Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

GDS Holdings is a leading developer and operator of high-performance data centers in China. The company provides colocation, managed hosting, and managed cloud services, serving hyperscale cloud service providers, large internet companies, financial institutions, and telecommunications carriers. GDS Holdings was founded in 2001 and is headquartered in Shanghai, China.

<ul>
<li>On 7 October, Hang Seng announced the conclusions of the market consultation to increase the number of <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng TECH Index (HSTECH INDEX)</a> constituents from 30 to 50.</li>
<li>While most of the proposals will be implemented as proposed, a liquidity requirement has been tightened, and revenue thresholds have been imposed for companies qualifying through the Sales Growth Stream.</li>
<li>The changes will be implemented in a single step at the December rebalance and that creates a lot of flow for all the index members, current and new.</li>
</ul>


On 7 October, Hang Seng announced the conclusions of the market consultation to increase the number of Hang Seng TECH Index (HSTECH INDEX) constituents from 30 to 50.
While most of the proposals will be implemented as proposed, a liquidity requirement has been tightened, and revenue thresholds have been imposed for companies qualifying through the Sales Growth Stream.
The changes will be implemented in a single step at the December rebalance and that creates a lot of flow for all the index members, current and new.


HSTECH Index: Market Consultation Conclusions, Updated Potential Adds & The Borderline Names

The company is a leading global provider of optical interconnect solutions, with its principal products being optical transceivers that convert electrical and optical signals into one another to transmit mass volumes of data. It has been the world's largest provider of optical interconnect solutions by revenue for five consecutive years since 2021, accounting for 21.2% of the overall optical interconnect solutions market in 2025.

<ul>
<li>There were 31 new listings on the <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing-ltd" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">Hong Kong Exchanges and Clearing (388 HK)</a> in Q3, of which 14 were A/H listings.</li>
<li>We forecast 5 additions to the HSCI in December and 2 of those additions will then be added to Southbound Stock Connect. <a href="https://www.smartkarma.com/entities/shein-global-holdings-limited" target="_blank" data-smartkarma-citation="entities:55372:1" rel="noopener">SHEIN</a> was already added to the index earlier.</li>
<li>As a stock with Weighted Voting Rights (WVR), <a href="https://www.smartkarma.com/entities/momenta-global-limited" target="_blank" data-smartkarma-citation="entities:50275:1" rel="noopener">Momenta Global (6880 HK)</a> will need to wait till early February to be added to Southbound Stock Connect.</li>
</ul>


There were 31 new listings on the Hong Kong Exchanges and Clearing (388 HK) in Q3, of which 14 were A/H listings.
We forecast 5 additions to the HSCI in December and 2 of those additions will then be added to Southbound Stock Connect. SHEIN was already added to the index earlier.
As a stock with Weighted Voting Rights (WVR), Momenta Global (6880 HK) will need to wait till early February to be added to Southbound Stock Connect.


HSCI Index Rebalance Preview: Southbound Stock Connect Additions; Momenta Needs a Moment

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jio-platforms-ltd" target="_blank" data-smartkarma-citation="entities:50269:1" rel="noopener">Jio Platforms</a> is looking to list later this month by selling 270m shares at up to INR 1119/share, raising INR 302bn (US$3.1bn) and valuing the company at INR 10,305bn (US$106.5bn).</li>
<li>The small float (2.93% of shares out) will result in the stock missing Fast Entry to global indices. The pre-IPO lock-up expiry in April could result in global index inclusion.</li>
<li>
<a href="https://www.smartkarma.com/entities/jio-platforms-ltd" target="_blank" data-smartkarma-citation="entities:50269:1" rel="noopener">Jio Platforms Ltd (1797135D IN)</a> will be added to some local indices in March, though inclusion in the headline indices will need to wait till at least June.</li>
</ul>



Jio Platforms is looking to list later this month by selling 270m shares at up to INR 1119/share, raising INR 302bn (US$3.1bn) and valuing the company at INR 10,305bn (US$106.5bn).
The small float (2.93% of shares out) will result in the stock missing Fast Entry to global indices. The pre-IPO lock-up expiry in April could result in global index inclusion.

Jio Platforms Ltd (1797135D IN) will be added to some local indices in March, though inclusion in the headline indices will need to wait till at least June.


