Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>HLB's process of selecting a lead underwriter for the KOSPI listing has been witnessed in Yeouido.</li>
<li>The price impact becomes most evident on the board approval date as the point at which this impact is most pronounced is substantially accelerated due to the market's learning effect.</li>
<li>There is a strong likelihood that HLB will have its board decision by mid-September, necessitating our preparation for a position setup targeting this timing.</li>
</ul>


HLB's process of selecting a lead underwriter for the KOSPI listing has been witnessed in Yeouido.
The price impact becomes most evident on the board approval date as the point at which this impact is most pronounced is substantially accelerated due to the market's learning effect.
There is a strong likelihood that HLB will have its board decision by mid-September, necessitating our preparation for a position setup targeting this timing.


Positioning for the Timing of HLB, the Latest Target in the KOSDAQ Exodus

<ul>
<li>According to Chosun, KRX plans to list the single-stock futures of all constituents of KOSPI 200 and KOSDAQ 150 within 2-3 years.</li>
<li>This information comes from a KRX official, who directly confirmed it. As Chosun is the most well-established news outlet in Korea, the credibility of this article is quite high.</li>
<li>We should consider screening those with a high proportion of short-selling positions and devising a positioning strategy in conjunction with the new listing event of single stock futures in July.</li>
</ul>


According to Chosun, KRX plans to list the single-stock futures of all constituents of KOSPI 200 and KOSDAQ 150 within 2-3 years.
This information comes from a KRX official, who directly confirmed it. As Chosun is the most well-established news outlet in Korea, the credibility of this article is quite high.
We should consider screening those with a high proportion of short-selling positions and devising a positioning strategy in conjunction with the new listing event of single stock futures in July.


KRX Plans to List Single-Stock Futures of All KS200 & KQ150 Constituents

<ul>
<li>A rather unusual price movement came out on February 20 for HLB. On the first trading day after the board of directors' decision, the price reached the upper daily limit.</li>
<li>The short covering got to a temporarily excessive level in the process of securing appraisal rights should be the reason that led to the upper limit.</li>
<li>We should design a trading setup targeting excessive short covering-triggered price overheating in split-off events. At this point, the most likely candidate to pursue a split-off is DB Hitek.</li>
</ul>


A rather unusual price movement came out on February 20 for HLB. On the first trading day after the board of directors' decision, the price reached the upper daily limit.
The short covering got to a temporarily excessive level in the process of securing appraisal rights should be the reason that led to the upper limit.
We should design a trading setup targeting excessive short covering-triggered price overheating in split-off events. At this point, the most likely candidate to pursue a split-off is DB Hitek.


Never-Seen Price Pattern Detected in a Split-Off Event Granting Appraisal Rights in Korea

<ul>
<li>This post will specifically examine arb trade opportunities during the subscription rights trading period, with the recent HLB and Lotte Chemical cases.</li>
<li>HLB gave an arb yield of 8%. As for Lotte Chemical, the size (₩1.1T) is much bigger, and it carries single-stock futures, a powerful incentive for arb traders.</li>
<li>Another thing for Lotte Chemical is that it is unclear whether the major shareholders will participate in the subscription, which can lead to a widening of our arb spread.</li>
</ul>


This post will specifically examine arb trade opportunities during the subscription rights trading period, with the recent HLB and Lotte Chemical cases.
HLB gave an arb yield of 8%. As for Lotte Chemical, the size (₩1.1T) is much bigger, and it carries single-stock futures, a powerful incentive for arb traders.
Another thing for Lotte Chemical is that it is unclear whether the major shareholders will participate in the subscription, which can lead to a widening of our arb spread.


A Guide to Arb Trade in Rights Offer: Feat. HLB & Lotte Chemical

<ul>
<li>The definitions of the terms used in this designation rule have not been clearly disclosed. Even the words used in the original Korean text make interpreting quite tricky.</li>
<li>What confuses investors the most is the Short Selling Proportion, basically the ratio of a stock's short-selling to the market.</li>
<li>Amount Increase in Short Selling Transactions is also quite confusing. It is the ratio of a stock's short selling to its 40-day average daily short selling volume.</li>
</ul>


The definitions of the terms used in this designation rule have not been clearly disclosed. Even the words used in the original Korean text make interpreting quite tricky.
What confuses investors the most is the Short Selling Proportion, basically the ratio of a stock's short-selling to the market.
Amount Increase in Short Selling Transactions is also quite confusing. It is the ratio of a stock's short selling to its 40-day average daily short selling volume.


Overheated Short Selling Designation in Korea: Precise Definitions for the Confusing Terms

South Korea

HLB Inc. operates cord blood banking and clinical demonstration service. The Company also produces industrial valves, and iron manufacturing machines.  The Company's subsidiaries are engaged in a wide range of businesses including manufacturing of electric field instruments, lifeboats and agent services.

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HLB Inc (028300 KS)

Positioning for the Timing of HLB, the Latest Target in the KOSDAQ Exodus

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KRX Plans to List Single-Stock Futures of All KS200 & KQ150 Constituents

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Never-Seen Price Pattern Detected in a Split-Off Event Granting Appraisal Rights in Korea

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A Guide to Arb Trade in Rights Offer: Feat. HLB & Lotte Chemical

This post guides the arb trade opportunities during the subscription rights trading period in a rights offer event in Korea by looking at the...

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Overheated Short Selling Designation in Korea: Precise Definitions for the Confusing Terms

This post aims to explain Korea's overheated short-selling designation rules and provide precise definitions for the confusing terms.

Sanghyun Park

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