Introduction

The December 2, 2024 Trendspotter report from CGS International Securities offers a deep dive into the dynamic shifts within the Asian financial markets. The report meticulously examines retail research in Hong Kong, with a focus on the burgeoning strategy of “Value Up,” inspired by Japan’s efforts to enhance shareholder returns and corporate governance.

Market Overview: The “Value Up” Phenomenon

Across Asia, a Japan-inspired strategy aimed at boosting shareholder returns, corporate governance, and market valuations is gaining momentum. This strategic approach, known as “Value Up,” has spread from Seoul to New Delhi, with governments and regulators eager to replicate Japan’s decade-long reforms that propelled its benchmark index to record heights. Notable fund manager Sat Duhra from Janus Henderson Investors highlights corporate reforms as a key theme in Asia, offering potential resilience against global economic challenges.

Maoyan Entertainment (HKG: 1896) – A Technical Buy Opportunity

The report identifies Maoyan Entertainment as a promising stock to watch. As a leading platform providing innovative internet-empowered entertainment services in China, Maoyan Entertainment operates across sectors such as online ticketing, content services, and advertising. With the last price recorded at HK\$8.86, the report suggests a potential bullish break, marking it as a technical buy.

Technical Analysis

• Entry Prices: HK\$8.86, HK\$8.00, HK\$7.00
• Supports: HK\$7.74, HK\$6.19
• Resistance Levels: HK\$9.00, HK\$11.63
• Target Prices: HK\$10.15, HK\$12.10, HK\$13.22, HK\$15.00
• Stop Loss: HK\$6.40

Technical Indicators

The stock exhibits a potential cup and handle formation, with a significant rebound near HK\$5.60. Resistance at HK\$9.00 appears weakened, indicating a likely upward break. The price trends above all Ichimoku indicators, supported by rising MACD and Stochastic Oscillator, confirming bullish momentum. The 23-period ROC has also risen above the zero line, alongside increased volume surpassing 20-period averages, further validating the bullish strength.

Conclusion

The Trendspotter report by CGS International Securities provides a comprehensive view of strategic shifts across Asia, focusing on corporate governance and shareholder returns. Maoyan Entertainment stands out as a significant opportunity for investors, backed by strong technical indicators and a favorable market position. With detailed insights and analysis, the report serves as a valuable resource for investors navigating the dynamic Asian markets.