Jio Platforms IPO: Index Entry Timeline & Flow for India's (Possibly) Largest IPO

SHEIN Global Holdings Limited manufactures and distributes apparel products. The Company produces casual wear, loungewear, swimwear, sports apparel, and formal dress products. SHEIN Global Holdings conducts businesses in Mainland China and Hong Kong.

<ul>
<li>Meeting the Fast Entry threshold for inclusion, <a href="https://www.smartkarma.com/entities/shein-global-holdings-limited" target="_blank" data-smartkarma-citation="entities:55372:1" rel="noopener">SHEIN Global Holdings (625 HK)</a> will be added to the <a href="https://www.smartkarma.com/entities/kraneshares-csi-china-internet-etf" target="_blank" data-smartkarma-citation="entities:28208:1" rel="noopener">KraneShares CSI China Internet ETF (KWEB US)</a> at the close on 9 October.</li>
<li>The stock is down 32% from its IPO price, and the passive buying could provide a short-term boost to the stock price.</li>
<li>There could be more index inclusions for the stock between December and March but watch out for the big unlock at the end of February.</li>
</ul>


Meeting the Fast Entry threshold for inclusion, SHEIN Global Holdings (625 HK) will be added to the KraneShares CSI China Internet ETF (KWEB US) at the close on 9 October.
The stock is down 32% from its IPO price, and the passive buying could provide a short-term boost to the stock price.
There could be more index inclusions for the stock between December and March but watch out for the big unlock at the end of February.


KWEB Ad Hoc Index Rebalance: SHEIN (625 HK) Will Be Added Tomorrow

Globe Fintech Innovations Inc., doing business as Mynt, provides fintech solutions to individuals, businesses, and organizations. The Company offers mobile money, micro loans, payments, remittance, and business solutions. Mynt serves customers in Philippines.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/gcash" target="_blank" data-smartkarma-citation="entities:40108:1" rel="noopener">GCash (Mynt) (GCASH PM)</a> is looking to raise up to US$972m by selling shares at ₱6.6/share, valuing the company at ₱442bn (US$7bn).</li>
<li>The offer period runs from 6-12 October and the stock is expected to start trading on 20 October. Demand is said to be multiples of the offer size.</li>
<li>The earliest global index inclusion will come in June 2027, followed by a possible <a href="https://www.smartkarma.com/entities/philippines-stock-exchange-psei-index" target="_blank" data-smartkarma-citation="entities:22912:1" rel="noopener">Philippines Stock Exchange PSEi Index (PCOMP INDEX)</a> inclusion in July.</li>
</ul>



GCash (Mynt) (GCASH PM) is looking to raise up to US$972m by selling shares at ₱6.6/share, valuing the company at ₱442bn (US$7bn).
The offer period runs from 6-12 October and the stock is expected to start trading on 20 October. Demand is said to be multiples of the offer size.
The earliest global index inclusion will come in June 2027, followed by a possible Philippines Stock Exchange PSEi Index (PCOMP INDEX) inclusion in July.


Mynt (GCASH PM): No Quick Index Inclusion to Absorb Float

Periscope Analytics
Event-Driven Trades Across Asia Pacific

HSTECH Index: Market Consultation Conclusions, Updated Potential Adds & The Borderline Names

Introduction/tightening of revenue/liquidity criteria changes the list of potential adds. Estimated one-way turnover at the Dec rebalance is 14.2%...

Brian Freitas

HSCI Index Rebalance Preview: Southbound Stock Connect Additions; Momenta Needs a Moment

Of the 31 new HKEX listings in Q3, 5 could be added to the HSCI in Dec. 2 of those will then be added to Stock Connect. Momenta is a WVR security...

Brian Freitas

Jio Platforms IPO: Index Entry Timeline & Flow for India's (Possibly) Largest IPO

Jio Platforms is looking to list in Oct after raising US$3.1bn at a valuation of US$106.5bn. No index Fast Entry given the low float. Passive...

Brian Freitas

KWEB Ad Hoc Index Rebalance: SHEIN (625 HK) Will Be Added Tomorrow

SHEIN will be added to the KWEB ETF at the close tomorrow. That brings in passive buying that could provide a short-term boost to the stock. More...

Brian Freitas

Mynt (GCASH PM): No Quick Index Inclusion to Absorb Float

GCash (Mynt) seeks to raise up to US$972m by selling shares at ₱6.6 each, valuing the company at US$7bn. No immediate index inclusions to absorb...

Brian Freitas