China Archives | Smartkarma

• Shanghai Biren Intelligent Technology, a GPGPU chips and computing solutions provider, aims to raise around US$600m in its Hong Kong listing.
• According to CIC, Biren was the first company in China to package dual AI computing dies using 2.5D chiplet technology and the first to support advanced interconnection specifications.
• In this note, we look at the company’s past performance.

• OneRobotics (Shenzhen) Co (ONE HK) is looking to raise US$231m in its upcoming Hong Kong IPO.
• OneRobotics operates as a provider of home-embedded AI robotic systems, focusing on building an integrated smart-home ecosystem centered on robotic products.
• In this note, we look at the company’s past performance and valuations.

• We continue to have JNBY Design Ltd (3306 HK) as a top pick among our names for its robust growth in FY26, an undemanding 10x PE, and 7% dividend yield. 
• For high dividends, we have written extensively on Nameson Holdings (1982 HK), currently trading at a 12% yield, and are exploring Texwinca Holdings (321 HK) (at ~10% yield).
• Finally, for those interested in net-net situations, we have Fountain Set Hldgs (420 HK) trading at a 61% discount to NCAV(net current asset value) with an 8% dividend yield. 

• Hanx Biopharm raised HKD 586m (USD 76m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday December 23, 2025.
• In our previous note, we looked at the company’s core products, management track records.
• In this note, we provide an update for the IPO before trading debut.

• Net cash of ~$3.3bn equals market cap; ~$300mn of recurring FCFE funds ~10% shareholder yield via dividends and buybacks, while Ad-Tech provides incremental growth optionality.
• Management is proactively engaging investors, returning capital, and building Ad-Tech scale, creating multiple levers for perception shift beyond legacy live-streaming framing with a global positioning.
• This is a classic deep-value smallcap bet with Valuation asymmetry: Base-case valuation implies ~50% upside including cash; bull-case capitalisation of cash flows and Ad-Tech optionality supports ~100% upside.

• Forward earnings compress valuation from >40× to ~14×, driven by pricing, volume absorption, and low costs, with NPAT rising toward RMB 6–6.5 bn by FY27.
• Concentrated float and GDX/Zijin ownership support a passive bid; dividend capacity lifts toward a 3–4% yield as cash exceeds RMB 4.5 bn.
• Throughput upgrades, Abujar recoveries and zero-marginal-cost ounces provide additional upside, sustaining FCF even at US$3,800 gold.

• Weak price momentum and spot rates both improved somewhat in November-December
• But we believe this improvement will quickly dissipate, due to still-poor end demand 
• We still see deep-sea container industry as entering a lengthy down-cycle; AVOID

• Perfect Medical is navigating a challenging retail environment, particularly in its core Hong Kong market, which has led to significant revenue declines. A recent profit warning for the year ending March 2025 underscores the impact of weak consumer sentiment.
• In response to top-line pressure, management has implemented aggressive cost-cutting measures. These initiatives have successfully improved profitability and expanded margins, demonstrating strong operational control.
• The company offers a high dividend yield, supported by a stated high payout policy and a strong balance sheet. However, the sustainability of this payout is contingent on a future recovery in sales and profitability, which remains uncertain.

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• Hansoh Pharmaceutical Group (3692 HK) granted Glemark license to develop, manufacture and commercialize aumolertinib in territories like Middle East, Africa, Southeast & South Asia, Australia, New Zealand, Russia/CIS and Caribbean.
• Aumolertinib is the first original third-generation EGFR-TKI innovative drug in China. It has been approved for four indications in China and also in UK for two indications.
• Most popular third-generation EGFR-TKIs is osimertinib (Tagrisso by Astra Zeneca). Global sales of Tagrisso was US$5.3B in 9M25, being the highest selling drug of Astra Zeneca (12% of total revenue).

