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

DZT Research

DZT 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 foreign holdings of TWSE Stocks as of Jan 16th. The aggregated holding was USD1,562.9bn.</li>
<li>We estimate that foreign flows to be inflows of USD1,437mln. We tabulate the league tables for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in TSMC, MediaTek, Delta Electronics, Nan Ya Plastics, UMC.</li>
</ul>


We analyzed the changes in foreign holdings of TWSE Stocks as of Jan 16th. The aggregated holding was USD1,562.9bn.
We estimate that foreign flows to be inflows of USD1,437mln. We tabulate the league tables for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in TSMC, MediaTek, Delta Electronics, Nan Ya Plastics, UMC.


TWSE Foreign Holding Weekly (Jan 16th): TSMC, MediaTek, Delta Electronics, Nan Ya Plastics, UMC

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>
<a href="https://www.smartkarma.com/entities/hon-precision-inc" target="_blank" data-smartkarma-citation="entities:44938:1" rel="noopener">Hon Precision (7769 TT)</a> should be added to a global index in February and then to a country index in March.</li>
<li>Following the run-up in the stock, <a href="https://www.smartkarma.com/entities/hon-precision-inc" target="_blank" data-smartkarma-citation="entities:44938:1" rel="noopener">Hon Precision (7769 TT)</a> now trades at a higher forward EV/EBITDA and forward PE compared to the average and median of its peer group.</li>
<li>While there has been an increase in positioning, we see a similar trend in peers. The rally could have legs for a while longer.</li>
</ul>



Hon Precision (7769 TT) should be added to a global index in February and then to a country index in March.
Following the run-up in the stock, Hon Precision (7769 TT) now trades at a higher forward EV/EBITDA and forward PE compared to the average and median of its peer group.
While there has been an increase in positioning, we see a similar trend in peers. The rally could have legs for a while longer.


HonPrecision (7769 TT): TWSE Listing & Stock Run-Up Leads to Double Index Inclusion

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing) / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing) (TSM US)

TSMC (Taiwan Semiconductor Manufacturing)

<ul>
<li>TSMC: +27.7% Premium; Short the ADR Spread Anywhere Above 24%</li>
<li>UMC: +1.3% Premium; Large Change in ADR Headroom, Premium Biased to Rise?</li>
<li>ASE: +1.5% Premium; Consider Going Long the Spread Given Semiconductor Rally</li>
</ul>


TSMC: +27.7% Premium; Short the ADR Spread Anywhere Above 24%
UMC: +1.3% Premium; Large Change in ADR Headroom, Premium Biased to Rise?
ASE: +1.5% Premium; Consider Going Long the Spread Given Semiconductor Rally


Taiwan Dual-Listings Monitor: TSMC Beat Drives Spread Surge; UMC Sharp Headroom Decline

Taiwan Tech Focused Senior Analyst

Patrick Liao

<ul>
<li>1Q26 Outlook:  A. Revenue: 34.6-35.8B (+4% QoQ / +38% YoY)  B. FX: 31.6  C. GM: 63-65%  D. OPM: 54-56%  </li>
<li>Overall UTR to increase slightly; N3 GM to exceed company average at some point this year.  2nm to start diluting GM in 2H26.</li>
<li>Don’t know if semiconductor cycle can sustain 3-5 years, but AI will continue for several years.</li>
</ul>


1Q26 Outlook:  A. Revenue: 34.6-35.8B (+4% QoQ / +38% YoY)  B. FX: 31.6  C. GM: 63-65%  D. OPM: 54-56%  
Overall UTR to increase slightly; N3 GM to exceed company average at some point this year.  2nm to start diluting GM in 2H26.
Don’t know if semiconductor cycle can sustain 3-5 years, but AI will continue for several years.


