Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

In this weeks recap, we look at:<ul>
<li>the <a href="https://www.smartkarma.com/entities/santos-ltd" target="_blank" data-smartkarma-citation="entities:711:1" rel="noopener">Santos Ltd (STO AU)</a> / <a href="https://www.smartkarma.com/entities/oil-search-ltd" target="_blank" data-smartkarma-citation="entities:773:1" rel="noopener">Oil Search Ltd (OSH AU)</a> merger and the impact on the S&amp;P/ASX 100 and <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a> </li>
<li>the spread on the <a href="https://www.smartkarma.com/entities/keppel-corp-ltd" target="_blank" data-smartkarma-citation="entities:12:1" rel="noopener">Keppel Corp (KEP SP)</a> / <a href="https://www.smartkarma.com/entities/singapore-press-holdings-limited" target="_blank" data-smartkarma-citation="entities:9952:1" rel="noopener">Singapore Press Holdings (SPH SP)</a> deal and potential index flows</li>
<li>the listing of <a href="https://www.smartkarma.com/entities/hyundai-heavy-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:33808:1" rel="noopener">Hyundai Heavy Industries (329180 KS)</a> and the potential Fast Entry into the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> </li>
<li>the potential changes to the <a href="https://www.smartkarma.com/entities/stock-exchange-of-thailand-set-50-index" target="_blank" data-smartkarma-citation="entities:31493:1" rel="noopener">Stock Exchange of Thailand SET 50 Index (SET50 INDEX)</a> at the December rebalance</li>
<li>the potential changes 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> at the December rebalance</li>
<li>the potential changes to the Hang Seng Composite Index (HSCI) at the December and March rebalances</li>
</ul>There are no major index events in the coming week - there were enough in the last week!There were substantial inflows to onshore China ETFs in the last week, while there was finally an outflow (albeit a small one) from <a href="https://www.smartkarma.com/entities/kraneshares-csi-china-internet-fund" target="_blank" data-smartkarma-citation="entities:28208:1" rel="noopener">KraneShares CSI China Internet Fund (KWEB US)</a>.

In this weeks recap, we look at:
the Santos Ltd (STO AU) / Oil Search Ltd (OSH AU) merger and the impact on the S&amp;P/ASX 100 and S&amp;P/ASX 200 (AS51 INDEX) 
the spread on the Keppel Corp (KEP SP) / Singapore Press Holdings (SPH SP) deal and potential index flows
the listing of Hyundai Heavy Industries (329180 KS) and the potential Fast Entry into the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) 
the potential changes to the Stock Exchange of Thailand SET 50 Index (SET50 INDEX) at the December rebalance
the potential changes to the Hang Seng Tech Index (HSTECH INDEX) at the December rebalance
the potential changes to the Hang Seng Composite Index (HSCI) at the December and March rebalances
There are no major index events in the coming week - there were enough in the last week!There were substantial inflows to onshore China ETFs in the last week, while there was finally an outflow (albeit a small one) from KraneShares CSI China Internet Fund (KWEB US). 

