Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<p>Hang Seng Indexes Company (HSIL) reviews the constituents of the Hang Seng Composite Index (HSCI) on a half yearly basis in March and September with data cut-off dates as of the end of December and June. The review announcement for the September 2021 review should be made on 13 August and will be effective after the close of trading on 3 September.</p><p>The June review will see the inclusion of stocks that were newly listed from 1 January to 31 March and meet the criteria for joining the index.</p><p>Although there are almost no assets indexed to the HSCI, the index forms the basis of stocks that are eligible for Southbound Stock Connect. Stocks that are included in the HSCI and subsequently included in the Stock Connect program get inflows from mainland investors.</p><div><p>There are a lot of stocks that will join the HSCI and will subsequently be included as a part of the Southbound Stock Connect program - these stocks could be bought by mainland investors and could outperform their peers and the market.</p></div><div><p>There are stocks that will be deleted from the HSCI and consequently deleted from the Southbound Stock Connect buy list while some stocks will be deleted from the HSCI but maintained in Stock Connect since they have listed A-shares.</p></div><div><p>Read on for more details and the stocks affected by the changes.</p></div>

Hang Seng Indexes Company (HSIL) reviews the constituents of the Hang Seng Composite Index (HSCI) on a half yearly basis in March and September with data cut-off dates as of the end of December and June. The review announcement for the September 2021 review should be made on 13 August and will be effective after the close of trading on 3 September.The June review will see the inclusion of stocks that were newly listed from 1 January to 31 March and meet the criteria for joining the index.Although there are almost no assets indexed to the HSCI, the index forms the basis of stocks that are eligible for Southbound Stock Connect. Stocks that are included in the HSCI and subsequently included in the Stock Connect program get inflows from mainland investors.There are a lot of stocks that will join the HSCI and will subsequently be included as a part of the Southbound Stock Connect program - these stocks could be bought by mainland investors and could outperform their peers and the market.There are stocks that will be deleted from the HSCI and consequently deleted from the Southbound Stock Connect buy list while some stocks will be deleted from the HSCI but maintained in Stock Connect since they have listed A-shares.Read on for more details and the stocks affected by the changes.

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

Event-Driven

EDP - Energias de Portugal SA / Event-Driven

<p>The changes to the S&amp;P Global Clean Energy Index have been announced. There are 52 additions to the index to take the number of index constituents up to 82. The changes are effective after the close of trading on 16 April.</p><p>The 52 additions and capping changes will result in a one-way turnover of close to 55% and will require the ETFs tracking the index to trade US$12bn to rebalance their portfolios.</p><p>The largest buying impact in terms of ADV to trade will be on <a href="https://www.smartkarma.com/entities/edp-energias-de-portugal-sa" target="_blank" data-smartkarma-citation="entities:21362:1" rel="noopener">Edp - Energias De Portugal Sa (EDP PL)</a>, <a href="https://www.smartkarma.com/entities/sse-plc" target="_blank" data-smartkarma-citation="entities:22163:1" rel="noopener">SSE PLC (SSE LN)</a>, <a href="https://www.smartkarma.com/entities/northland-power-inc" target="_blank" data-smartkarma-citation="entities:25480:1" rel="noopener">Northland Power (NPI CN)</a>, <a href="https://www.smartkarma.com/entities/enel-americas-sa-c3a67f8a-ad13-45ff-a676-cbc513b8c458" target="_blank" data-smartkarma-citation="entities:25965:1" rel="noopener">Enel Americas SA (ENIA US)</a>, <a href="https://www.smartkarma.com/entities/drax-group-plc" target="_blank" data-smartkarma-citation="entities:21911:1" rel="noopener">Drax Group PLC (DRX LN)</a>, <a href="https://www.smartkarma.com/entities/meyer-burger-technology-ag" target="_blank" data-smartkarma-citation="entities:25013:1" rel="noopener">Meyer Burger Technology Ag (MBTN SW)</a> and <a href="https://www.smartkarma.com/entities/centrais-eletricas-br-sp-adr" target="_blank" data-smartkarma-citation="entities:28638:1" rel="noopener">Centrais Eletricas Br-Sp Adr (EBR US)</a>.</p><p>The largest selling impact will be on <a href="https://www.smartkarma.com/entities/meridian-ener-partly-paid-sh" target="_blank" data-smartkarma-citation="entities:4327:1" rel="noopener">Meridian Energy (MEL NZ)</a>, <a href="https://www.smartkarma.com/entities/contact-energy-ltd" target="_blank" data-smartkarma-citation="entities:13136:1" rel="noopener">Contact Energy (CEN NZ)</a>, <a href="https://www.smartkarma.com/entities/verbund-ag" target="_blank" data-smartkarma-citation="entities:22563:1" rel="noopener">Verbund AG (VER AV)</a>, <a href="https://www.smartkarma.com/entities/innergex-renewable-energy-inc" target="_blank" data-smartkarma-citation="entities:25479:1" rel="noopener">Innergex Renewable Energy (INE CN)</a>, <a href="https://www.smartkarma.com/entities/cia-energetica-de-spon-adr" target="_blank" data-smartkarma-citation="entities:28644:1" rel="noopener">Cia Energetica De-Spon Adr (CIG US)</a>, <a href="https://www.smartkarma.com/entities/boralex-inc" target="_blank" data-smartkarma-citation="entities:25478:1" rel="noopener">Boralex Inc (BLX CN)</a> and <a href="https://www.smartkarma.com/entities/scatec-solar-asa" target="_blank" data-smartkarma-citation="entities:25120:1" rel="noopener">Scatec Solar ASA (SSO NO)</a>.</p><p>Among the current index constituents, there will be buying on <a href="https://www.smartkarma.com/entities/orsted-a-s" target="_blank" data-smartkarma-citation="entities:24765:1" rel="noopener">Orsted A/S (ORSTED DC)</a> and <a href="https://www.smartkarma.com/entities/vestas-wind-systems-a-s" target="_blank" data-smartkarma-citation="entities:22524:1" rel="noopener">Vestas Wind Systems A/S (VWS DC)</a>.</p><p>We recommend buying the surprise inclusions and unwinding the positions by implementation date. A lot of the stocks that will have a reduction in index weight have been sold off over the last few months and the active positions will be covered leading up to implementation date - we recommend buying these stocks in the days leading up to implementation date since the stocks could rally once the overhang of passive selling has been removed.</p>

