Daily Brief TMT/Internet: Contemporary Amperex Technology (CATL), Taiwan Semiconductor (TSMC) – ADR, BYD Electronics, AAC Technologies Holdings, Mi Technovation Berhad, Kokusai Electric , Zengame Technology Holding , Chicago Board Options Exchange Volatility Index, AT&T and more

• CATL (3750 HK) listed in May by selling 135.579m shares (including the Offer Size Adjustment Option) at HK$263/share. The overallotment option of 20.337m shares was also exercised in full.
• Nearly 50% of the IPO shares were allotted to cornerstone investors. The lock-up on those investors ends on 19 November. That increases float and will bring in passive flows.
• CATL (3750 HK) is trading at a big premium to CATL (300750 CH) and that could start to move lower as the number of free float shares increases.

• U.S. President Donald Trump announced a 100% tariff on China.
• Facing the escalation of the U.S.–China tariff war, U.S. stocks plunged on October 10 under heavy selling pressure.  
• Facing the escalation of the U.S.–China tariff war, U.S. stocks plunged on October 10 under heavy selling pressure.  

• The Hang Seng Internet & IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
• In this insight, we take a look at the December 2025 index capping flows.
• We have also presented our index change expectations for the next semiannual index review which will take place in March 2026.

• The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
• In this insight, we take a look at our final expectations of index changes and the resultant capping flows for HSTECH index rebal event in December 2025.
• We expect one index change and roughly US$1.7bn in one-way index flows in December 2025.

• TSMC: +19% Premium; Good Level to Close Out for Those Short the ADR Spread
• UMC: -3.9% Discount; Rare Deep Discount Good Level to Long the ADR Spread
• ASE: -5.5% Discount; Any Spread Below Parity a Good Level to Long the ADR Spread

• Mi Technovation is strategically diversifying its business to mitigate the cyclicality of the semiconductor industry, expanding from its core equipment business into semiconductor materials and solutions.
• The company is well-positioned to capitalize on long-term semiconductor industry growth, driven by secular trends such as AI, 5G, and electric vehicles, through its expanding product portfolio and global footprint.
• Financial performance shows strong top-line growth, but margin volatility and cash flow inconsistencies highlight operational risks and the capital-intensive nature of its expansion strategy.

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• 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, the year end looks set to see a flurry of listings, with the pace already starting to pick up again.
• On the placements front, markets were back where they left of prior to the October holidays.

• Zengame Technology is a niche developer of online card and board games in China, demonstrating strong historical profitability and a commitment to shareholder returns through high dividend payouts.
• Recent financial performance indicates a significant slowdown, with declining revenue and contracting margins, reflecting intense competition and potential saturation in its core markets. The 3-year CAGR for net income is negative, contrasting sharply with its 5-year growth.
• The stock trades at a low valuation compared to peers, suggesting it could be a value opportunity if it can stabilize its user base and revenue. However, it also faces substantial risks from regulatory oversight in China and competition from dominant industry players.

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• Amidst US-China tariff uncertainties and divergent central bank policies, a strategic approach to volatility across key global indices is being considered, aiming to capitalize on anticipated market shifts.
• The evolving political landscape in Japan, alongside a unique monetary policy trajectory, presents distinct volatility opportunities compared to volatility markets in the US and Europe.
• Part I explores a multi-leg volatility strategy, designed to leverage specific market conditions. Part II is a deep dive into VIX, VNKY, VSTOXX trading.

• AT&T is undergoing a strategic refocus on its core telecommunications business, prioritizing 5G and fiber network expansion to drive future growth.
• The company exhibits stable financial performance with recent growth in service revenues and strong free cash flow, supporting network investments and shareholder returns.
• Significant challenges remain, including a substantial debt burden and intense competition in the mature U.S. telecom market, which could pressure margins and growth targets.

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