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

<ul>
<li>The review period for the June rebalance of the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">HSTECH INDEX</a> ended on 31 March, the changes will be announced on 16 May and implemented on 6 June.</li>
<li>Following the launch of the God's Eye ADAS, <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a> could become eligible for index inclusion after meeting the Autonomous theme and Innovation screening.</li>
<li>The inclusion of <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a> in the index could result in <a href="https://www.smartkarma.com/entities/china-literature-ltd" target="_blank" data-smartkarma-citation="entities:24388:1" rel="noopener">China Literature (772 HK)</a> being deleted from the index in June.</li>
</ul>


The review period for the June rebalance of the HSTECH INDEX ended on 31 March, the changes will be announced on 16 May and implemented on 6 June.
Following the launch of the God's Eye ADAS, BYD (1211 HK) could become eligible for index inclusion after meeting the Autonomous theme and Innovation screening.
The inclusion of BYD (1211 HK) in the index could result in China Literature (772 HK) being deleted from the index in June.


HSTECH Index Rebalance Preview: BYD (1211 HK) Could Replace China Literature (772 HK); Huge Trade

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Equity Bottom-Up

<ul>
<li>We expect that Tencent’s C3Q23’s revenue/non-IFRS operating profit/IFRS net income to be 2.3%/3.3%/4.2% above consensus.</li>
<li>We raised estimates of Tencent’s international game growth to 12% YoY to reflect the success. We also expect Tencent's advertising business to benefit from e-commerce advertisers’ competition.</li>
<li>We raised the Target Price to HK$425, which implies 22.4X PE in 2024.</li>
</ul>


We expect that Tencent’s C3Q23’s revenue/non-IFRS operating profit/IFRS net income to be 2.3%/3.3%/4.2% above consensus.
We raised estimates of Tencent’s international game growth to 12% YoY to reflect the success. We also expect Tencent's advertising business to benefit from e-commerce advertisers’ competition.
We raised the Target Price to HK$425, which implies 22.4X PE in 2024.


[Tencent(700 HK,BUY,TP HK$425)Target Price Change]: International Game and Advertising Drove Results

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

<ul>
<li>The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.</li>
<li>In this insight, we take a look at our final ranks for potential ADDs/DELs and the resultant capping flow expectations for the HSTECH index rebal event in September 2026.</li>
<li>We expect no index changes for September 2026 but we see roughly US$1.9bn in one-way capping flows.</li>
</ul>


The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
In this insight, we take a look at our final ranks for potential ADDs/DELs and the resultant capping flow expectations for the HSTECH index rebal event in September 2026.
We expect no index changes for September 2026 but we see roughly US$1.9bn in one-way capping flows.


Quiddity Leaderboard HSTECH Sep26: Final Ranks; US$1.9bn One-Way Capping

<ul>
<li>
<a href="https://www.smartkarma.com/entities/netease-inc" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase (9999 HK)</a> becomes dual-primary listed 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> from the start of trading on 30 June.</li>
<li>There will be small buying from <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hang Seng Index (HSI INDEX)</a> and <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">Hang Seng China Enterprises Index (HSCEI INDEX)</a> trackers in June.</li>
<li>More importantly, <a href="https://www.smartkarma.com/entities/netease-inc" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase (9999 HK)</a> should be added to Southbound Stock Connect from the open of trading on 8 September and should bring a lot of mainland flows.</li>
</ul>



NetEase (9999 HK) becomes dual-primary listed on the Hong Kong Exchanges and Clearing (388 HK) from the start of trading on 30 June.
There will be small buying from Hang Seng Index (HSI INDEX) and Hang Seng China Enterprises Index (HSCEI INDEX) trackers in June.
More importantly, NetEase (9999 HK) should be added to Southbound Stock Connect from the open of trading on 8 September and should bring a lot of mainland flows.