The changes to the S&amp;P Global Clean Energy Index have been announced. There are 52 additions to the index to take the number of index constituents up to 82. The changes are effective after the close of trading on 16 April.The 52 additions and capping changes will result in a one-way turnover of close to 55% and will require the ETFs tracking the index to trade US$12bn to rebalance their portfolios.The largest buying impact in terms of ADV to trade will be on Edp - Energias De Portugal Sa (EDP PL), SSE PLC (SSE LN), Northland Power (NPI CN), Enel Americas SA (ENIA US), Drax Group PLC (DRX LN), Meyer Burger Technology Ag (MBTN SW) and Centrais Eletricas Br-Sp Adr (EBR US).The largest selling impact will be on Meridian Energy (MEL NZ), Contact Energy (CEN NZ), Verbund AG (VER AV), Innergex Renewable Energy (INE CN), Cia Energetica De-Spon Adr (CIG US), Boralex Inc (BLX CN) and Scatec Solar ASA (SSO NO).Among the current index constituents, there will be buying on Orsted A/S (ORSTED DC) and Vestas Wind Systems A/S (VWS DC).We recommend buying the surprise inclusions and unwinding the positions by implementation date. A lot of the stocks that will have a reduction in index weight have been sold off over the last few months and the active positions will be covered leading up to implementation date - we recommend buying these stocks in the days leading up to implementation date since the stocks could rally once the overhang of passive selling has been removed.

Global Clean Energy Index: 52 Adds, 55% Index Turnover, US$12bn to Trade

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Quantitative Analysis

<div><p>Spreads generally narrowed this week with 63 of 100 liquid spreads narrowing, 37 widening. The big winner on the week was Health Care and Tech narrowing 2.3%. One tech name <a href="https://www.smartkarma.com/entities/flat-glass-group-ltd" target="_blank" data-smartkarma-citation="entities:1108:1" rel="noopener">Flat Glass (6865 HK)</a> moved 10+% while several healthcare names saw spreads narrow 3-7% each, all happening in a somewhat lackluster week for outright performance. Overall, five of seven sectors represented saw spreads narrow.</p></div><div><table class="table table-striped"><tbody>
<tr>
<td><p>Sector</p></td>
<td style="text-align: right;"><p>Last Week</p></td>
<td style="text-align: right;"><p>Previous Week</p></td>
<td style="text-align: right;"><p>3wks Ago</p></td>
<td style="text-align: right;"><p>4wks Ago</p></td>
</tr>
<tr>
<td><p>Consumer</p></td>
<td style="text-align: right;"><p>+ 0.74%</p></td>
<td style="text-align: right;"><p>-  0.14%</p></td>
<td style="text-align: right;"><p>-  1.65%</p></td>
<td style="text-align: right;"><p>-  1.20%</p></td>
</tr>
<tr>
<td><p>Energy</p></td>
<td style="text-align: right;"><p>-  0.56%</p></td>
<td style="text-align: right;"><p>-  0.36%</p></td>
<td style="text-align: right;"><p>+ 0.67%</p></td>
<td style="text-align: right;"><p>+ 1.43%</p></td>
</tr>
<tr>
<td><p>Financials &amp; Real Estate</p></td>
<td style="text-align: right;"><p>+ 0.53%</p></td>
<td style="text-align: right;"><p>+ 1.19%</p></td>
<td style="text-align: right;"><p>-  1.12%</p></td>
<td style="text-align: right;"><p>+ 0.10%</p></td>
</tr>
<tr>
<td><p>Health Care &amp; Info Tech</p></td>
<td style="text-align: right;"><p>+ 2.29%</p></td>
<td style="text-align: right;"><p>-  0.54%</p></td>
<td style="text-align: right;"><p>-  2.86%</p></td>
<td style="text-align: right;"><p>+ 1.45%</p></td>
</tr>
<tr>
<td><p>Industrials</p></td>
<td style="text-align: right;"><p>+ 0.15%</p></td>
<td style="text-align: right;"><p>-  0.42%</p></td>
<td style="text-align: right;"><p>-  1.20%</p></td>
<td style="text-align: right;"><p>+ 0.26%</p></td>
</tr>
<tr>
<td><p>Materials</p></td>
<td style="text-align: right;"><p>+ 0.61%</p></td>
<td style="text-align: right;"><p>-  0.33%</p></td>
<td style="text-align: right;"><p>-  0.84%</p></td>
<td style="text-align: right;"><p>+ 3.08%</p></td>
</tr>
<tr>
<td><p>Utilities</p></td>
<td style="text-align: right;"><p>-  0.87%</p></td>
<td style="text-align: right;"><p>-  1.25%</p></td>
<td style="text-align: right;"><p>-  0.14%</p></td>
<td style="text-align: right;"><p>+ 0.99%</p></td>
</tr>
<tr>
<td><p>Sector Average</p></td>
<td style="text-align: right;"><p>+ 0.41%</p></td>
<td style="text-align: right;"><p>-  0.26%</p></td>
<td style="text-align: right;"><p>-  1.02%</p></td>
<td style="text-align: right;"><p>+ 0.87%</p></td>
</tr>
<tr>
<td><p>All Market Average</p></td>
<td style="text-align: right;"><p>+ 0.59%</p></td>
<td style="text-align: right;"><p>+ 0.05%</p></td>
<td style="text-align: right;"><p>-  1.22%</p></td>
<td style="text-align: right;"><p>+ 0.76%</p></td>
</tr>
</tbody></table></div><div><div></div></div><p>10-day cross-market spread volatility continues to be somewhat high at 23% annualised. This is down off highs in the low 30s a couple weeks ago, but the long-term average is still just under 20%.</p><div><div>
<hr>
<h3>The H/A Spread Market</h3>
</div></div><div><p>The past week has seen H-shares come off sharply and spreads widen reasonably dramatically. </p></div><section><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/194/200/original/Screenshot+2021-03-14+at+9.05.58+AM.png?1615683976" class="editor-image img-responsive" data-smartkarma-image-id="194200"></figure><p></p></section></section><p>The average discount appears not to want to tighten, still. The average spread has kept at around 40.0% plus or minus a small bit for the past eight weeks or so (despite that illiquidity-bump around LNY). This week we narrowed just inside 40%.</p><section><section><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/194/201/original/Screenshot+2021-03-14+at+9.08.22+AM.png?1615684116" class="editor-image img-responsive" data-smartkarma-image-id="194201"></figure></section><p></p></section></section><hr><div><div><h2>Last Week's Recommendations</h2></div></div><div><ul style="list-style-type: disc;">
<li>There were 80 recommendations last week.</li>
<li>This is the second week of negative alpha for the portfolio strategy in as many weeks. The average trade loss 22bp and only 31 of 80 trades recommended was up on the week. Shorts were particularly to blame as spread compression among the names in the 10-25% discount range was much wider than in the 35-60% discount range.</li>
<li>There are <em>nearly</em> 80 recommendations this week (turnover remains low).  </li>
</ul></div><hr><div><div><h2>Consumer Sector</h2></div></div><div><p>The first sector discussed is Consumer, where most H-shares fell on the week. Shares averaged down 1.4% this past week after gaining 0.6% the week before. The two gainers from the prior week both fell this week.</p></div><div><ul style="list-style-type: disc;">
<li>Spreads were less tame, but momentum continues to be strong.</li>
<li>
<a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a> ended the week down 2% despite good production numbers out at the end of the week prior. BYD is down 28% in four weeks. </li>
<li>
<a href="https://www.smartkarma.com/entities/fuyao-glass-industry-group-co-ltd" target="_blank" data-smartkarma-citation="entities:330:1" rel="noopener">Fuyao Glass Industry Group (3606 HK)</a> continued to fall and the spread continued to widen. It is now 13% wider over 4 weeks, but is still the second-narrowest spread in the sector at 21% vs the average spread in the sector at -30%.</li>
<li>Southbound was a net seller of nearly HK$611mm after selling nearly that amount the prior week and HK$2bn in the two weeks before that. <a href="https://www.smartkarma.com/entities/great-wall-motor-co-ltd-cb302af9-398c-4d2d-ba39-023e43287eef" target="_blank" data-smartkarma-citation="entities:128:1" rel="noopener">Great Wall Motor (2333 HK)</a> saw continued net buying by southbound, which added about 60bp of H-share float ownership on the week through Wednesday.</li>
</ul></div><div><div><div class="content-highlight">
<p>Last week, I recommended staying short <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a>, and <a href="https://www.smartkarma.com/entities/fuyao-glass-industry-group-co-ltd" target="_blank" data-smartkarma-citation="entities:330:1" rel="noopener">Fuyao Glass Industry Group (3606 HK)</a> H vs A, unwinding the <a href="https://www.smartkarma.com/entities/hisense-home-appliances-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20107:1" rel="noopener">Hisense Home Appliances Group Co., Ltd. H (921 HK)</a> short, and replacing the <a href="https://www.smartkarma.com/entities/great-wall-motor-co-ltd-cb302af9-398c-4d2d-ba39-023e43287eef" target="_blank" data-smartkarma-citation="entities:128:1" rel="noopener">Great Wall Motor (2333 HK)</a> long with <a href="https://www.smartkarma.com/entities/guangzhou-automobile-group-co-ltd" target="_blank" data-smartkarma-citation="entities:11082:1" rel="noopener">Guangzhou Automobile Group (2238 HK)</a>. </p>
<p>Those trades lost an average of 0.29% last week in spread terms after losing 16bp the week before, but gaining 3.58% the week before that. </p>
</div></div></div><div>
<section class="figure"><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/194/249/original/Screenshot+2021-03-14+at+11.50.08+AM.png?1615693825" class="editor-image img-responsive" data-smartkarma-image-id="194249"></figure><p></p></section></section><section class="figure">For this week's recommendations on Consumer, and discussion of the Energy, Financials &amp; Real Estate, Health Care, Tech, Industrials, Materials, and Utilities sectors, and all trade recommendations, please read on.</section>
</div>

