In today’s briefing:
- Quiddity Leaderboard ChiNext & ChiNext 50 Jun25: Last-Minute Methodology Changes; Final Expectations
- Asian Equities: Currency Strength Driving FII Flows – Winners and Losers
- CSI300 Index Rebalance Preview: 8 Changes a Side in June; US$4.5bn Trade
- Canvest (1381 HK): Buy Here, And On Weakness
- Chery Auto Pre-IPO – The Negatives – Small NEV Portfolio
- Busy Ming IPO: Hyper Growth and Solid Profitability, Largest Snack and Beverage Retailer in China
- Jiangsu Hengrui Pharma H Share Listing: The Investment Case
- HSCEI Earning Revision Analysis (Apr): CCB, Sinopec, BOC, Petrochina, CNOOC, China Overseas, Ping An
- CATL A/H Listing – PHIP Updates and Updated Thoughts on A/H Premium
- TAL Education Group: Innovation in Learning Devices
Quiddity Leaderboard ChiNext & ChiNext 50 Jun25: Last-Minute Methodology Changes; Final Expectations
- 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.
- In this insight, we have presented our final expectations for the upcoming index rebal event. We expect 9 ADDs/DELs for the ChiNext index and 5 ADDs/DELs for the ChiNext 50.
Asian Equities: Currency Strength Driving FII Flows – Winners and Losers
- The recent spike in Asian currencies is driving foreign institutional flows into Asian equities. Currency appreciation is usually a lead indicator of FII flows, implying that this enthusiasm may continue.
- The markets that were sold down the most are attracting the most flows and could continue to do so. India, Taiwan and to a lesser extent, Korea qualify.
- Domestic sectors like Chinese internet, restaurant chains, athleisure; Indian private banks, consumer discretionary, hospital chains could gain. So could defensives with high dividend yields, e.g. Korea and Chinese utilities, telecom.
CSI300 Index Rebalance Preview: 8 Changes a Side in June; US$4.5bn Trade
- There could be 8 changes at the June rebalance with the Industrials and Information Technology sectors gaining 3 index spots each and the Materials sector losing 4 spots.
- Estimated one-way turnover is 1.44% at the rebalance leading to a round-trip trade of CNY 32.55bn (US$4.5bn). There are 13 stocks with over 2x ADV to trade.
- The forecast adds have outperformed the forecast deletes over the last 6 weeks even though there have been large ETF creations. There could be more outperformance coming up.
Canvest (1381 HK): Buy Here, And On Weakness
- Ahead of the 12th May shareholder to vote on Grandblue’s Offer, recent price action in Canvest (1381 HK) has been odd, with considerable selling volume.
- By all accounts, a chunk of that selling was brought about by an event desk in Singapore shutting down. Elsewhere, via numerous inquiries, I see nothing deal specific.
- In recent positive developments, AEP (3.62% of shares out) is supportive; there are no material updates in s329 announcements; and I see nothing of note when inspecting the shareholder register.
Chery Auto Pre-IPO – The Negatives – Small NEV Portfolio
- Chery Automobile is looking to raise about US$1bn in its upcoming Hong Kong IPO.
- Chery Auto is a Chinese passenger vehicle company which designs, develops, manufactures and sells passenger vehicles, including internal combustion engine vehicles and new energy vehicles, both domestically and overseas.
- In this note, we talk about the not-so-positive aspects of the deal.
Busy Ming IPO: Hyper Growth and Solid Profitability, Largest Snack and Beverage Retailer in China
- Busy Ming Group, “a snack brand for the people” and the largest snack and beverage chain retailer in China, filed for an IPO in Hong Kong.
- The fast-growing retailer was backed by HongShan Capital, Gaorong Ventures, 5Y Capital, Haoxiangni Health Food, and Yanker Shop Food Co., among others.
- Busy Ming Group is tapping into Gen Z and younger millennial consumers with playful branding and social media engagement.
Jiangsu Hengrui Pharma H Share Listing: The Investment Case
- Jiangsu Hengrui Medicine (600276 CH), a leading Chinese pharmaceutical company, has filed its PHIP for an H Share listing to raise US$2 billion.
- Jiangsu Hengrui Pharmaceuticals (JHR HK) ranked first among Chinese pharma companies in revenue from NME drugs in 2023 and the number of commercialised NME drugs in 2024.
- The investment case rests on its product portfolio, strong revenue growth, rising profitability, cash generation, strong balance sheet and undemanding valuation.
HSCEI Earning Revision Analysis (Apr): CCB, Sinopec, BOC, Petrochina, CNOOC, China Overseas, Ping An
- We analysed the earning revision of component stocks of HSCEI in the past month.
- We tabulated stocks with the top impact on index’s EPS, stocks’ EPS revision, and revenue revision.
- We highlighted EPS revision on CCB, Sinopec, BOC, Petrochina, CNOOC, China Overseas, Ping An.
CATL A/H Listing – PHIP Updates and Updated Thoughts on A/H Premium
- Contemporary Amperex Technology (CATL) (300750 CH), one of the world’s largest battery solutions providers, aims to raise around US$5bn in its H-share listing.
- CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
- We have looked at the company’s past performance and valuations in our earlier notes. In this note, we talk about its recent updates and provide updated thoughts on valuations.
TAL Education Group: Innovation in Learning Devices
- TAL Education Group’s latest quarter and fiscal year performance presents a mixed picture, with notable expansions alongside challenges in profitability.
- Key areas such as Learning Services and Content Solutions have shown significant revenue growth, demonstrating the company’s efforts to broaden its educational offerings.
- In fiscal 2025, TAL Education Group recorded a considerable increase in net revenues, reaching USD 2.3 billion, a 51% rise from the previous year.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
