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 June rebalance of the Hang Seng family of indices will use today's closing prices to cap the index constituent weights.</li>
<li>The net round-trip trade across all stocks across the five indices is estimated at HK$49.6bn (US$6.33bn). There is size to trade in a lot of stocks.</li>
<li>The stocks with forecast inflows marginally outperformed the stocks with forecast outflows prior to announcement of the changes, but there has been underperformance since announcement.</li>
</ul>


The June rebalance of the Hang Seng family of indices will use today's closing prices to cap the index constituent weights.
The net round-trip trade across all stocks across the five indices is estimated at HK$49.6bn (US$6.33bn). There is size to trade in a lot of stocks.
The stocks with forecast inflows marginally outperformed the stocks with forecast outflows prior to announcement of the changes, but there has been underperformance since announcement.


HSI, HSCEI, HSTECH, HSIII, HSBIO Index Rebalance: US$6.3bn of Flows Post Capping (June 2026)

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 latest HK SFC report for aggregate short position as of May 22nd.</li>
<li>Top short increases and decreases were tabulated for one week and four week period.</li>
<li>We highlight short changes in Lenovo, Sunny Optical, China Life, China Resources Land, China Hongqiao, Midea.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of May 22nd.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short changes in Lenovo, Sunny Optical, China Life, China Resources Land, China Hongqiao, Midea.


HK Short Interest Weekly: Lenovo, Sunny Optical, China Life, China Resources Land, China Hongqiao

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a> maintains momentum as preliminary 1H26 revenue grows over 50% YoY. In 2025, the company had recorded its maiden net profit of RMB 813M.</li>
<li>Despite an overcrowded PD-1 inhibitor market in China, core oncology product, Tyvyt maintained good growth momentum. Tyvyt is under NDA review for its tenth indications.</li>
<li>Ongoing product launches and robust pipeline will support the growth momentum of the company. In the coming years, Innovent aims to achieve RMB 20B product revenue in 2027.</li>
</ul>



Innovent Biologics Inc (1801 HK) maintains momentum as preliminary 1H26 revenue grows over 50% YoY. In 2025, the company had recorded its maiden net profit of RMB 813M.
Despite an overcrowded PD-1 inhibitor market in China, core oncology product, Tyvyt maintained good growth momentum. Tyvyt is under NDA review for its tenth indications.
Ongoing product launches and robust pipeline will support the growth momentum of the company. In the coming years, Innovent aims to achieve RMB 20B product revenue in 2027.


Innovent Biologics Inc (1801 HK): 2025 Momentum Continues in 1Q26, Pipeline Strength Promising

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Simcere Zaiming Pharmaceutical / Equity Capital Markets

<ul>
<li>Zaiming is operating in a "high investment, high losses" mode. This mode is questionable in terms of its sustainability in the context of a cooling capital market.</li>
<li>Whether the already marketed drugs or the drugs in R&amp;D stage, almost all core markets are facing intense competition. After products are launched, they will encounter challenges in market penetration.</li>
<li>We think valuation of Zaiming would be lower than peers such as <a href="https://www.smartkarma.com/entities/hansoh-pharmaceutical-group-co" target="_blank" data-smartkarma-citation="entities:23675:1" rel="noopener">Hansoh Pharmaceutical</a>, <a href="https://www.smartkarma.com/entities/jiangsu-hengrui-pharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:44224:1" rel="noopener">Jiangsu Hengrui Pharmaceuticals</a>, but higher than <a href="https://www.smartkarma.com/entities/simcere-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:29186:1" rel="noopener">Simcere Pharmaceutical Group (2096 HK) and Sino Biopharmaceutical (1177 HK)</a>.</li>
</ul>


Zaiming is operating in a "high investment, high losses" mode. This mode is questionable in terms of its sustainability in the context of a cooling capital market.
Whether the already marketed drugs or the drugs in R&amp;D stage, almost all core markets are facing intense competition. After products are launched, they will encounter challenges in market penetration.
We think valuation of Zaiming would be lower than peers such as Hansoh Pharmaceutical, Jiangsu Hengrui Pharmaceuticals, but higher than Simcere Pharmaceutical Group (2096 HK) and Sino Biopharmaceutical (1177 HK).