Spreads generally narrowed this week with 63 of 100 liquid spreads narrowing, 37 widening. The big winner on the week was Health Care and Tech narrowing 2.3%. One tech name Flat Glass (6865 HK) moved 10+% while several healthcare names saw spreads narrow 3-7% each, all happening in a somewhat lackluster week for outright performance. Overall, five of seven sectors represented saw spreads narrow.

Sector
Last Week
Previous Week
3wks Ago
4wks Ago


Consumer
+ 0.74%
-  0.14%
-  1.65%
-  1.20%


Energy
-  0.56%
-  0.36%
+ 0.67%
+ 1.43%


Financials &amp; Real Estate
+ 0.53%
+ 1.19%
-  1.12%
+ 0.10%


Health Care &amp; Info Tech
+ 2.29%
-  0.54%
-  2.86%
+ 1.45%


Industrials
+ 0.15%
-  0.42%
-  1.20%
+ 0.26%


Materials
+ 0.61%
-  0.33%
-  0.84%
+ 3.08%


Utilities
-  0.87%
-  1.25%
-  0.14%
+ 0.99%


Sector Average
+ 0.41%
-  0.26%
-  1.02%
+ 0.87%


All Market Average
+ 0.59%
+ 0.05%
-  1.22%
+ 0.76%

10-day cross-market spread volatility continues to be somewhat high at 23% annualised. This is down off highs in the low 30s a couple weeks ago, but the long-term average is still just under 20%.