Index Rebalance & ETF Flow Recap: STO/OSH, KEP/SPH, HHI, SET50, HSTECH, HSCI

Orient Overseas (International) / Index Rebalance

Hang Seng Indexes Company (HSIL) reviews the constituents of the Hang Seng Composite Index (HSCI) on a half yearly basis in March and September with data cut-off dates as of the end of December and June.The December review will see the inclusion of stocks that were newly listed from 1 July to 30 September and meet the criteria for joining the index.We expect <a href="https://www.smartkarma.com/entities/brii-biosciences" target="_blank" data-smartkarma-citation="entities:33014:1" rel="noopener">Brii Biosciences (2137 HK)</a>, <a href="https://www.smartkarma.com/entities/helen-s-international-holdings" target="_blank" data-smartkarma-citation="entities:34113:1" rel="noopener">Helen's International Holdings (9869 HK)</a>, <a href="https://www.smartkarma.com/entities/medlive-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:32985:1" rel="noopener">Medlive Technology (2192 HK)</a>, <a href="https://www.smartkarma.com/entities/keymed-biosciences-inc" target="_blank" data-smartkarma-citation="entities:33011:1" rel="noopener">Keymed Biosciences Inc (2162 HK)</a> and <a href="https://www.smartkarma.com/entities/sce-intelligent-commercial-management" target="_blank" data-smartkarma-citation="entities:33500:1" rel="noopener">SCE Intelligent Commercial Management (606 HK)</a> to be included in the index at the close of trading on 3 December.For the regular rebalance in March 2022, we see 17 potential inclusions to the index and 4 potential deletions. There are 4 stocks that are close adds and 5 that are close deletes.<div>Although there are no assets indexed to the HSCI, the index forms the basis of stocks that are eligible for Southbound Stock Connect. Stocks that are included in the HSCI and subsequently included in the Stock Connect program get inflows from mainland investors. There is pre-positioning in the stocks in the lead up to the announcement and prior to the stocks being open for purchase by mainland investors.</div>

Hang Seng Indexes Company (HSIL) reviews the constituents of the Hang Seng Composite Index (HSCI) on a half yearly basis in March and September with data cut-off dates as of the end of December and June.The December review will see the inclusion of stocks that were newly listed from 1 July to 30 September and meet the criteria for joining the index.We expect Brii Biosciences (2137 HK), Helen's International Holdings (9869 HK), Medlive Technology (2192 HK), Keymed Biosciences Inc (2162 HK) and SCE Intelligent Commercial Management (606 HK) to be included in the index at the close of trading on 3 December.For the regular rebalance in March 2022, we see 17 potential inclusions to the index and 4 potential deletions. There are 4 stocks that are close adds and 5 that are close deletes.Although there are no assets indexed to the HSCI, the index forms the basis of stocks that are eligible for Southbound Stock Connect. Stocks that are included in the HSCI and subsequently included in the Stock Connect program get inflows from mainland investors. There is pre-positioning in the stocks in the lead up to the announcement and prior to the stocks being open for purchase by mainland investors.

HSCI Index Rebalance and Stock Connect: Potential Changes in December and March

Partner

Patrick Eng

Sparkill & Co

Equity Bottom-Up

China Gold International Resources Corp Ltd. / Equity Bottom-Up

China Gold International Resources Corp Ltd. (CGG CN)

China Gold International Resources Corp Ltd.

Is China Gold An Outlier During The Pandemic?China Gold International Resources Corp Ltd. (“CGI” or “Company”) has been one of our most interesting investments. We shared our investment thesis in June of 2020 when the stock was trading at C$.50. Today it CGI closed at C$2.57. This approximate 5x return on capital is occurring in an environment where gold prices have been volatile and production has been challenged due to COVID-19 restrictions.  May be Reddit and WallStreetbets is buying CGI? J

Is China Gold An Outlier During The Pandemic?China Gold International Resources Corp Ltd. (“CGI” or “Company”) has been one of our most interesting investments. We shared our investment thesis in June of 2020 when the stock was trading at C$.50. Today it CGI closed at C$2.57. This approximate 5x return on capital is occurring in an environment where gold prices have been volatile and production has been challenged due to COVID-19 restrictions.  May be Reddit and WallStreetbets is buying CGI? J 

China Gold International Resources / Equity Bottom-Up

China Gold International Resources (2099 HK)

Will The Covid Vaccine Unprecedented Scientific Achievement  “JOLT” Wear Off? When It Does, What Will Gold Do?Coronavirus testing, quarantining, mask-wearing, and social distancing has proved to be a tremendous challenge globally. Imagine the challenges of manufacturing, distributing, and then getting the vaccine into people’s arms, not once but potentially twice. If Alibaba, JD, &amp; Amazon have logistics challenges, why should governments and vaccine players be any different? The biggest logistical challenge in history is ahead of us.Press releases by the vaccine manufacturers amplified by the media and politicians have coincided with the so-called correction in gold prices.  If gold is still considered a “fear” investment or a hedge, then one should reconsider or invert the optimistic vaccine news.

