Tianjin Zhongxin Pharm Group

[Squirrel]

10% up today at SSE, the maximum daily trading stop.

All thanks to you and the TCM thread that you started, I took a look at Tianjin that was listed in Singapore.

Took the plunge at open to buy into it! Didn't expect the price action for the rest of the day...

Reasons for buying
- 5% dividend yield that's sustainable
- Shinewing seems like a reputable auditor in China, even though there are lots of instances that a reputable auditor might not guarantee quality work (Noble, Best World, Thomas Cook, NMC, Wirecard... you get the idea)
- the massive discount between A shares and S shares
- the impending change in control, effectively making it no longer an SOE
- the change in control raises the chance of delisting the SG listed shares and place them out in China
- in the current environment whereby multiple conglomerates are looking to delist overseas and relist in HK/China, its a much more accepted and common development

All thanks to Barefoot! A very good one day pop...

[ACTIVIST SPEAKS]

10% up today at SSE, the maximum daily trading stop.

err....actually, limit up 10% in SSE is suggestive of your delisting plan probably not happening rather than the other way around...

[Shiyi]

Activist Speaks:
What has delisting plan to do with the 10% daily trading stop in SSE?
Care to elaborate?

[Barefoot]

There is circuit breaker system in China exchanges of maximum 10% price movement. Yesterday T14's 17% price rise is a positive sign that the valuation gap may start to close.

Anyway, we think this sector bull market have the potential to last for a few months till end of the year. Some stock in this sector such as 600211 has already more than double in the last month. Today's price action should be a healthy correction and opportunity to add position if one is keen and hasn't done so.

[ACTIVIST SPEAKS]

Activist Speaks:
What has delisting plan to do with the 10% daily trading stop in SSE?
Care to elaborate?

Delisting from SGX and relisting the same shares in SSE means a supply of additional 200m shares into the Shanghai market. These 200m last traded (on SGX) at a fraction of the price traded on SSE.  A 10% limit up on SSE is suggestive of no such corporate action is contemplated.  History suggests that merging the trading of two different "classes" of same shares nearly always create a new price that approximates a weighted average.

P.S then again....maybe i am the only one waiting for this cross border transfer.....and it has been a long long wait.

[tiongkokgor]

Activist Speaks:
What has delisting plan to do with the 10% daily trading stop in SSE?
Care to elaborate?

Delisting from SGX and relisting the same shares in SSE means a supply of additional 200m shares into the Shanghai market. These 200m last traded (on SGX) at a fraction of the price traded on SSE.  A 10% limit up on SSE is suggestive of no such corporate action is contemplated.  History suggests that merging the trading of two different "classes" of same shares nearly always create a new price that approximates a weighted average.

P.S  then again....maybe i am the only one waiting for this cross border transfer.....and it has been a long long wait.

UOBKayhian reported a plant visit and TJZX held a corporate road show in Singapore two years ago.

https://research.sginvestors.io/2018/01/...01-10.html

If Co. wants to delist its S shares, why bother with the roadshow and the poaitive updates at the roadshow which are likely to drive up the share price?

[Barefoot]

This discrepancy in valuation on the two boards won't exist if it is easy for China's retailers to buy stocks overseas. There are ways that the gap will close. 1) Delist 2) The chinese authority takes step to further liberalize and it becomes easier for Chinese retailers to buy shares overseas. At least for no 2, it is just a matter of time.

[nyk888]

This discrepancy in valuation on the two boards won't exist if it is easy for China's retailers to buy stocks overseas. There are ways that the gap will close. 1) Delist 2) The chinese authority takes step to further liberalize and it becomes easier for Chinese retailers to buy shares overseas. At least for no 2, it is just a matter of time.

Agree. Sooner or later, this will happen...

Parent of tianjin zhongxin is going through mixed reform to sell 65% of it shares to 1 or 2 investors. After mixed reform, the new owner will look into the share price in sgx. Investors in china had been complaining that we cause the share price of tianjin zhongxin in shanghai from going up.....

[Barefoot]

Today in Shanghai board, it rises 6.3% while the s-chip only rises 3.3%.

[Shiyi]

This discrepancy in valuation on the two boards won't exist if it is easy for China's retailers to buy stocks overseas. There are ways that the gap will close. 1) Delist 2) The chinese authority takes step to further liberalize and it becomes easier for Chinese retailers to buy shares overseas. At least for no 2, it is just a matter of time.

Agree. Sooner or later, this will happen...

Parent of tianjin zhongxin is going through mixed reform to sell 65% of it shares to 1 or 2 investors. After mixed reform, the new owner will look into the share price in sgx. Investors in china had been complaining that we cause the share price of tianjin zhongxin in shanghai from going up.....

The shares are non-fungible and hence no arbitrage opportunities.
In that light, whatever price it is done here shouldn't move a needle in Shanghai.