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 Huarong Asset Management / Index Rebalance

<ul>
<li>We see seven new listings as potential inclusions to the HSCI in June. One is already a part of Connect while five will be added to Southbound Stock Connect.</li>
<li>We see 19 potential changes to the HSCI in September. Seven of the deletions are on market cap, four on liquidity, and eight due to prolonged trading suspension.</li>
<li>Some of the potential deletions have large Southbound holdings and some of these could be trimmed over the next couple of months.</li>
</ul>


We see seven new listings as potential inclusions to the HSCI in June. One is already a part of Connect while five will be added to Southbound Stock Connect.
We see 19 potential changes to the HSCI in September. Seven of the deletions are on market cap, four on liquidity, and eight due to prolonged trading suspension.
Some of the potential deletions have large Southbound holdings and some of these could be trimmed over the next couple of months.


HSCI Index Rebalance and Stock Connect: Potential Changes in June and September

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>The Government Work Report as revealed in the NPC has put increased emphasis on the agricultural sector and heightened the need to support the industry in the 2022 Work Plan.</li>
<li>
<a href="https://www.smartkarma.com/entities/first-tractor-co-ltd" target="_blank" data-smartkarma-citation="entities:24643:1" rel="noopener">First Tractor (601038 CH)</a> is a potential beneficiary as the government strives to increase the farmland area, improve well-being of farmers and upgrade agricultural machinery and equipment. </li>
<li>Russia-Ukraine war has caused a surge in fertiliser prices, and <a href="https://www.smartkarma.com/entities/china-bluechemical-ltd-h" target="_blank" data-smartkarma-citation="entities:894:1" rel="noopener">China Bluechemical H (3983 HK)</a>, <a href="https://www.smartkarma.com/entities/sinofert-holdings-ltd" target="_blank" data-smartkarma-citation="entities:893:1" rel="noopener">Sinofert (297 HK)</a> and <a href="https://www.smartkarma.com/entities/china-xlx-fertiliser-ltd" target="_blank" data-smartkarma-citation="entities:5679:1" rel="noopener">China Xlx Fertiliser (1866 HK)</a> may benefit in the near term. </li>
</ul>


The Government Work Report as revealed in the NPC has put increased emphasis on the agricultural sector and heightened the need to support the industry in the 2022 Work Plan.

First Tractor (601038 CH) is a potential beneficiary as the government strives to increase the farmland area, improve well-being of farmers and upgrade agricultural machinery and equipment. 
Russia-Ukraine war has caused a surge in fertiliser prices, and China Bluechemical H (3983 HK), Sinofert (297 HK) and China Xlx Fertiliser (1866 HK) may benefit in the near term. 


China Agricultural Sector: Implications of NPC and Russia-Ukraine War

China

China XLX Fertiliser Ltd. manufactures urea and compound fertilizer from coal. The Company is mainly involved in the production and sale of urea, compound fertiliser, methanol, liquefied ammonia and ammonia solution.

Price Gauge
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China Xlx Fertiliser (1866 HK)

HSCI Index Rebalance and Stock Connect: Potential Changes in June and September

We forecast 7 adds to the HSCI in June. For the September rebalance, we forecast 19 adds & 19 deletes (7 on mkt cap, 4 on liquidity, 8 on long...

Brian Freitas

China Agricultural Sector: Implications of NPC and Russia-Ukraine War

NPC reveals support for better well-being of farmers and upgrade of agricultural equipment, while the Russia-Ukraine war have escalated prices of...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)