In today’s briefing:
- China Healthcare Weekly (Apr.6) – SASAC to Encourage SOE M&A, WuXi AppTec Disposed XDC Shares Again
- Quiddity Leaderboard Hang Seng Index Jun25: Beigene Is Our Top Pick
- HSI Index Options Weekly (Mar 31-Apr 03): Global Meltdown, What to Expect on Monday
- Weekly Deals Digest (06 Apr) – Skyworth, HKBN, Makino, Avjennings, Domain, Dropsuite, Dada Nexus
China Healthcare Weekly (Apr.6) – SASAC to Encourage SOE M&A, WuXi AppTec Disposed XDC Shares Again
- Licensing-Out partnerships are expected to contribute approximately US$6–7 billion in annual upfront payments, US$12–14 billion in milestone payments, and US$25–30 billion in sales-sharing revenues to China’s innovative drug industry.
- SASAC’s new policy promotes SOE M&A to strengthen industrial chains, especially in weaker sectors like biomedicine. The strategic deployment of state-owned capital is set to gain momentum.
- WuXi AppTec is divesting its stake in WuXi XDC, viewing the shares as overvalued and aiming to lock in profits ahead of a potential price correction.
Quiddity Leaderboard Hang Seng Index Jun25: Beigene Is Our Top Pick
- The Hang Seng Index is the benchmark index for Hong Kong stocks. It follows a highly-subjective selection process which makes it difficult to predict index changes.
- In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes during the next review in June 2025.
- The index changes are expected to be confirmed on 16th May 2025.
HSI Index Options Weekly (Mar 31-Apr 03): Global Meltdown, What to Expect on Monday
- A shortened trading week masks the true extent of the HSI sell-off, with global markets down sharply Thursday and Friday
- We use related indexes and historical relationships to estimate Monday’s price change and 1M implied vol for HSI.
- Put activity surged, with heavy interest at the 19,600 strike potentially adding pressure to price and vol on Monday.
Weekly Deals Digest (06 Apr) – Skyworth, HKBN, Makino, Avjennings, Domain, Dropsuite, Dada Nexus
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments: DN Solutions (298440 KS) seeks to raise US$1.1 billion in a KRX IPO and Chagee Holdings (CHA US) seeks to raise US$400-500 million through a Nasdaq IPO.
- Event-Driven developments: Skyworth Group Limited (751 HK), HKBN Ltd (1310 HK), Makino Milling Machine Co (6135 JP), Avjennings Ltd (AVJ AU), Domain Holdings Australia (DHG AU), Dropsuite Ltd (DSE AU).
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