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>As expected, <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a> will be added to the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng TECH Index (HSTECH INDEX)</a> in June following the launch of God's Eye, its Advanced Driver-Assistance System (ADAS).</li>
<li>
<a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a>'s inclusion results in <a href="https://www.smartkarma.com/entities/china-literature-ltd" target="_blank" data-smartkarma-citation="entities:24388:1" rel="noopener">China Literature (772 HK)</a> being deleted from the index. <a href="https://www.smartkarma.com/entities/china-literature-ltd" target="_blank" data-smartkarma-citation="entities:24388:1" rel="noopener">China Literature</a> stock should drop over the near-term.</li>
<li>Estimated one-way turnover at the rebalance is 13% resulting in a round-trip trade of HK$46.5bn (US$5.95bn). There are 16 stocks that have at least 1x ADV to trade from passives.</li>
</ul>


As expected, BYD (1211 HK) will be added to the Hang Seng TECH Index (HSTECH INDEX) in June following the launch of God's Eye, its Advanced Driver-Assistance System (ADAS).

BYD (1211 HK)'s inclusion results in China Literature (772 HK) being deleted from the index. China Literature stock should drop over the near-term.
Estimated one-way turnover at the rebalance is 13% resulting in a round-trip trade of HK$46.5bn (US$5.95bn). There are 16 stocks that have at least 1x ADV to trade from passives.


HSTECH Index Rebalance: BYD (1211 HK) To Replace China Literature (772 HK) As Trade Hits US$6bn

Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>Over the past five trading days, <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a> multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.</li>
<li>
Popular Strategies: Call/Put Spreads account for 88% of all strategies, with a bias towards bearish views.</li>
<li>
Lottery Trades: a recent trend, observed in other stocks as well, manifests itself in <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a>. A lotter trade bets on a low probability event with a high payout. </li>
</ul>


Over the past five trading days, BYD (1211 HK) multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.

Popular Strategies: Call/Put Spreads account for 88% of all strategies, with a bias towards bearish views.

Lottery Trades: a recent trend, observed in other stocks as well, manifests itself in BYD (1211 HK). A lotter trade bets on a low probability event with a high payout. 


BYD (1211 HK): Top Trades Reflect Bearish Bias in HKEX Options Trading Strategies

<ul>
<li>
Implied Volatility Trends: One-month implied volatility for <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a> has decreased but remains high at 48% (80th percentile), reflecting persistent market uncertainty.</li>
<li>
Skew and Term Structure Dynamics: The volatility term structure is slightly inverted, and a pronounced smile in the skew favors call and put spreads.</li>
<li>
Open Interest Distribution: Liquidity is concentrated in May, June, and December 2025 expiries, with a slight bias towards puts. Open interest peaking at out-of-the-money strikes for both calls and puts.</li>
</ul>



Implied Volatility Trends: One-month implied volatility for BYD (1211 HK) has decreased but remains high at 48% (80th percentile), reflecting persistent market uncertainty.

Skew and Term Structure Dynamics: The volatility term structure is slightly inverted, and a pronounced smile in the skew favors call and put spreads.

Open Interest Distribution: Liquidity is concentrated in May, June, and December 2025 expiries, with a slight bias towards puts. Open interest peaking at out-of-the-money strikes for both calls and puts.


BYD (1211 HK): Volatility Smile Signals Opportunity in Spreads

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Bottom-Up

<ul>
<li>In 1Q25, BYD’s revenue increased by 36% YoY and sales volume increased by 60% YoY.</li>
<li>We believe BYD’s scale advantage will help cashflow and the competition in the coming market concentration.</li>
<li>The P/E band suggests an upside of 59% for the end of 2025.</li>
</ul>


In 1Q25, BYD’s revenue increased by 36% YoY and sales volume increased by 60% YoY.
We believe BYD’s scale advantage will help cashflow and the competition in the coming market concentration.
The P/E band suggests an upside of 59% for the end of 2025.


