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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<p>The Korea Exchange (KRX) launched 5 indices last year following the New Deal initiative that the Government launched to digitalise social infrastructure and jumpstart the transition to green energy.</p><p>The KRX created 4 indices tracking the Secondary Battery, Biotech, Internet and Gaming sectors that are expected to benefit from the New Deal initiative plus an additional index (BBIG) that includes the top 3 stocks from each sector.</p><p>All indices have performed well since then. The KRX announced changes to the 5 indices late last week and the changes become effective post the close of trading on 25 February.</p><div><p><a href="https://www.smartkarma.com/entities/kakao-games-corp" target="_blank" data-smartkarma-citation="entities:26730:1" rel="noopener">Kakao Games Corp (293490 KS)</a> replaces <a href="https://www.smartkarma.com/entities/pearl-abyss-corp" target="_blank" data-smartkarma-citation="entities:24391:1" rel="noopener">Pearl Abyss (263750 KS)</a> in the BBIG Index.</p></div><div><p>In the Secondary Battery index, <a href="https://www.smartkarma.com/entities/soulbrain-co-ltd" target="_blank" data-smartkarma-citation="entities:16883:1" rel="noopener">Soulbrain (036830 KS)</a> and <a href="https://www.smartkarma.com/entities/l-f-co-ltd" target="_blank" data-smartkarma-citation="entities:14300:1" rel="noopener">L&amp;F Co Ltd (066970 KS)</a> replace <a href="https://www.smartkarma.com/entities/doosan-solus-co-ltd" target="_blank" data-smartkarma-citation="entities:28947:1" rel="noopener">Doosan Solus Co Ltd (336370 KS)</a> and <a href="https://www.smartkarma.com/entities/foosung-co-ltd" target="_blank" data-smartkarma-citation="entities:16811:1" rel="noopener">Foosung Co Ltd (093370 KS)</a>.</p></div><div><p>In the Biotech index, <a href="https://www.smartkarma.com/entities/shinpoong-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:7296:1" rel="noopener">Shinpoong Pharmaceutical (019170 KS)</a> and <a href="https://www.smartkarma.com/entities/green-cross-corp" target="_blank" data-smartkarma-citation="entities:2969:1" rel="noopener">Green Cross (006280 KS)</a> replace <a href="https://www.smartkarma.com/entities/alteogen-inc" target="_blank" data-smartkarma-citation="entities:15886:1" rel="noopener">Alteogen Inc (196170 KS)</a> and <a href="https://www.smartkarma.com/entities/hanmi-pharm-co-ltd" target="_blank" data-smartkarma-citation="entities:12476:1" rel="noopener">Hanmi Pharm (128940 KS)</a>.</p></div><div><p>In the Internet index, <a href="https://www.smartkarma.com/entities/ace-technologies-corp" target="_blank" data-smartkarma-citation="entities:7868:1" rel="noopener">Ace Technologies (088800 KS)</a> and <a href="https://www.smartkarma.com/entities/rsupport-co-ltd" target="_blank" data-smartkarma-citation="entities:14783:1" rel="noopener">Rsupport Co Ltd (131370 KS)</a> replace <a href="https://www.smartkarma.com/entities/kg-inicis-co-ltd" target="_blank" data-smartkarma-citation="entities:5234:1" rel="noopener">KG Inicis Co Ltd (035600 KS)</a> and <a href="https://www.smartkarma.com/entities/ubiquoss-inc" target="_blank" data-smartkarma-citation="entities:14341:1" rel="noopener">Ubiquoss Holding (078070 KS)</a>.</p></div><div><p>In the Gaming index, <a href="https://www.smartkarma.com/entities/kakao-games-corp" target="_blank" data-smartkarma-citation="entities:26730:1" rel="noopener">Kakao Games Corp (293490 KS)</a> and <a href="https://www.smartkarma.com/entities/neptune-company" target="_blank" data-smartkarma-citation="entities:28826:1" rel="noopener">Neptune Company (217270 KS)</a> replace <a href="https://www.smartkarma.com/entities/neowiz-games-corp" target="_blank" data-smartkarma-citation="entities:12425:1" rel="noopener">Neowiz Games (095660 KS)</a> and Golfzon (215000 KS).</p></div>