TSMC (2330.TT; TSM.US): 2026: ~30% YoY Growth Amid Geopolitical & Demand Risks

<ul>
<li>We analyzed the changes in foreign holdings of TWSE Stocks as of Jan 9th. The aggregated holding was USD1,505.7bn.</li>
<li>We estimate that foreign flows to be outflows of USD1,877mln. We tabulate the league tables for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in TSMC, Hon Hai Precision, Delta Electronics, UMC, MediaTek.</li>
</ul>


We analyzed the changes in foreign holdings of TWSE Stocks as of Jan 9th. The aggregated holding was USD1,505.7bn.
We estimate that foreign flows to be outflows of USD1,877mln. We tabulate the league tables for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in TSMC, Hon Hai Precision, Delta Electronics, UMC, MediaTek.


TWSE Foreign Holding Weekly (Jan 9th): TSMC, Hon Hai Precision, Delta Electronics, UMC, MediaTek

Taiwan

ASE Technology Holding Co., Ltd. offers assembly and testing services. The Company provides outsourced assembly, semiconductor testing, semiconductor packaging, and other related services. ASE Technology Holding operates in Taiwan.

Price Gauge
52-week Range	0.00 - 0.00
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ASE Technology Holding (3711 TT)

TWSE Foreign Holding Weekly (Jan 16th): TSMC, MediaTek, Delta Electronics, Nan Ya Plastics, UMC

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in TSMC, MediaTek, Delta Electronics, Nan Ya...

Ke Yan, CFA, FRM

HonPrecision (7769 TT): TWSE Listing & Stock Run-Up Leads to Double Index Inclusion

HonPrecision should be added to a global index in Feb and a country ETF in March. There will be nearly US$800m to buy in the stock. Price momentum...

Brian Freitas

Taiwan Dual-Listings Monitor: TSMC Beat Drives Spread Surge; UMC Sharp Headroom Decline

We analyze the premium and discount levels of dual-listed Taiwan companies, suggesting potential spread trading levels based on historical trends.

Vincent Fernando, CFA

TSMC (2330.TT; TSM.US): 2026: ~30% YoY Growth Amid Geopolitical & Demand Risks

1Q26 Outlook: Revenue to increase by 4% QoQ and 38% YoY, with GM expected to exceed company average. Uncertainty in semiconductor cycle, but AI...

Patrick Liao

TWSE Foreign Holding Weekly (Jan 9th): TSMC, Hon Hai Precision, Delta Electronics, UMC, MediaTek

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in TSMC, Hon Hai Precision, Delta Electronics, UMC,...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

TWSE Foreign Holding Weekly (Jan 16th): TSMC, MediaTek, Delta Electronics, Nan Ya Plastics, UMC

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in TSMC, MediaTek, Delta Electronics, Nan Ya...

Ke Yan, CFA, FRM

HonPrecision (7769 TT): TWSE Listing & Stock Run-Up Leads to Double Index Inclusion

HonPrecision should be added to a global index in Feb and a country ETF in March. There will be nearly US$800m to buy in the stock. Price momentum...

Brian Freitas

Taiwan Dual-Listings Monitor: TSMC Beat Drives Spread Surge; UMC Sharp Headroom Decline

We analyze the premium and discount levels of dual-listed Taiwan companies, suggesting potential spread trading levels based on historical trends.

Vincent Fernando, CFA

TSMC (2330.TT; TSM.US): 2026: ~30% YoY Growth Amid Geopolitical & Demand Risks

​1Q26 Outlook: Revenue to increase by 4% QoQ and 38% YoY, with GM expected to exceed company average. Uncertainty in semiconductor cycle, but AI...

Patrick Liao

TWSE Foreign Holding Weekly (Jan 9th): TSMC, Hon Hai Precision, Delta Electronics, UMC, MediaTek

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in TSMC, Hon Hai Precision, Delta Electronics, UMC,...

Ke Yan, CFA, FRM

1Q26 Outlook: Revenue to increase by 4% QoQ and 38% YoY, with GM expected to exceed company average. Uncertainty in semiconductor cycle, but AI...