Daily Brief China: Public Financial, Raytron Technology , Sitoy Group, ENN Energy, SHEIN Global Holdings, Insilico Medicine, ASR Microelectronics, GigaDevice Semiconductor, Z.AI and more

• I summarise the latest spreads and newsflow for the merger arb situations covered across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, the Philippines, Thailand, and Chinese ADRs.
• Highest spreads: Skyworth (751 HK), Changhong Jiahua (3991 HK), Z Fin (1168 HK), Tourism Holdings (THL NZ), OFX Group (OFX AU), Cleanaway Waste Management (CWY AU), Atlantic Lithium (A11 AU). 
• Lowest spreads: Kakaku.com Inc (2371 JP), FleetPartners Group (FPR AU), Accent Group (AX1 AU), Vault Minerals Ltd (VAU AU), Japan Property Management Center (3276 JP), Albis Co Ltd (7475 JP). 

• STAR50 rebalance will be effective on 14 Sep 2026 before market open, with 5 ADDs and 5 DELETEs.
• Four of the five ADDs gained at the post-announcement open, and all five then fell over the rest of the bridge. AVIC Chengdu UAS was the only DELETE to gain.
• Historically, ADDs with a negative bridge averaged higher first-week returns than ADDs with a positive bridge. DELETEs with a negative bridge mostly kept falling in the first implementation week.

• Stock trades at .3 x P/B, Cash on books is .38 cents per share, and Liquidation Value is .64 cents ( Net Current Assets less all liabilities is .64 cents.
• Manufacturing business is the main business, and the company has blue-chip customers but not much pricing power.
• The retail business has a chequered history, and the property value per share is 40 cents per share. Dividend Yield is 7%

• ENN Energy (2688 HK)‘s 1H26 results demonstrated that, even without ENN Natural Gas (600803 CH)‘s privatisation, its fundamentals remain solid. 
• Its gross margin decline has stabilised; with cost control initiatives, the FY26 earnings will stay healthy. Upside will come from improvement in the IE and smart home segments.
• At 7.6x PER for FY26 and FY27, it is among the cheapest in the HSI and the gas utilities sector. Its P/B is now over 1SD below average. 

• SHEIN listed on the HKEX Main Board on 1 Sep 2026, and we work out entry timing for HSCI, HSI, HSCEI, HS TECH, Stock Connect and MS-China.
• HSIL confirmed the HSCI ADD after the 14 Sep 2026 close on 2 Sep, and a 2.3% FF holds MS-China and HSCEI entry until the 28 Feb 2027 lock-up expiry.
• The December 2026 HSI review is the first cycle SHEIN can enter, and Southbound inclusion follows the WVR rule of six months plus 20 trading days on 31 Mar 2027.

• Insilico Medicine (3696 HK) has risen since its 1H26 earnings announcement.  The company’s rentosertib drug reversed biological aging markers in its Phase IIa trial.
• Rentosertib holds a singular distinction: it is the first end-to-end AI-discovered and AI-targeted drug to reach Phase III clinical development globally.
• The China CDE permitted a direct jump from Phase IIa to Phase III based on efficacy data, an unusual regulatory concession.

• ASR Microelectronics is a fabless semiconductor platform company, a market leader in cellular connectivity chips, ranking No. 1 globally in 2025.
• ASR Microelectronics ranked No. 1 globally in cellular connectivity chip market by shipment volume in 2025 with 37.8% market share.
• ASR Microelectronics reported a loss of RMB390,285 for 2025 and a profit of RMB84,244 for six months ended June 30, 2026.

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• In this insight we update readers on new developments affecting SHEIN, Temu, AliExpress
• New laws and ongoing investigations are likely to raise the cost of operating in the EU
• We expect to hear about important legal milestones in the coming weeks – stay tuned!

• Revenue grew by 230% YoY in 2Q26 with gross margin up to 66% from 37% in 2Q25.
• Chip giants pursue high-margin HBM and leave the niche DRAM market behind.
• GigaDevice is the only fabless company that focus on niche DRAM.

• 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, Shenzhen Longsys Electronics (9976 HK) didn’t do much at listing and had one of the lowest institutional coverage ratios yet for large A/H listings.
• On the placement front, the week wasn’t as busy but we did look at a few deals and upcoming lockups.