Netease (9999 HK): Becomes Dual-Primary Listed Next Week; Implications

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

<ul>
<li>NetEase (9999 HK) announced on 26 Jun 2026 that its HK primary conversion will be effective on 30 Jun 2026. This note assesses the Connect eligibility path and inclusion timeline.</li>
<li>NetEase has no WVR, but Alibaba's recent regular-cycle ADD keeps September as the base case.</li>
<li>Prior Connect ADD cases show southbound inflows after ADD and positive returns post inclusion.</li>
</ul>


NetEase (9999 HK) announced on 26 Jun 2026 that its HK primary conversion will be effective on 30 Jun 2026. This note assesses the Connect eligibility path and inclusion timeline.
NetEase has no WVR, but Alibaba's recent regular-cycle ADD keeps September as the base case.
Prior Connect ADD cases show southbound inflows after ADD and positive returns post inclusion.


NetEase: Primary Conversion and Connect Inclusion Analysis

China

NetEase, Inc. is an Internet technology company that develops applications, services and other Internet technologies in China. The Company's core businesses consist of email service, web portal and online entertainment, including online gaming services. NetEase also offers online advertising, search, mobile applications and e-commerce.

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NetEase Inc (NTES US)

HSTECH Index Rebalance Preview: BYD (1211 HK) Could Replace China Literature (772 HK); Huge Trade

BYD could replace China Literature in the HSTECH in June. There will be FAF upweights for a few stocks. Funding outflows will be big and there will...

Brian Freitas

[Tencent(700 HK,BUY,TP HK$425)Target Price Change]: International Game and Advertising Drove Results

Tencent's Q3 results are expected to exceed consensus, with increased estimates for international game growth and advertising business benefiting...

Blue Lotus Research Institute

Quiddity Leaderboard HSTECH Sep26: Final Ranks; US$1.9bn One-Way Capping

Knowledge Atlas Technology (2513 HK) and MiniMax (100 HK) have cornerstone lock-ups that expire on 8th July 2026. There will be upweights in HSTECH...

Janaghan Jeyakumar, CFA

Netease (9999 HK): Becomes Dual-Primary Listed Next Week; Implications

As expected, Netease will be added to Southbound Stock Connect from the open of trading on 30 June. The stock is up 10% over the last 2 trading...

Brian Freitas

NetEase: Primary Conversion and Connect Inclusion Analysis

NetEase (9999 HK) announced HK primary conversion effective 30 Jun 2026. Non-WVR precedent points to possible ad-hoc Connect ADD, but September is...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HSTECH Index Rebalance Preview: BYD (1211 HK) Could Replace China Literature (772 HK); Huge Trade

BYD could replace China Literature in the HSTECH in June. There will be FAF upweights for a few stocks. Funding outflows will be big and there will...

Brian Freitas

[Tencent(700 HK,BUY,TP HK$425)Target Price Change]: International Game and Advertising Drove Results

​Tencent's Q3 results are expected to exceed consensus, with increased estimates for international game growth and advertising business benefiting...

Blue Lotus Research Institute

Quiddity Leaderboard HSTECH Sep26: Final Ranks; US$1.9bn One-Way Capping

Knowledge Atlas Technology (2513 HK) and MiniMax (100 HK) have cornerstone lock-ups that expire on 8th July 2026. There will be upweights in HSTECH...

Janaghan Jeyakumar, CFA

Netease (9999 HK): Becomes Dual-Primary Listed Next Week; Implications

As expected, Netease will be added to Southbound Stock Connect from the open of trading on 30 June. The stock is up 10% over the last 2 trading...

Brian Freitas

NetEase: Primary Conversion and Connect Inclusion Analysis

NetEase (9999 HK) announced HK primary conversion effective 30 Jun 2026. Non-WVR precedent points to possible ad-hoc Connect ADD, but September is...

Ke Yan, CFA, FRM

Tencent's Q3 results are expected to exceed consensus, with increased estimates for international game growth and advertising business benefiting...