Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>Based on the latest closing prices, the potential INs/OUTs are as follows. INs: Soulbrain &amp; Enchem / OUTs: Chunbo &amp; Solus Advanced Materials</li>
<li>While the overall market liquidity constraints due to the short-selling ban could exacerbate the price impact on the rebalancing day, it may reduce the flexibility of our Long-Short setup strategies.</li>
<li>While Chunbo carries single-stock futures, its liquidity may not be sufficient. So, a more creative Long-Short approach is required, taking into account these factors.</li>
</ul>


Based on the latest closing prices, the potential INs/OUTs are as follows. INs: Soulbrain &amp; Enchem / OUTs: Chunbo &amp; Solus Advanced Materials
While the overall market liquidity constraints due to the short-selling ban could exacerbate the price impact on the rebalancing day, it may reduce the flexibility of our Long-Short setup strategies.
While Chunbo carries single-stock futures, its liquidity may not be sufficient. So, a more creative Long-Short approach is required, taking into account these factors.


TIGER Battery Material ETF Rebal in December: Notable Changes in Constituent Screening

<ul>
<li>In the inaugural constituent selection, FnGuide revealed a noteworthy pattern. Given the smaller market capitalization of the electrolyte suppliers, FnGuide has included only the largest among them in this ETF.</li>
<li>SoulBrain, categorized by FnGuide as an electrolyte supplier like Chunbo, has significantly outperformed Chunbo. As a result, there is a considerable likelihood that SoulBrain will replace Chunbo in December.</li>
<li>The price impact from ETF rebalancing trading has disappeared substantially in Korea. We should focus on the first rebalancing of newly listed ETFs that haven't yet established a learning effect.</li>
</ul>


In the inaugural constituent selection, FnGuide revealed a noteworthy pattern. Given the smaller market capitalization of the electrolyte suppliers, FnGuide has included only the largest among them in this ETF.
SoulBrain, categorized by FnGuide as an electrolyte supplier like Chunbo, has significantly outperformed Chunbo. As a result, there is a considerable likelihood that SoulBrain will replace Chunbo in December.
The price impact from ETF rebalancing trading has disappeared substantially in Korea. We should focus on the first rebalancing of newly listed ETFs that haven't yet established a learning effect.


Overlooked by the Market: A Compelling Long Short Opportunity in Newly-Listed ETF Rebal in Korea

<ul>
<li>NPS has expressed concerns about the wide risk range of the KOSDAQ 150 index, and there has been speculation about whether they will take advantage of the KOSDAQ Global Index.</li>
<li>The launch of these ETFs should be closely watched as it could potentially be a turning point in the investment patterns of local pension funds in KOSDAQ.</li>
<li>It may be worth considering the constituents included in this index where the NPS ownership stake does not reach 5%.</li>
</ul>


NPS has expressed concerns about the wide risk range of the KOSDAQ 150 index, and there has been speculation about whether they will take advantage of the KOSDAQ Global Index.
The launch of these ETFs should be closely watched as it could potentially be a turning point in the investment patterns of local pension funds in KOSDAQ.
It may be worth considering the constituents included in this index where the NPS ownership stake does not reach 5%.


Potential Changes to NPS's KOSDAQ Benchmark with the Launch of KOSDAQ Global Index ETFs

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

<ul>
<li>NPS adjusted holdings of 101 stocks in Korea as of 5 April 2023, of which it reduced ownership in 53 of them and raised ownership in 47 of them.</li>
<li>In this insight, we discuss 39 stocks major stocks in Korea which have experienced changes in their ownerships by the NPS in the past several weeks. </li>
<li>NPS has noticeably increased stakes in reopening related plays and it has also reduced stakes in numerous rechargeable battery related plays in the past several weeks. </li>
</ul>


NPS adjusted holdings of 101 stocks in Korea as of 5 April 2023, of which it reduced ownership in 53 of them and raised ownership in 47 of them.
In this insight, we discuss 39 stocks major stocks in Korea which have experienced changes in their ownerships by the NPS in the past several weeks. 
NPS has noticeably increased stakes in reopening related plays and it has also reduced stakes in numerous rechargeable battery related plays in the past several weeks. 


Equity Capital Markets

<ul>
<li>Jeio (418550 KS) announced its IPO price of 13,000 won, which was at the high end of the recently revised down IPO price range of 10,000 won to 13,000 won.</li>
<li>There were 1,174 institutional investors that participated in this IPO survey. The demand ratio was 352.6 to 1.</li>
<li>Our base case valuation of JEIO is target price of 12,575 won per share, which is 3.3% lower than the IPO price 13,000 won.</li>
</ul>


Jeio (418550 KS) announced its IPO price of 13,000 won, which was at the high end of the recently revised down IPO price range of 10,000 won to 13,000 won.
There were 1,174 institutional investors that participated in this IPO survey. The demand ratio was 352.6 to 1.
Our base case valuation of JEIO is target price of 12,575 won per share, which is 3.3% lower than the IPO price 13,000 won.


South Korea

Chunbo Co.,Ltd manufactures and sells chemical materials. The Company produces and sells display, semiconductor, and secondary battery application materials, as well as pharmaceutical intermediates and specialty chemicals. Chunbo markets its products worldwide.

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Chunbo (278280 KS)

TIGER Battery Material ETF Rebal in December: Notable Changes in Constituent Screening

This post explores the latest screening outcomes of the TIGER Secondary Battery Materials ETF rebalancing in December, highlighting significant...

Sanghyun Park

Overlooked by the Market: A Compelling Long Short Opportunity in Newly-Listed ETF Rebal in Korea

This post investigates the compelling Long Short opportunity of a newly-listed sector ETF rebalancing in Korea, which appears to be overlooked by...

Sanghyun Park

Potential Changes to NPS's KOSDAQ Benchmark with the Launch of KOSDAQ Global Index ETFs

This post investigates the possibility of changes to NPS's benchmark for KOSDAQ investments due to the launch of KOSDAQ Global Index ETFs.

Sanghyun Park

Recent NPS Buys and Sells in Korea

In this insight, we discuss 39 stocks major stocks in Korea which have experienced changes in their ownerships by the NPS in the past several weeks.

Douglas Kim

JEIO IPO: Book Building Results Analysis

Jeio (418550 KS) announced its IPO price of 13,000 won, which was at the high end of the recently revised down IPO price range of 10,000 won to...

Douglas Kim

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