Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Cross Asset Strategy

<ul>
<li>A monthly review of how the markets and our themes are currently performing</li>
<li>Analysing what went wrong and what went right in stocks and sectors</li>
<li>Highlighting positions added or removed from the thematic investment portfolio</li>
</ul>


A monthly review of how the markets and our themes are currently performing
Analysing what went wrong and what went right in stocks and sectors
Highlighting positions added or removed from the thematic investment portfolio


November Themes and Thematic Portfolio Review

<ul>
<li>A review of recent events/data impacting our investment themes or outlook</li>
<li>Revisiting some of our old favourites- China, Japan and Gold</li>
<li>Short-Term trades continue to work but investors only interested in US equities</li>
</ul>


A review of recent events/data impacting our investment themes or outlook
Revisiting some of our old favourites- China, Japan and Gold
Short-Term trades continue to work but investors only interested in US equities


Overview #13 - The US Dollar Peaks, Japan Struggles While China Treads Water

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

Shenzhen Salubris Pharmaceuticals A / Index Rebalance

Shenzhen Salubris Pharmaceuticals A (002294 CH)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dongxing-securities-co-ltd" target="_blank" data-smartkarma-citation="entities:25320:1" rel="noopener">Dongxing Securities (601198 CH)</a> and <a href="https://www.smartkarma.com/entities/cinda-securities-company-limited" target="_blank" data-smartkarma-citation="entities:45389:1" rel="noopener">Cinda Securities (601059 CH)</a> shares will stop trading after 14 September following the merger with <a href="https://www.smartkarma.com/entities/china-international-capital-co" target="_blank" data-smartkarma-citation="entities:33010:1" rel="noopener">China International Capital (601995 CH)</a>. </li>
<li>There will be buying in <a href="https://www.smartkarma.com/entities/china-international-capital-co" target="_blank" data-smartkarma-citation="entities:33010:1" rel="noopener">China International Capital (601995 CH)</a> from global index trackers at the close on Monday.</li>
<li>There will be additions and other flows for the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI 300 Index</a>, <a href="https://www.smartkarma.com/entities/csi-smallcap-500-index-shang" target="_blank" data-smartkarma-citation="entities:35347:1" rel="noopener">CSI 500 Index</a> and the CSI 1000 Index at the time of delisting of <a href="https://www.smartkarma.com/entities/dongxing-securities-co-ltd" target="_blank" data-smartkarma-citation="entities:25320:1" rel="noopener">Dongxing Securities</a> and <a href="https://www.smartkarma.com/entities/cinda-securities-company-limited" target="_blank" data-smartkarma-citation="entities:45389:1" rel="noopener">Cinda Securities</a>.</li>
</ul>



Dongxing Securities (601198 CH) and Cinda Securities (601059 CH) shares will stop trading after 14 September following the merger with China International Capital (601995 CH). 
There will be buying in China International Capital (601995 CH) from global index trackers at the close on Monday.
There will be additions and other flows for the CSI 300 Index, CSI 500 Index and the CSI 1000 Index at the time of delisting of Dongxing Securities and Cinda Securities.


CICC/ Dongxing Sec/ Cinda Sec Merger: Index Flows Next Week & More Later

GigaDevice Semiconductor / Index Rebalance

<ul>
<li>There could be 2 constituent changes for the <a href="https://www.smartkarma.com/entities/ishares-china-large-cap-etf" target="_blank" data-smartkarma-citation="entities:766:1" rel="noopener">iShares China Large-Cap (FXI) (FXI US)</a> ETF in June.</li>
<li>One of the inclusions will also have inflows from the FGlobal Index at the same time, leading to increased flow and impact.</li>
<li>
<a href="https://www.smartkarma.com/entities/yangtze-optical-fibre-and-cable-joint-stock-ltd-co-class-h" target="_blank" data-smartkarma-citation="entities:83:1" rel="noopener">Yangtze Optical Fibre and Cable (6869 HK)</a>'s discount has widened versus its A-shares, while <a href="https://www.smartkarma.com/entities/crrc-corporation-limited-class-h" target="_blank" data-smartkarma-citation="entities:124:1" rel="noopener">CRRC (1766 HK)</a>'s discount has narrowed versus its A-shares. </li>
</ul>


There could be 2 constituent changes for the iShares China Large-Cap (FXI) (FXI US) ETF in June.
One of the inclusions will also have inflows from the FGlobal Index at the same time, leading to increased flow and impact.

Yangtze Optical Fibre and Cable (6869 HK)'s discount has widened versus its A-shares, while CRRC (1766 HK)'s discount has narrowed versus its A-shares. 


FXI Rebalance Preview: Two Changes Likely in June

Shanghai Shenzhen CSI 300 Index / Index Rebalance

Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX EQUITY)

<ul>
<li>Over US$125bn has been redeemed from mainland China ETFs in the last quarter. Headline ETFs take the largest hit while there have been selective inflows to sector ETFs.</li>
<li>The large-scale redemptions point to Central Huijin as the likely source, and this gives them the firepower to support the market in the event of a selloff.</li>
<li>The pace of outflows has slowed in the last few weeks as markets have dropped. A decent chunk of money has gone into some sector ETFs recently.</li>
</ul>


Over US$125bn has been redeemed from mainland China ETFs in the last quarter. Headline ETFs take the largest hit while there have been selective inflows to sector ETFs.
The large-scale redemptions point to Central Huijin as the likely source, and this gives them the firepower to support the market in the event of a selloff.
The pace of outflows has slowed in the last few weeks as markets have dropped. A decent chunk of money has gone into some sector ETFs recently.


China ETF: Over US$125bn of Redemptions in Q1; Minimal Outflows Recently

China

CSI 500 index aims to comprehensively reflect the price fluctuation and performance of the small-cap companies in Shanghai and Shenzhen securities market. The index has a base value of 1000 as of December 31, 2004.

CSI Smallcap 500 Index - Shang (SH000905 INDEX EQUITY)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

CSI Smallcap 500 Index - Shang (SH000905 INDEX EQUITY)

November Themes and Thematic Portfolio Review

We review overall market performance, our investment themes, highlighting additions and substractions in the thematic portfolio.

Rikki Malik

Overview #13 - The US Dollar Peaks, Japan Struggles While China Treads Water

A review of recent events/data impacting our investment themes and outlook. We look at the some recent trends in China, Japan and the USD

Rikki Malik

CICC/ Dongxing Sec/ Cinda Sec Merger: Index Flows Next Week & More Later

Dongxing Sec and Cinda Sec stop trading from 15 Sep following the merger with CICC. There are changes for the CSI300/500/1000 indices and passive...

Brian Freitas

FXI Rebalance Preview: Two Changes Likely in June

There could be 2 changes for the FXI in June. One of the adds will also be added to a global index at the same time. The H/A discount has widened...

Brian Freitas

China ETF: Over US$125bn of Redemptions in Q1; Minimal Outflows Recently

Over US$125bn has been redeemed from mainland China ETFs in the last quarter but the pace of outflows has slowed in the last few weeks as markets...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)