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>With free float not meeting the thresholds, <a href="https://www.smartkarma.com/entities/zhongji-innolight" target="_blank" data-smartkarma-citation="entities:55331:1" rel="noopener">Zhongji InnoLight (3308 HK)</a> missed Fast Entry to all major local and global indexes at the time of listing.</li>
<li>We forecast local and global index inclusions for <a href="https://www.smartkarma.com/entities/zhongji-innolight" target="_blank" data-smartkarma-citation="entities:55331:1" rel="noopener">Zhongji InnoLight (3308 HK)</a> in a 3-week period starting end November that will require passives to buy US$1bn of stock.</li>
<li>The passive buying is around 20% of H-share float and is partly responsible for <a href="https://www.smartkarma.com/entities/zhongji-innolight" target="_blank" data-smartkarma-citation="entities:55331:1" rel="noopener">Zhongji InnoLight (3308 HK)</a> trading at a 13% premium to <a href="https://www.smartkarma.com/entities/zhongji-innolight-co-ltd" target="_blank" data-smartkarma-citation="entities:6986:1" rel="noopener">Zhongji Innolight (300308 CH)</a>. </li>
</ul>


With free float not meeting the thresholds, Zhongji InnoLight (3308 HK) missed Fast Entry to all major local and global indexes at the time of listing.
We forecast local and global index inclusions for Zhongji InnoLight (3308 HK) in a 3-week period starting end November that will require passives to buy US$1bn of stock.
The passive buying is around 20% of H-share float and is partly responsible for Zhongji InnoLight (3308 HK) trading at a 13% premium to Zhongji Innolight (300308 CH). 


Zhongji Innolight (3308 HK): Upcoming Index Inclusions Drive H-Shares to Premium Vs A-Shares

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul><li>TOP STORIES In Depth: How China’s Migrant Students End Up Locked Out of Local High School Ninth-grader Liu Yu is facing a future-defining decision.</li><li>Liu, now attending a school for migrant children on Beijing’s urban fringes, lacks Beijing household registration, leaving her with only one education path in the capital: vocational school.</li><li>If she wants to attend a regular high school to prepare for university, she must leave the only home she has ever known.</li></ul>

TOP STORIES In Depth: How China’s Migrant Students End Up Locked Out of Local High School Ninth-grader Liu Yu is facing a future-defining decision.Liu, now attending a school for migrant children on Beijing’s urban fringes, lacks Beijing household registration, leaving her with only one education path in the capital: vocational school.If she wants to attend a regular high school to prepare for university, she must leave the only home she has ever known.

CX Daily: How China’s Migrant Students End Up Locked Out of Local High School 

Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

<ul>
<li>Asia's dependence on Middle Eastern energy and the Strait of Hormuz transit route has driven immense share price volatility - especially in Korea, Japan and pockets of ASEAN.  </li>
<li>The top winners and top losers across market-sectors indicate that the market is most worried about input shortage across industries and potential demand destruction driven by heightened inflation expectation.</li>
<li>Manufacturing sectors and consumer proxies across Asia could continue to underperform if the conflict lingers. Energy, high dividend yield, precious metals and developed Asia financials could be the safe havens.</li>
</ul>


Asia's dependence on Middle Eastern energy and the Strait of Hormuz transit route has driven immense share price volatility - especially in Korea, Japan and pockets of ASEAN.  
The top winners and top losers across market-sectors indicate that the market is most worried about input shortage across industries and potential demand destruction driven by heightened inflation expectation.
Manufacturing sectors and consumer proxies across Asia could continue to underperform if the conflict lingers. Energy, high dividend yield, precious metals and developed Asia financials could be the safe havens.


Asian Equities: What's Being Discounted Now, After the Carnage?

<ul><li>Cover Story: How Resource Nationalism Is Redrawing the Global Mineral Playbook</li><li>Hong Kong IPOs Seen Topping HK$300 Billion in 2026 on Tech Boom</li><li>China Threatens EU After Carbon Border Tax Takes Effect</li><li>Trump Orders Chinese-Controlled Firm to Unwind Purchase of U.S. Chip Assets</li></ul>

Cover Story: How Resource Nationalism Is Redrawing the Global Mineral PlaybookHong Kong IPOs Seen Topping HK$300 Billion in 2026 on Tech BoomChina Threatens EU After Carbon Border Tax Takes EffectTrump Orders Chinese-Controlled Firm to Unwind Purchase of U.S. Chip Assets

