In today’s briefing:
- KWEB Index Rebalance: 5 Adds & A Delete
- 2026 High Conviction – China Healthcare: High-Certainty Investment Opportunity Has Emerged
- 3SBio Placement: Partnership with Pfizer Going Well; Digestible Deal
- Quiddity CSI 300/500 Dec25 Results: 90% Hit Rate (110/121 Correct); US$9.5bn Combined One-Way Flow
- Quiddity CSI 1000 Dec25 Results: 88% Hit Rate; 100 ADDs/DELs; ~US$2.5bn One-Way
- Suzhou Novosense A/H Listing – Strong Growth but Lacks Margin Stability
- Quiddity STAR 50/100 Dec25 Results: 19/20 Changes Correctly Predicted; ~US$2bn Combined One-Way Flow
- Hong Kong December 2025 Monthly Covered Call Report
- Geely (175 HK): In November, Deliveries Still Strongly Up by 24%
- Lucror Analytics – Morning Views Asia
KWEB Index Rebalance: 5 Adds & A Delete
- The December rebalance of the KraneShares CSI China Internet ETF (KWEB US) will take place at the close of trading on 12 December.
- Alibaba Pictures, East Buy Holding, Ping An Healthcare and Technology, XD Inc. and CaoCao (2643 HK) will be added, while iQIYI Inc (IQ US) will be deleted.
- Short interest has increased in most adds recently and there could be some short covering following the announcement of the index inclusion.
2026 High Conviction – China Healthcare: High-Certainty Investment Opportunity Has Emerged
- The growth of Innovent’s product revenue is always commendable. Based on strong growth momentum, product revenue in 2025 would be above RMB10 billion. Adjusted EBITDA breakeven by 2025 is expected.
- Innovent’s peak sales would reach the level of RMB20 billion in 2027. RMB100 billion is the valuation bottom line in the short term. In mid-to-long term, the highlight is IBI363.
- Current valuation has basically priced in favorable factors for fundamentals for the next three years.Investors can wait patiently for a pullback and buy the stock at a more cost-effective valuation.
3SBio Placement: Partnership with Pfizer Going Well; Digestible Deal
- 3SBio Inc (1530 HK) is looking to raise around US$400m from a primary placement.
- The deal is a small one, representing 2.9 days of the stock’s three month ADV, and 3.9% of total shares outstanding.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Quiddity CSI 300/500 Dec25 Results: 90% Hit Rate (110/121 Correct); US$9.5bn Combined One-Way Flow
- The December 2025 index review results for China’s CSI 300 and CSI 500 indices were announced after market close on Friday 28th November 2025.
- There will be 11 ADDs/DELs for CSI 300 and 50 ADDs/DELs for CSI 500.
- The CSI 300 and CSI 500 index rebal events could trigger US$5.3bn and US$4.2bn in one-way flows respectively.
Quiddity CSI 1000 Dec25 Results: 88% Hit Rate; 100 ADDs/DELs; ~US$2.5bn One-Way
- The December 2025 index review results for China’s CSI 1000 index were announced after market close on Friday 28th November 2025.
- There will be 100 ADDs/DELs for CSI 1000 in the December 2025 rebalance.
- The CSI 1000 index rebal event could trigger US$2.5bn in one-way flow.
Suzhou Novosense A/H Listing – Strong Growth but Lacks Margin Stability
- Suzhou Novosense Microelectron (688052 CH), an analog chips producer, aims to raise around US$285m in its H-share listing.
- According to Frost & Sullivan, in terms of revenue from analog chips in 2024, SNM ranked fifth among Chinese analog chip companies in the Chinese analog chip market.
- We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.
Quiddity STAR 50/100 Dec25 Results: 19/20 Changes Correctly Predicted; ~US$2bn Combined One-Way Flow
- The December 2025 index review results for the STAR 50 and STAR 100 indices were announced after market close on Friday 28th November 2025.
- There will be two changes for the STAR 50 index and eight changes for the STAR 100 index.
- We expect one-way flows of approximately US$1.4bn and US$516mn for the STAR 50 and STAR 100 index rebal events, respectively.
Hong Kong December 2025 Monthly Covered Call Report
- Top Hong Kong Stock Exchange listed covered call candidates for the month of December.
- The top 10 provide an average ~6.9% premium with a potential ~8.4% upside P&L if exercised.
- Investors with a neutral 1-month view on the underlying can seek to generate income.
Geely (175 HK): In November, Deliveries Still Strongly Up by 24%
- Geely’s deliveries grew by 24% YoY in November, reaching 65% of BYD.
- PHEV continued to accelerate and export deliveries rose strongly by 22% in November.
- We expect Geely’s stock price will rise by 20% in the next twelve months.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: China Vanke, Genting Berhad, Meituan
- UST yields climbed 1-3 bps on Friday, albeit there were no material catalysts as the market returned after Thanksgiving. The yield on the 2Y UST rose 1 bp to 3.49%, while that on the 10Y UST was up 2 bps at 4.01%. Equities climbed on thin trading in a shortened postholiday session. The S&P 500 and Nasdaq advanced 0.5% and 0.7% to 6,849 and 23,366, respectively.
- China’s November official manufacturing PMI edged up to 49.2 (49.4 e / 49.0 p), albeit remaining in contraction territory for the eighth straight month. The non-manufacturing PMI slipped to 49.5 (50.0 e / 50.1 p), with the composite PMI declining to 49.7 (50.0 p).
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