• Zhipu AI is a leading Chinese AI company, spun out of Tsinghua University, that is at the forefront of large language model (LLM) development in China with its GLM series of models.
• The company is backed by major Chinese technology giants like Alibaba and Tencent, as well as state-backed funds, and has raised over $1.5 billion in funding, indicating strong investor confidence and strategic importance within China’s AI ambitions.
• Zhipu AI is pursuing an aggressive growth strategy, expanding its enterprise customer base through a Model-as-a-Service (MaaS) platform and engaging in a competitive pricing strategy to capture market share, while also exploring international expansion and a potential IPO in Hong Kong.

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• Biren Technology, a Shanghai-based fabless chip design company that develops intelligent processors for GPU and DSA computation architectures, filed to go public in Hong Kong.  
• Biren Technology was founded in 2019 by CEO & Chairman Mr. Wen Zhang, who previously worked at AI software company SenseTime Group Inc.   
• This is a red-hot upcoming IPO to watch, in my view. Moore Threads and MetaX Integrated Circuits have recently raised $1.1B and ~$600M in their public share offerings in Shanghai.

• I summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: Smart Share Global (EM US), Dongfeng Motor (489 HK), ENN Energy (2688 HK), Jinke Smart Services (9666 HK), Humm Group (HUM AU), Qube Holdings (QUB AU). 
• Lowest spreads: Bright Smart Securities (1428 HK), Mandom Corp (4917 JP), Toyota Industries (6201 JP), Pacific Industrial (7250 JP), Ainsworth Game Technology (AGI AU), Hainan Meilan International Airport (357 HK). 

• Hs within the liquid AH pair universe UNDER-performed As on average by 0.87%. Beautiful Skew behaved BADLY. Spreads were a bit all over the place.
• Quiddity H/A Portfolio performance slightly positive (+11-13bp). Low H/A “beta” helps. Stay the Beautiful Skew course.
• The data tables below update daily in the Tools section of Smartkarma. The Southbound Flow Monitor and AH Pairs Monitor are both there – free for all SK readers.

• The IPO pricing reflects the liquidity value brought by IPO and recognition of cornerstone investors, but InSilico is facing huge uncertainties.Its value will take several years to be verified.
• Our revenue forecast is US$55 million/US$70-90 million/US$100-150 million in 2025/2026/2027, respectively. Insilico may suffer losses in the next three years, but in 2027, the Company may turn loss into profits.
• The essential difference between QuantumPharm and InSilico lies in business models. We’re more optimistic about InSilico in long term, whose valuation may surpass QuantumPharm if InSilico can develop blockbuster drugs.

• InSilico Medicine launched HK IPO consisting of ~95M H shares. The indicative offer price is HK$24.05 per share. The company aims to raise ~$292M. Subscriptions will close on December 23.
• InSilico Medicine is a clinical-stage generative AI-driven drug discovery company, with Pharma.AI being its proprietary generative AI platform. The company has generated 20+ clinical or IND-enabling stage assets using Pharma.AI.
• The company intends to use the proceeds to fund clinical trials of pipeline drug candidates, develop new generative AI models, and development and expand the company’s automated lab.

• B&K raised HKD 674m (USD 87m) from its global offering and will list on the Hong Kong Stock Exchange on Monday December 22, 2025.
• In our previous note, we looked at the company’s core products, management track records.
• In this note, we provide an update for the IPO before trading debut.

• HK$82bn+/Day of gross SOUTHBOUND activity last week vs HK$90+bn the week before. Gross flows are winding down. Net rebounded to +HK$16bn.
• Relatively high div low vol SOEs were net sold. Again. This is getting heavy. It matters because some have less international buying support (they are Trump military names).
• The data tables below update daily in the Tools section of Smartkarma. The Southbound Flow Monitor and AH Pairs Monitor are both there – free – for all SK readers.

