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>Following the methodology update for the HSIII Index, there could be up to 5 constituent changes in December.</li>
<li>Estimated one-way turnover is 12.8% and that will result in a round-trip trade of HK$9.8bn (US$1.25bn).</li>
<li>
<a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi (1810 HK)</a> is the biggest beneficiary of the new methodology while there will be large funding outflows for a lot of the current index constituents.</li>
</ul>


Following the methodology update for the HSIII Index, there could be up to 5 constituent changes in December.
Estimated one-way turnover is 12.8% and that will result in a round-trip trade of HK$9.8bn (US$1.25bn).

Xiaomi (1810 HK) is the biggest beneficiary of the new methodology while there will be large funding outflows for a lot of the current index constituents.


Hang Seng Internet & IT Index (HSIII) Rebalance Preview: Methodology Change Leads to US$1.25bn Trade

Zijin Gold International / Index Rebalance

<ul>
<li>In a pick-up in primary market activity, there have been 25 new listings on the Main Board of the <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a> in Q3.</li>
<li>
<a href="https://www.smartkarma.com/entities/zijin-gold-international" target="_blank" data-smartkarma-citation="entities:45448:1" rel="noopener">Zijin Gold (2259 HK)</a> will be added to the HSCI after market close on 15 October and should be added to Southbound Stock Connect from the open on 27 October.</li>
<li>There could be 4 (maybe 5) additions to the HSCI Index in December and 3 of those stocks will be added to Southbound Stock Connect from the open 8 December.</li>
</ul>


In a pick-up in primary market activity, there have been 25 new listings on the Main Board of the HKEX (388 HK) in Q3.

Zijin Gold (2259 HK) will be added to the HSCI after market close on 15 October and should be added to Southbound Stock Connect from the open on 27 October.
There could be 4 (maybe 5) additions to the HSCI Index in December and 3 of those stocks will be added to Southbound Stock Connect from the open 8 December.


HSCI Index Rebalance Preview: Potential Inclusions in December

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

<ul>
<li>The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).</li>
<li>In this insight, we take a look at the impact of the new selection methodology for the December 2025 and March 2026 rebal/review events.</li>
<li>We have also presented our index change expectations for the next semiannual index review which will take place in March 2026 (regular ADDs/DELs only take place in March and September).</li>
</ul>


The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
In this insight, we take a look at the impact of the new selection methodology for the December 2025 and March 2026 rebal/review events.
We have also presented our index change expectations for the next semiannual index review which will take place in March 2026 (regular ADDs/DELs only take place in March and September).


Quiddity Leaderboard HSIII Dec25/Mar26: Interesting Implications of the Recent Methodology Changes

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>On the back of gross margin expansion, good expense control and FX gains, Geekplus core net loss significantly narrowed by 65% YoY to RMB39mn in 1H25, which is in-line with our expectations.</li><li>With solid order intake in 1H25 (+30% YoY) and little impact from the US tariffs, we expect the company’s revenue growth this year to remain highly visible.</li><li>Meanwhile, management has revealed further details about embodied robotic arms during the post-results call, with potential 5-10% revenue contribution over the coming years. </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.

On the back of gross margin expansion, good expense control and FX gains, Geekplus core net loss significantly narrowed by 65% YoY to RMB39mn in 1H25, which is in-line with our expectations.With solid order intake in 1H25 (+30% YoY) and little impact from the US tariffs, we expect the company’s revenue growth this year to remain highly visible.Meanwhile, management has revealed further details about embodied robotic arms during the post-results call, with potential 5-10% revenue contribution over the coming years. 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.

Geekplus (2590 HK) - 1H25 Results In-Line; Embodied Robots the New Driver

<ul><li>On the back of technological innovation in autonomous mobile robots (AMR) with &gt;800 end customers across 40 countries, Geekplus (72% revenue from overseas in 2024) is set to ride on the structural increase in the penetration rate of warehouse fulfilment AMRs over the coming years.</li><li>Our results from product comparison and selected customers’ payback analysis enhance our confidence in Geekplus’s competitive edges.</li><li>We forecast Geekplus to deliver 34% revenue CAGR in 2024-2027E, and potentially achieve meaningful profit starting from 2026E. </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.

On the back of technological innovation in autonomous mobile robots (AMR) with &gt;800 end customers across 40 countries, Geekplus (72% revenue from overseas in 2024) is set to ride on the structural increase in the penetration rate of warehouse fulfilment AMRs over the coming years.Our results from product comparison and selected customers’ payback analysis enhance our confidence in Geekplus’s competitive edges.We forecast Geekplus to deliver 34% revenue CAGR in 2024-2027E, and potentially achieve meaningful profit starting from 2026E. 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.

Geekplus (2590 HK) - A Rising Star in Global AMR for Warehouse Automation...

China

Geekplus Technology is a global leader in autonomous mobile robot (AMR) technology, providing artificial intelligence and robotics solutions for logistics, specializing in warehouse fulfillment and industrial material transport. The company offers picking, moving, and sorting systems, robotic arms, and a comprehensive software suite for unmanned warehouse operations. It was founded in 2015 and is headquartered in Beijing, China.

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Geekplus Technology (2590 HK)

Hang Seng Internet & IT Index (HSIII) Rebalance Preview: Methodology Change Leads to US$1.25bn Trade

The methodology update could result in 5 changes in Dec. Estimated one-way turnover is 12.8% resulting in a round-trip trade of US$1.25bn. There...

Brian Freitas

HSCI Index Rebalance Preview: Potential Inclusions in December

Zijin Gold will be added to the HSCI on 16 Oct and should be added to StockConnect on 27 Oct. There could be 4 (maybe 5) adds to the HSCI in Dec. 3...

Brian Freitas

Quiddity Leaderboard HSIII Dec25/Mar26: Interesting Implications of the Recent Methodology Changes

The recent methodology update could result in unusual index changes during the December 2025 index rebal event. There could be more in March 2026 too.

Janaghan Jeyakumar, CFA

Geekplus (2590 HK) - 1H25 Results In-Line; Embodied Robots the New Driver

We see this as an important driver for both earnings and valuation. Reiterate BUY with unchanged TP of HK$26.7 (based on 7.7x 2026E P/S)

CMB International

Geekplus (2590 HK) - A Rising Star in Global AMR for Warehouse Automation...

We forecast Geekplus to deliver 34% revenue CAGR in 2024-2027E, and potentially achieve meaningful profit starting from 2026E.

CMB International

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