Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

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>We expect one index change in December 2025 translating to capping flows of US$530mn one-way.</li>
<li>We also expect seven index changes for the next semiannual index review which will take place in March 2026.</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).
We expect one index change in December 2025 translating to capping flows of US$530mn one-way.
We also expect seven index changes for the next semiannual index review which will take place in March 2026.


Quiddity Leaderboard HSIII Dec25/Mar26: One Change for Dec25; New Expected ADD/DELs for Mar26

<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 December 2025 index capping flows.</li>
<li>We have also presented our index change expectations for the next semiannual index review which will take place in March 2026.</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 December 2025 index capping flows.
We have also presented our index change expectations for the next semiannual index review which will take place in March 2026.


Quiddity Leaderboard HSIII Dec25/Mar26: Expected ADDs Strongly Outperforming Expected DELs

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of June 20th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for CCB, Meituan, CMB, China Life, Ke, Tencent, Alibaba, Xiaomi, CNOOC, HKEx.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of June 20th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for CCB, Meituan, CMB, China Life, Ke, Tencent, Alibaba, Xiaomi, CNOOC, HKEx.


HK Connect Flows Weekly (Jun 20th): CCB, Meituan, CMB, China Life, Ke, Tencent, Alibaba, Xiaomi

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>There are 5 constituent changes for the CSI Hong Kong Connect Internet Index in June. Plus there are capping changes for some stocks.</li>
<li>A lot of the adds have moved significantly in the last couple of days, so the impact over the next couple of days will be smaller.</li>
<li>There could be opportunities to trade the reversion strategy. Getting borrow may not be easy on some names.</li>
</ul>


There are 5 constituent changes for the CSI Hong Kong Connect Internet Index in June. Plus there are capping changes for some stocks.
A lot of the adds have moved significantly in the last couple of days, so the impact over the next couple of days will be smaller.
There could be opportunities to trade the reversion strategy. Getting borrow may not be easy on some names.


CSI Hong Kong Connect Internet Index Rebalance: 10 Changes & Big Impact

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Equity Bottom-Up

<ul>
<li>Mainland China investors continued to increase their purchases of Hong Kong shares through the southbound connect platform after Trump's win. Mainland investors bought a record HK$800B of HK shares in 2024.</li>
<li>
<a href="https://www.smartkarma.com/entities/weimob-inc" target="_blank" data-smartkarma-citation="entities:27394:1" rel="noopener">Weimob Inc. (2013 HK)</a> announced it is connecting its Weimob mini-programs to Tencent's (700 HK) WeChat mini-shop. This move further integrates the SaaS company into Tencent's ecosystem.
</li>
<li>
<a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a> announced a license agreement with US-based <a href="https://www.smartkarma.com/entities/aadi-bioscience-inc" target="_blank" data-smartkarma-citation="entities:37488:1" rel="noopener">Aadi Bioscience (AADI US)</a>.  Also, Wuxi was not included in the Senate version of the BioSecure legislation improving investor sentiment.
</li>
</ul>


Mainland China investors continued to increase their purchases of Hong Kong shares through the southbound connect platform after Trump's win. Mainland investors bought a record HK$800B of HK shares in 2024.

Weimob Inc. (2013 HK) announced it is connecting its Weimob mini-programs to Tencent's (700 HK) WeChat mini-shop. This move further integrates the SaaS company into Tencent's ecosystem.


Wuxi Biologics (2269 HK) announced a license agreement with US-based Aadi Bioscience (AADI US).  Also, Wuxi was not included in the Senate version of the BioSecure legislation improving investor sentiment.



The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (December 26)

China

Chinasoft International is a global software and information technology services company, providing application development, cloud computing, big data analytics, and business process outsourcing. It offers solutions like the JointPilot platform, HOJI software project management platform, and CloudEasy Series products. The company was founded in 2000 and is headquartered in Hong Kong.

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Chinasoft International (354 HK)

Quiddity Leaderboard HSIII Dec25/Mar26: One Change for Dec25; New Expected ADD/DELs for Mar26

We now see new listings Pony AI (2026 HK), Mininglamp Technology (2718 HK), and Deepexi Technology (1384 HK) to be expected ADDs in March 2026.

Janaghan Jeyakumar, CFA

Quiddity Leaderboard HSIII Dec25/Mar26: Expected ADDs Strongly Outperforming Expected DELs

The March 2026 expected ADDs have been outperforming the expected DELs over the last few weeks and this could continue over the next few weeks.

Janaghan Jeyakumar, CFA

HK Connect Flows Weekly (Jun 20th): CCB, Meituan, CMB, China Life, Ke, Tencent, Alibaba, Xiaomi

We analyzed the Hong Kong Connect Scheme for last week and highlighted flows for CCB, Meituan, CMB, China Life, Ke, Tencent, Alibaba, Xiaomi,...

Ke Yan, CFA, FRM

CSI Hong Kong Connect Internet Index Rebalance: 10 Changes & Big Impact

There are 10 constituent changes in June and the flow and impact is pretty large. The adds have outperformed the deletes bigly over the last 2 days...

Brian Freitas

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (December 26)

Mainland investors are increasing their buying of HK shares after Trump's election win. Mainlanders bought a record HK$800B of shares this year and...

David Mudd

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