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

Korea Stock Exchange KOSPI 200 / Event-Driven

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

<ul>
<li>Korea banned all short selling in March 2020 and resumed short selling only on <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200</a> and <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150</a> index constituents in May 2021.</li>
<li>News reports indicate that there could be another short sell ban as soon as the coming week. Indications are that the ban could last 6 months.</li>
<li>There are many implications of a total short sell ban including futures backwardation, market manipulation, and no emerging to developed market promotion.</li>
</ul>


Korea banned all short selling in March 2020 and resumed short selling only on KOSPI 200 and KOSDAQ 150 index constituents in May 2021.
News reports indicate that there could be another short sell ban as soon as the coming week. Indications are that the ban could last 6 months.
There are many implications of a total short sell ban including futures backwardation, market manipulation, and no emerging to developed market promotion.


Korea Short Sell Ban: Background, Manipulation, Holdings, Flows, Short Interest, Implications

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Korea Aerospace Industries / Event-Driven

<ul>
<li>It has been reported that Hanwha Group affiliates including Hanwha Aerospace, Hanwha Systems, and Aero USA purchased a combined amount of 4.99% stake in Korea Aerospace Industries.</li>
<li>We estimate about 60-70%+ probability that KAI could be privatized in the next 3-5 years.</li>
<li>If Hanwha Group acquires the controlling stake in KAI, this could be a major positive move for the Hanwha Group's efforts to accelerate the creation of Korea SpaceX. </li>
</ul>


It has been reported that Hanwha Group affiliates including Hanwha Aerospace, Hanwha Systems, and Aero USA purchased a combined amount of 4.99% stake in Korea Aerospace Industries.
We estimate about 60-70%+ probability that KAI could be privatized in the next 3-5 years.
If Hanwha Group acquires the controlling stake in KAI, this could be a major positive move for the Hanwha Group's efforts to accelerate the creation of Korea SpaceX. 


Hanwha Group's Purchase of 4.99% Stake in Korea Aerospace Industries (KAI): Step 1 of Privatization?

<ul>
<li>Hanwha Aerospace (012450 KS) announced that it acquired additional 100,000 shares (0.1%) of Korea Aerospace Industries (047810 KS), raising Hanwha Group's stake in KAI to 5.09% (from 4.99% previously). </li>
<li>Hanwha Aerospace plans to continue purchasing KAI shares by the end of this year, investing 500 billion won (representing about 2.85% of outstanding shares). </li>
<li>This is likely to have a greater beneficial impact on KAI because there will be more buying of its KAI by Hanwha Aerospace, boosting KAI's share price. </li>
</ul>


Hanwha Aerospace (012450 KS) announced that it acquired additional 100,000 shares (0.1%) of Korea Aerospace Industries (047810 KS), raising Hanwha Group's stake in KAI to 5.09% (from 4.99% previously). 
Hanwha Aerospace plans to continue purchasing KAI shares by the end of this year, investing 500 billion won (representing about 2.85% of outstanding shares). 
This is likely to have a greater beneficial impact on KAI because there will be more buying of its KAI by Hanwha Aerospace, boosting KAI's share price. 


Hanwha Aerospace: To Purchase 500 Billion Won Worth of More KAI Shares: Step 2 of Privatization?

External broker reports(aggregated public sources), Mirae Asset Securities

Mirae Asset Securities

External broker reports(aggregated public sources)

Mirae Asset Securities Co.,Ltd. provides comprehensive wealth management services. The Company offers fixed income securities brokerage, securities dealing, equity underwriting, and other services. Mirae Asset Securities also deals with mergers and acquisitions, foreign currency, and financial derivatives

Equity Bottom-Up

Korea Aerospace Industries / Equity Bottom-Up

<ul><li>For 3Q25, Korea Aerospace Industries (KAI) posted revenue of W702.1bn (-22.6% YoY; 33% below the consensus), operating profit of W60.2bn (-21.1% YoY; 30% below the consensus), and an OP margin of 8.6%.</li><li>The results fell significantly short of expectations due to: 1) delayed recognition of light armed helicopter (LAH) revenue (from 3Q25 to 4Q25); and 2) slower revenue recognition for the FA-50PL (Poland) due to a delayed development schedule.</li><li>There were no one-off expenses. On a positive note, OP margin was 0.4%p higher than expected despite increased in-house R&amp;D spending. </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.

For 3Q25, Korea Aerospace Industries (KAI) posted revenue of W702.1bn (-22.6% YoY; 33% below the consensus), operating profit of W60.2bn (-21.1% YoY; 30% below the consensus), and an OP margin of 8.6%.The results fell significantly short of expectations due to: 1) delayed recognition of light armed helicopter (LAH) revenue (from 3Q25 to 4Q25); and 2) slower revenue recognition for the FA-50PL (Poland) due to a delayed development schedule.There were no one-off expenses. On a positive note, OP margin was 0.4%p higher than expected despite increased in-house R&amp;D spending. 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.

Korea Aerospace Industries (047810 KS/Hold)Look Ahead to 2026 and Beyond

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

Shenton Research

Shenton 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 changes in short interest of KRX stocks as of Oct 2nd. The aggregated short interest was USD19.5bn.</li>
<li>We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in HLB, DWEC, NAVER, Samsung Elec (PREF), Doosan Enerbility.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Oct 2nd. The aggregated short interest was USD19.5bn.
We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in HLB, DWEC, NAVER, Samsung Elec (PREF), Doosan Enerbility.


KRX Short Interest Weekly (Oct 2nd): HLB, DWEC, NAVER, Samsung Elec (PREF), Doosan Enerbility

South Korea

Korea Aerospace Industries Ltd. designs and produces aircraft parts including fixed wings for aircrafts and rotary wings for helicopters. The Company also engages in aircraft upgrade and modification business and satellite development business.

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Korea Aerospace Industries (047810 KS)

Korea Short Sell Ban: Background, Manipulation, Holdings, Flows, Short Interest, Implications

Media reports indicate that there could be a temporary short sell ban in Korea. This could lead to futures backwardation, market manipulation and a...

Brian Freitas

Hanwha Group's Purchase of 4.99% Stake in Korea Aerospace Industries (KAI): Step 1 of Privatization?

On 16 June, it was reported that Hanwha Group companies raised stake in Korea Aerospace Industries (047810 KS) (KAI) to 9.04%, from 4.99%...

Douglas Kim

Hanwha Aerospace: To Purchase 500 Billion Won Worth of More KAI Shares: Step 2 of Privatization?

Hanwha Aerospace plans to continue purchasing KAI shares by the end of this year, investing 500 billion won (representing about 2.85% of...

Douglas Kim