The H/A Spread Market
The past week has seen H-shares come off sharply and spreads widen reasonably dramatically. The average discount appears not to want to tighten, still. The average spread has kept at around 40.0% plus or minus a small bit for the past eight weeks or so (despite that illiquidity-bump around LNY). This week we narrowed just inside 40%.Last Week's Recommendations
There were 80 recommendations last week.
This is the second week of negative alpha for the portfolio strategy in as many weeks. The average trade loss 22bp and only 31 of 80 trades recommended was up on the week. Shorts were particularly to blame as spread compression among the names in the 10-25% discount range was much wider than in the 35-60% discount range.
There are nearly 80 recommendations this week (turnover remains low).  
Consumer SectorThe first sector discussed is Consumer, where most H-shares fell on the week. Shares averaged down 1.4% this past week after gaining 0.6% the week before. The two gainers from the prior week both fell this week.
Spreads were less tame, but momentum continues to be strong.

BYD (1211 HK) ended the week down 2% despite good production numbers out at the end of the week prior. BYD is down 28% in four weeks. 

Fuyao Glass Industry Group (3606 HK) continued to fall and the spread continued to widen. It is now 13% wider over 4 weeks, but is still the second-narrowest spread in the sector at 21% vs the average spread in the sector at -30%.
Southbound was a net seller of nearly HK$611mm after selling nearly that amount the prior week and HK$2bn in the two weeks before that. Great Wall Motor (2333 HK) saw continued net buying by southbound, which added about 60bp of H-share float ownership on the week through Wednesday.

Last week, I recommended staying short BYD (1211 HK), and Fuyao Glass Industry Group (3606 HK) H vs A, unwinding the Hisense Home Appliances Group Co., Ltd. H (921 HK) short, and replacing the Great Wall Motor (2333 HK) long with Guangzhou Automobile Group (2238 HK). 
Those trades lost an average of 0.29% last week in spread terms after losing 16bp the week before, but gaining 3.58% the week before that. 

For this week's recommendations on Consumer, and discussion of the Energy, Financials &amp; Real Estate, Health Care, Tech, Industrials, Materials, and Utilities sectors, and all trade recommendations, please read on.


