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

Event-Driven

<ul>
<li>Along with its fiscal 2024 results, <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba (9988 HK)</a> announced that they were preparing for their primary listing in Hong Kong and the conversion was expected to complete by August.</li>
<li>If the conversion is completed by the end of August, <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba (9988 HK)</a> could be added to Southbound Stock Connect in September and that could bring in significant flows.</li>
<li>We do not forecast any passive inflows due to the change with <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group Holding (9988 HK)</a> capped at 8% of 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>, <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> indices.</li>
</ul>


Along with its fiscal 2024 results, Alibaba (9988 HK) announced that they were preparing for their primary listing in Hong Kong and the conversion was expected to complete by August.
If the conversion is completed by the end of August, Alibaba (9988 HK) could be added to Southbound Stock Connect in September and that could bring in significant flows.
We do not forecast any passive inflows due to the change with Alibaba Group Holding (9988 HK) capped at 8% of the HSI, HSCEI and HSTECH indices.


Alibaba (9988 HK): Dual Primary Listing & Potential Southbound Flows

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Bottom-Up

<ul>
<li>Giant Biogene was listed in Hong Kong IPO in 2022. It has done well since and is now trading 45% above its IPO price, but its still cheap.</li>
<li>GB is a leader in the bioactive ingredient-based professional skin treatment product industry in China.</li>
<li>In this note, we will talk about the company’s past performance and future prospects.</li>
</ul>


Giant Biogene was listed in Hong Kong IPO in 2022. It has done well since and is now trading 45% above its IPO price, but its still cheap.
GB is a leader in the bioactive ingredient-based professional skin treatment product industry in China.
In this note, we will talk about the company’s past performance and future prospects.


2024 High Conviction - Giant Biogene - Growth Rate Keeps Moving Higher

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Alibaba Group is making one of the largest AI financing bets in China, raising roughly $10.2 billion through a new share placement just as its artificial intelligence business begins showing meaningful commercial traction.</li><li>The deal involves 710 million new shares, representing roughly 3.7% of Alibaba’s existing issued share capital, and comes after a quarter in which heavy technology investment pushed GAAP net income down about 75% and free cash flow deeply negative.</li><li>Yet the story is far from uniformly bearish.</li></ul>

Alibaba Group is making one of the largest AI financing bets in China, raising roughly $10.2 billion through a new share placement just as its artificial intelligence business begins showing meaningful commercial traction.The deal involves 710 million new shares, representing roughly 3.7% of Alibaba’s existing issued share capital, and comes after a quarter in which heavy technology investment pushed GAAP net income down about 75% and free cash flow deeply negative.Yet the story is far from uniformly bearish.

Alibaba’s $10 Billion AI Gamble: Genius Move Or Shareholder Nightmare?

Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba (BABA US)</a> dropped 8.6% following its USD 10.2bn placement, although the capital raising represents only 3.6% of market capitalization and will fund AI investment.</li>
<li>One-Month implied volatility stands at 42.3%, in its 61st percentile, creating elevated—but not extreme—premium income opportunities.</li>
<li>September short puts offer premiums ranging from 1.6% (OTM) to 3.7% (ATM), with lower strikes providing greater downside protection and higher strikes offering greater tactical returns.</li>
</ul>



Alibaba (BABA US) dropped 8.6% following its USD 10.2bn placement, although the capital raising represents only 3.6% of market capitalization and will fund AI investment.
One-Month implied volatility stands at 42.3%, in its 61st percentile, creating elevated—but not extreme—premium income opportunities.
September short puts offer premiums ranging from 1.6% (OTM) to 3.7% (ATM), with lower strikes providing greater downside protection and higher strikes offering greater tactical returns.


Alibaba (BABA US): Trading the Placement Dip with US Options

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-limited" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba (9988 HK)</a> dropped 9.4% following its HKD 80bn placement, although the capital raising represents only 3.6% of market capitalisation and will fund AI investment.</li>
<li>One-Month implied volatility stands at 42.3%, in its 67th percentile, creating elevated—but not extreme—premium income opportunities.</li>
<li>September short puts offer premiums ranging from 1.3% to 4.1%, with lower strikes providing greater downside protection and higher strikes offering greater tactical returns.</li>
</ul>



Alibaba (9988 HK) dropped 9.4% following its HKD 80bn placement, although the capital raising represents only 3.6% of market capitalisation and will fund AI investment.
One-Month implied volatility stands at 42.3%, in its 67th percentile, creating elevated—but not extreme—premium income opportunities.
September short puts offer premiums ranging from 1.3% to 4.1%, with lower strikes providing greater downside protection and higher strikes offering greater tactical returns.


Alibaba (9988 HK): 9% Placement Drop Creates Short-Put Setup

China

Alibaba Group Holding Limited provides online sales services. The Company provides internet infrastructure, electronic commerce, online financial, and internet content services through its subsidiaries. Alibaba Group Holding offers its products and services worldwide.

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Alibaba (BABA US)

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Brian Freitas

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Giant Biogene was listed in Hong Kong IPO in 2022. It has done well since and is now trading 45% above its IPO price, but its still cheap.

Sumeet Singh

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Alibaba Group is making one of the largest AI financing bets in China, raising roughly $10.2 billion through a new share placement just as its...

Baptista Research

Alibaba (BABA US): Trading the Placement Dip with US Options

Alibaba’s placement-driven decline creates a range of US-listed short-put setups, spanning defensive entry levels and more aggressive tactical...

Gaudenz Schneider

Alibaba (9988 HK): 9% Placement Drop Creates Short-Put Setup

Alibaba’s 9% post-placement drop and elevated implied volatility create a short-put setup spanning conservative downside buffers and more...

Gaudenz Schneider

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