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

Yankuang Energy Group   / Index Rebalance

<ul>
<li>With a few weeks to the end of the review period, we see 30 potential changes (the maximum allowed at a review) to the index in June.</li>
<li>Most of the changes are high probability ones. We estimate a one-way turnover of 4.48% at the June rebalance leading to a one-way trade of CNY 7.86bn.</li>
<li>The potential inclusions have outperformed the potential deletions over the last couple of months. There could be more to go here as positions are built in the next few weeks.</li>
</ul>


With a few weeks to the end of the review period, we see 30 potential changes (the maximum allowed at a review) to the index in June.
Most of the changes are high probability ones. We estimate a one-way turnover of 4.48% at the June rebalance leading to a one-way trade of CNY 7.86bn.
The potential inclusions have outperformed the potential deletions over the last couple of months. There could be more to go here as positions are built in the next few weeks.


CSI300 Index Rebalance Preview (June): Maxing Out the 30 Changes

<ul>
<li>Nearly midway through the review period for the June rebalance of the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX)</a>, we see 29 potential changes to the index.</li>
<li>There are a lot of high and medium probability changes that could result in a one-way turnover of 4.2% and a one-way trade of CNY 10.17bn at the June rebalance.</li>
<li>The potential inclusions have underperformed the potential deletions by c.15% over the last month and this provides a good entry point into a long short/trade.</li>
</ul>


Nearly midway through the review period for the June rebalance of the Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX), we see 29 potential changes to the index.
There are a lot of high and medium probability changes that could result in a one-way turnover of 4.2% and a one-way trade of CNY 10.17bn at the June rebalance.
The potential inclusions have underperformed the potential deletions by c.15% over the last month and this provides a good entry point into a long short/trade.


CSI300 Index Rebalance Preview (June 2022): Changes Near the Midway Mark

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Betta Pharmaceuticals   / Equity Capital Markets

<ul>
<li>If the R&amp;D pipeline projects are not recognized by international capital,the main reason could be either the product development progress is lagging behind or the projects are not good enough.</li>
<li>The real innovative drugs would not be affected by generics that easily, and are to overturn the size of the old drug market.</li>
<li>The real risk of Betta would be revealed in the next few years as VBP promotes. So, we are conservative about the Company’s outlook at the current stage.</li>
</ul>


If the R&amp;D pipeline projects are not recognized by international capital,the main reason could be either the product development progress is lagging behind or the projects are not good enough.
The real innovative drugs would not be affected by generics that easily, and are to overturn the size of the old drug market.
The real risk of Betta would be revealed in the next few years as VBP promotes. So, we are conservative about the Company’s outlook at the current stage.


Pre-IPO Betta Pharmaceuticals - Lack of Staying Power

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zai-lab-ltd" target="_blank" data-smartkarma-citation="entities:25877:1" rel="noopener">Zai Lab Ltd (ZLAB US)</a> is famous for its license-in mode, but the biggest highlight is its strong vision and high success rate in the process, forming a distinctive pipeline.</li>
<li>The concerns such as the changes of pattern in license-in mode, attitude of the regulatory authorities, fierce competition and commercialization outlook also deserve attention.</li>
<li>Investing a company is actually investing in its people. We have confidence that Zai Lab would find its way out.</li>
</ul>



Zai Lab Ltd (ZLAB US) is famous for its license-in mode, but the biggest highlight is its strong vision and high success rate in the process, forming a distinctive pipeline.
The concerns such as the changes of pattern in license-in mode, attitude of the regulatory authorities, fierce competition and commercialization outlook also deserve attention.
Investing a company is actually investing in its people. We have confidence that Zai Lab would find its way out.


Zai Lab Ltd (ZLAB.US) - The Strength and the Concerns

<ul>
<li>We analyzed the key products and pipeline of <a href="https://www.smartkarma.com/entities/hansoh-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:23675:1" rel="noopener">Hansoh Pharmaceutical (3692 HK)</a>, which are uninspiring.</li>
<li>Investors could trade this stock when its valuation is at very low level or the valuation of entire sector is in upward trend by taking advantage of the positive momentum.</li>
<li>The cooperation with OliX Pharmaceuticals on siRNA could be a highlight, but the question is would you like to bet on it?</li>
</ul>


We analyzed the key products and pipeline of Hansoh Pharmaceutical (3692 HK), which are uninspiring.
Investors could trade this stock when its valuation is at very low level or the valuation of entire sector is in upward trend by taking advantage of the positive momentum.
The cooperation with OliX Pharmaceuticals on siRNA could be a highlight, but the question is would you like to bet on it?


Hansoh Pharmaceutical (3692.HK) - Lackluster Pipeline, so Bet on SiRNA?

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Betta Pharmaceuticals (BETTA HK)

CSI300 Index Rebalance Preview (June): Maxing Out the 30 Changes

We estimate 30 changes at the June rebalance with a one-way turnover of 4.48% leading to a one-way trade of CNY 7.86bn. The potential adds have...

Brian Freitas

CSI300 Index Rebalance Preview (June 2022): Changes Near the Midway Mark

Nearly midway through the review period for the June rebalance of the CSI300 index, we see 29 potential changes resulting in a one-way turnover of...

Brian Freitas

Pre-IPO Betta Pharmaceuticals - Lack of Staying Power

The insight analyzed Betta about key products such as Icotinib, Ensartinib, MIL60, CM082, concerns on slow product iteration,fierce...

Xinyao (Criss) Wang

Zai Lab Ltd (ZLAB.US) - The Strength and the Concerns

This insight analyzes Zai Lab about its distinctive pipeline, the management team, the concerns on license-in mode, regulatory...

Xinyao (Criss) Wang

Hansoh Pharmaceutical (3692.HK) - Lackluster Pipeline, so Bet on SiRNA?

This article mainly analyzed Hansoh Pharmaceutical in terms of the business, the key products, the pipeline, the concerns, the insights on...

Xinyao (Criss) Wang

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