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

Event-Driven

<ul>
<li>There could be up to 10 adds/ 29 deletes for the China global index in February. The actual number of changes will be smaller depending on the review date chosen.</li>
<li>The flow on the forecast adds varies from US$17.5m-US$175m (0.05x-15x ADV) while the flow on the forecast deletes varies from US$14.4m-US$100.4m (0.25x-22.75x ADV).</li>
<li>
<a href="https://www.smartkarma.com/entities/bestechnic-shanghai-co-ltd" target="_blank" data-smartkarma-citation="entities:33459:1" rel="noopener">Bestechnic Shanghai (688608 CH)</a> is a potential inclusion to multiple indices in June and there will be much larger passive flows to the stock then.</li>
</ul>


There could be up to 10 adds/ 29 deletes for the China global index in February. The actual number of changes will be smaller depending on the review date chosen.
The flow on the forecast adds varies from US$17.5m-US$175m (0.05x-15x ADV) while the flow on the forecast deletes varies from US$14.4m-US$100.4m (0.25x-22.75x ADV).

Bestechnic Shanghai (688608 CH) is a potential inclusion to multiple indices in June and there will be much larger passive flows to the stock then.


China/HK: Passive Activity Expected Later This Month

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.</li>
<li>Industrials ($2,588 million worth of outflows), Financials ($1,109 million worth of outflows) led the outflows. </li>
<li>We highlight outflows from Moutai, CATL, Longi, Focus Media, Ping An Insurance.</li>
</ul>


We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.
Industrials ($2,588 million worth of outflows), Financials ($1,109 million worth of outflows) led the outflows. 
We highlight outflows from Moutai, CATL, Longi, Focus Media, Ping An Insurance.


Northbound Flows Monthly (October): Three Months of Outflows

Emerging markets PM, economist, CFA charterholder

Mark A. DeWeaver, PhD, CFA

Equity Bottom-Up

China National Building Material / Equity Bottom-Up

<p>At the end of last year, cement producer <a href="https://www.smartkarma.com/entities/184" target="_blank" data-smartkarma-citation="entities:184:1">China National Building Material Co Ltd (3323 HK)</a> acquired its sister company <a href="https://www.smartkarma.com/entities/12022" target="_blank" data-smartkarma-citation="entities:12022:1">China National Materials Company Limited (1893 HK)</a> (Sinoma) via a share swap. Among other assets, the acquisition included a 39.7% stake in <a href="https://www.smartkarma.com/entities/12641" target="_blank" data-smartkarma-citation="entities:12641:1">Sinoma International Engineering Co Ltd (600970 CH)</a>, a leading provider of cement-plant engineering and construction services. In the absence of inter-group eliminations, this company, which is accounted for as a subsidiary, would have…</p>

At the end of last year, cement producer China National Building Material Co Ltd (3323 HK) acquired its sister company China National Materials Company Limited (1893 HK) (Sinoma) via a share swap. Among other assets, the acquisition included a 39.7% stake in Sinoma International Engineering Co Ltd (600970 CH), a leading provider of cement-plant engineering and construction services. In the absence of inter-group eliminations, this company, which is accounted for as a subsidiary, would have…

China National Materials Company / Event-Driven

<ul>
<li>“One belt-one road,” supply-side structural reforms, and green development initiatives have become major growth drivers for Sinoma’s Shenzhen and Shanghai-listed subsidiaries.</li>
<li>Their businesses include cement and glass fiber production and cement-plant construction.</li>
<li>China National Building Materials will be acquiring controlling stakes in these companies at steep discounts to their market values as part of its takeover of Sinoma.</li>
</ul><p><a href="https://www.smartkarma.com/entities/12022" target="_blank" data-smartkarma-citation="entities:12022:1">China National Materials Company Limited (1893 HK)</a> (Sinoma) released…</p>


“One belt-one road,” supply-side structural reforms, and green development initiatives have become major growth drivers for Sinoma’s Shenzhen and Shanghai-listed subsidiaries.
Their businesses include cement and glass fiber production and cement-plant construction.
China National Building Materials will be acquiring controlling stakes in these companies at steep discounts to their market values as part of its takeover of Sinoma.
China National Materials Company Limited (1893 HK) (Sinoma) released…

Sinoma's Listed Subsidiaries a Bargain for CNBM

China

Sinoma International Engineering Co., Ltd. designs and provides system integration services for the construction of cement projects. The Company also provides consultation services, installation services, and equipment manufacturing and procurement services for the cement construction industry.

Sinoma International Engineering (600970 CH)

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Sinoma International Engineering (600970 CH)

China/HK: Passive Activity Expected Later This Month

There could be up to 10 adds/29 deletes for China in Feb. Flow varies from US$14m-175m and impact from 0.05x-22.75x ADV. Bestechnic Shanghai is a...

Brian Freitas

Northbound Flows Monthly (October): Three Months of Outflows

We analyzed the Shanghai/Shenzhen Connect Scheme for October and highlight flows for Moutai, CATL, Longi, Focus Media, Ping An Insurance.

Ke Yan, CFA, FRM

The Sinoma Way: OBOR in Iraq

At the end of last year, cement producer China National Building Material Co Ltd (3323 HK) acquired its sister company China National Materials...

Mark A. DeWeaver, PhD, CFA

Sinoma's Listed Subsidiaries a Bargain for CNBM

“One belt-one road,” supply-side structural reforms, and green development initiatives have become major growth drivers for Sinoma’s Shenzhen and...

Mark A. DeWeaver, PhD, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)