• ANE Cayman (9956 HK)‘s Scheme Doc is out, absent any reference to CDH (holding an estimated 18%). Given precedents with similar fact patterns, this is probably one deal to avoid.
• Hogy Medical (3593 JP)‘s Offer Price is more than expected; but the fact that Dalton , who really wanted to sell, but isn’t selling, suggests the price should be higher.
• 8th January vote on HSBC (5 HK)‘s Offer for Hang Seng Bank (11 HK).  Safe deal. This is effectively a term deposit hybrid.

• Stocks were broadly lower, giving back last Friday’s rally with breadth continuing weak.
• We present new data showing average single stock implied vols.
• Average Single stock implied vols are reaching levels last seen before a major decline.

• InSilico Medicine, an AI-driven drug discovery and development, launched its IPO to raise at least USD 293 million via a Hong Kong listing.
• In this note, we look at the deal terms and provide a valuation for the company.
• We think the valuation is anchored by its innovative assets while the AI asset value provides upside.

• Iron ore’s resilience looks fragile, supported by short-term supply disruptions, while weakening steel demand and looming Simandou volumes erode fundamentals.
• Managed money participants trimmed their net long exposure, signalling profit-taking aligned with price action rather than a broader shift in market conviction.
• The DCE-SGX spread lost momentum after rejecting the upper Bollinger band, breaking below key MAs and opening room for consolidation or further downside.

• New World Development (NWD) is a high-leverage property developer currently trading at a significant discount to its book value, positioning it as a high-risk, high-reward play on the Hong Kong property market and future interest rate cuts.
• The company has experienced severe financial distress, reporting substantial net losses and negative cash flows over the past two years, leading to a sharp dividend cut and a deeply negative growth track record across all key metrics.
• Management is actively pursuing a deleveraging strategy through asset disposals and debt management, such as the recent exchange offer for its perpetual securities. The success of these initiatives is critical to navigating the challenging market and restoring investor confidence.

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• Shanghai Forest Cabin launched its Hongkong IPO aiming to raise up to HK$1086.2M. The company plans to sell 13.97M shares at HK$77.77 per share.
• Shanghai Forest Cabin (SFC) are a premium domestic skincare brand in China with a focus on the anti-wrinkle and firming skincare market, under their flagship brand Forest Cabin.
• The company’s business model is robust. We think Shanghai Forest Cabin issue is attractively priced and investors can surely look to invest in this growth story.

• Uni President China (220 HK) appeals to value investors with its stable long-term growth, attractive dividends, and diversified consumer staples portfolio, despite severe near-term sector competition.
• The intense competition plaguing China’s food delivery platforms and F&B sector have impacted investor sentiment and valuations. Expect stock rebound as the dust settles.
• Uni-President’s brand loyalty and innovation capabilities should help sustain revenue and profit growth, enabling the company to weather near-term pricing and margin pressures.

• Zhong Ao Home is a small, independent property management company in China facing a challenging market, characterized by stagnant revenue and declining profitability over the past several years.
• The company’s stock appears undervalued on traditional metrics (P/E, P/B) and offers a high dividend yield, which may attract value and income-oriented investors.
• Significant headwinds persist, including intense competition within a fragmented industry and a reliance on the troubled Chinese real estate sector, creating high uncertainty for future growth.

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• Here we introduce Modtris as a drastic approach to credit analysis.
• Modrist uses historical financial data to compute simultation of multi-dimentional dynamics.
• Fair value of H&H, according to Modtris, is quite close to the current price. We see Modtrist as an alternative to arrive at bond fair value without human bias.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: GMR Hyderabad, China Vanke
• Fitch has downgraded the issuer default rating on China Vanke, as well as the senior unsecured notes rating on Vanke HK, to C from CCC-/CC.
• The downgrade follows Vanke’s entry into a five-day grace period for a CNY 2 bn onshore bond that matured on 15 December 2025, which indicated heightened default risk

• GigaDevice is a leading Chinese fabless semiconductor company, holding a dominant position in the domestic SPI NOR Flash market and rapidly expanding its presence in the microcontroller (MCU) sector.
• The company is a key beneficiary of China’s strategic push for semiconductor self-sufficiency, which provides a long-term tailwind for domestic market share gains across its product lines.
• While demonstrating strong long-term growth, the company faces significant risks from the inherent cyclicality of the semiconductor industry, intense global competition, and geopolitical tensions between the US and China.

