Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<ul>
<li>As expected, <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> replaces <a href="https://www.smartkarma.com/entities/china-evergrande-group" target="_blank" data-smartkarma-citation="entities:479:1" rel="noopener">Evergrande (3333 HK)</a> in the <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> after the close of trading on 3 December.</li>
<li>Using prices from the close on 19 November to cap the stocks, estimated one-way turnover at the rebalance is 4.50% and will result in a one-way trade of HK$3,208m.</li>
<li>Short interest on <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> is over 8 days of ADV and short covering could take the stock higher in the short-term versus its peers.</li>
</ul>


As expected, Innovent Biologics Inc (1801 HK) replaces Evergrande (3333 HK) in the Hang Seng China Enterprises Index (HSCEI INDEX) after the close of trading on 3 December.
Using prices from the close on 19 November to cap the stocks, estimated one-way turnover at the rebalance is 4.50% and will result in a one-way trade of HK$3,208m.
Short interest on Innovent Biologics Inc (1801 HK) is over 8 days of ADV and short covering could take the stock higher in the short-term versus its peers.


HSCEI Index Rebalance: No Surprises Here as Evergrande Is Deleted

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.<ul><li><a href='#lucror-entity-479'>Evergrande</a></li><li><a href='#lucror-entity-9334'>Delta Dunia Makmur</a></li><li><a href='#lucror-entity-182'>Sands China Ltd</a></li><li><a href='#lucror-entity-10365'>Sirtex Medical</a></li></ul>

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.EvergrandeDelta Dunia MakmurSands China LtdSirtex Medical

Morning Views Asia: Evergrande, Delta Dunia Makmur, Sands China Ltd, Sirtex Medical

The Asia HY Trade Book for the month of November includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index.

  The Asia HY Trade Book for the month of November includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Book - November 2021 - Lucror Analytics

Silver Point

Thomas J. Monaco

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Equity Bottom-Up

<ul>
<li>
USD Bond Payments Continue:  China Evergrande Group (3333.HK) [Evergrande] magically made another set of 11th hour interest payments of USD 148 mn to bondholders on Wednesday, November 10, 2021;</li>
<li>
Trial Balloon Not a Panacea: Mainland Chinese authorities hinted a readiness to loosen their grip on the issuance of CNY-denominated bonds by real estate companies; and</li>
<li>
Watch Your Bank Risk: Evergrande has already been in contact with lenders for loan extensions. Main bank, Shenjang Bank is on the verge of announcing 20% plus NPLs. </li>
</ul>



USD Bond Payments Continue:  China Evergrande Group (3333.HK) [Evergrande] magically made another set of 11th hour interest payments of USD 148 mn to bondholders on Wednesday, November 10, 2021;

Trial Balloon Not a Panacea: Mainland Chinese authorities hinted a readiness to loosen their grip on the issuance of CNY-denominated bonds by real estate companies; and

Watch Your Bank Risk: Evergrande has already been in contact with lenders for loan extensions. Main bank, Shenjang Bank is on the verge of announcing 20% plus NPLs. 


China Evergrande Group – Making Those Payments

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

SGX Asia Currencies and Commodities Insights

China

China Evergrande Group is an integrated residential property developer. The Company, through its subsidiaries, operates in property development, investment, management, finance, internet, health, culture, and tourism markets.

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Evergrande (3333 HK)

HSCEI Index Rebalance: No Surprises Here as Evergrande Is Deleted

Innovent Bio will join the HSCEI after the close on 3 Dec while Evergrande will be deleted, no surprises. One-way turnover is 4.5% due to capping &...

Brian Freitas

Morning Views Asia: Evergrande, Delta Dunia Makmur, Sands China Ltd, Sirtex Medical

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Asia HY Trade Book - November 2021 - Lucror Analytics

The Asia HY Trade Book for the month of November includes a summary of our recommendations, as well as our high-conviction ideas. The report also...

Lucror Analytics

China Evergrande Group – Making Those Payments

EVERGRANDE: Evergrande magically made another set of 11th hour interest payments of USD 148 mn to bondholders on Wednesday, November 10, 2021 -...

Thomas J. Monaco

SGX Asia Currencies and Commodities Insights

By Macro Hive SGX Asia Currencies Insights Export strength and policy preference for a stable-to-strong currency leave us constructive on the...

Singapore Exchange Ltd (SGX)

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