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.

Index Rebalance

<ul>
<li>HSCEI June 2026 added Hansoh Pharma and Akeso and deleted Sunny Optical and Haier Smart Home. All event windows through the fourth post-implementation week are complete.</li>
<li>ADDs were mixed in the first implementation week, then both rallied in weeks two to four.</li>
<li>DELETEs broke the historical positive-bridge rebound pattern. Sunny Optical drove the miss with a -12.8% first-week return.</li>
</ul>


HSCEI June 2026 added Hansoh Pharma and Akeso and deleted Sunny Optical and Haier Smart Home. All event windows through the fourth post-implementation week are complete.
ADDs were mixed in the first implementation week, then both rallied in weeks two to four.
DELETEs broke the historical positive-bridge rebound pattern. Sunny Optical drove the miss with a -12.8% first-week return.


HSCEI June 2026 Index Rebalance: Post-Implementation Review

Research on Tech Companies

Evelyn Zhang

Thematic (Sector/Industry)

<p style="text-align: left;">The recent fall in price of many so called “China concept shares” of US listed Chinese companies, has largely been triggered by the passing of the "Holding Foreign Company Accountability Act" (HFCAA).</p><p style="text-align: left;">A flock of US listed Chinese companies have since decided to relist in HKSE due to a few reasons:</p><ol>
<li>The HFCAA causing conflicting compliance requirements with Chinese regulations.</li>
<li>Fear among investors of forced delisting in the US.</li>
<li>HKEX deregulation allowing more Chinese companies to be listed.</li>
<li>The valuation in HK is in sync with the U.S. stock market.</li>
<li>HK attracting more Chinese funds to operate in HKEX.</li>
</ol>

The recent fall in price of many so called “China concept shares” of US listed Chinese companies, has largely been triggered by the passing of the "Holding Foreign Company Accountability Act" (HFCAA).A flock of US listed Chinese companies have since decided to relist in HKSE due to a few reasons:
The HFCAA causing conflicting compliance requirements with Chinese regulations.
Fear among investors of forced delisting in the US.
HKEX deregulation allowing more Chinese companies to be listed.
The valuation in HK is in sync with the U.S. stock market.
HK attracting more Chinese funds to operate in HKEX.


Exit the Dragon – the Mass Exodus of US Listed Chinese Companies

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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/netease-inc" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase (9999 HK)</a> becomes dual-primary listed on the <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing-ltd" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">Hong Kong Exchanges and Clearing (388 HK)</a> from the start of trading on 30 June.</li>
<li>There will be small buying from <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hang Seng Index (HSI INDEX)</a> and <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">Hang Seng China Enterprises Index (HSCEI INDEX)</a> trackers in June.</li>
<li>More importantly, <a href="https://www.smartkarma.com/entities/netease-inc" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase (9999 HK)</a> should be added to Southbound Stock Connect from the open of trading on 8 September and should bring a lot of mainland flows.</li>
</ul>



NetEase (9999 HK) becomes dual-primary listed on the Hong Kong Exchanges and Clearing (388 HK) from the start of trading on 30 June.
There will be small buying from Hang Seng Index (HSI INDEX) and Hang Seng China Enterprises Index (HSCEI INDEX) trackers in June.
More importantly, NetEase (9999 HK) should be added to Southbound Stock Connect from the open of trading on 8 September and should bring a lot of mainland flows.


Netease (9999 HK): Becomes Dual-Primary Listed Next Week; Implications

<ul>
<li>NetEase (9999 HK) announced on 26 Jun 2026 that its HK primary conversion will be effective on 30 Jun 2026. This note assesses the Connect eligibility path and inclusion timeline.</li>
<li>NetEase has no WVR, but Alibaba's recent regular-cycle ADD keeps September as the base case.</li>
<li>Prior Connect ADD cases show southbound inflows after ADD and positive returns post inclusion.</li>
</ul>


NetEase (9999 HK) announced on 26 Jun 2026 that its HK primary conversion will be effective on 30 Jun 2026. This note assesses the Connect eligibility path and inclusion timeline.
NetEase has no WVR, but Alibaba's recent regular-cycle ADD keeps September as the base case.
Prior Connect ADD cases show southbound inflows after ADD and positive returns post inclusion.


NetEase: Primary Conversion and Connect Inclusion Analysis

Quantitative Analysis

<ul>
<li>We analysed the earning revision of component stocks of HS TECH in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on LI AUTO, NTES, XPENG, KINGSOFT, TRIP.COM, MEITUAN.</li>
</ul>


We analysed the earning revision of component stocks of HS TECH in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on LI AUTO, NTES, XPENG, KINGSOFT, TRIP.COM, MEITUAN.


HS TECH Index Earning Revision (Jun): LI AUTO, NTES, XPENG, KINGSOFT, TRIP.COM, MEITUAN

China

Bilibili Inc. is a leading online entertainment and video-sharing platform in China, primarily offering professional user-generated videos (PUGV), mobile games, live broadcasting, and value-added services. The company provides diverse digital content including anime, comics, and gaming (ACG), as well as pan-entertainment and pan-knowledge content. Bilibili is headquartered in Shanghai, China, and was founded in 2009.

Price Gauge
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Bilibili (9626 HK)

HSCEI June 2026 Index Rebalance: Post-Implementation Review

HSCEI June 2026 rebalance has passed the first post-implementation month. We review what worked, what did not, and how current results compare with...

Ke Yan, CFA, FRM

Exit the Dragon – the Mass Exodus of US Listed Chinese Companies

Is US-China financial decoupling affecting the US stock market? What's the future of US listed Chinese companies l? How can investors in China...

Evelyn Zhang

Netease (9999 HK): Becomes Dual-Primary Listed Next Week; Implications

As expected, Netease will be added to Southbound Stock Connect from the open of trading on 30 June. The stock is up 10% over the last 2 trading...

Brian Freitas

NetEase: Primary Conversion and Connect Inclusion Analysis

NetEase (9999 HK) announced HK primary conversion effective 30 Jun 2026. Non-WVR precedent points to possible ad-hoc Connect ADD, but September is...

Ke Yan, CFA, FRM

HS TECH Index Earning Revision (Jun): LI AUTO, NTES, XPENG, KINGSOFT, TRIP.COM, MEITUAN

We analyzed HS TECH's consensus for Jun 2026 and highlighted changes of EPS in LI AUTO, NTES, XPENG, KINGSOFT, TRIP.COM, MEITUAN.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)