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• InSilico Medicine Cayman TopCo (ISM HK) is looking to raise around US$293m in its upcoming Hong Kong IPO.
• Insilico is a global AI-driven drug discovery and development company that leverages its proprietary generative AI platform, Pharma.AI, to identify and design early-stage drug candidates.
• In this note, we look at the company’s past performance.

• OmniVision Integrated Circuits Group (603501 CH), a CMOS image sensor (CIS) company, has filed its PHIP for an H Share listing to raise US$1 billion.     
• OmniVision is the third-largest digital image sensor provider globally, with a 13.7% market share by revenue in 2024.
• The investment case rests on an industry-leading position, a robust core business, an improving margin profile, strong cash generation, and an undemanding valuation. 

• Zhou Liu Fu Jewellery (6168 HK) raised US$143m from its Hong Kong IPO in June 2025 via a primary offering of HKD 24/share in its IPO.
• It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.
• In this note, we will talk about the lockup dynamics and possible placement.

• CiDi Inc (CIDI HK) raised US$183m in its Hong Kong IPO.
• CiDi is a leading autonomous driving technology provider for commercial vehicles in China, with a strong foothold in the autonomous mining segment.
• In this note, we will talk about the demand and trading dynamics.

• InSilico Medicine is a clinical-stage biotechnology company leveraging a proprietary end-to-end generative AI platform, Pharma.AI, to accelerate drug discovery and development. This integrated platform has demonstrated the potential to significantly reduce the time and cost associated with bringing new therapies to market.
• The company has a diversified pipeline of over 30 assets, with a focus on novel therapeutics for cancer, fibrosis, immunology, and central nervous system diseases. Its lead candidate for idiopathic pulmonary fibrosis has shown promising results and received Breakthrough Therapy Designation in China.
• InSilico’s business model combines internal drug development with strategic collaborations and out-licensing agreements with major pharmaceutical companies. This hybrid approach provides multiple revenue streams, including upfront payments, milestone fees, and potential future royalties, while validating its AI platform’s capabilities.

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• CSPC Innovation, a subsidiary of HK-listed CSPC, is looking to raise at least USD 100 million via an A+H listing. CITIC and SDICSI are the joint book runners.
• In this note, we look at the company’s anchor products, SYS6010 and SYS6002, and assess the selling point around the core products.
• We also briefly look at its potential range of pricing for respective business segments.

• Back in February 2025, Leoch International Technology (842 HK) (“LIT”), a leading manufacturer of lead-acid batteries, announced the spin-off and separate listing of wholly-owned Leoch Energy on a US exchange.
• LIT will distribute all shares held in-specie. There will be no concurrent global offering.
• Leoch Energy, the international  arm of the group, accounted for 32% of LIT’s revs in the 1H25, and 15% of profit.

• Shanghai Forest Cabin Biological-Tech (SFCBT HK) is looking to raise up to US$139m in its upcoming Hong Kong IPO.
• SFC is the leader among China’s premium domestic skincare brands with a focus on anti-wrinkle and firming skincare market.
• We have looked at the company’s past performance in our previous note. In this note, we talk about valuations.

• NetEase, Inc., a key player in the global gaming industry, recently showcased its third-quarter earnings for 2025, highlighting both its strategic advancements and challenges.
• Throughout this period, NetEase demonstrated robust growth, with total revenues increasing by 8% year-over-year to RMB 28.4 billion.
• This growth was mainly propelled by a 12% rise in revenues from its games and related value-added services, emphasizing the company’s strength in game content production and delivery.

