Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

Black Sesame International / Index Rebalance

<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 final rankings of potential ADDs and potential DELs for the March 2025 index rebal event.</li>
<li>We expect four changes for the HSIII index in March 2025 and currently expect flows of US$114mn one-way (including capping flows which will change).</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 final rankings of potential ADDs and potential DELs for the March 2025 index rebal event.
We expect four changes for the HSIII index in March 2025 and currently expect flows of US$114mn one-way (including capping flows which will change).


Quiddity Leaderboard Hang Seng Internet & IT March 25: 4 Changes Likely; Some Names Have High-Impact

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Capital Markets

Minieye Technology / Equity Capital Markets

<ul>
<li>Minieye Technology, a fast-growing provider of intelligent driving and cabin solutions in China, will price its IPO this week.</li>
<li>The company was backed by CICC Capital, Beijing Siwei, Shenzhen Zeyi, and Mr. Wu Yongming, the current CEO of Alibaba, among others.</li>
<li>IPO valuation multiples appear justified given the company’s top-line growth of 30%+ and full-stack in-house R&amp;D capabilities.</li>
</ul>


Minieye Technology, a fast-growing provider of intelligent driving and cabin solutions in China, will price its IPO this week.
The company was backed by CICC Capital, Beijing Siwei, Shenzhen Zeyi, and Mr. Wu Yongming, the current CEO of Alibaba, among others.
IPO valuation multiples appear justified given the company’s top-line growth of 30%+ and full-stack in-house R&amp;D capabilities.


Minieye Technology IPO: Valuation Multiples Appear Justified Given Top-Line Growth of 30%+

<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 rankings of potential ADDs and potential DELs for the March 2025 index rebal event.</li>
<li>Based on the latest available data, we see four ADDs and four DELs for HSIII in March 2025.</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 rankings of potential ADDs and potential DELs for the March 2025 index rebal event.
Based on the latest available data, we see four ADDs and four DELs for HSIII in March 2025.


Quiddity Leaderboard Hang Seng Internet & IT March 25: 4 Changes Likely, Some Names Have High Impact

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Event-Driven

<ul>
<li>In this insight, we present the flows to buy and sell for each of the top 6 Hang Seng Index Family indices based on estimated tracking AUM.</li>
<li>The indices: Hang Seng Index (HSI), HS Tech Index (HSTECH), HS China Enterprise Index (HSCEI), HS HK Biotech (HSHKBIO), HS Internet &amp; Infotech (HSIII), and HS Healthcare Index (HSHCI).</li>
<li>By Quiddity calculations based on prices of 29 November's close, there is one-way flow across these six indices of HK$15,894,690,433.49 to trade on 6 December. Roughly speaking.</li>
</ul>


In this insight, we present the flows to buy and sell for each of the top 6 Hang Seng Index Family indices based on estimated tracking AUM.
The indices: Hang Seng Index (HSI), HS Tech Index (HSTECH), HS China Enterprise Index (HSCEI), HS HK Biotech (HSHKBIO), HS Internet &amp; Infotech (HSIII), and HS Healthcare Index (HSHCI).
By Quiddity calculations based on prices of 29 November's close, there is one-way flow across these six indices of HK$15,894,690,433.49 to trade on 6 December. Roughly speaking.


Six Hang Seng Index Family Indices: Flows for Dec 6 Rebal

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/midea-group-co-ltd" target="_blank" data-smartkarma-citation="entities:43993:1" rel="noopener">Midea Group (300 HK)</a> and <a href="https://www.smartkarma.com/entities/black-sesame-international-holding-limited" target="_blank" data-smartkarma-citation="entities:39894:1" rel="noopener">Black Sesame International Holding (2533 HK)</a> will be added to the Hang Seng Composite Index (HSCI) after the close on 6 December.</li>
<li>
<a href="https://www.smartkarma.com/entities/midea-group-co-ltd" target="_blank" data-smartkarma-citation="entities:43993:1" rel="noopener">Midea Group (300 HK)</a> is already in Southbound Stock Connect while <a href="https://www.smartkarma.com/entities/black-sesame-international-holding-limited" target="_blank" data-smartkarma-citation="entities:39894:1" rel="noopener">Black Sesame International Holding (2533 HK)</a> will be added from the open on 9 December.</li>
<li>There is a huge lock-up expiry for <a href="https://www.smartkarma.com/entities/black-sesame-international-holding-limited" target="_blank" data-smartkarma-citation="entities:39894:1" rel="noopener">Black Sesame International Holding (2533 HK)</a> in February while the lock-up for <a href="https://www.smartkarma.com/entities/midea-group-co-ltd" target="_blank" data-smartkarma-citation="entities:43993:1" rel="noopener">Midea Group (300 HK)</a> cornerstone investors ends in March.</li>
</ul>



Midea Group (300 HK) and Black Sesame International Holding (2533 HK) will be added to the Hang Seng Composite Index (HSCI) after the close on 6 December.

Midea Group (300 HK) is already in Southbound Stock Connect while Black Sesame International Holding (2533 HK) will be added from the open on 9 December.
There is a huge lock-up expiry for Black Sesame International Holding (2533 HK) in February while the lock-up for Midea Group (300 HK) cornerstone investors ends in March.


HSCI Index Rebalance: Midea (300 HK) And Black Sesame (2533 HK) Added

China

Black Sesame International Holding Limited is a semiconductor company that provides automotive-grade computing System-on-Chips (SoC) and SoC-based intelligent vehicle solutions. Its product portfolio includes the Huashan series for autonomous driving and the Wudang series for cross-domain computing platforms, alongside supporting software and IP licensing. The company was founded in 2016 and is headquartered in Wuhan, China.

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Black Sesame International (2533 HK)

Quiddity Leaderboard Hang Seng Internet & IT March 25: 4 Changes Likely; Some Names Have High-Impact

Expected ADDs SUNeVision and Black Sesame have 8.5x ADV and 3x ADV to buy respectively. Expected DELs Huitongda and Ming Yuan Cloud have 5.1x and...

Janaghan Jeyakumar, CFA

Minieye Technology IPO: Valuation Multiples Appear Justified Given Top-Line Growth of 30%+

Minieye Technology, a rapidly growing provider of intelligent driving and cabin solutions in China, is expected to IPO this week. I examine a...

Andrei Zakharov

Quiddity Leaderboard Hang Seng Internet & IT March 25: 4 Changes Likely, Some Names Have High Impact

There could be 6x+ ADV of index buying for the top two expected inflow names. Some outflow names also could have decent impact. Estimated one-way...

Janaghan Jeyakumar, CFA

Six Hang Seng Index Family Indices: Flows for Dec 6 Rebal

6 Major Hang Seng Index family indices have a total of just over US$2bn a side to trade next Friday at the close. There will be capping updates...

Travis Lundy

HSCI Index Rebalance: Midea (300 HK) And Black Sesame (2533 HK) Added

Midea Group and Black Sesame will be added to the HSCI after the close on 6 December. Midea has also been added to the HSTECH Index. Black Sesame...

Brian Freitas

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