The Korea Exchange (KRX) launched 5 indices last year following the New Deal initiative that the Government launched to digitalise social infrastructure and jumpstart the transition to green energy.The KRX created 4 indices tracking the Secondary Battery, Biotech, Internet and Gaming sectors that are expected to benefit from the New Deal initiative plus an additional index (BBIG) that includes the top 3 stocks from each sector.All indices have performed well since then. The KRX announced changes to the 5 indices late last week and the changes become effective post the close of trading on 25 February.Kakao Games Corp (293490 KS) replaces Pearl Abyss (263750 KS) in the BBIG Index.In the Secondary Battery index, Soulbrain (036830 KS) and L&amp;F Co Ltd (066970 KS) replace Doosan Solus Co Ltd (336370 KS) and Foosung Co Ltd (093370 KS).In the Biotech index, Shinpoong Pharmaceutical (019170 KS) and Green Cross (006280 KS) replace Alteogen Inc (196170 KS) and Hanmi Pharm (128940 KS).In the Internet index, Ace Technologies (088800 KS) and Rsupport Co Ltd (131370 KS) replace KG Inicis Co Ltd (035600 KS) and Ubiquoss Holding (078070 KS).In the Gaming index, Kakao Games Corp (293490 KS) and Neptune Company (217270 KS) replace Neowiz Games (095660 KS) and Golfzon (215000 KS).

KRX BBIG K-NewDeal Index Rebalance: First Set of Changes Announced

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Event-Driven

<p>We now have the across-the-board shorting restriction in Korea for the next six months. It means that we will have to adjust our approach on most of the pairs trading names. That is, it is time for those carrying futures to draw more attention.</p><p>First, let's look at the full list of Korean holding companies. There are a total of 112 holding companies. The below list shows them in the order of market cap.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/123/135/original/1.png?1584294126" class="editor-image img-responsive" data-smartkarma-image-id="123135"></figure><p>Out of the 112 names, these are 21 holding companies with a current market cap of ₩500bil or more, and which have at least one listed subsidiary on either KOSPI or KOSDAQ.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/123/136/original/2.png?1584294321" class="editor-image img-responsive" data-smartkarma-image-id="123136"></figure><p>Finally, below are the names whose one or two subsidiaries account for 50% or more of the holding company NAV. </p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/123/139/original/3.png?1584295319" class="editor-image img-responsive" data-smartkarma-image-id="123139"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/123/143/original/4.png?1584295789" class="editor-image img-responsive" data-smartkarma-image-id="123143"></figure>

We now have the across-the-board shorting restriction in Korea for the next six months. It means that we will have to adjust our approach on most of the pairs trading names. That is, it is time for those carrying futures to draw more attention.First, let's look at the full list of Korean holding companies. There are a total of 112 holding companies. The below list shows them in the order of market cap.Out of the 112 names, these are 21 holding companies with a current market cap of ₩500bil or more, and which have at least one listed subsidiary on either KOSPI or KOSDAQ.Finally, below are the names whose one or two subsidiaries account for 50% or more of the holding company NAV. 

Korean Stub Trade in a New Era: List of Holdcos Having Single Stock Futures

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

<p>On March 12th, the Korea National Pension Fund Service (NPS) provided a list of 23 companies where it plan to exercise its voting rights in their AGMs in the next two weeks. Of these 23 companies, <strong>the NPS is opposing 11 companies</strong> on at least one of their agenda items of their upcoming AGMs, including opposing re-appointment of specific members in the BOD/senior management of these companies.</p><p>In the past, NPS' opposing to certain agendas of the listed companies in Korea in their AGMs were typically announced about a couple of weeks AFTER the AGMs were completed. However, starting in 2019, NPS has changed its policy of announcing which companies they will exercise their voting rights (including the ones they oppose) to prior to the AGM dates. </p><p>Interesting, the 11 companies where NPS has opposed various agendas of the AGMs have strongly outperformed the market this year. These 11 companies' share prices are up on average 8.6% YTD versus KOSPI which is up only 4.7% during the same period. </p>

On March 12th, the Korea National Pension Fund Service (NPS) provided a list of 23 companies where it plan to exercise its voting rights in their AGMs in the next two weeks. Of these 23 companies, the NPS is opposing 11 companies on at least one of their agenda items of their upcoming AGMs, including opposing re-appointment of specific members in the BOD/senior management of these companies.In the past, NPS' opposing to certain agendas of the listed companies in Korea in their AGMs were typically announced about a couple of weeks AFTER the AGMs were completed. However, starting in 2019, NPS has changed its policy of announcing which companies they will exercise their voting rights (including the ones they oppose) to prior to the AGM dates. Interesting, the 11 companies where NPS has opposed various agendas of the AGMs have strongly outperformed the market this year. These 11 companies' share prices are up on average 8.6% YTD versus KOSPI which is up only 4.7% during the same period. 