• Back on the 28th October, ANE Cayman (9956 HK), a road freight transportation play, announced an Offer from Centurium Partners, a pre-IPO investor, Temasek, and Singapore-based asset manager True Light. 
• The Scheme Doc is now out, with a Scheme Meeting on the 9th Jan 2026, and expected payment on the 16th Feb. The IFA (Anglo Chinese) says “fair & reasonable“.
• Noticeably absent from this Doc is CDH, believed to be in control of ~18% of shares out.  Given precedents with similar fact patterns, this is probably one deal to avoid. 

• ANE Cayman Inc (9956 HK)’s IFA opines that the consortium’s offer of cash (HK$12.18 per share) or scrip is fair and reasonable. The vote is on 9 January. 
• The consortium’s decision on 4 December not to raise the share alternative cap from 5.00% to 7.50% of outstanding shares is a red flag, casting doubt on the vote’s success. 
• The lack of irrevocables from Mr Wang Yongjun and CDH adds to the uncertainty. Therefore, caution is warranted due to an unfavourable risk/reward profile. 

• Theme International Holdings, recently renamed Deep Source Holdings Limited, is a diversified company operating in two core, yet volatile, segments: high-volume, low-margin bulk commodity trading and financial services.
• The company is experiencing a significant downturn in profitability, with net income and margins declining sharply in the most recent fiscal year, despite a strong long-term revenue growth history. This raises concerns about the sustainability of its current business model.
• The recent proposal to change the company name to Deep Source Holdings Limited signals a potential strategic shift or rebranding effort to better reflect its future business development, the success of which remains a key variable for future performance.

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• CICC (3908 HK) announced details of its merger, and as Dongxing Securities (601198 CH) is valued higher, FY26F EPS dilution will be 8.5% on a weighted average basis.
• Its post-merger FY26 and FY27 PERs are higher than the sector average, but given its rise to the 3rd largest H-share securities company, the premium can be justified.
• Larger H-share securities companies have edged up since 19-Nov, which bodes well for CICC. We envisage a muted share price reaction, but long-term investors can build a position.  

• OneRobotics (Shenzhen) Co (ONE HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by Guotai Junan and Huatai.
• OneRobotics operates as a provider of home-embedded AI robotic systems, focusing on building an integrated smart-home ecosystem centered on robotic products.
• The company covers the full industry chain from R&D and production to sales, and aims to expand the application of embedded AI across a wide range of home living scenarios.

• iQIYI’s third-quarter 2025 earnings call presented a snapshot of the company’s performance and strategic direction, marked by a balanced view of advancements and challenges.
• As a leading player in China’s online video space, iQIYI’s ability to produce widely appreciated content—such as the highly successful drama “The Thriving Land”—remains a significant asset.
• This drama, with its universal appeal, underscores the company’s strength in long-form content that transcends cultural and temporal boundaries.

• Shenzhen Mindray Bio-Medical Electronics (300760 CH) filed for a Hongkong IPO. The company’s A shares are already listed on the Shenzhen Stock Exchange. The IPO will consist of fresh issue.
• Mindray intends to use the proceeds for funding global R&D efforts, to further enhance global sales network and supply chain capabilities and, for working capital and general corporate purposes.
• The long-term growth scenario looks largely subdued with the overseas market (revenue achieved a CAGR of over 18% from 2022-24) compensating for the sales lost in the domestic market.

• Tanboer has rapidly expanded through a model of “affordable products + online marketing-driven”, but it lacks core technological barriers and is highly dependent on marketing and channels.
• Under the heavy marketing strategy, Tanboer’s inventory backlog problem has become prominent, with inventory turnover days significantly higher than peers. So, Tanboer’s marketing strategy is not as effective as expected.
• The large dividend payout on the eve of IPO has sparked controversy. Due to lower market share/profit margin, weakness in high-end market, valuation of Tanboer would be lower than peers.

