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>Following the methodology update for the HSIII Index, there could be up to 5 constituent changes in December.</li>
<li>Estimated one-way turnover is 12.8% and that will result in a round-trip trade of HK$9.8bn (US$1.25bn).</li>
<li>
<a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi (1810 HK)</a> is the biggest beneficiary of the new methodology while there will be large funding outflows for a lot of the current index constituents.</li>
</ul>


Following the methodology update for the HSIII Index, there could be up to 5 constituent changes in December.
Estimated one-way turnover is 12.8% and that will result in a round-trip trade of HK$9.8bn (US$1.25bn).

Xiaomi (1810 HK) is the biggest beneficiary of the new methodology while there will be large funding outflows for a lot of the current index constituents.


Hang Seng Internet & IT Index (HSIII) Rebalance Preview: Methodology Change Leads to US$1.25bn Trade

Smartkarma AI, Smartkarma

αSK

Smartkarma AI

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

<ul>
 <li>
<a href="https://smartkarma.com/entities/xiaomi-corp">Xiaomi</a> is successfully executing its "Human x Car x Home"strategy, integrating its vast ecosystem of consumer electronics with its new and rapidly growing Smart Electric Vehicle (EV) business.</li>
 <li>The company demonstrates a strong growth trajectory, with significant year-over-year improvements in revenue and profitability, driven by both its established smartphone/AIoT segments and the promising new EV division.</li>
 <li>While facing intense competition in the smartphone market and execution risks in the nascent EV space, <a href="https://smartkarma.com/entities/xiaomi-corp">Xiaomi</a>'s strong brand, massive user base, and proven operational efficiency position it for potential long-term growth and market share gains across its key segments.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Xiaomi is successfully executing its "Human x Car x Home"strategy, integrating its vast ecosystem of consumer electronics with its new and rapidly growing Smart Electric Vehicle (EV) business.
  The company demonstrates a strong growth trajectory, with significant year-over-year improvements in revenue and profitability, driven by both its established smartphone/AIoT segments and the promising new EV division.
  While facing intense competition in the smartphone market and execution risks in the nascent EV space, Xiaomi's strong brand, massive user base, and proven operational efficiency position it for potential long-term growth and market share gains across its key segments.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>Xiaomi is expected to report 3Q25 results in mid-Nov.</li><li>We expect 3Q25E to deliver another strong adj. net profit growth of 60% YoY to RMB 10.01bn, in-line with consensus estimates, mainly driven by strong momentum of smart EV with improving profitability and stable IoT/internet growth.</li><li>For GPM, despite smartphone BOM cost hikes (esp. memory), our 3Q GPM estimate is at 22.9% (vs 22.5% for consensus), backed by resilient smart phone (SP)/IoT/internet GPM at 11%/23%/75.3%, while EV GPM may come in softer at 25.8% (vs 26.4 in 2Q) on capacity constraint, on our estimate. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Xiaomi is expected to report 3Q25 results in mid-Nov.We expect 3Q25E to deliver another strong adj. net profit growth of 60% YoY to RMB 10.01bn, in-line with consensus estimates, mainly driven by strong momentum of smart EV with improving profitability and stable IoT/internet growth.For GPM, despite smartphone BOM cost hikes (esp. memory), our 3Q GPM estimate is at 22.9% (vs 22.5% for consensus), backed by resilient smart phone (SP)/IoT/internet GPM at 11%/23%/75.3%, while EV GPM may come in softer at 25.8% (vs 26.4 in 2Q) on capacity constraint, on our estimate. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Xiaomi (1810 HK) - Expect Another Strong Quarter on Better EV Business...

Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

Equity Derivatives

<ul>
<li>Xiaomi has had a remarkable rally, ranking at the 99th percentile for all previous 1-month price changes.</li>
<li>Implied vols have surged along with price with 1M, 2M and 3M implied vols all ranking above the 95th over the past 4 years.  </li>
<li>We recommend how to manage risk and positioning given the extreme price and implied vol dynamics.</li>
</ul>


Xiaomi has had a remarkable rally, ranking at the 99th percentile for all previous 1-month price changes.
Implied vols have surged along with price with 1M, 2M and 3M implied vols all ranking above the 95th over the past 4 years.  
We recommend how to manage risk and positioning given the extreme price and implied vol dynamics.