Quiddity Weekly H/A: Energy Up, Spreads Wider, Pharmas Down Spreads Narrower

<div>
<p>Spreads were mixed this week with 48 out of 100 observed pair spreads narrower and 52 wider. The big winner on the week was Financials with spreads 119bp narrower on average. Banks and Big Insurance generally narrowed. </p>
</div>
<div>
<p>Overall, it was a lackluster performance, and one cannot say spreads won't move wider, but at 40% discount (and an arithmetic average upside of 87% for each liquid H to reach parity with its A), this spreads <em>are</em> wide.</p>
</div>
<div>
<table class="table table-striped">
<tbody>
<tr>
<td style="width: 211.818px;">
<p><strong>Sector</strong></p>
</td>
<td style="text-align: right; width: 99.0909px;">
<p><strong>Last Week</strong></p>
</td>
<td style="text-align: right; width: 136.364px;">
<p><strong>Previous Week</strong></p>
</td>
<td style="text-align: right; width: 95.4545px;">
<p><strong>3wks Ago</strong></p>
</td>
<td style="text-align: right; width: 97.2727px;">
<p><strong>4wks Ago</strong></p>
</td>
</tr>
<tr>
<td style="width: 211.818px;">
<p>Consumer</p>
</td>
<td style="text-align: right; width: 99.0909px;">
<p>-  0.14%</p>
</td>
<td style="text-align: right; width: 136.364px;">
<p>-  1.65%</p>
</td>
<td style="text-align: right; width: 95.4545px;">
<p>-  1.20%</p>
</td>
<td style="text-align: right; width: 97.2727px;">
<p>+ 2.55%</p>
</td>
</tr>
<tr>
<td style="width: 211.818px;">
<p>Energy</p>
</td>
<td style="text-align: right; width: 99.0909px;">
<p>-  0.36%</p>
</td>
<td style="text-align: right; width: 136.364px;">
<p>+ 0.67%</p>
</td>
<td style="text-align: right; width: 95.4545px;">
<p>+ 1.43%</p>
</td>
<td style="text-align: right; width: 97.2727px;">
<p>-  1.64%</p>
</td>
</tr>
<tr>
<td style="width: 211.818px;">
<p>Financials &amp; Real Estate</p>
</td>
<td style="text-align: right; width: 99.0909px;">
<p>+ 1.19%</p>
</td>
<td style="text-align: right; width: 136.364px;">
<p>-  1.12%</p>
</td>
<td style="text-align: right; width: 95.4545px;">
<p>+ 0.10%</p>
</td>
<td style="text-align: right; width: 97.2727px;">
<p>+ 0.29%</p>
</td>
</tr>
<tr>
<td style="width: 211.818px;">
<p>Health Care &amp; Info Tech</p>
</td>
<td style="text-align: right; width: 99.0909px;">
<p>-  0.54%</p>
</td>
<td style="text-align: right; width: 136.364px;">
<p>-  2.86%</p>
</td>
<td style="text-align: right; width: 95.4545px;">
<p>+ 1.45%</p>
</td>
<td style="text-align: right; width: 97.2727px;">
<p>-  1.52%</p>
</td>
</tr>
<tr>
<td style="width: 211.818px;">
<p>Industrials</p>
</td>
<td style="text-align: right; width: 99.0909px;">
<p>-  0.42%</p>
</td>
<td style="text-align: right; width: 136.364px;">
<p>-  1.20%</p>
</td>
<td style="text-align: right; width: 95.4545px;">
<p>+ 0.26%</p>
</td>
<td style="text-align: right; width: 97.2727px;">
<p>-  0.62%</p>
</td>
</tr>
<tr>
<td style="width: 211.818px;">
<p>Materials</p>
</td>
<td style="text-align: right; width: 99.0909px;">
<p>-  0.33%</p>
</td>
<td style="text-align: right; width: 136.364px;">
<p>-  0.84%</p>
</td>
<td style="text-align: right; width: 95.4545px;">
<p>+ 3.08%</p>
</td>
<td style="text-align: right; width: 97.2727px;">
<p>-  0.57%</p>
</td>
</tr>
<tr>
<td style="width: 211.818px;">
<p>Utilities</p>
</td>
<td style="text-align: right; width: 99.0909px;">
<p>-  1.25%</p>
</td>
<td style="text-align: right; width: 136.364px;">
<p>-  0.14%</p>
</td>
<td style="text-align: right; width: 95.4545px;">
<p>+ 0.99%</p>
</td>
<td style="text-align: right; width: 97.2727px;">
<p>+ 0.25%</p>
</td>
</tr>
<tr>
<td style="width: 211.818px;">
<p><em><strong>Sector Average</strong></em></p>
</td>
<td style="text-align: right; width: 99.0909px;">
<p><em><strong>-  0.26%</strong></em></p>
</td>
<td style="text-align: right; width: 136.364px;">
<p><em><strong>-  1.02%</strong></em></p>
</td>
<td style="text-align: right; width: 95.4545px;">
<p><em><strong>+ 0.87%</strong></em></p>
</td>
<td style="text-align: right; width: 97.2727px;">
<p><em><strong>-  0.18%</strong></em></p>
</td>
</tr>
<tr>
<td style="width: 211.818px;">
<p><strong>All Market Average</strong></p>
</td>
<td style="text-align: right; width: 99.0909px;">
<p><strong>- 0.03%</strong></p>
</td>
<td style="text-align: right; width: 136.364px;">
<p><strong>-  1.22%</strong></p>
</td>
<td style="text-align: right; width: 95.4545px;">
<p><strong>+ 0.76%</strong></p>
</td>
<td style="text-align: right; width: 97.2727px;">
<p><strong>-  0.33%</strong></p>
</td>
</tr>
</tbody>
</table>
</div>
<div>
<div></div>
</div>
<div>
<p>10-day cross-market spread volatility continues to be high at 26% annualised. This is down off highs in the low 30s a couple weeks ago, but the long-term average is quite a bit lower. </p>
</div>
<div>
<div>
<hr>
<h3>The H/A Spread Market</h3>
</div>
</div>
<div>
<p>The past week has seen H-shares come off sharply and spreads widen reasonably dramatically. </p>
</div>
<section>
<section class="figure">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/192/678/original/Screenshot+2021-03-07+at+8.28.29+PM.png?1615120136" class="editor-image img-responsive" data-smartkarma-image-id="192678"></figure>
</section>
<p></p>
</section>
<div>
<p>The average discount appears not to want to tighten, still. The average spread has kept at around 40.0% for the past four weeks or so (despite that illiquidity-bump around LNY). </p>
</div>
<section>
<section class="figure">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/192/679/original/Screenshot+2021-03-07+at+8.30.27+PM.png?1615120295" class="editor-image img-responsive" data-smartkarma-image-id="192679"></figure>
</section>
</section>
<hr>
<div>
<h2>Last Week's Recommendations</h2>
</div>
<div>
<ul style="list-style-type: disc;">
<li>There were 80 recommendations last week. This was the first losing week on alpha in several. </li>
<li>The 34 short spread recommendations lost an average of 0.12%, underperforming the market as a whole (which saw the average spread widen 0.03%). That is negative alpha of 9bp after positive alpha of 48bp the previous week on 33 spreads.</li>
<li>The 46 long recommendations averaged losses of 4bp during the week, underperforming the market as a whole by 1bp (vs +46bp outperformance the previous week). The combined total package was up -0.07% for the week vs +0.27% for the prior week, with -10bp of cross-bias alpha (vs 92bp of alpha on the cross-bias the previous week).</li>
<li>There are nearly 80 recommendations this week (turnover remains low).  </li>
</ul>
</div>
<hr>
<div>
<div>
<h2>Consumer Sector</h2>
</div>
</div>
<div>
<p>The first sector discussed is Consumer, where most H-shares fell on the week </p>
</div>
<div>
<ul style="list-style-type: disc;">
<li>Spreads were remarkably tame.</li>
<li>
<a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a> ended the week down 1.1% after rising in the first four days, and the shares even fell Friday despite <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0304/2021030401545.pdf" target="_blank" rel="noopener">announcing</a> Thursday after the close that production was up 125%yoy in February, and sales +106%. BYD is down 20+% in four weeks. </li>
<li>
<a href="https://www.smartkarma.com/entities/fuyao-glass-industry-group-co-ltd" target="_blank" data-smartkarma-citation="entities:330:1" rel="noopener">Fuyao Glass Industry Group (3606 HK)</a> was only up small in sympathy, outperforming auto names, and significantly outperforming glass names across other sectors. Thursday saw significant selling of glass names. </li>
<li>Southbound was a net seller of nearly HK$585mm after selling HK$2bn in the previous two weeks. Only <a href="https://www.smartkarma.com/entities/fuyao-glass-industry-group-co-ltd" target="_blank" data-smartkarma-citation="entities:330:1" rel="noopener">Fuyao Glass Industry Group (3606 HK)</a> saw decent Southbound buying on a net basis (+HK$190mm). BYD was the big net sell at -HK$673mm. </li>
</ul>
</div>
<div>
<div>
<div class="content-highlight">
<p>Last week, I recommended staying long the <a href="https://www.smartkarma.com/entities/great-wall-motor-co-ltd-cb302af9-398c-4d2d-ba39-023e43287eef" target="_blank" data-smartkarma-citation="entities:128:1" rel="noopener">Great Wall Motor (2333 HK)</a> H vs A, and short <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a>, <a href="https://www.smartkarma.com/entities/hisense-home-appliances-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20107:1" rel="noopener">Hisense Home Appliances Group Co., Ltd. H (921 HK)</a>, and <a href="https://www.smartkarma.com/entities/fuyao-glass-industry-group-co-ltd" target="_blank" data-smartkarma-citation="entities:330:1" rel="noopener">Fuyao Glass Industry Group (3606 HK)</a> H vs A. </p>
<p>Those four trades lost an average of 0.16% last week in spread terms after gaining 3.58% the previous week.</p>
</div>
</div>
</div>
<div>
<section class="figure">
<section class="figure">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/192/669/original/Screenshot+2021-03-07+at+7.38.39+PM.png?1615117130" class="editor-image img-responsive" data-smartkarma-image-id="192669"></figure>
<p></p>
</section>
</section>
</div>
<div>
<section>For this week's recommendations on Consumer, and discussion of the Energy, Financials &amp; Real Estate, Health Care, Tech, Industrials, Materials, and Utilities sectors, and all trade recommendations, please read on.</section>
</div>


Spreads were mixed this week with 48 out of 100 observed pair spreads narrower and 52 wider. The big winner on the week was Financials with spreads 119bp narrower on average. Banks and Big Insurance generally narrowed. 