• Omnivision Intgrated Circuit (603501 CH, OVIC), a semiconductor company, aims to raise around US$1bn in its H-share listing.
• OVIC, is the world’s third largest smartphone CIS and the largest automotive CIS provider with a market share of 32.9% based on revenue in 2024, according to Frost & Sullivan
• We have looked at the company’s past performance in our previous note. In this note, we talk about the recent updates and likely A/H premium.

• HashKey (3887 HK) confirmed its IPO price at HK$6.68, 3.9% below the top end. Despite favourable subscription and placement levels, this suggests some concerns. 
• Digital asset-related names, BTC and ETH, have retreated by an average of 11.6% last week, implying a challenging environment for the debut. 
• It is priced at 14.5x FY26 P/S, vs. 10.5x (peer average) and only a 23% discount to Robinhood Markets (HOOD US). It is only attractive at the low-end price.

• Brazil gold acquisition improves diversification and earnings stability; deal appears cash-funded and value-accretive at current gold prices.
• Asset quality improves on a risk-adjusted basis, though Brazilian gold mines are higher-cost and shorter-life than tier-1 peers.
• Valuation already reflects elevated copper and gold prices; upside now depends on commodity price persistence, not rerating.

• Zijin trades at senior multiples after its IPO re-rating, with valuation now anchored to execution and cost normalization rather than index-driven flows.
• Elevated gold prices support cash flows, but upside from here requires sustained bullion strength or visible AISC improvement.
• December GDX non-inclusion removes a near-term catalyst but does not alter asset quality or medium-term fundamentals.

• Simcere Pharmaceutical Group (2096 HK) entered into a license agreement with Vigonvita Life Science Co. Ltd in respect of new indications (RSV and HMPV) of VV116 (Deuterated Remdesivir Hydrobromide).
• There is no innovative small molecule antiviral drug approved for RSV infection globally. The development of effective RSV treatment represents a huge unmet medical need worldwide.
• The licensing deals signed over the last few months alongside strong innovative drug portfolio, approvals and strong future pipeline makes it a bullish case.

• Alibaba Group’s recent results demonstrate a mixture of performance across its different business segments, with significant growth in some areas, tempered by challenges in others.
• Positively, the company reported a 15% year-over-year increase in total revenue when excluding contributions from Sun Art and Intime, driven by strong performance in key areas such as Cloud Intelligence, which saw a remarkable 34% revenue growth.
• This growth was largely fueled by sustained demand for AI and the increasing usage of public cloud services, evidencing Alibaba’s strong positioning in the AI and cloud sectors.

• Zhejiang Sanhua Intelligent Controls (2050 HK), raised around US$1.4bn in its H-share listing. The lockup on its cornerstone investors is set to expire soon.
• ZSIC is a market leader in a number of products, with commanding market share both domestically and globally.
• In this note, we will talk about the lockup dynamics and possible placement.

• Shanghai Forest Cabin Biological-Tech (SFCBT HK) is looking to raise US$140m in its upcoming Hong Kong IPO.
• SFC is the leader among China’s premium domestic skincare brands with a focus on anti-wrinkle and firming skincare market.
• We have looked at the company’s past performance in our previous note. In this note, we will undertake a PHIP update.

• FOREST CABIN’s been subject to administrative penalties for false advertising. The natural ingredient that consumers truly pursue holds the highest premium in essence oil, but its content/efficacy is exaggerated.
• Pre-IPO valuation reached over RMB3.8bn. Some investors may believe that, given that FOREST CABIN’s profitability has initially been proven, its valuation is attractive. However, think FOREST CABIN have some issues.
• Valuation of FOREST CABIN should be lower than Mao Geping. A comfortable range could be P/E of 20-30x. If future growth declined/profit margin deteriorates, valuation may fall to 10-20x P/E.

