ENN Energy (2688 HK) Is Still A Buy
It’s been a little over three months since NDRC, MoC, and SAFE cleared this transaction. Only CSRC is outstanding.
For CSRC to pushback, it would need to clearly articulate, inter alia, clear friction points surrounding the deal structure (unfair share dilution) and/or systematic A-share market risks. Neither appears apparent.
The market is implying an unreasonable discount for ENN NG’s Hs vs. the As. I’d get involved.
The Trade:
CSRC approval should be forthcoming
The delay may simply be a procedural one.
The market is implying an unreasonable discount for ENN NG’s Hs vs As.
A-share borrow is available.
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