Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Index Rebalance

<ul>
<li>On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng HK-Listed Biotech Index for the September 2025 rebalance.</li>
<li>July saw an announcement of a methodology change, and we expected 20 DELs. In fact, there were 21 DELs and 1 ADD and we missed the last two. </li>
<li>HSHKBIO has relatively low tracking AUM, so the total flows here (for HSHKBIO only) should be limited to about US$400mm.</li>
</ul>


On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng HK-Listed Biotech Index for the September 2025 rebalance.
July saw an announcement of a methodology change, and we expected 20 DELs. In fact, there were 21 DELs and 1 ADD and we missed the last two. 
HSHKBIO has relatively low tracking AUM, so the total flows here (for HSHKBIO only) should be limited to about US$400mm.


[Quiddity Index] Sep25 HSHKBIO Review Announced; 21 DELs, 1 ADD on Methodology Shift

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 is 1 add and 21 deletions for the Hang Seng Biotech Index (HSHKBIO Index) at the September rebalance.</li>
<li>Estimated one-way turnover at the rebalance is 11.25% resulting in a round-trip trade of HK$1.77bn (US$226m).</li>
<li>The deletes have underperformed the HSHKBIO Index since the start of the year with the gap opening up over the last two months following the announcement of the methodology change.</li>
</ul>


There is 1 add and 21 deletions for the Hang Seng Biotech Index (HSHKBIO Index) at the September rebalance.
Estimated one-way turnover at the rebalance is 11.25% resulting in a round-trip trade of HK$1.77bn (US$226m).
The deletes have underperformed the HSHKBIO Index since the start of the year with the gap opening up over the last two months following the announcement of the methodology change.


Hang Seng Biotech Index Rebalance: 1 Add & 21 Deletes as Methodology Changes

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.

Equity Capital Markets

Guangzhou Innogen Pharmaceutical / Equity Capital Markets

Guangzhou Innogen Pharmaceutical (2591 HK)

<ul>
<li>Innogen raised HKD 683m (USD 88m) from its global offering and will list on the Hong Kong Stock Exchange on Friday, August 14th.</li>
<li>In our previous note, we looked at the company's operation, management track records and discussed the IPO valuation.</li>
<li>In this note, we provide an update for the IPO before trading debut.</li>
</ul>


Innogen raised HKD 683m (USD 88m) from its global offering and will list on the Hong Kong Stock Exchange on Friday, August 14th.
In our previous note, we looked at the company's operation, management track records and discussed the IPO valuation.
In this note, we provide an update for the IPO before trading debut.


Innogen (银诺医药) IPO Trading Update

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Everest Medicines / Equity Capital Markets

<ul>
<li>The drug list of 11th national VBP varieties has been released. Innovative drugs will not be included in VBP. Results of this VBP is expected to be implemented by 2025.</li>
<li>The performance improvement of CRO may not be reflected until 25Q3 or 25Q4 at the earliest, but the market may reflect this expectation in advance. Tigermed’s turning point is coming.</li>
<li>Everest Medicines’ Placing Price is expensive.The reduction of holdings by major shareholder CBC and Founder Fu Wei indicates that the Company has been overvalued. Valuation should be lower than BeiGene.</li>
</ul>


The drug list of 11th national VBP varieties has been released. Innovative drugs will not be included in VBP. Results of this VBP is expected to be implemented by 2025.
The performance improvement of CRO may not be reflected until 25Q3 or 25Q4 at the earliest, but the market may reflect this expectation in advance. Tigermed’s turning point is coming.
Everest Medicines’ Placing Price is expensive.The reduction of holdings by major shareholder CBC and Founder Fu Wei indicates that the Company has been overvalued. Valuation should be lower than BeiGene.