Xiaomi: 3 Option Hedges for Extreme Price & Volatility Environment

<ul><li>Xiaomi hosted its flagship product launch event on 25 Sep, debuting Xiaomi 17 flagship phones, Pad 8 series tablets, premium smart home products and new customization service for YU7/SU7 Ultra EVs.</li><li>In particular, we view Xiaomi 17’s RMB4,499 starting price as competitive against iPhone 17 (RMB5,999), as it is positioned as the best compact flagship in China with features such as 7000mAh battery (vs prior 5400mAh) and Leica Summilux tri-camera.</li><li>17 Pro/Max’s starting prices of RMB4,999/5,999 are lower than 15 Pro/Pro Ultra last year, and it introduces innovative Magic Back Screen and direct Apple ecosystem integration, underscoring Xiaomi's "full benchmark to iPhone" strategy.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Xiaomi hosted its flagship product launch event on 25 Sep, debuting Xiaomi 17 flagship phones, Pad 8 series tablets, premium smart home products and new customization service for YU7/SU7 Ultra EVs.In particular, we view Xiaomi 17’s RMB4,499 starting price as competitive against iPhone 17 (RMB5,999), as it is positioned as the best compact flagship in China with features such as 7000mAh battery (vs prior 5400mAh) and Leica Summilux tri-camera.17 Pro/Max’s starting prices of RMB4,999/5,999 are lower than 15 Pro/Pro Ultra last year, and it introduces innovative Magic Back Screen and direct Apple ecosystem integration, underscoring Xiaomi's "full benchmark to iPhone" strategy.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Xiaomi (1810 HK) - Product Launch Takeaways: Xiaomi 17’s Competitive Pricing

China

Xiaomi Corporation manufactures communication equipment and parts. The Company produces and sells mobile phones, smart phone software,  set-top boxes, and related accessories. Xiaomi markets its products worldwide.

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Xiaomi (1810 HK)

Hang Seng Internet & IT Index (HSIII) Rebalance Preview: Methodology Change Leads to US$1.25bn Trade

The methodology update could result in 5 changes in Dec. Estimated one-way turnover is 12.8% resulting in a round-trip trade of US$1.25bn. There...

Brian Freitas

Primer: Xiaomi (1810 HK) - Oct 2025

Xiaomi is successfully executing its "Human x Car x Home"strategy, integrating its vast ecosystem of consumer electronics with its new and...

αSK

Xiaomi (1810 HK) - Expect Another Strong Quarter on Better EV Business...

We expect 3Q25E to deliver another strong adj. net profit growth of 60% YoY to RMB 10.01bn, in-line with consensus estimates, mainly driven by...

CMB International

Xiaomi: 3 Option Hedges for Extreme Price & Volatility Environment

Xiaomi's impressive rally, surging implied vols, upcoming earnings and index re-balance call for careful risk management and option positioning...

John Ley

Xiaomi (1810 HK) - Product Launch Takeaways: Xiaomi 17’s Competitive Pricing

Xiaomi hosted its flagship product launch event on 25 Sep, debuting Xiaomi 17 flagship phones, Pad 8 series tablets, premium smart home products...

CMB International

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hang Seng Internet & IT Index (HSIII) Rebalance Preview: Methodology Change Leads to US$1.25bn Trade

The methodology update could result in 5 changes in Dec. Estimated one-way turnover is 12.8% resulting in a round-trip trade of US$1.25bn. There...

Brian Freitas

Primer: Xiaomi (1810 HK) - Oct 2025

Xiaomi is successfully executing its "Human x Car x Home"strategy, integrating its vast ecosystem of consumer electronics with its new and...

αSK

Xiaomi (1810 HK) - Expect Another Strong Quarter on Better EV Business...

We expect 3Q25E to deliver another strong adj. net profit growth of 60% YoY to RMB 10.01bn, in-line with consensus estimates, mainly driven by...

CMB International

Xiaomi: 3 Option Hedges for Extreme Price & Volatility Environment

​Xiaomi's impressive rally, surging implied vols, upcoming earnings and index re-balance call for careful risk management and option positioning...

John Ley

Xiaomi (1810 HK) - Product Launch Takeaways: Xiaomi 17’s Competitive Pricing

Xiaomi hosted its flagship product launch event on 25 Sep, debuting Xiaomi 17 flagship phones, Pad 8 series tablets, premium smart home products...

CMB International

Xiaomi's impressive rally, surging implied vols, upcoming earnings and index re-balance call for careful risk management and option positioning...