Overall, it was a lackluster performance, and one cannot say spreads won't move wider, but at 40% discount (and an arithmetic average upside of 87% for each liquid H to reach parity with its A), this spreads are wide.






Sector


Last Week


Previous Week


3wks Ago


4wks Ago




Consumer


-  0.14%


-  1.65%


-  1.20%


+ 2.55%




Energy


-  0.36%


+ 0.67%


+ 1.43%


-  1.64%




Financials &amp; Real Estate


+ 1.19%


-  1.12%


+ 0.10%


+ 0.29%




Health Care &amp; Info Tech


-  0.54%


-  2.86%


+ 1.45%


-  1.52%




Industrials


-  0.42%


-  1.20%


+ 0.26%


-  0.62%




Materials


-  0.33%


-  0.84%


+ 3.08%


-  0.57%




Utilities


-  1.25%


-  0.14%


+ 0.99%


+ 0.25%




Sector Average


-  0.26%


-  1.02%


+ 0.87%


-  0.18%




All Market Average


- 0.03%


-  1.22%


+ 0.76%


-  0.33%









10-day cross-market spread volatility continues to be high at 26% annualised. This is down off highs in the low 30s a couple weeks ago, but the long-term average is quite a bit lower. 




The H/A Spread Market



The past week has seen H-shares come off sharply and spreads widen reasonably dramatically. 








The average discount appears not to want to tighten, still. The average spread has kept at around 40.0% for the past four weeks or so (despite that illiquidity-bump around LNY). 








Last Week's Recommendations



There were 80 recommendations last week. This was the first losing week on alpha in several. 
The 34 short spread recommendations lost an average of 0.12%, underperforming the market as a whole (which saw the average spread widen 0.03%). That is negative alpha of 9bp after positive alpha of 48bp the previous week on 33 spreads.
The 46 long recommendations averaged losses of 4bp during the week, underperforming the market as a whole by 1bp (vs +46bp outperformance the previous week). The combined total package was up -0.07% for the week vs +0.27% for the prior week, with -10bp of cross-bias alpha (vs 92bp of alpha on the cross-bias the previous week).
There are nearly 80 recommendations this week (turnover remains low).  





Consumer Sector



The first sector discussed is Consumer, where most H-shares fell on the week 



Spreads were remarkably tame.

BYD (1211 HK) ended the week down 1.1% after rising in the first four days, and the shares even fell Friday despite announcing Thursday after the close that production was up 125%yoy in February, and sales +106%. BYD is down 20+% in four weeks. 

Fuyao Glass Industry Group (3606 HK) was only up small in sympathy, outperforming auto names, and significantly outperforming glass names across other sectors. Thursday saw significant selling of glass names. 
Southbound was a net seller of nearly HK$585mm after selling HK$2bn in the previous two weeks. Only Fuyao Glass Industry Group (3606 HK) saw decent Southbound buying on a net basis (+HK$190mm). BYD was the big net sell at -HK$673mm. 





Last week, I recommended staying long the Great Wall Motor (2333 HK) H vs A, and short BYD (1211 HK), Hisense Home Appliances Group Co., Ltd. H (921 HK), and Fuyao Glass Industry Group (3606 HK) H vs A. 
Those four trades lost an average of 0.16% last week in spread terms after gaining 3.58% the previous week.












For this week's recommendations on Consumer, and discussion of the Energy, Financials &amp; Real Estate, Health Care, Tech, Industrials, Materials, and Utilities sectors, and all trade recommendations, please read on.


Quiddity Weekly H/A: Financials Outpace Everything Else: Marketwide 87% Upside to A-Share Parity