• Hanx Biopharm, a China-based clinical-stage biotech company, is looking to raise at least USD 100 million via a Hong Kong listing. ICBCI and CITIC are the joint book runners.
• In this note, we look at the company’s core product, HX009, and assess the selling point around the core product.
• We also look at the company’s pre-IPO investors and management team.

• Hang Seng Bank (11 HK)’s IFA considers HSBC Holdings (5 HK)’s scheme privatisation offer of HK$155 per share to be fair and reasonable. 
• The key condition is scheme approval by at least 75% disinterested shareholders (<10% disinterested shareholders’ rejection). The scheme vote remains low risk.
• The offer is attractive compared to peer multiples and privatisation precedents. This is done. At the current price and for a 4 February payment, the gross/annualised spread is 1.0%/7.1%.

• BYD (1211 HK) has been downtrending for a while, a speculative LONG positioning starts to become attractive for some, but according to our model the short-term upside is limited.
• The stock is pulling back this week, second consecutive week down, this insight will try to identify price zones where to buy the stock and where to exit / hedge.
• BYD could be held past our suggested profit target at 101.8 (in case the next bear rally it’s not just a bear-rally), but time-wise it’s a 2 weeks rally, tops.

• B&K, a China-based clinical stage biotech company, launched its IPO to raise at USD 774 million via a Hong Kong listing.
• In this note, we look at its fundamentals briefly, including its core products and its management team.
• We deem the fundamentals of the deal weak and will avoid the deal.

• Baidu’s financial performance for the third quarter of 2025 highlights both strengths and challenges.
• The company reported total revenues of RMB 31.2 billion, which represents a 7% decline year-over-year.
• Baidu Core, a significant segment, showed revenue at RMB 24.7 billion, aligning with this downward trend.

• CSPC Innovation Pharmaceutical-A (300765 CH) has applied for H share listing on the Hong Kong Stock Exchange, with CITIC Securities being the sole sponsor to the issue.
• The company intends to raise fund for financing biopharmaceuticals R&D, acquisitions of companies or drug assets to expand product portfolio, and commercialization of approved products and late-stage product candidates.
• CSPC Innovation shares have been listed in China since 2019. After strong run-up from September 2023 to June 2025 (shares jumped 5x), shares fell 43% over the last six months.

• Tencent Music Entertainment Group reported strong third-quarter results in 2025, driven by significant growth in its online music business.
• Total revenues grew by 21% year-over-year to RMB 8.5 billion, with online music revenues increasing by over 27% to RMB 7 billion.
• The growth in music subscription revenues was notable, with a 70% year-on-year increase to RMB 4.5 billion, propelled by a steady rise in paying users and enhancements in ARPPU, which reached RMB 11.9 compared to RMB 10.8 from the previous year.

• PDD Holdings Inc. has presented a performance in the third quarter of 2025 that reflects the challenges and opportunities in the evolving e-commerce landscape.
• The company reported revenues of RMB 108.3 billion, marking a 9% year-over-year increase, fueled by growth in online marketing services and transaction revenues.
• However, growth remains pressured amidst an intensely competitive environment in the e-commerce sector.

• Although Insilico’s development direction is AI-Biotech, its “genes” don’t support the continuous promotion of drug R&D into later clinical stages. It’s more realistic to sell early-stage candidates and collect cash.
• Relying solely on AI pharmaceuticals cannot quickly enter the commercialization stage of innovative drugs. In fact, capital has seen the truth and pharmaceutical companies also doubt its real value.
• Insilico in on the right path in terms of business model.If InSilico has the opportunity to develop blockbuster drugs, its future valuation can easily lead QuantumPharm by a large margin.

• JD.com’s third-quarter 2025 earnings indicate a blend of moderate growth and inherent challenges.
• The company reported a 15% year-on-year increase in total revenues, maintaining a double-digit growth pattern.
• This uptick was driven by gains in general merchandise and marketplace and marketing revenues.