BYD (1211 HK): Rev up by 36% in 1Q25, Scale to Bring 60% Upside

Quantitative Researcher, MRM Research

Nico Rosti

Quantitative Researcher

MRM Research

Quantitative Research

<ul>
<li>
<a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a> will release its Q1 2025 results on April 25. The company has issued a positive profit alert, projecting net income around RMB 8.5 - 10 billion.</li>
<li>Expected earnings per share ranging from RMB 2.91 to RMB 3.42, up from RMB 1.57 in the same period last year.</li>
<li>
Our model currently does not indicate the stock is overbought, but a surprise pullback is always possible around earnings releases, so we will discuss also support/buy zones.</li>
</ul>



BYD (1211 HK) will release its Q1 2025 results on April 25. The company has issued a positive profit alert, projecting net income around RMB 8.5 - 10 billion.
Expected earnings per share ranging from RMB 2.91 to RMB 3.42, up from RMB 1.57 in the same period last year.

Our model currently does not indicate the stock is overbought, but a surprise pullback is always possible around earnings releases, so we will discuss also support/buy zones.


BYD (1211 HK) Positioning Ahead of Q1 2025 Results

China

BYD Company Limited, through its subsidiaries, manufactures and sells automobiles. The Company also researches, develops, manufactures and sells batteries, which are applied on mobile phones, cordless phones, power tools and other kinds of portable electronic devices.

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BYD (1211 HK)

HSTECH Index Rebalance: BYD (1211 HK) To Replace China Literature (772 HK) As Trade Hits US$6bn

In a change that was not widely forecast, BYD will replace China Literature in the index. That change plus large FAF changes set off a huge trade....

Brian Freitas

BYD (1211 HK): Top Trades Reflect Bearish Bias in HKEX Options Trading Strategies

BYD (1211 HK) option strategies show focus on bearish views with Put Spreads dominating. Lottery Trades gain popularity for low probability, high...

Gaudenz Schneider

BYD (1211 HK): Volatility Smile Signals Opportunity in Spreads

Implied volatility for BYD (1211 HK) remains high at 48%, skew favors call and put spreads, and open interest is concentrated in specific expiries...

Gaudenz Schneider

BYD (1211 HK): Rev up by 36% in 1Q25, Scale to Bring 60% Upside

In 1Q25, BYD’s revenue increased by 36% YoY and sales volume increased by 60% YoY. We believe BYD’s scale advantage will help cashflow and the...

Ming Lu

BYD (1211 HK) Positioning Ahead of Q1 2025 Results

BYD (1211 HK) is about to release Q1 2025 results on April 25. Expected results are projected to be good, the stock is not overbought according to...

Nico Rosti

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HSTECH Index Rebalance: BYD (1211 HK) To Replace China Literature (772 HK) As Trade Hits US$6bn

In a change that was not widely forecast, BYD will replace China Literature in the index. That change plus large FAF changes set off a huge trade....

Brian Freitas

BYD (1211 HK): Top Trades Reflect Bearish Bias in HKEX Options Trading Strategies

​BYD (1211 HK) option strategies show focus on bearish views with Put Spreads dominating. Lottery Trades gain popularity for low probability, high...

Gaudenz Schneider

BYD (1211 HK): Volatility Smile Signals Opportunity in Spreads

​Implied volatility for BYD (1211 HK) remains high at 48%, skew favors call and put spreads, and open interest is concentrated in specific expiries...

Gaudenz Schneider

BYD (1211 HK): Rev up by 36% in 1Q25, Scale to Bring 60% Upside

In 1Q25, BYD’s revenue increased by 36% YoY and sales volume increased by 60% YoY. We believe BYD’s scale advantage will help cashflow and the...

Ming Lu

BYD (1211 HK) Positioning Ahead of Q1 2025 Results

​BYD (1211 HK) is about to release Q1 2025 results on April 25. Expected results are projected to be good, the stock is not overbought according to...

Nico Rosti

BYD (1211 HK) option strategies show focus on bearish views with Put Spreads dominating. Lottery Trades gain popularity for low probability, high...

Implied volatility for BYD (1211 HK) remains high at 48%, skew favors call and put spreads, and open interest is concentrated in specific expiries...

BYD (1211 HK) is about to release Q1 2025 results on April 25. Expected results are projected to be good, the stock is not overbought according to...