China Suntien Green Energy / Event-Driven

<div>
<p>Several weeks ago, I gave the warning H/A spreads had moved tighter - too far too fast. The next week, spreads widened, they bounced back with a vengeance, then slightly wider in the short week at the start of Chinese New Year, and bouncing back in the post-CNY week.</p>
<p>They have started to move wider again, and given the global form in risk and higher volatility right now, I would not be surprised if they continued a bit wider.</p>
</div><div>
<p>Last week, in the first full week after the end of all the Chinese New Year festivities, all but one sector saw average spreads widen, and market-wide, spreads had their worst week in quite a while.</p>
<table class="table table-striped"><tbody>
<tr>
<td style="width: 198.182px;"><p>Sector</p></td>
<td style="text-align: right; width: 103.636px;"><p>Last Week</p></td>
<td style="text-align: right; width: 135.455px;"><p>Previous Week</p></td>
<td style="text-align: right; width: 100px;"><p>3wks Ago</p></td>
<td style="text-align: right; width: 102.727px;"><p>4wks Ago</p></td>
</tr>
<tr>
<td style="width: 198.182px;"><p>Consumer</p></td>
<td style="text-align: right; width: 103.636px;"><p>-  1.65%</p></td>
<td style="text-align: right; width: 135.455px;"><p>-  1.20%</p></td>
<td style="text-align: right; width: 100px;"><p>+ 2.55%</p></td>
<td style="text-align: right; width: 102.727px;"><p>+ 2.32%</p></td>
</tr>
<tr>
<td style="width: 198.182px;"><p>Energy</p></td>
<td style="text-align: right; width: 103.636px;"><p>+ 0.67%</p></td>
<td style="text-align: right; width: 135.455px;"><p>+ 1.43%</p></td>
<td style="text-align: right; width: 100px;"><p>-  1.64%</p></td>
<td style="text-align: right; width: 102.727px;"><p>+ 1.98%</p></td>
</tr>
<tr>
<td style="width: 198.182px;"><p>Financials &amp; Real Estate</p></td>
<td style="text-align: right; width: 103.636px;"><p>-  1.12%</p></td>
<td style="text-align: right; width: 135.455px;"><p>+ 0.10%</p></td>
<td style="text-align: right; width: 100px;"><p>+ 0.29%</p></td>
<td style="text-align: right; width: 102.727px;"><p>+ 0.62%</p></td>
</tr>
<tr>
<td style="width: 198.182px;"><p>Health Care &amp; Info Tech</p></td>
<td style="text-align: right; width: 103.636px;"><p>-  2.86%</p></td>
<td style="text-align: right; width: 135.455px;"><p>+ 1.45%</p></td>
<td style="text-align: right; width: 100px;"><p>-  1.52%</p></td>
<td style="text-align: right; width: 102.727px;"><p>+ 2.29%</p></td>
</tr>
<tr>
<td style="width: 198.182px;"><p>Industrials</p></td>
<td style="text-align: right; width: 103.636px;"><p>-  1.20%</p></td>
<td style="text-align: right; width: 135.455px;"><p>+ 0.26%</p></td>
<td style="text-align: right; width: 100px;"><p>-  0.62%</p></td>
<td style="text-align: right; width: 102.727px;"><p>+ 2.48%</p></td>
</tr>
<tr>
<td style="width: 198.182px;"><p>Materials</p></td>
<td style="text-align: right; width: 103.636px;"><p>-  0.84%</p></td>
<td style="text-align: right; width: 135.455px;"><p>+ 3.08%</p></td>
<td style="text-align: right; width: 100px;"><p>-  0.57%</p></td>
<td style="text-align: right; width: 102.727px;"><p>+ 2.66%</p></td>
</tr>
<tr>
<td style="width: 198.182px;"><p>Utilities</p></td>
<td style="text-align: right; width: 103.636px;"><p>-  0.14%</p></td>
<td style="text-align: right; width: 135.455px;"><p>+ 0.99%</p></td>
<td style="text-align: right; width: 100px;"><p>+ 0.25%</p></td>
<td style="text-align: right; width: 102.727px;"><p>+ 1.06%</p></td>
</tr>
<tr>
<td style="width: 198.182px;"><p>Sector Average</p></td>
<td style="text-align: right; width: 103.636px;"><p>-  1.02%</p></td>
<td style="text-align: right; width: 135.455px;"><p>+ 0.87%</p></td>
<td style="text-align: right; width: 100px;"><p>-  0.18%</p></td>
<td style="text-align: right; width: 102.727px;"><p>+ 1.92%</p></td>
</tr>
<tr>
<td style="width: 198.182px;"><p><strong>All Market Average</strong></p></td>
<td style="text-align: right; width: 103.636px;"><p><strong>-  1.22%</strong></p></td>
<td style="text-align: right; width: 135.455px;"><p><strong>+ 0.76%</strong></p></td>
<td style="text-align: right; width: 100px;"><p><strong>-  0.33%</strong></p></td>
<td style="text-align: right; width: 102.727px;"><p><strong>+ 1.80%</strong></p></td>
</tr>
</tbody></table>
<p>Developers saw their Hs rise dramatically on the week on new rules about land sales which would appear to favor large developers over smaller developers, but few have an H/A spread presence.</p>
</div><div><div>
<hr>
<h3>The H/A Spread Market</h3>
</div></div><div>
<p>The past week has seen H-shares come off sharply and spreads widen reasonably dramatically. </p>
<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/191/379/original/Screenshot+2021-02-28+at+7.50.25+PM.png?1614513037" class="editor-image img-responsive" data-smartkarma-image-id="191379"></figure></section>
</div><p>The average discount appears not to want to tighten. </p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/191/402/original/Screenshot+2021-02-28+at+9.36.30+PM.png?1614519456" class="editor-image img-responsive" data-smartkarma-image-id="191402"></figure></section><p></p><h2>Last Week's Recommendations</h2><ul>
<li>There were 78 recommendations last week. </li>
<li>The 33 short recommendations gained an average of 1.70%, outperforming the market as a whole (which saw the average spread widen 1.22%). That is alpha of 48bp.</li>
<li>The 45 long recommendations averaged losses of 76bp during the week, outperforming the market as a whole by 46bp. The combined total package was up 0.27% for the week, with 92bp of alpha on the cross-bias. </li>
</ul><hr><section><div><h2>Consumer Sector</h2></div>
<div><p>The first sector discussed is Consumer, where liquid H/A spreads widened on average 1.65% over the past week, with the sector continuing to see significant bumpiness. </p></div>
<div><ul>
<li>
<a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a> saw its spread move 2.9% narrower last week after widening 3.1% in the previous two weeks. It is now 3.7% narrower over four weeks.  <a href="https://www.smartkarma.com/entities/great-wall-motor-co-ltd-cb302af9-398c-4d2d-ba39-023e43287eef" target="_blank" data-smartkarma-citation="entities:128:1" rel="noopener">Great Wall Motor (2333 HK)</a> narrowed too, but the others in the space widened. </li>
<li>All but one stock in the sector saw its H-share decline in double digit percentages. The average H in the sector moved down 15.9% in the week. Only <a href="https://www.smartkarma.com/entities/guangzhou-automobile-group-co-ltd" target="_blank" data-smartkarma-citation="entities:11082:1" rel="noopener">Guangzhou Automobile Group (2238 HK)</a> was spared that indignity, seeings its H fall 'only' 9.7%.</li>
<li>Southbound was a net seller of nearly HK$2bn of stock since the 10th of February, purchasing only <a href="https://www.smartkarma.com/entities/fuyao-glass-industry-group-co-ltd" target="_blank" data-smartkarma-citation="entities:330:1" rel="noopener">Fuyao Glass Industry Group (3606 HK)</a> on a net basis.</li>
</ul></div>
<div><div><div class="content-highlight">
<p>Last week, I recommended staying long the <a href="https://www.smartkarma.com/entities/great-wall-motor-co-ltd-cb302af9-398c-4d2d-ba39-023e43287eef" target="_blank" data-smartkarma-citation="entities:128:1" rel="noopener">Great Wall Motor (2333 HK)</a>, and short <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a>, <a href="https://www.smartkarma.com/entities/hisense-home-appliances-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20107:1" rel="noopener">Hisense Home Appliances Group Co., Ltd. H (921 HK)</a>, and <a href="https://www.smartkarma.com/entities/fuyao-glass-industry-group-co-ltd" target="_blank" data-smartkarma-citation="entities:330:1" rel="noopener">Fuyao Glass Industry Group (3606 HK)</a> H vs A. </p>
<p>Those four trades gained an average of 3.58% in spread terms on the week.</p>
</div></div></div>
<section><section class="figure"><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/191/384/original/Screenshot+2021-02-28+at+8.09.50+PM.png?1614514204" class="editor-image img-responsive" data-smartkarma-image-id="191384"></figure><p></p></section></section></section><section><em>For this week's recommendations on Consumer, and discussion of the Energy, Financials &amp; Real Estate, Health Care, Tech, Industrials, Materials, and Utilities sectors, and all trade recommendations, please read on.</em></section></section>


