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

China Northern Rare Earth Group High-Tech / Index Rebalance

China Northern Rare Earth Group High-Tech

<ul>
<li>With the review period complete, there are 6 non-constituents in direct inclusion zone and 4 current constituents in direct deletion zone. However, as usual, there will be discretion used.</li>
<li>4 changes result in a one-way turnover of 4%, leading to a round-trip trade of CNY 17bn (US$2.4bn). Index arb balances will increase the impact on the stocks.</li>
<li>The index committee has used discretion in selecting the index adds and deletes and that could continue to be the case at this review too.</li>
</ul>


With the review period complete, there are 6 non-constituents in direct inclusion zone and 4 current constituents in direct deletion zone. However, as usual, there will be discretion used.
4 changes result in a one-way turnover of 4%, leading to a round-trip trade of CNY 17bn (US$2.4bn). Index arb balances will increase the impact on the stocks.
The index committee has used discretion in selecting the index adds and deletes and that could continue to be the case at this review too.


SSE50 Index Rebalance Preview: 4 Potential Changes in December

Global Materials | Industrials | Commodities

Rahul Jain

Equity Bottom-Up

China Northern Rare Earth Group High-Tech / Equity Bottom-Up

<ul>
<li>CNRE (600111.SH) posted record H1 FY25 profits with strong production and margin gains.</li>
<li>The company is ramping alloy, magnet, and separation capacity into 2026 to lift downstream integration.</li>
<li>Shares have surged over 200% in 12 months, leaving valuations stretched and bubble-like.</li>
</ul>


CNRE (600111.SH) posted record H1 FY25 profits with strong production and margin gains.
The company is ramping alloy, magnet, and separation capacity into 2026 to lift downstream integration.
Shares have surged over 200% in 12 months, leaving valuations stretched and bubble-like.


CNRE (600111.SH) – H1 FY25 Beat, Downstream Expansion; Valuations Look Stretched

<ul>
<li>China Northern Rare Earth issued a mid-year earnings guidance of ¥900–960 million for H1 FY2025, marking a 1,900%+ YoY increase and reflecting strong volume recovery and operational leverage.</li>
<li>The company is on track to meet our full-year net profit estimate of ¥2.33 billion and EPS of ¥0.65, assuming a seasonally stronger H2.</li>
<li>Key risks include ongoing export restrictions, global supply chain diversification efforts, and downstream demand volatility, while long-term plans remain aligned with China’s rare earth consolidation and value-added material strategy.</li>
</ul>


China Northern Rare Earth issued a mid-year earnings guidance of ¥900–960 million for H1 FY2025, marking a 1,900%+ YoY increase and reflecting strong volume recovery and operational leverage.
The company is on track to meet our full-year net profit estimate of ¥2.33 billion and EPS of ¥0.65, assuming a seasonally stronger H2.
Key risks include ongoing export restrictions, global supply chain diversification efforts, and downstream demand volatility, while long-term plans remain aligned with China’s rare earth consolidation and value-added material strategy.


China Northern Rare Earth (600111.SH): Strong H1 Guidance Supports Full-Year Outlook

<ul>
<li>CNRE posted a 727% YoY net profit surge in Q1 2025, driven by rising PrNd prices and strong volume growth, earnings momentum could continue amid recovering demand and operational leverage.</li>
<li>With exclusive access to the Bayan Obo mine—holding the world’s largest REE reserves—CNRE commands a near-monopoly in China’s rare earth supply chain.</li>
<li>Its dominant 70% share of national separation quotas ensures structural pricing power and long-term resource security.</li>
</ul>


CNRE posted a 727% YoY net profit surge in Q1 2025, driven by rising PrNd prices and strong volume growth, earnings momentum could continue amid recovering demand and operational leverage.
With exclusive access to the Bayan Obo mine—holding the world’s largest REE reserves—CNRE commands a near-monopoly in China’s rare earth supply chain.
Its dominant 70% share of national separation quotas ensures structural pricing power and long-term resource security.


