Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

HK Type 4 license through Ballingal Investment Advisors Ltd. 

I'm a highly experienced sell-side analyst with in excess of 22 years of covering Asia Pacific equities, the past 19 years immersed in event strategies encompassing M&A risk arbitrage, directional long/short, stub trades and restructuring.  

My background also includes accountancy (liquidation/bankruptcy/receivership) earlier in my career and as a chief financial officer of a global commodity company based in the US and Mexico.

Pan-Asia Catalysts/Events

Full Circulation Of H-Shares - July Update

Full Circulation Of H-Shares: January 2021 Update

CSRC Green Lights Full Circulation Of H Shares

Full Circulation Of H Shares: Signs Of Life

Quiddity Advisors

Event-Driven

ZhongAn Online P&C Insurance C / Event-Driven

<div>
After being delayed two months, the 2020 National People's Congress and Chinese People's Political Consultative began its annual session today, and will run until the 27 May (expected), shorter than the usual 10 days. The meetings mark the last year of China's thirteenth Five-Year Plan (2016-2020).
The core focus will be on GDP growth numbers - where available - and stimulus measures.
Further afield, there may also be guidance on the "full circulation of H shares", which would allow the conversion of domestic shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.
I've previously discussed this ongoing conversion in <a href="https://skr.ma/c7hcH" target="_blank" rel="noopener">Legend's Conversion of Domestic Shares</a>, <a href="https://skr.ma/AFA6A" target="_blank" rel="noopener">CSRC Green Lights Full Circulation Of H Shares</a>, and <a href="https://skr.ma/yZLF4" target="_blank" rel="noopener">Full Circulation Of H Shares: Signs Of Life</a>.
To date, three companies - <a href="https://www.smartkarma.com/entities/legend-holdings-corp-h" target="_blank" data-smartkarma-citation="entities:517:1" rel="noopener">Legend Holdings Corp H (3396 HK)</a>, <a href="https://www.smartkarma.com/entities/avichina-industry-tech-h" target="_blank" data-smartkarma-citation="entities:16315:1" rel="noopener">Avichina Industry &amp; Tech H (2357 HK)</a>, and <a href="https://www.smartkarma.com/entities/shandong-weigao-group-medical-polymer-co" target="_blank" data-smartkarma-citation="entities:1465:1" rel="noopener">Shandong Weigao Group Medical Polymer Co (1066 HK)</a> - have been granted permission to convert their domestic shares. Those holdings can be found in CCASS under the participant ID A00005.
</div>
<div>
Initially, I believed these converted domestic shares were effectively in a closed loop and could only be sold in the "home" currency - not dissimilar to shares bought and sold via the Southbound Connect.  I was wrong.
Some of the converted domestic shares of Legend moved out of A00005 into local brokers in 1Q19, and there has been an inconsistent trickle since 6 March this year. A handful of shares of Shandong have also changed hands since the 16 March. To date, no shares have moved outside Avichina's A00005 holding. 
Full conversion provides the means for investors (founders, SOEs) to exit or reduce their holdings, and in turn, improve the liquidity of the listed companies. The NPC meetings may provide greater clarity on full circulation; but the fact the converted shares will ultimately be sold offshore, any development may be implemented at a glacial pace.
This insight provides an update on the three companies piloting the full circulation scheme; and nine other Hong Kong-listed H shares which have publicly announced applications - there may well others - with the CSRC seeking implementation of domestic share conversions.
</div>
<div>
As always, more below the fold. 
</div>


After being delayed two months, the 2020 National People's Congress and Chinese People's Political Consultative began its annual session today, and will run until the 27 May (expected), shorter than the usual 10 days. The meetings mark the last year of China's thirteenth Five-Year Plan (2016-2020).
The core focus will be on GDP growth numbers - where available - and stimulus measures.
Further afield, there may also be guidance on the "full circulation of H shares", which would allow the conversion of domestic shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.
I've previously discussed this ongoing conversion in Legend's Conversion of Domestic Shares, CSRC Green Lights Full Circulation Of H Shares, and Full Circulation Of H Shares: Signs Of Life.
To date, three companies - Legend Holdings Corp H (3396 HK), Avichina Industry &amp; Tech H (2357 HK), and Shandong Weigao Group Medical Polymer Co (1066 HK) - have been granted permission to convert their domestic shares. Those holdings can be found in CCASS under the participant ID A00005.


Initially, I believed these converted domestic shares were effectively in a closed loop and could only be sold in the "home" currency - not dissimilar to shares bought and sold via the Southbound Connect.  I was wrong.
Some of the converted domestic shares of Legend moved out of A00005 into local brokers in 1Q19, and there has been an inconsistent trickle since 6 March this year. A handful of shares of Shandong have also changed hands since the 16 March. To date, no shares have moved outside Avichina's A00005 holding. 
Full conversion provides the means for investors (founders, SOEs) to exit or reduce their holdings, and in turn, improve the liquidity of the listed companies. The NPC meetings may provide greater clarity on full circulation; but the fact the converted shares will ultimately be sold offshore, any development may be implemented at a glacial pace.
This insight provides an update on the three companies piloting the full circulation scheme; and nine other Hong Kong-listed H shares which have publicly announced applications - there may well others - with the CSRC seeking implementation of domestic share conversions.


As always, more below the fold. 


Shandong Weigao Group Medical Polymer Co (1066 HK)

AviChina Industry & Technology H (2357 HK)

China Zhengtong Auto Services Hldg (1728 HK)

中国人民政治協商会議とH株の完全流通