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

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bloks-group" target="_blank" data-smartkarma-citation="entities:43648:1" rel="noopener">Bloks Group (1850960D CH)</a> was massively oversubscribed, traded 82% higher on Friday and closed its listing day 40% higher than the IPO price.</li>
<li>
<a href="https://www.smartkarma.com/entities/bloks-group" target="_blank" data-smartkarma-citation="entities:43648:1" rel="noopener">Bloks Group (1850960D CH)</a> now has a full market cap of US$2.7bn. However, lock-ups and cornerstone allocations result in a much lower free float.</li>
<li>Index inclusions could take place in August and September, but the passive buying is a fraction of the number of shares that will come off lock-up expiry in early July.</li>
</ul>



Bloks Group (1850960D CH) was massively oversubscribed, traded 82% higher on Friday and closed its listing day 40% higher than the IPO price.

Bloks Group (1850960D CH) now has a full market cap of US$2.7bn. However, lock-ups and cornerstone allocations result in a much lower free float.
Index inclusions could take place in August and September, but the passive buying is a fraction of the number of shares that will come off lock-up expiry in early July.


Bloks Group (325 HK): Bumper Listing; Index Inclusion Timeline

Quantitative Researcher, MRM Research

Nico Rosti

Quantitative Researcher

MRM Research

Quantitative Research

Quantitative Analysis

<ul>
<li>The <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hang Seng Index</a> started a stron uptrend in 2024 and rallied &gt;40%, peaking in early October. From there it started to downtrend and digest the previous big move. </li>
<li>If you have a look at the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hang Seng Index </a>WEEKLY chart below you can see we have traced an hypothetical trendline that could match the QUANTCHART WEEKLY supports area.</li>
<li>
The index is at a critical juncture: the long-term uptrend could restart from here, so this could be a good opportunity to re-enter or to add positions to LONG holdings.</li>
</ul>


The Hang Seng Index started a stron uptrend in 2024 and rallied &gt;40%, peaking in early October. From there it started to downtrend and digest the previous big move. 
If you have a look at the Hang Seng Index WEEKLY chart below you can see we have traced an hypothetical trendline that could match the QUANTCHART WEEKLY supports area.

The index is at a critical juncture: the long-term uptrend could restart from here, so this could be a good opportunity to re-enter or to add positions to LONG holdings.


HSI to Find Strong Support Between 18.8K and 17.5K: Long-Term Uptrend Set to Restart

Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<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> shares fell 7.3% on 7 January, after being designated a Chinese Military Company by the U.S. Department of Defense, prompting volatility to spike.</li>
<li>Given the potential for further downside, or a relief rally, significant price movements and high volatility are to be expected.</li>
<li>A long straddle is detailed to capitalize on the anticipated volatility in <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> .</li>
</ul>



Tencent (700 HK) shares fell 7.3% on 7 January, after being designated a Chinese Military Company by the U.S. Department of Defense, prompting volatility to spike.
Given the potential for further downside, or a relief rally, significant price movements and high volatility are to be expected.
A long straddle is detailed to capitalize on the anticipated volatility in Tencent (700 HK) .


EQD | Tencent (700 HK) Option Strategy for Navigating a Volatile Market

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH)</a> has filed for a listing on the <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a> and reports indicate that the raise will be at least US$2bn.</li>
<li>In line with the <a href="https://www.smartkarma.com/entities/midea-group-co-ltd" target="_blank" data-smartkarma-citation="entities:43993:1" rel="noopener">Midea Group (300 HK)</a> and <a href="https://www.smartkarma.com/entities/s-f-holding" target="_blank" data-smartkarma-citation="entities:44093:1" rel="noopener">S.F. Holding (6936 HK)</a> H-share listings, the discount on the H-shares could be in the 20-25% range.</li>
<li>There will be no Fast Entry in any indices but there will be index inclusions in multiple indices if the raise is larger or once the cornerstone investor lock-up ends.</li>
</ul>



Jiangsu Hengrui Medicine (600276 CH) has filed for a listing on the HKEX (388 HK) and reports indicate that the raise will be at least US$2bn.
In line with the Midea Group (300 HK) and S.F. Holding (6936 HK) H-share listings, the discount on the H-shares could be in the 20-25% range.
There will be no Fast Entry in any indices but there will be index inclusions in multiple indices if the raise is larger or once the cornerstone investor lock-up ends.