Pre-IPO Simcere Zaiming Pharmaceutical - About the Pipeline, the Concerns and the Outlook

<ul>
<li>The changes to the Hang Seng family of indices were announced post market close on Friday - final capping will use closing prices from 2 June.</li>
<li>There are 3 adds for the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">HSI</a>, 2 changes each for the<a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener"> HSCEI</a> and <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">HSTECH</a>, 1 change for the HSBIO Index and 7 adds for the HSCI Index.</li>
<li>There will be positioning in most stocks but there could be continued positioning in the names that will be added to Southbound Stock Connect.</li>
</ul>


The changes to the Hang Seng family of indices were announced post market close on Friday - final capping will use closing prices from 2 June.
There are 3 adds for the HSI, 2 changes each for the HSCEI and HSTECH, 1 change for the HSBIO Index and 7 adds for the HSCI Index.
There will be positioning in most stocks but there could be continued positioning in the names that will be added to Southbound Stock Connect.


Hang Seng Indexes: Changes Lead to US$6.6bn Trade; Plus Stock Connect & Global Index Inclusions

China

Hansoh Pharmaceutical is a pharmaceutical company that researches, develops, manufactures, and sells a diverse portfolio of medicines. It focuses on therapeutic areas such as oncology, anti-infectives, central nervous system diseases, metabolic disorders, and autoimmune diseases. The company was founded in 1995 and is headquartered in Shanghai, China.

Price Gauge
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Hansoh Pharmaceutical (3692 HK)

HSI, HSCEI, HSTECH, HSIII, HSBIO Index Rebalance: US$6.3bn of Flows Post Capping (June 2026)

The June rebalance of the HSI, HSCEI, HSTECH, HSIII, HSHKBIO indices will use 2 June closing prices for capping. The round-trip trade across the...

Brian Freitas

HK Short Interest Weekly: Lenovo, Sunny Optical, China Life, China Resources Land, China Hongqiao

We analyzed the latest HK SFC report for aggregate short position as of May 22nd and highlight short interest changes in Lenovo, Sunny Optical,...

Ke Yan, CFA, FRM

Innovent Biologics Inc (1801 HK): 2025 Momentum Continues in 1Q26, Pipeline Strength Promising

Innovent entered into a strategic global licensing and collaboration agreement with Pfizer for the R&D of 12 promising breakthrough early-stage and...

Tina Banerjee

Pre-IPO Simcere Zaiming Pharmaceutical - About the Pipeline, the Concerns and the Outlook

Zaiming's high investment, high losses strategy may not be sustainable in a competitive market. Products will encounter challenges in market...

Xinyao (Criss) Wang

Hang Seng Indexes: Changes Lead to US$6.6bn Trade; Plus Stock Connect & Global Index Inclusions

There are a number of constituent, float and capping changes for the Hang Seng family, leading to a US$6.6bn trade. Stock Connect additions, lock...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HSI, HSCEI, HSTECH, HSIII, HSBIO Index Rebalance: US$6.3bn of Flows Post Capping (June 2026)

The June rebalance of the HSI, HSCEI, HSTECH, HSIII, HSHKBIO indices will use 2 June closing prices for capping. The round-trip trade across the...

Brian Freitas

HK Short Interest Weekly: Lenovo, Sunny Optical, China Life, China Resources Land, China Hongqiao

We analyzed the latest HK SFC report for aggregate short position as of May 22nd and highlight short interest changes in Lenovo, Sunny Optical,...

Ke Yan, CFA, FRM

Innovent Biologics Inc (1801 HK): 2025 Momentum Continues in 1Q26, Pipeline Strength Promising

Innovent entered into a strategic global licensing and collaboration agreement with Pfizer for the R&D of 12 promising breakthrough early-stage and...

Tina Banerjee

Pre-IPO Simcere Zaiming Pharmaceutical - About the Pipeline, the Concerns and the Outlook

​Zaiming's high investment, high losses strategy may not be sustainable in a competitive market. Products will encounter challenges in market...

Xinyao (Criss) Wang

Hang Seng Indexes: Changes Lead to US$6.6bn Trade; Plus Stock Connect & Global Index Inclusions

There are a number of constituent, float and capping changes for the Hang Seng family, leading to a US$6.6bn trade. Stock Connect additions, lock...

Brian Freitas

Zaiming's high investment, high losses strategy may not be sustainable in a competitive market. Products will encounter challenges in market...