• TI Cloud is a leading cloud-native customer contact solutions provider in China, demonstrating a significant financial turnaround with strong revenue growth and a return to profitability in the latest fiscal year.
• The company is well-positioned to capitalize on the rapid growth of China’s cloud computing market, which is driven by nationwide digital transformation initiatives and increasing AI adoption.
• Valuation appears attractive relative to peers, especially considering its high growth and strong Smartkarma Smartscores across Value, Dividend, Growth, and Momentum. However, the stock has shown high volatility.

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• There are 5 additions for the VanEck Gold Miners ETF/USA (GDX US) in December. Zijin Gold (2259 HK) is a surprise add (as are some of the others).
• Estimated one-way turnover is 15.2% and that leads to a round-trip trade of US$8.8bn. There are many stocks with multiple days of ADV to trade from passive trackers.
• The MarketVector Global Gold Miners Index has just passed its earlier highs, but a lot of the adds have broken out and are trading much higher than their prior highs.

• Peak IP momentum risk: Labubu (~23% of revenue) shows fading hype, with resale prices and ex-China search interest normalizing, raising risk of faster-than-expected growth deceleration in 2026.
• IP concentration and gap: No other IP has demonstrated Labubu-like scaling, increasing risk of an IP digestion period. Overseas expansion matures and supply normalization caps incremental demand.
• Valuation/Expectations mismatch: At 14x 2026E P/E, valuation assumes durable IP growth; TP at HKD 100 to 105 with downgrade risk in 2H26.

• Back on the 9th October, Hang Seng Bank (11 HK) announced an Offer from controlling parent, HSBC Holdings (5 HK), by way of a Scheme.
• HSBC offered HK$155/share, a 30.3% premium to last close. The price was final. A third interim dividend was bolted on. Optically – and fundamentally – the price was bang on.
• The Scheme Doc is now out, with the Court Meeting on the 8th January 2026.  Payment around 4th Feb. The IFA, in a bare-bones report, concluded “fair & reasonable”. 

• Hs within the liquid AH pair universe UNDER-performed As on average by 0.78% on A-share index rebal week. Beautiful Skew behaved better. H Utilities were bought.
• Quiddity H/A Portfolio performance slightly positive (+23bp). Stay the Beautiful Skew course.
• 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.

• HK$77bn/Day of gross SOUTHBOUND activity last week vs HK$88bn the week before, HK$100+bn the week before. Gross flows are winding down.
• Watch for news on the Dual Counter (RMB) Trading eligibility for SOUTHBOUND near-term. That could re-up the pace. The SFC expected it “soon” in July. Later, by year-end.
• 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.

• BenQ BM launched its Hongkong IPO aiming to raise up to HK$783M. The company plans to sell 67M shares at a price band of HK$ 9.34-HK$ 11.68 per share.
• Proceeds to be used for expansion and upgradation of existing hospitals, for mergers and acquisitions opportunities and for general corporate purposes and working capital needs.
• Amid sluggish sales and margin pressure, we think that the BenQ BM issue is overvalued and investors can comfortably avoid subscribing to the offer.

• Many companies enter the goat/sheep milk powder market due to higher gross margin than cow milk powder, but after years of development, this market has been in a shrinking trend.
• With a closed-loop capability in full internal control, production and supply of core ingredients of demineralized goat and sheep whey, Yeeper has supply chain advantage, thus with higher pricing power.
• Yeeper’ has shown the characteristics of “slowing revenue growth, and increasing pressure on net profit margin” due to intensified competition. Valuation could be lower than Yili but higher than China Feihe.

• 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: SBI Shinsei Bank (8303 JP) and NS Group (471A JP) IPOs.
• Event-Driven developments: Jinke Smart Services (9666 HK), Hainan Meilan International Airport (357 HK), Makino Milling Machine Co (6135 JP), Raksul Inc (4384 JP), Toyota Industries (6201 JP).