ChinaDaily Briefs

Daily Brief China: Haier Smart Home Co Ltd, Zhongsheng Group, Oriental Watch, Meituan, Ganglong China Property Group, Travelsky Technology Ltd H, Hong Kong Hang Seng Index and more

In today’s briefing:

  • HSI Index Rebalance: Baby Steps; Double Inclusion for Haier Smart Home
  • HSCEI Index Rebalance: Four Sets of Changes; And Some Close Calls
  • Oriental Watch Mgmt Call: Big Dividend Yet Again, 50% of Mkt Cap in Cash with >15% Yield Post Rally
  • Index Rebalance & ETF Flow Recap: HSCI, S&P/ASX, HSI, HSCEI, KOSPI2, KOSDAQ150, Wharf, Meituan
  • Last Week in Event SPACE: Tencent/Meituan, Halcyon Agri, Swire Pac, Perpetual/Pendal, OZ Minerals
  • ECM Weekly (20th Nov 2022) – I-Tail, Growatt, Lygend, SinoHytech, Meituan/Tencent, Olympus, Paytm
  • Hong Kong CEO & Director Dealings (18 Nov): Cross Harbour, Grand Ming, Ganglong, Pharmaron, JL Mag
  • Travelsky (696): Beneficiary from Potential Reopening in China
  • EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades

HSI Index Rebalance: Baby Steps; Double Inclusion for Haier Smart Home

By Brian Freitas


HSCEI Index Rebalance: Four Sets of Changes; And Some Close Calls

By Brian Freitas

  • There are 4 adds and 4 deletes for the Hang Seng China Enterprises Index (HSCEI INDEX) at the December rebalance. The only surprises are some non-adds and non-deletes.
  • Using prices from the close on 18 November, estimated one-way turnover is 4.64% and will result in a one-way trade of HK$2,612m at the close on 2 December.
  • Short interest is larger on the deletes than the adds. However, at 17 days of ADV to cover and 11.7% of float, short interest on Zhongsheng Group is huge.

Oriental Watch Mgmt Call: Big Dividend Yet Again, 50% of Mkt Cap in Cash with >15% Yield Post Rally

By Sameer Taneja

  • Oriental Watch (398 HK) paid a 31-cent dividend in its H1FY23 result on the 16th, equating to an annualized dividend yield of 15% on the current share price.
  • The outlook for the rest of the year is much brighter, given the recovery in China and the inability of the Chinese to travel. October numbers were strong.
  • The stock trades at a 6.7x PE, with more than 50% of the market capitalization in cash.  In slightly better market conditions, this could be a 6 HKD stock.

Index Rebalance & ETF Flow Recap: HSCI, S&P/ASX, HSI, HSCEI, KOSPI2, KOSDAQ150, Wharf, Meituan

By Brian Freitas

  • Plenty of index change announcements in the last week – Kospi 200 Index, KOSDAQ 150 Index, Hang Seng Index, HSCEI, HSTECH, S&P BSE SENSEX Index and FTSE AW/AC Index.
  • There are a bunch of indices that have the end of their review periods in the coming week while announcements for China indices are expected post market close on Friday.
  • There were outflows from ETFs for most Asian markets over the week with China and Hong Kong ETFs taking the biggest hits.

Last Week in Event SPACE: Tencent/Meituan, Halcyon Agri, Swire Pac, Perpetual/Pendal, OZ Minerals

By David Blennerhassett


ECM Weekly (20th Nov 2022) – I-Tail, Growatt, Lygend, SinoHytech, Meituan/Tencent, Olympus, Paytm

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • On the IPO front,  Indian IPOs delivered some decent performance while HK IPOs are likely to pick up as well.
  • There were a number of placement and blocks this week, after the expiry of lockups in a few Indian names.

Hong Kong CEO & Director Dealings (18 Nov): Cross Harbour, Grand Ming, Ganglong, Pharmaron, JL Mag

By David Blennerhassett

  • 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. However, such disclosures are by no means an absolute. 
  • These insights may flag those companies where shares have been pledged. Stocks mentioned include Cross Harbour (32 HK), Grand Ming (1271 HK), and Ganglong China Property (6968 HK) 

Travelsky (696): Beneficiary from Potential Reopening in China

By Henry Soediarko

  • Travelsky Technology Ltd H (696 HK) is a system provider for airports in China that benefit from the reopening plan. 
  • The company is not sensitive to the oil price and it has low debt which makes it attractive compared to the airlines.
  • The stock is trading at a 40% PBR discount to Shanghai International Airport. Historically, the company is trading at a 50% discount to its 5-year high on PBR.

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades

By Simon Harris

  • Weekly summary of vol changes and moves across Global Markets
  • Analysing ATM volatility and skew changes over the last 5 days
  • We suggest a few trades to take advantage of the implied vol surfaces

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