.
• Three groups of close peers, including nickel-related companies, mining companies, and lithium/battery companies, trade on average FY26F PER of 21x, vs. CNGR’s 12.5x.
• By parking it with the steepest HA discount of its peers (26.2%), CNGR will be valued at HK$40.07, as its IPO price implies a massive 37.4% discount.

• Stock price of Zijin Gold fluctuated up and down and not closely followed gold prices, which may disappoint investors who buy gold companies to take advantage of rising gold prices.
• We’ll reduce holdings of gold/silver and hold cash to deal with liquidity crises. Given the hyperinflation brought about by dollar depreciation, we’ll focus on inflation trading after liquidity crisis occurs.
• The main investment targets we will select include: commodities (e.g. gold, silver, copper). Upstream gold mining companies (e.g. Zijin Mining, Zijin Gold) will have priority over downstream company like Laopu.

• CNGR Advanced Material is a global market leader in the production of precursor cathode active materials (pCAM), a critical component for lithium-ion batteries used in electric vehicles (EVs), energy storage, and consumer electronics.
• The company has demonstrated a strong long-term revenue growth trajectory, driven by the expanding new energy market. However, recent financial performance shows signs of pressure, with a year-over-year decline in net income for the first nine months of 2025, primarily due to falling nickel and cobalt prices.
• The recent H-share listing on the Hong Kong Stock Exchange is poised to provide significant capital for global expansion but comes at a notable discount to its A-shares, presenting a potential valuation opportunity for institutional investors, as noted by Smartkarma analysts.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• CNGR Advanced Material (2579 HK) is looking to raise up to US$500m in its upcoming Hong Kong IPO.
• CNGR is a Chinese battery-component producer and a new energy materials company.
• We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.