China Northern Rare Earth (Ticker: 600111.SH): Dominant Force Riding REE Upswing

Dawning Information Industry C / Index Rebalance

<ul>
<li>There are 4 constituent changes for the <a href="https://www.smartkarma.com/entities/shanghai-stock-exchange-sse-50-a-share-index" target="_blank" data-smartkarma-citation="entities:31073:1" rel="noopener">SSE50 Index (SSE50 INDEX)</a> that will be implemented at the close on 12 December.</li>
<li>
<a href="https://www.smartkarma.com/entities/dawning-information-industry-c" target="_blank" data-smartkarma-citation="entities:25380:1" rel="noopener">Dawning Information Industry C (603019 CH)</a> is a surprise add given the upcoming merger with <a href="https://www.smartkarma.com/entities/hygon-information-technology-c" target="_blank" data-smartkarma-citation="entities:36366:1" rel="noopener">Hygon Information Technology C (688041 CH)</a>. </li>
<li>The <a href="https://www.smartkarma.com/entities/shanghai-stock-exchange-sse-50-a-share-index" target="_blank" data-smartkarma-citation="entities:31073:1" rel="noopener">SSE50 Index</a> adds have underperformed the deletes over the last couple of months and there could be outperformance from here as positioning builds ahead of the implementation of the changes.</li>
</ul>


There are 4 constituent changes for the SSE50 Index (SSE50 INDEX) that will be implemented at the close on 12 December.

Dawning Information Industry C (603019 CH) is a surprise add given the upcoming merger with Hygon Information Technology C (688041 CH). 
The SSE50 Index adds have underperformed the deletes over the last couple of months and there could be outperformance from here as positioning builds ahead of the implementation of the changes.


SSE50 Index Rebalance: 4 Changes a Side & US$2.2bn Trade

China

China Northern Rare Earth Group High-Tech Co. Ltd. is the consolidation of mining, smelting, separation and utilization companies in the northern region of Inner Mongolia.

China Northern Rare Earth Group High-Tech (600111 CH)

Price Gauge
52-week Range	0.00 - 0.00
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China Northern Rare Earth Group High-Tech (600111 CH)

SSE50 Index Rebalance Preview: 4 Potential Changes in December

There could be 4 changes for the index in Dec. The index committee has used discretion in the past and that is likely to continue. One-way turnover...

Brian Freitas

CNRE (600111.SH) – H1 FY25 Beat, Downstream Expansion; Valuations Look Stretched

CNRE (600111.SH) achieved record profits in H1 FY25 due to production and margin gains.However, shares have surged over 200% in the past year,...

Rahul Jain

China Northern Rare Earth (600111.SH): Strong H1 Guidance Supports Full-Year Outlook

CNREG’s stock has rallied sharply—gauging nearly 80% from ¥27 to ¥48—in the past month, driven by a staggering 1,900–2,000% year-on-year surge in...

Rahul Jain

China Northern Rare Earth (Ticker: 600111.SH): Dominant Force Riding REE Upswing

Prices surge: In April 2025, China curbed rare earth exports, citing environmental and strategic concerns. Prices of dysprosium and terbium jumped...

Rahul Jain

SSE50 Index Rebalance: 4 Changes a Side & US$2.2bn Trade

There are 4 changes for the SSE50 Index in Dec. Dawning is the surprise addition and could move closer to the merger ratio implied price. Estimated...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

SSE50 Index Rebalance Preview: 4 Potential Changes in December

There could be 4 changes for the index in Dec. The index committee has used discretion in the past and that is likely to continue. One-way turnover...

Brian Freitas

CNRE (600111.SH) – H1 FY25 Beat, Downstream Expansion; Valuations Look Stretched

​CNRE (600111.SH) achieved record profits in H1 FY25 due to production and margin gains.However, shares have surged over 200% in the past year,...

Rahul Jain

China Northern Rare Earth (600111.SH): Strong H1 Guidance Supports Full-Year Outlook

CNREG’s stock has rallied sharply—gauging nearly 80% from ¥27 to ¥48—in the past month, driven by a staggering 1,900–2,000% year-on-year surge in...

Rahul Jain

China Northern Rare Earth (Ticker: 600111.SH): Dominant Force Riding REE Upswing

Prices surge: In April 2025, China curbed rare earth exports, citing environmental and strategic concerns. Prices of dysprosium and terbium jumped...

Rahul Jain

SSE50 Index Rebalance: 4 Changes a Side & US$2.2bn Trade

There are 4 changes for the SSE50 Index in Dec. Dawning is the surprise addition and could move closer to the merger ratio implied price. Estimated...

Brian Freitas

CNRE (600111.SH) achieved record profits in H1 FY25 due to production and margin gains.However, shares have surged over 200% in the past year,...