In today’s briefing:
- HK-Listed Apparel & Footwear Screener July 2025: August 1st Deadline Approaches
- Quiddity Leaderboard ChiNext & ChiNext 50 Dec25: One Change to Expectations; US$636mn Total One-Way
- Quiddity Leaderboard STAR 50/100 Sep25: Reference Period Almost Complete; New Pair Trade Ideas
- Hong Kong Office Market: Persistent Vacancy and Rental Pressure – SHORT Champion REIT 2778 HK
- CMOC Group Ltd (SEHK: 3993 | SSE: 603993) – H1 Guidance Points to Strong Upside
- Ascentage Pharma (6855.HK) Placement – Thoughts on The Placing Price and the Outlook
- Muyuan Foods A/H Listing – Long Term Growth with Short-Term Volatility
HK-Listed Apparel & Footwear Screener July 2025: August 1st Deadline Approaches
- The August 1st deadline is approaching, and it seems a bit unclear whether a deal with Vietnam has been reached on a 20% tariff or something lower.
- With no formal agreement and just Trump’s Truth Social account as a reference, uncertainty looms. For HK-listed companies, the understanding is that they will pass on tariffs to their customers.
- We summarize this in our call with Nameson Holdings (1982 HK) following the results. We also provide updates for Pacific Textiles (1382 HK) and other names.
Quiddity Leaderboard ChiNext & ChiNext 50 Dec25: One Change to Expectations; US$636mn Total One-Way
- The ChiNext index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
- The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
- We see 3 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the next index rebal event worth a combined US$600mm+ one-way.
Quiddity Leaderboard STAR 50/100 Sep25: Reference Period Almost Complete; New Pair Trade Ideas
- STAR 50 Index is a tech-focused, blue-chip index in Mainland China which tracks the top 50 largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
- STAR 100 index tracks the next 100 names (51st-150th ranks) and it represents the mid-cap segment of the STAR market.
- In this insight, we take a look at the potential ADDs/DELs for the STAR 50 and STAR 100 indices for the September 2025 index rebal event.
Hong Kong Office Market: Persistent Vacancy and Rental Pressure – SHORT Champion REIT 2778 HK
- The Hong Kong office market is now facing multiple headwinds including an oversupply, persistently weak demand and slowdown in Chinese corporates expansion
- Accordingly, the availability rate In Hong Kong office rose to record high, reaching 19.3% as of Q2 2025, according to Cushman. Vacancy rate in Central is at 13%
- We are bearish on Champion REIT, given its direct exposure to HK Grade A office market
CMOC Group Ltd (SEHK: 3993 | SSE: 603993) – H1 Guidance Points to Strong Upside
- CMOC’s H1 2025 midpoint guidance signals a ~60% YoY surge in net profit, supported by higher copper and cobalt output and pricing.
- With H1 tracking >50% of full-year profit, FY2025 earnings could be revised 10–18% higher from internal estimates, with EPS approaching RMB 0.85.
- Despite strong delivery, CMOC trades at ~10x forward earnings and ~4.5x EV/EBITDA; a rerating may depend on easing DRC constraints and sustained price tailwinds.
Ascentage Pharma (6855.HK) Placement – Thoughts on The Placing Price and the Outlook
- Our forecast is sales of olverembatinib in 2025 could reach RMB500mn. APG-2575 is better than Sonrotoclax in ORR/safety profile, but global commercialization success is not simply determined by clinical data.
- Placing price of HK$68.6/share has priced in the successful licensing deal of APG-2575 to some extent, which however is not a done deal. US$1.5-2.375bn is a more reasonable valuation range.
- The big rally in biotech sector is not based on fundamental inflection point. The driving mentality behind the valuation bubble this time has a more obvious nature of “short-term gambling”.
Muyuan Foods A/H Listing – Long Term Growth with Short-Term Volatility
- Muyuan Foodstuff Co Ltd A (002714 CH), a leader in the hog farming industry, aims to raise around US$2bn in its H-share listing.
- MF is a leading pork company with over 30 years of expertise in the hog farming industry.
- In this note, we look at its past performance and other deal dynamics that might impact the listing.
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