In today’s briefing:
- Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for Dec25
- WT Micro GDR Offering – Slightly Larger Deal to Digest, Discount Mostly in Line With Recent Deals
- HK Connect SOUTHBOUND Flows (Wk To 14 Nov 2025) – Strong SOE/Energy/Financials Buying on BABA Sales
- CATL IPO Lockup – US$5.3bn Lockup Release, with H-Shares at Significant Premium to A-Shares
- Baidu Declares Chip War With Huawei & Nvidia—Is China Backing It?
- Klook Pre-IPO – The Negatives – Disclosures Lagging
- TPG Telecom Placement: Widely Anticipated but Large Deal to Digest
- Alphabet Bags Warren Buffett’s Billions—Here’s What Triggered the Bet!
- CELSYS (3663 JP): Q3 FY12/25 flash update and revision of full-year forecasts
- IFS Comeback: Apple, Qualcomm, and Tesla Validating Intel’s Packaging Advantage
Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for Dec25
- Post market close on Friday, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 5 December.
- We highlight 6 stocks that have a higher probability of being added to the index. With the index committee entitled to a lot of discretion, there will be differences.
- CATL (3750 HK) will have a 6-month trading history by implementation of the index changes and is a high probability inclusion to the index. But cornerstone lock-up ends tomorrow.
WT Micro GDR Offering – Slightly Larger Deal to Digest, Discount Mostly in Line With Recent Deals
- WT Microelectronics (3036 TT) (WT Micro) is looking to raise up to US$393m, selling 90m shares(18m GDRs)via a GDR offering. It is also selling a two-year zero-coupon CB to raiseUS$350m.
- Similar to previous GDR listings, the firm has undergone a long drawn out process prior to launching the deal, having to jump through a number of board/shareholder/regulatory approval loops.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
HK Connect SOUTHBOUND Flows (Wk To 14 Nov 2025) – Strong SOE/Energy/Financials Buying on BABA Sales
- HK$100bn a day of gross SOUTHBOUND activity with US$600mm+ of net buying on average. Net flows continue to be impressive. SOEs/Energy/Financials dominate.
- Watch for news on the Dual Counter (RMB) Trading eligibility for SOUTHBOUND near-term. That could up the pace of things.
- The data tables below update on a daily basis in the Tools section of Smartkarma. The Southbound Flow Monitor and AH Pairs Monitor are both there – free – for all SK readers.
CATL IPO Lockup – US$5.3bn Lockup Release, with H-Shares at Significant Premium to A-Shares
- CATL (3750 HK) raised around US$5.2bn in its H-share listing in May 2025. The lockup on its cornerstone investors is set to expire soon.
- CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research.
- In this note, we will talk about the lockup dynamics and possible placement.
Baidu Declares Chip War With Huawei & Nvidia—Is China Backing It?
- Baidu, Inc. delivered a solid performance in the first quarter of 2025, with its Baidu Core division reporting a 7% year-over-year revenue increase, reaching RMB 25.5 billion.
- This growth was primarily driven by a substantial surge in its AI cloud business, which saw a 42% increase year-over-year, contributing significantly to Baidu Core’s overall revenue.
- A notable development within this business unit is the expansion of the AI cloud’s role in Baidu’s operations, now accounting for 26% of Baidu Core’s revenue, up from 20% in the previous year.
Klook Pre-IPO – The Negatives – Disclosures Lagging
- Klook (KLK US), a pan-regional experiences platform in Asia-Pacific, aims to raise around US$500m in its US listing.
- Klook connects travelers with merchants providing a vast array of activities, tours, attractions and other travel services across the globe.
- In this note, we talk about the not-so-positive aspects of the deal.
TPG Telecom Placement: Widely Anticipated but Large Deal to Digest
- TPG Telecom (TPG AU) is looking to raise around US$359m from a primary placement.
- This is a large deal to digest, representing 111.2 days of the stock’s three month ADV, and 7.8% of total shares outstanding.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Alphabet Bags Warren Buffett’s Billions—Here’s What Triggered the Bet!
- Warren Buffett’s Berkshire Hathaway has disclosed a significant new position in Alphabet Inc., acquiring 17.9 million shares valued at approximately $4.9 billion during Q3 2025.
- This development marks a notable strategic shift by Berkshire, as it trimmed positions in long-held names such as Apple Inc. and Bank of America while initiating and expanding positions in Alphabet, UnitedHealth, and Chubb.
- Alphabet’s shares climbed in extended trading following the announcement, which signals investor enthusiasm over Buffett’s endorsement.
CELSYS (3663 JP): Q3 FY12/25 flash update and revision of full-year forecasts
- Celsys reported cumulative Q3 FY12/25 sales of JPY7.0bn (+15.9% YoY), operating profit of JPY2.2bn (+39.0% YoY).
- Celsys revised FY12/25 forecast: sales JPY9.3bn, operating profit JPY2.9bn, net income JPY1.4bn, citing strong subscription growth.
- Creator Support segment sales JPY6.0bn (+19.4% YoY), driven by CLIP STUDIO PAINT upgrades and global expansion efforts.
IFS Comeback: Apple, Qualcomm, and Tesla Validating Intel’s Packaging Advantage
- Apple, Qualcomm, and Tesla are all hiring for EMIB-class advanced packaging, signalling an industry shift toward tech where Intel holds a structural edge.
- Intel’s “packaging-first” strategy outlined last year is now visible in real customer activity; foundry share will be won through packaging long before leading-edge wafers.
- With TSMC carrying excess capacity, IFS enters a rare window where early 18A traction and EMIB pull-through can create a credible path to 14A volume wins.
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