Several weeks ago, I gave the warning H/A spreads had moved tighter - too far too fast. The next week, spreads widened, they bounced back with a vengeance, then slightly wider in the short week at the start of Chinese New Year, and bouncing back in the post-CNY week.
They have started to move wider again, and given the global form in risk and higher volatility right now, I would not be surprised if they continued a bit wider.

Last week, in the first full week after the end of all the Chinese New Year festivities, all but one sector saw average spreads widen, and market-wide, spreads had their worst week in quite a while.


Sector
Last Week
Previous Week
3wks Ago
4wks Ago


Consumer
-  1.65%
-  1.20%
+ 2.55%
+ 2.32%


Energy
+ 0.67%
+ 1.43%
-  1.64%
+ 1.98%


Financials &amp; Real Estate
-  1.12%
+ 0.10%
+ 0.29%
+ 0.62%


Health Care &amp; Info Tech
-  2.86%
+ 1.45%
-  1.52%
+ 2.29%


Industrials
-  1.20%
+ 0.26%
-  0.62%
+ 2.48%


Materials
-  0.84%
+ 3.08%
-  0.57%
+ 2.66%


Utilities
-  0.14%
+ 0.99%
+ 0.25%
+ 1.06%


Sector Average
-  1.02%
+ 0.87%
-  0.18%
+ 1.92%


All Market Average
-  1.22%
+ 0.76%
-  0.33%
+ 1.80%


Developers saw their Hs rise dramatically on the week on new rules about land sales which would appear to favor large developers over smaller developers, but few have an H/A spread presence.


The H/A Spread Market

The past week has seen H-shares come off sharply and spreads widen reasonably dramatically. 

The average discount appears not to want to tighten. Last Week's Recommendations
There were 78 recommendations last week. 
The 33 short recommendations gained an average of 1.70%, outperforming the market as a whole (which saw the average spread widen 1.22%). That is alpha of 48bp.
The 45 long recommendations averaged losses of 76bp during the week, outperforming the market as a whole by 46bp. The combined total package was up 0.27% for the week, with 92bp of alpha on the cross-bias. 
Consumer Sector
The first sector discussed is Consumer, where liquid H/A spreads widened on average 1.65% over the past week, with the sector continuing to see significant bumpiness. 


BYD (1211 HK) saw its spread move 2.9% narrower last week after widening 3.1% in the previous two weeks. It is now 3.7% narrower over four weeks.  Great Wall Motor (2333 HK) narrowed too, but the others in the space widened. 
All but one stock in the sector saw its H-share decline in double digit percentages. The average H in the sector moved down 15.9% in the week. Only Guangzhou Automobile Group (2238 HK) was spared that indignity, seeings its H fall 'only' 9.7%.
Southbound was a net seller of nearly HK$2bn of stock since the 10th of February, purchasing only Fuyao Glass Industry Group (3606 HK) on a net basis.


Last week, I recommended staying long the Great Wall Motor (2333 HK), and short BYD (1211 HK), Hisense Home Appliances Group Co., Ltd. H (921 HK), and Fuyao Glass Industry Group (3606 HK) H vs A. 
Those four trades gained an average of 3.58% in spread terms on the week.

For this week's recommendations on Consumer, and discussion of the Energy, Financials &amp; Real Estate, Health Care, Tech, Industrials, Materials, and Utilities sectors, and all trade recommendations, please read on.

Quiddity Weekly H/A: Strong Dispersion, Strong Alpha; Brokers Beat Banks

China

Flat Glass Group Co., Ltd is a PV glass manufacturer. The Company also markets float glass, household glass and architectural glass.

Price Gauge
52-week Range	0.00 - 0.00
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Flat Glass (6865 HK)

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Quiddity Weekly H/A: Energy Up, Spreads Wider, Pharmas Down Spreads Narrower

Spread momentum continues unabated. Of note, CanSino's vaccine approval is getting no friends as the stock is down nearly 25% in 2 weeks and 29% in...

Travis Lundy

Quiddity Weekly H/A: Strong Dispersion, Strong Alpha; Brokers Beat Banks

Great alpha last week as shorts beat by 48bp, longs beat by 46bp. Southbound saw one really big sell day, but on the week, buying continued apace...

Travis Lundy

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

A look at the potential changes to the HSCI at the June & September reviews and stocks that could be included in/excluded from Stock Connect. These...

Brian Freitas

Global Clean Energy Index: 52 Adds, 55% Index Turnover, US$12bn to Trade

There are 52 additions to the S&P Global Clean Energy Index. One-way turnover is nearly 55% and the ETF benchmarked to the index will need to trade...

Brian Freitas

Quiddity Weekly H/A: Energy Up, Spreads Wider, Pharmas Down Spreads Narrower

Spread momentum continues unabated. Of note, CanSino's vaccine approval is getting no friends as the stock is down nearly 25% in 2 weeks and 29% in...

Travis Lundy

Quiddity Weekly H/A: Financials Outpace Everything Else: Marketwide 87% Upside to A-Share Parity

H/A spreads were largely unchanged on the week but more widened than narrowed. Financials was the only sector narrower on the whole. With average...

Travis Lundy

Quiddity Weekly H/A: Strong Dispersion, Strong Alpha; Brokers Beat Banks

Great alpha last week as shorts beat by 48bp, longs beat by 46bp. Southbound saw one really big sell day, but on the week, buying continued apace...

Travis Lundy