China Healthcare Weekly (Jul.27)-The Turning Point of Tigermed and CRO, Everest Medicines’ Placement

<ul>
<li>We see 28 potential and close adds and 34 potential and close deletes for the Hang Seng Composite Index in September. Some of the stocks are close on market cap/liquidity.</li>
<li>A lot of the potential adds are very recently listed stocks that have a limited trading history. The low free float could lead to price spikes in the stocks.</li>
<li>There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.</li>
</ul>


We see 28 potential and close adds and 34 potential and close deletes for the Hang Seng Composite Index in September. Some of the stocks are close on market cap/liquidity.
A lot of the potential adds are very recently listed stocks that have a limited trading history. The low free float could lead to price spikes in the stocks.
There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.


HSCI Index Rebalance Preview and Stock Connect (Sep 2025): Plenty of Recent IPOs Could Be Added

China

Duality Biotherapeutics is a clinical-stage biopharmaceutical company dedicated to the discovery and development of next-generation antibody-drug conjugates (ADCs) to treat cancer and autoimmune diseases. The company develops a pipeline of ADC candidates, including DB-1303/BNT323 (HER2 ADC), DB-1311/BNT324 (B7-H3 ADC), DB-1310 (HER3 ADC), and DB-1305/BNT325 (TROP2 ADC), for various cancers. Duality Biotherapeutics is headquartered in Shanghai, China, and was founded in 2019.

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Duality Biotherapeutics (9606 HK)

[Quiddity Index] Sep25 HSHKBIO Review Announced; 21 DELs, 1 ADD on Methodology Shift

Friday saw the review announcement of the Hang Seng HK-Listed Biotech Index. A methodology change meant 20 DELs but we got 21 DELs and 1 ADD in a...

Travis Lundy

Hang Seng Biotech Index Rebalance: 1 Add & 21 Deletes as Methodology Changes

There is 1 add and 21 deletes for the HSHKBIO in Sep. Couple of surprises. Estimated one-way turnover at the rebalance is 11.25% resulting in a...

Brian Freitas

Innogen (银诺医药) IPO Trading Update

Innogen raises HKD 683m in global offering, set to list on Hong Kong Stock Exchange on August 15th. We provide an update of the deal dynamics...

Ke Yan, CFA, FRM

China Healthcare Weekly (Jul.27)-The Turning Point of Tigermed and CRO, Everest Medicines’ Placement

11th national VBP starts.Tigermed's fundamental turning point may occur this year due to investment income pickup.Everest Medicines' Placing Price...

Xinyao (Criss) Wang

HSCI Index Rebalance Preview and Stock Connect (Sep 2025): Plenty of Recent IPOs Could Be Added

The forecast adds to the index and Stock Connect are up 9.7% on average this month while the forecast deletes from the index and Stock Connect are...

Brian Freitas

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[Quiddity Index] Sep25 HSHKBIO Review Announced; 21 DELs, 1 ADD on Methodology Shift

Friday saw the review announcement of the Hang Seng HK-Listed Biotech Index. A methodology change meant 20 DELs but we got 21 DELs and 1 ADD in a...

Travis Lundy

Hang Seng Biotech Index Rebalance: 1 Add & 21 Deletes as Methodology Changes

There is 1 add and 21 deletes for the HSHKBIO in Sep. Couple of surprises. Estimated one-way turnover at the rebalance is 11.25% resulting in a...

Brian Freitas

Innogen (银诺医药) IPO Trading Update

​Innogen raises HKD 683m in global offering, set to list on Hong Kong Stock Exchange on August 15th. We provide an update of the deal dynamics...

Ke Yan, CFA, FRM

China Healthcare Weekly (Jul.27)-The Turning Point of Tigermed and CRO, Everest Medicines’ Placement

11th national VBP starts.Tigermed's fundamental turning point may occur this year due to investment income pickup.Everest Medicines' Placing Price...

Xinyao (Criss) Wang

HSCI Index Rebalance Preview and Stock Connect (Sep 2025): Plenty of Recent IPOs Could Be Added

The forecast adds to the index and Stock Connect are up 9.7% on average this month while the forecast deletes from the index and Stock Connect are...

Brian Freitas

Innogen raises HKD 683m in global offering, set to list on Hong Kong Stock Exchange on August 15th. We provide an update of the deal dynamics...