CX Daily: How Resource Nationalism Is Redrawing the Global Mineral Playbook 

Macroeconomics

<ul>
<li>Rapid decline in Asian inflation is opening up space for central banks to cut rates further. India's real policy rate is almost at record high and so's China's.</li>
<li>Fiscal space exists in economies with low public debt and low fiscal deficit - Korea, Indonesia, Thailand. China and India have implemented and articulated fiscal expansion intentions.</li>
<li>Monetary policy easing supports consumption/investments through lower cost of capital and drives funds into risk assets. In last twenty years, rate cut episodes in Asia unfailingly led to equity booms.</li>
</ul>


Rapid decline in Asian inflation is opening up space for central banks to cut rates further. India's real policy rate is almost at record high and so's China's.
Fiscal space exists in economies with low public debt and low fiscal deficit - Korea, Indonesia, Thailand. China and India have implemented and articulated fiscal expansion intentions.
Monetary policy easing supports consumption/investments through lower cost of capital and drives funds into risk assets. In last twenty years, rate cut episodes in Asia unfailingly led to equity booms.


Nosediving Inflation, More Rate Cuts, Selective Fiscal Stimuli – Asian Equities to Gallop Along

Hong Kong

Hong Kong Exchanges and Clearing Limited (HKEX) operates a range of equity, commodity, fixed income, and currency markets, providing listing, trading, clearing, and settlement services for securities and derivatives. It also functions as a frontline regulator for companies listed in Hong Kong. HKEX was formally established on March 6, 2000, and is headquartered in Exchange Square, Central, Hong Kong.

Hong Kong Exchanges and Clearing (388 HK)

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Hong Kong Exchanges and Clearing (388 HK)

Zhongji Innolight (3308 HK): Upcoming Index Inclusions Drive H-Shares to Premium Vs A-Shares

Zhongji Innolight H-shares will have multiple index inclusions in a 3-week period starting end-Nov that will require passives to buy US$1bn of...

Brian Freitas

CX Daily: How China’s Migrant Students End Up Locked Out of Local High School

TOP STORIES In Depth: How China’s Migrant Students End Up Locked Out of Local High School Ninth-grader Liu Yu is facing a future-defining...

Caixin Global

Asian Equities: What's Being Discounted Now, After the Carnage?

Asia's equity volatility is driven by its reliance on ME energy. Top worries are about input shortages & demand destruction. Safe havens: Energy,...

Manishi Raychaudhuri

CX Daily: How Resource Nationalism Is Redrawing the Global Mineral Playbook

TOP STORIES Cover Story: How Resource Nationalism Is Redrawing the Global Mineral Playbook In early December, the Democratic Republic of Congo...

Caixin Global

Nosediving Inflation, More Rate Cuts, Selective Fiscal Stimuli – Asian Equities to Gallop Along

Don’t fight the Fed. Fed’s 25 bps rate cut was called a “hawkish cut” by some economists, but Chair Powell’s comment, highlighting the possibility...

Manishi Raychaudhuri

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Zhongji Innolight (3308 HK): Upcoming Index Inclusions Drive H-Shares to Premium Vs A-Shares

Zhongji Innolight H-shares will have multiple index inclusions in a 3-week period starting end-Nov that will require passives to buy US$1bn of...

Brian Freitas

CX Daily: How China’s Migrant Students End Up Locked Out of Local High School

TOP STORIES In Depth: How China’s Migrant Students End Up Locked Out of Local High School Ninth-grader Liu Yu is facing a future-defining...

Caixin Global

Asian Equities: What's Being Discounted Now, After the Carnage?

​Asia's equity volatility is driven by its reliance on ME energy. Top worries are about input shortages & demand destruction. Safe havens: Energy,...

Manishi Raychaudhuri

CX Daily: How Resource Nationalism Is Redrawing the Global Mineral Playbook

TOP STORIES Cover Story: How Resource Nationalism Is Redrawing the Global Mineral Playbook In early December, the Democratic Republic of Congo...

Caixin Global

Nosediving Inflation, More Rate Cuts, Selective Fiscal Stimuli – Asian Equities to Gallop Along

Don’t fight the Fed. Fed’s 25 bps rate cut was called a “hawkish cut” by some economists, but Chair Powell’s comment, highlighting the possibility...

Manishi Raychaudhuri

Asia's equity volatility is driven by its reliance on ME energy. Top worries are about input shortages & demand destruction. Safe havens: Energy,...