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 analyzed the changes in short interest of KRX stocks as of Oct 18th which has an aggregated short interest worth USD5.0bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Samsung Electronics, Sk Hynix, KB Financial, Shinhan Group, Hana Financial.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Oct 18th which has an aggregated short interest worth USD5.0bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Samsung Electronics, Sk Hynix, KB Financial, Shinhan Group, Hana Financial.


KRX Short Interest Weekly (Oct 18th): Samsung Electronics, Sk Hynix, KB Financial, Shinhan Group

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>This block deal has an unusual PSR (price swap return) contract at ₩58,200, the July 10th closing price, likely preventing Netmarble's typical stock price correction today.</li>
<li>In 2022, a similar-sized local PSR transaction involved Doosan Bobcat Inc, with 9.9 million shares and a PSR swap price of ₩37,500.</li>
<li>As for Doosan Bobcat, the stock initially dropped but rebounded near the PSR swap price, prompting local brokerages, focused on PSR fee income, to sell rather than realize capital gains.</li>
</ul>


This block deal has an unusual PSR (price swap return) contract at ₩58,200, the July 10th closing price, likely preventing Netmarble's typical stock price correction today.
In 2022, a similar-sized local PSR transaction involved Doosan Bobcat Inc, with 9.9 million shares and a PSR swap price of ₩37,500.
As for Doosan Bobcat, the stock initially dropped but rebounded near the PSR swap price, prompting local brokerages, focused on PSR fee income, to sell rather than realize capital gains.


Trading Setup Targeting the Netmarble PSR Contract, as Seen in the Case of Doosan Bobcat

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>SK Square announced it will not exercise the call option to repurchase minority stake in 11 Street. This is likely to have a positive impact on the company. </li>
<li>SK Square does not need to pay 500 billion won plus 3.5% annualized interest to the financial investors of 11 Street. This will also accelerate sale of 11 Street.</li>
<li>In addition, SK Square announced the merger of TVing and Wavve OTT services. </li>
</ul>


SK Square announced it will not exercise the call option to repurchase minority stake in 11 Street. This is likely to have a positive impact on the company. 
SK Square does not need to pay 500 billion won plus 3.5% annualized interest to the financial investors of 11 Street. This will also accelerate sale of 11 Street.
In addition, SK Square announced the merger of TVing and Wavve OTT services. 


SK Square: Drag Along Rights To Be Exercised to Sell 11 Street + Merger of TVing and Wavve

Equity Capital Markets

<ul>
<li>This is our 9th "Annual Edition of the Major Korean IPOs Pipeline Preview" at Smartkarma.</li>
<li>This insight will feature 50 of the biggest potential IPOs in Korea in 2024.</li>
<li>These 50 IPOs in Korea are likely to represent more than 80% of all capital raised through IPOs in Korea next year.</li>
</ul>


This is our 9th "Annual Edition of the Major Korean IPOs Pipeline Preview" at Smartkarma.
This insight will feature 50 of the biggest potential IPOs in Korea in 2024.
These 50 IPOs in Korea are likely to represent more than 80% of all capital raised through IPOs in Korea next year.


<ul>
<li>Futures backwardation resulting from the short selling ban will persist. Also, the contraction of market making will lead to more widespread and frequent occurrences of extreme spreads.</li>
<li>The straightforward sell arbitrage (reverse cash and carry) is no longer viable. We must pay attention to the emergence of new price and trading patterns driven by these market conditions.</li>
<li>One potential pattern is the possibility of spot buying centered around those that exhibited extreme spreads at expiration. This has already been observed to some extent in this month's expiration.</li>
</ul>


Futures backwardation resulting from the short selling ban will persist. Also, the contraction of market making will lead to more widespread and frequent occurrences of extreme spreads.
The straightforward sell arbitrage (reverse cash and carry) is no longer viable. We must pay attention to the emergence of new price and trading patterns driven by these market conditions.
One potential pattern is the possibility of spot buying centered around those that exhibited extreme spreads at expiration. This has already been observed to some extent in this month's expiration.


Understanding Extreme SSF Spreads in Korea & Trading Approaches

South Korea

CJ ENM, Ltd. retails clothes, kitchen utensils, home appliances, and jewelry.  The Company sells its merchandise through TV home shopping channels, catalogs, and the Internet shopping mall.  CJ ENM operates cable television business through a subsidiary.

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CJ ENM (035760 KS)

KRX Short Interest Weekly (Oct 18th): Samsung Electronics, Sk Hynix, KB Financial, Shinhan Group

We analyzed KRX short interest report for the past week and highlighted short interest changes in Samsung Electronics, Sk Hynix, KB Financial,...

Ke Yan, CFA, FRM

Trading Setup Targeting the Netmarble PSR Contract, as Seen in the Case of Doosan Bobcat

This post discusses trade setups targetting the Netmarble PSR contract, disclosed yesterday by CJ ENM, drawing parallels from the Doosan Bobcat...

Sanghyun Park

SK Square: Drag Along Rights To Be Exercised to Sell 11 Street + Merger of TVing and Wavve

According to Chosun Business Daily, the financial investors (Nile Holdings Consortium) want to sell 11st at about 600 billion won (100% stake),...

Douglas Kim

2024 Major IPOs Pipeline in Korea

This insight will feature 50 of the biggest potential IPOs in Korea in 2024. This is our 9th "Annual Edition of the Major Korean IPOs Pipeline...

Douglas Kim

Understanding Extreme SSF Spreads in Korea & Trading Approaches

This post offers insights into the currently observed extreme spreads in the Korean single stock futures market and explores practical trading...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)