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

<ul>
<li>Following a rally in the stock over the last 3 months, <a href="https://www.smartkarma.com/entities/gds-holdings-ltd" target="_blank" data-smartkarma-citation="entities:32157:1" rel="noopener">GDS Holdings (9698 HK)</a> / <a href="https://www.smartkarma.com/entities/gds-holdings-adr" target="_blank" data-smartkarma-citation="entities:23649:1" rel="noopener">GDS Holdings (ADR) (GDS US)</a> could be added to a global index in August.</li>
<li>Short interest in <a href="https://www.smartkarma.com/entities/gds-holdings-ltd" target="_blank" data-smartkarma-citation="entities:32157:1" rel="noopener">GDS Holdings (9698 HK)</a> has been increasing. Add the short interest in <a href="https://www.smartkarma.com/entities/gds-holdings-adr" target="_blank" data-smartkarma-citation="entities:23649:1" rel="noopener">GDS Holdings (ADR) (GDS US)</a> and the number is pretty big.</li>
<li>Despite the recent rally, <a href="https://www.smartkarma.com/entities/gds-holdings-ltd" target="_blank" data-smartkarma-citation="entities:32157:1" rel="noopener">GDS Holdings (9698 HK)</a> trades cheaper than its closest peer and there could be opportunities to enter market neutral trades.</li>
</ul>


Following a rally in the stock over the last 3 months, GDS Holdings (9698 HK) / GDS Holdings (ADR) (GDS US) could be added to a global index in August.
Short interest in GDS Holdings (9698 HK) has been increasing. Add the short interest in GDS Holdings (ADR) (GDS US) and the number is pretty big.
Despite the recent rally, GDS Holdings (9698 HK) trades cheaper than its closest peer and there could be opportunities to enter market neutral trades.


GDS Holdings (9698 HK): Global Index Inclusion as Shorts Build Up

Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Listed Real Estate Asia

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Equity Bottom-Up

<ul>
<li>We believe the recent launches of AI Model will challenge the assumptions of AI training costs, and we are still in early stages of AI revolution</li>
<li>It will maintain a sustainable growth of AI infrastructure like data centers, instead of reducing the demand. GDS and VNET are well positioned to capture this tailwind</li>
<li>VNET and GDS were up 303% and 268% for last 12 months, we think it is not too late to chase the rally</li>
</ul>


We believe the recent launches of AI Model will challenge the assumptions of AI training costs, and we are still in early stages of AI revolution
It will maintain a sustainable growth of AI infrastructure like data centers, instead of reducing the demand. GDS and VNET are well positioned to capture this tailwind
VNET and GDS were up 303% and 268% for last 12 months, we think it is not too late to chase the rally


Implication of Deepseek on China Data Centers: Buy GDS and VNET, Not Too Late to Chase the Rally!

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>Mainland investors continue their record southbound purchases during 2024 and into 2025. </li>
<li>
<a href="https://www.smartkarma.com/entities/gds-holdings-ltd" target="_blank" data-smartkarma-citation="entities:32157:1" rel="noopener">GDS Holdings (9698 HK)</a> , <a href="https://www.smartkarma.com/entities/gds-holdings-adr" target="_blank" data-smartkarma-citation="entities:23649:1" rel="noopener">GDS Holdings (ADR) (GDS US)</a> had a break out from its triangle formation in its continuation pattern.  The company may list its China REIT assets.
</li>
<li>
<a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> had a symmetrical pattern breakdown after the announcement that the US pentagon had placed the company on its blacklist.  The company began a large share buyback.
</li>
</ul>


Mainland investors continue their record southbound purchases during 2024 and into 2025. 

GDS Holdings (9698 HK) , GDS Holdings (ADR) (GDS US) had a break out from its triangle formation in its continuation pattern.  The company may list its China REIT assets.


Tencent (700 HK) had a symmetrical pattern breakdown after the announcement that the US pentagon had placed the company on its blacklist.  The company began a large share buyback.



Technically Speaking, Breakouts and Breakdowns: HONG KONG (January 6)

<ul>
<li>GDS is the leader in China’s data center market.  GDS is well positioned to capture growing demand from generative AI cloud growth</li>
<li>GDS consists of GDSH (China) and GDSI (international), both businesses are delivering growth and operational excellence</li>
<li>GDS US share price has rallied 100% YTD, we believe there is further room to grow due to capital flows and attractive valuation</li>
</ul>


GDS is the leader in China’s data center market.  GDS is well positioned to capture growing demand from generative AI cloud growth
GDS consists of GDSH (China) and GDSI (international), both businesses are delivering growth and operational excellence
GDS US share price has rallied 100% YTD, we believe there is further room to grow due to capital flows and attractive valuation


GDS: The Leading Data Center Provider in China, Riding the AI Mega Trend – BUY

<ul>
<li>Hong Kong's unusual trading channel pattern may be coming to an end and short selling declines.</li>
<li><a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group Holding (9988 HK)</a> broke a falling triangle pattern and now trades above near term support levels.  The company's dual listing announcement and large buyback program are near-term positives.</li>
<li>
<a href="https://www.smartkarma.com/entities/gds-holdings-ltd" target="_blank" data-smartkarma-citation="entities:32157:1" rel="noopener">GDS Holdings (9698 HK)</a> has broken out of its rounding bottom pattern with a positive earnings announcement.  <a href="https://www.smartkarma.com/entities/china-ruyi-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3296:1" rel="noopener">China Ruyi Holdings (136 HK)</a> has broken out from its triangle pattern.
</li>
</ul>


Hong Kong's unusual trading channel pattern may be coming to an end and short selling declines.
Alibaba Group Holding (9988 HK) broke a falling triangle pattern and now trades above near term support levels.  The company's dual listing announcement and large buyback program are near-term positives.

GDS Holdings (9698 HK) has broken out of its rounding bottom pattern with a positive earnings announcement.  China Ruyi Holdings (136 HK) has broken out from its triangle pattern.



Technically Speaking, Breakouts and Breakdowns: HONG KONG (AUGUST 24)

China

GDS Holdings Limited operates as a holding company. The Company, through its subsidiaries, develops and operates data centers. GDS Holdings offers risk and security management, information technology planing, remote monitoring, cloud hosting, virtualization, disaster recovery, and remote data protection services.

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GDS Holdings (ADR) (GDS US)

GDS Holdings (9698 HK): Global Index Inclusion as Shorts Build Up

GDS Holdings could be added to a global index in August. That will drive passive buying and could lead to some shorts being covered. Positioning in...

Brian Freitas

Implication of Deepseek on China Data Centers: Buy GDS and VNET, Not Too Late to Chase the Rally!

We explored the recent launches of AI model, e.g. Deepseek, discuss the implication to Data Centers. Despite GDS and VNET were up 3x for last 12...

Jacob Cheng

Technically Speaking, Breakouts and Breakdowns: HONG KONG (January 6)

Mainland investors purchased a record amount of HK shares during 2024. GDS Holding announced that it may list its China assets in a REIT. Tencent...

David Mudd

GDS: The Leading Data Center Provider in China, Riding the AI Mega Trend – BUY

GDS is the leading data center service provider in China. The company is positioned to capture strong demand from AI mega trends. The stock was...

Jacob Cheng

Technically Speaking, Breakouts and Breakdowns: HONG KONG (AUGUST 24)

GDS continues to rally after its breakout from its 2 year downtrend. Huatai maintained a BUY on the stock and raised its target price to HK$27.49...

David Mudd

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