Korea National Pension Fund Announces a List of 11 Companies They Oppose in Upcoming AGMs

<div class="content-highlight"><p>On May 1st, 2018, Korea's Financial Supervisory Service (FSS) announced that <strong><a href="https://www.smartkarma.com/entities/22932" target="_blank" data-smartkarma-citation="entities:22932:1">Samsung Biologics Co., Ltd (207940 KS)</a></strong> violated accounting rules after conducting a special audit on the company. Samsung Biologics is the sixth largest company in Korea in terms of market cap. Samsung Biologics shares are likely to be severely punished tomorrow and in the coming weeks. <strong>In fact, the entire Korean pharmaceutical sector will likely take a bit hit in the coming weeks. There will be increasing skepticism on</strong>…</p></div>

On May 1st, 2018, Korea's Financial Supervisory Service (FSS) announced that Samsung Biologics Co., Ltd (207940 KS) violated accounting rules after conducting a special audit on the company. Samsung Biologics is the sixth largest company in Korea in terms of market cap. Samsung Biologics shares are likely to be severely punished tomorrow and in the coming weeks. In fact, the entire Korean pharmaceutical sector will likely take a bit hit in the coming weeks. There will be increasing skepticism on…

Samsung Biologics' Accounting Violation's Impact on Samsung C&T and Rest of the Korean Pharmas

<p>We are now seeing a very interesting move from Korea's local institutions on those SK Group restructuring stocks. Last week, to be specific from Sep 25 to 29, the two stocks standing at the center of the SK Group restructuring process made the local institutions' top 10 net buying stock list in KOSPI/KOSDAQ. They are <a href="https://www.smartkarma.com/entities/393" target="_blank" data-smartkarma-citation="entities:393:1">SK Holdings Co Ltd (034730 KS)</a> and <a href="https://www.smartkarma.com/entities/395" target="_blank" data-smartkarma-citation="entities:395:1">SK Telecom (017670 KS)</a>. More importantly and interestingly, SK Holdings ranked top in this list as local institutions net purchased ₩75.1bil worth…</p>

We are now seeing a very interesting move from Korea's local institutions on those SK Group restructuring stocks. Last week, to be specific from Sep 25 to 29, the two stocks standing at the center of the SK Group restructuring process made the local institutions' top 10 net buying stock list in KOSPI/KOSDAQ. They are SK Holdings Co Ltd (034730 KS) and SK Telecom (017670 KS). More importantly and interestingly, SK Holdings ranked top in this list as local institutions net purchased ₩75.1bil worth…

SK Group Restructuring - Local Institutions Are Already Making A Move

South Korea

Hanmi Pharm. Company Ltd. produces pharmaceutical products, including antibiotics, vitamins, and intestinal tonics.  The Company also provides beverages and processes soft capsules for other pharmaceutical firms.

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Hanmi Pharm (128940 KS)

KRX BBIG K-NewDeal Index Rebalance: First Set of Changes Announced

The KRX has announced changes to the KRX New Deal indices that will be effective after the close of trading on 25 February. Pearl Abyss is...

Brian Freitas

Korean Stub Trade in a New Era: List of Holdcos Having Single Stock Futures

We now have the across-the-board shorting restriction in Korea for the next six months. It means that we will have to adjust our approach on most...

Sanghyun Park

Korea National Pension Fund Announces a List of 11 Companies They Oppose in Upcoming AGMs

On March 12th, the Korea National Pension Fund Service (NPS) provided a list of 23 companies where it plan to exercise its voting rights in their...

Douglas Kim

Samsung Biologics' Accounting Violation's Impact on Samsung C&T and Rest of the Korean Pharmas

On May 1st, 2018, Korea's Financial Supervisory Service (FSS) announced that Samsung Biologics Co., Ltd (207940 KS) violated accounting rules after...

Douglas Kim

SK Group Restructuring - Local Institutions Are Already Making A Move

We are now seeing a very interesting move from Korea's local institutions on those SK Group restructuring stocks. Last week, to be specific from...

Sanghyun Park

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