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>
<a href="https://www.smartkarma.com/entities/hlb-life-science-co-ltd" target="_blank" data-smartkarma-citation="entities:9830:1" rel="noopener">HLB Life Science (067630 KS)</a> was added to the Investment Attention Issue list on 21 March and traded limit down. Then came the announcement of the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index</a> deletion.</li>
<li>As the highest ranked non-constituent from the Healthcare sector at the December rebalance, <a href="https://www.smartkarma.com/entities/binex-co-ltd" target="_blank" data-smartkarma-citation="entities:1949:1" rel="noopener">Binex (053030 KS)</a> will be added to the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index</a> at the close on 25 March.</li>
<li>Historically, intra-review inclusions have moved higher between announcement and implementation and there has been reversion post the index inclusion.</li>
</ul>



HLB Life Science (067630 KS) was added to the Investment Attention Issue list on 21 March and traded limit down. Then came the announcement of the KOSDAQ 150 Index deletion.
As the highest ranked non-constituent from the Healthcare sector at the December rebalance, Binex (053030 KS) will be added to the KOSDAQ 150 Index at the close on 25 March.
Historically, intra-review inclusions have moved higher between announcement and implementation and there has been reversion post the index inclusion.


KOSDAQ150 Index Adhoc Rebalance: Binex (053030 KS) To Replace HLB Life Science (067630 KS)

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.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of KRX stocks as of Jan 3rd which has an aggregated short interest worth USD3.5bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Samsung Biologics (207940 KS).</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Jan 3rd which has an aggregated short interest worth USD3.5bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Samsung Biologics (207940 KS).


KRX Short Interest Weekly (Jan 3rd): Samsung Biologics

<ul>
<li>We analyzed the changes in short interest of KRX stocks as of Oct 11th which has an aggregated short interest worth USD4.7bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Samsung Electronics, Sk Hynix, Posco, Shinhan Group.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Oct 11th which has an aggregated short interest worth USD4.7bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Samsung Electronics, Sk Hynix, Posco, Shinhan Group.


KRX Short Interest Weekly (Oct 11th): Samsung Electronics, Sk Hynix, Posco, Shinhan Group

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 expects Jiangsu Hengrui to receive another CRL from the FDA, but specifics on CMC issues remain unclear. Due to the lack of clarity, it's advisable to avoid trading HLB.</li>
<li>HLB IR stated they'll apply for KOSPI transfer listing after FDA approval when asked by local media, suggesting it's currently not under consideration.</li>
<li>We should instead consider short-term trading opportunities in HLB Life Science. Anticipate a surge in forfeited shares from Day 1, reminiscent of last year's CJ CGV rights offer event.</li>
</ul>


HLB expects Jiangsu Hengrui to receive another CRL from the FDA, but specifics on CMC issues remain unclear. Due to the lack of clarity, it's advisable to avoid trading HLB.
HLB IR stated they'll apply for KOSPI transfer listing after FDA approval when asked by local media, suggesting it's currently not under consideration.
We should instead consider short-term trading opportunities in HLB Life Science. Anticipate a surge in forfeited shares from Day 1, reminiscent of last year's CJ CGV rights offer event.


What's Still Concerning in the HLB Situation & HLB Life Science's Stock Rights Trading Next Week

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>On 21 March, HLB Life Science announced a rights offering capital raise worth 150 billion won. </li>
<li>The expected rights offering price is 13,630 won (32% lower than current price of 19,930 won)  and there are 11 million shares in this rights offering (10% of outstanding shares). </li>
<li>HLB Inc (028300 KS) is the largest controlling shareholder of HLB Life Science (067630 KS) with an 18.7% stake in the company.</li>
</ul>


On 21 March, HLB Life Science announced a rights offering capital raise worth 150 billion won. 
The expected rights offering price is 13,630 won (32% lower than current price of 19,930 won)  and there are 11 million shares in this rights offering (10% of outstanding shares). 
HLB Inc (028300 KS) is the largest controlling shareholder of HLB Life Science (067630 KS) with an 18.7% stake in the company.


HLB Life Science: Impact of Rights Offering Capital Raise of 150 Billion Won

South Korea

HLB Life Science Co., Ltd. wholesales and distributes pharmaceutical drugs. The Company through its subsidiaries provides targeted therapy, cell therapy, new drug development, medical devices production, and other related services. HLB Life Science also offers solar, geothermal, and other renewable energy engineering services.

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HLB Life Science (067630 KS)

KOSDAQ150 Index Adhoc Rebalance: Binex (053030 KS) To Replace HLB Life Science (067630 KS)

HLB Life Science will be deleted from the KOSDAQ150 following its designation as an Investment Attention Issue. Binex will be added to the index....

Brian Freitas

KRX Short Interest Weekly (Jan 3rd): Samsung Biologics

We analyzed KRX short interest report for the past week and highlighted short interest changes in Samsung Biologics(207940 KS).

Ke Yan, CFA, FRM

KRX Short Interest Weekly (Oct 11th): Samsung Electronics, Sk Hynix, Posco, Shinhan Group

We analyzed KRX short interest report for the past week and highlighted short interest changes in Samsung Electronics, Sk Hynix, Posco, Shinhan Group.

Ke Yan, CFA, FRM

What's Still Concerning in the HLB Situation & HLB Life Science's Stock Rights Trading Next Week

This post investigates what's confirmed and still concerning in the HLB situation, and explores the immediate trading opportunity in HLB Life...

Sanghyun Park

HLB Life Science: Impact of Rights Offering Capital Raise of 150 Billion Won

On 21 March, HLB Life Science announced a rights offering capital raise worth 150 billion won. The expected rights offering price is 13,630 won...

Douglas Kim

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)