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.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of KRX stocks as of Aug 15th. The aggregated short interest was USD10.3bn.</li>
<li>We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in SamsungF&amp;MIns, Samsung SDI, SK Hynix, LG H&amp;H, Kakao.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Aug 15th. The aggregated short interest was USD10.3bn.
We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in SamsungF&amp;MIns, Samsung SDI, SK Hynix, LG H&amp;H, Kakao.


KRX Short Interest Weekly (Aug 15th): SamsungF&MIns, Samsung SDI, SK Hynix, LG H&H, Kakao

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 September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August.</li>
<li>Nearing the end of the review period, we forecast 49 migrating stocks. Among new listings, 1 stock could be added to LargeCap, 3 to MidCap and 1 to SmallCap.</li>
<li>There are a number of stocks that will have passive flow from global index trackers over the next few weeks, while some are potential changes to the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI2</a> in December.</li>
</ul>


The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August.
Nearing the end of the review period, we forecast 49 migrating stocks. Among new listings, 1 stock could be added to LargeCap, 3 to MidCap and 1 to SmallCap.
There are a number of stocks that will have passive flow from global index trackers over the next few weeks, while some are potential changes to the KOSPI2 in December.


KOSPI Size Indices: Passive Flows for Many Active Changes

<ul>
<li>There are 3 stocks in Korea that could be deleted from a global index in August and that will result in large selling from passive trackers.</li>
<li>Short interest has increased in all 3 stocks since the resumption of short selling. Cumulative excess volume is higher in all stocks over the last couple of months.</li>
<li>Given the increase in shorts and positioning, there could be short covering in two of the three stocks. The third could still drop over the next couple of weeks.</li>
</ul>


There are 3 stocks in Korea that could be deleted from a global index in August and that will result in large selling from passive trackers.
Short interest has increased in all 3 stocks since the resumption of short selling. Cumulative excess volume is higher in all stocks over the last couple of months.
Given the increase in shorts and positioning, there could be short covering in two of the three stocks. The third could still drop over the next couple of weeks.


Korea: 3 Potential Index Deletions in August; Positioning Watch

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>In this insight, we discuss the potential adds and deletes of Korean stocks in a major global index in August 2025 as highlighted by the locals in Korea. </li>
<li>There are about 10 potential additions to the major global index mentioned by various local media accounts. LIG Nex1, Hyosung Heavy Industries, and Doosan Corp are most likely inclusion candidates. </li>
<li>There have been three companies that have been consistently mentioned in numerous local media as potential deletion candidates including LG Innotek, CJ Cheiljedang, and SKC Co. </li>
</ul>


In this insight, we discuss the potential adds and deletes of Korean stocks in a major global index in August 2025 as highlighted by the locals in Korea. 
There are about 10 potential additions to the major global index mentioned by various local media accounts. LIG Nex1, Hyosung Heavy Industries, and Doosan Corp are most likely inclusion candidates. 
There have been three companies that have been consistently mentioned in numerous local media as potential deletion candidates including LG Innotek, CJ Cheiljedang, and SKC Co. 


Potential Adds & Deletes in a Major Global Index in August 2025 As Highlighted by Locals in Korea

Equity Bottom-Up

<ul>
<li>Korea surpassed France as the top exporter of cosmetics to the USA in 2024. Korea exported $1.7 billion worth of cosmetics to the USA in 2024, up 54.2% YoY.</li>
<li>CJ Olive Young's online cosmetic sales to overseas markets soared 70% YoY in 1H 2025, fueled largely by the explosive demand from the United States.</li>
<li>We have raised our NAV valuation of CJ Corp to 207,713 won per share (up 28%). We raised the valuation of CJ Olive Young to 7 trillion won. </li>
</ul>


Korea surpassed France as the top exporter of cosmetics to the USA in 2024. Korea exported $1.7 billion worth of cosmetics to the USA in 2024, up 54.2% YoY.
CJ Olive Young's online cosmetic sales to overseas markets soared 70% YoY in 1H 2025, fueled largely by the explosive demand from the United States.
We have raised our NAV valuation of CJ Corp to 207,713 won per share (up 28%). We raised the valuation of CJ Olive Young to 7 trillion won. 


Korea Surpasses France as Top Exporter of Cosmetics to the USA [CJ Olive Young - Key Beneficiary]

South Korea

CJ CheilJedang Corp. manufactures processed food products.  The Company's products include refined sugar, monosodium glutamate (MSG), condiment, wheat powder, flour, cooking oil, processed meats, and animal feed.  CJ CheilJedang also manufactures pharmaceutical and household products.

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CJ Cheiljedang (097950 KS)

KRX Short Interest Weekly (Aug 15th): SamsungF&MIns, Samsung SDI, SK Hynix, LG H&H, Kakao

We analyzed KRX short interest report for the past week and highlighted short interest changes in SamsungF&MIns, Samsung SDI, SK Hynix, LG H&H, Kakao.

Ke Yan, CFA, FRM

KOSPI Size Indices: Passive Flows for Many Active Changes

There could be 49 migrations for the KOSPI Size Indices in Sep. Among new listings, there could be 1 LargeCap add and 3 MidCap adds. There are...

Brian Freitas

Korea: 3 Potential Index Deletions in August; Positioning Watch

There could be 3 deletions in Korea. Flow varies between US$84m-US$100m and impact between 4-8x ADV. Shorts have increased, as has positioning....

Brian Freitas

Potential Adds & Deletes in a Major Global Index in August 2025 As Highlighted by Locals in Korea

In this insight, we discuss the potential adds and deletes of Korean stocks in a major global index in August 2025 as highlighted by the locals in...

Douglas Kim

Korea Surpasses France as Top Exporter of Cosmetics to the USA [CJ Olive Young - Key Beneficiary]

Korea surpassed France as the top exporter of cosmetics to the USA in 2024. We have raised our NAV valuation of CJ Corp to 207,713 won per share...

Douglas Kim

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