Will The Covid Vaccine Unprecedented Scientific Achievement  “JOLT” Wear Off? When It Does, What Will Gold Do?Coronavirus testing, quarantining, mask-wearing, and social distancing has proved to be a tremendous challenge globally. Imagine the challenges of manufacturing, distributing, and then getting the vaccine into people’s arms, not once but potentially twice. If Alibaba, JD, &amp; Amazon have logistics challenges, why should governments and vaccine players be any different? The biggest logistical challenge in history is ahead of us.Press releases by the vaccine manufacturers amplified by the media and politicians have coincided with the so-called correction in gold prices.  If gold is still considered a “fear” investment or a hedge, then one should reconsider or invert the optimistic vaccine news.  

China Gold International – COVID Logistical Challenges - Catalysts For Gold

1) Will Dr. Copper’s Price Increase?2) James Bond 007 Asset That’s Hard To Find…Maybe Valuable Or Not?3) An SOE Partnership Waiting For The Market To Understand Their “Value” Creation?This is Chapter E. If curious, please see A-D below:A) <a href="https://www.smartkarma.com/insights/china-gold-international-china-s-love-of-gold-3-5x-return-on-capital" target="_blank" data-smartkarma-citation="insights:40171" rel="noopener">China Gold International - China’s Love of Gold – 3-5X Return on Capital</a> B) <a href="https://www.smartkarma.com/insights/power-of-the-parent-child-relationship-china-gold-international-china-national-gold-group" target="_blank" data-smartkarma-citation="insights:41103" rel="noopener">Power of the Parent/Child Relationship - China Gold International &amp; China National Gold Group</a> C) <a href="https://www.smartkarma.com/insights/china-the-golden-dragon-gold-glittering-demand" target="_blank" data-smartkarma-citation="insights:42027" rel="noopener">China - The Golden Dragon: Gold &amp; "Glittering" Demand</a> D) <a href="https://www.smartkarma.com/insights/china-gold-international-330-return-52-week-high-let-it-ride-or-not" target="_blank" data-smartkarma-citation="insights:43013" rel="noopener">China Gold International - &gt;330% Return, 52 Week High – Let It Ride? Or Not?</a>

1) Will Dr. Copper’s Price Increase?2) James Bond 007 Asset That’s Hard To Find…Maybe Valuable Or Not?3) An SOE Partnership Waiting For The Market To Understand Their “Value” Creation?This is Chapter E. If curious, please see A-D below:A) China Gold International - China’s Love of Gold – 3-5X Return on Capital B) Power of the Parent/Child Relationship - China Gold International &amp; China National Gold Group C) China - The Golden Dragon: Gold &amp; "Glittering" Demand D) China Gold International - &gt;330% Return, 52 Week High – Let It Ride? Or Not? 

China Gold International: James Bond Discovers Dr. Copper -  “Super Material”

Canada

China Gold International Resources Corp Ltd. is a mining company focused on the exploration and development of gold projects in inner Mongolia and copper projects in Tibet Autonomous Region of China.

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China Gold International Resources Corp Ltd. (CGG CN)

Index Rebalance & ETF Flow Recap: STO/OSH, KEP/SPH, HHI, SET50, HSTECH, HSCI

This recap highlights Insights covering the index rebalance space in Asia as well as announcements that could result in index changes. We also look...

Brian Freitas

HSCI Index Rebalance and Stock Connect: Potential Changes in December and March

There could be 5 adds to the HSCI in December. In March, there could be 17 adds and 4 deletes. There will be pre-positioning on the inclusions...

Brian Freitas

China Gold: Keeps on “Glittering”

China Gold – The Gift That Keeps on “Glittering!" Is China Gold An Outlier During The Pandemic? When will investors start digging for gold with China?

Patrick Eng

China Gold International – COVID Logistical Challenges - Catalysts For Gold

The Covid Vaccine has been a caffeine jolt to the market while causing gold to sell-off. Such astonishment will wear off and the logistical...

Patrick Eng

China Gold International: James Bond Discovers Dr. Copper - “Super Material”

Will Dr. Copper’s Price Increase? James Bond 007 Asset That’s Hard To Find…Maybe Valuable Or Not?

Patrick Eng

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