Jiangsu Hengrui Pharma (600276 CH): Index Inclusion Post H-Share Listing

<ul>
<li>This Insight analyses <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> tailor-made option strategies traded over the last five trading days on the Hong Kong Exchange. Strategy highlights and volatility insights are provided.</li>
<li>The vast majority of traders opt for bearish strategies, but there are examples of contrarian trades.</li>
<li>Although one-month implied volatility is historically low in its 7th percentile, it is above realized volatility. With an implied just below 40%, option premiums are significant in absolute terms.</li>
</ul>


This Insight analyses Meituan (3690 HK) tailor-made option strategies traded over the last five trading days on the Hong Kong Exchange. Strategy highlights and volatility insights are provided.
The vast majority of traders opt for bearish strategies, but there are examples of contrarian trades.
Although one-month implied volatility is historically low in its 7th percentile, it is above realized volatility. With an implied just below 40%, option premiums are significant in absolute terms.


EQD | Meituan (3690 HK) In the Bear's Grip - Popular Option Strategies and Top Trades

Hong Kong

The Hang Seng Index is a free-float capitalization-weighted index of a selection of companies from the Stock Exchange of Hong Kong. The components of the index are divided into four subindices: Commerce and Industry, Finance, Utilities, and Properties. The index was developed with a base level of 100 as of July 31, 1964.

Hang Seng Index (HSI INDEX)

Bloks Group (325 HK): Bumper Listing; Index Inclusion Timeline

Bloks could be added to the HSCI and Southbound Connect in June. Then comes a big lock-up expiry early July. Then index inclusions in August and...

Brian Freitas

HSI to Find Strong Support Between 18.8K and 17.5K: Long-Term Uptrend Set to Restart

The HSI rallied in 2024, peaked in October, and drifted downward from there. The index is at a critical juncture where the long-term uptrend could...

Nico Rosti

EQD | Tencent (700 HK) Option Strategy for Navigating a Volatile Market

Tencent shares drop 7.3% after being labeled a Chinese Military Company by the US. This option strategy positions traders for further price swings.

Gaudenz Schneider

EQD | Meituan (3690 HK) In the Bear's Grip - Popular Option Strategies and Top Trades

Analysis of Meituan's option strategies on HK Exchange shows majority bearish, some contrarian trades. Despite historically low implied...

Gaudenz Schneider

Bloks Group (325 HK): Bumper Listing; Index Inclusion Timeline

Bloks could be added to the HSCI and Southbound Connect in June. Then comes a big lock-up expiry early July. Then index inclusions in August and...

Brian Freitas

HSI to Find Strong Support Between 18.8K and 17.5K: Long-Term Uptrend Set to Restart

​The HSI rallied in 2024, peaked in October, and drifted downward from there. The index is at a critical juncture where the long-term uptrend could...

Nico Rosti

EQD | Tencent (700 HK) Option Strategy for Navigating a Volatile Market

​Tencent shares drop 7.3% after being labeled a Chinese Military Company by the US. This option strategy positions traders for further price swings.

Gaudenz Schneider

Jiangsu Hengrui Pharma (600276 CH): Index Inclusion Post H-Share Listing

Jiangsu Hengrui has filed an application proof for an HKEX listing. Reports indicate a US$2bn raise. There will be no index Fast Entry but...

Brian Freitas

EQD | Meituan (3690 HK) In the Bear's Grip - Popular Option Strategies and Top Trades

​Analysis of Meituan's option strategies on HK Exchange shows majority bearish, some contrarian trades. Despite historically low implied...

Gaudenz Schneider

The HSI rallied in 2024, peaked in October, and drifted downward from there. The index is at a critical juncture where the long-term uptrend could...

Tencent shares drop 7.3% after being labeled a Chinese Military Company by the US. This option strategy positions traders for further price swings.

Analysis of Meituan's option strategies on HK Exchange shows majority bearish, some contrarian trades. Despite historically low implied...