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>The March rebalance of the Hang Seng family of indices will use today's closing prices to cap the index constituent weights.</li>
<li>The net round-trip trade across all stocks across the five indices is estimated at HK$38.8bn (US$4.96bn). There is size to trade in a lot of stocks.</li>
<li>
<a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent</a>, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi</a>, <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan</a>, <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba</a>, <a href="https://www.smartkarma.com/entities/horizon-robotics-inc" target="_blank" data-smartkarma-citation="entities:35637:1" rel="noopener">Horizon Robotics</a>, <a href="https://www.smartkarma.com/entities/netease-inc" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase</a> and <a href="https://www.smartkarma.com/entities/china-molybdenum-co-ltd-d9c46a67-e31f-431f-9f5f-02222265d701" target="_blank" data-smartkarma-citation="entities:8585:1" rel="noopener">China Molybdenum</a> are the largest net buys, while <a href="https://www.smartkarma.com/entities/hsbc-holdings-plc" target="_blank" data-smartkarma-citation="entities:516:1" rel="noopener">HSBC Holdings</a>, <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD</a>, <a href="https://www.smartkarma.com/entities/semiconductor-manufacturing-international-corp-smic" target="_blank" data-smartkarma-citation="entities:14231:1" rel="noopener">SMIC</a>, <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com</a> and <a href="https://www.smartkarma.com/entities/lenovo-group-ltd" target="_blank" data-smartkarma-citation="entities:13359:1" rel="noopener">Lenovo</a> are the largest net sells.</li>
</ul>


The March rebalance of the Hang Seng family of indices will use today's closing prices to cap the index constituent weights.
The net round-trip trade across all stocks across the five indices is estimated at HK$38.8bn (US$4.96bn). There is size to trade in a lot of stocks.

Tencent, Xiaomi, Meituan, Alibaba, Horizon Robotics, NetEase and China Molybdenum are the largest net buys, while HSBC Holdings, BYD, SMIC, JD.com and Lenovo are the largest net sells.


HSI, HSCEI, HSTECH, HSIII, HSBIO Index Rebalance: US$5bn of Flows Post Capping (Mar 2026)

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 analysed the earning revision of component stocks of HS TECH in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on MEITUAN, JD.COM, TENCENT, XPENG, BYD, Kuaishou, NIO.</li>
</ul>


We analysed the earning revision of component stocks of HS TECH in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on MEITUAN, JD.COM, TENCENT, XPENG, BYD, Kuaishou, NIO.


HS TECH Index Earning Revision (Feb): MEITUAN, JD.COM, TENCENT, XPENG, BYD, Kuaishou, NIO

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Shenzhen Zhaowei Machinery & Electronics / Equity Capital Markets

Shenzhen Zhaowei Machinery & Electronics (2692 HK)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shenzhen-zhaowei-machinery-a" target="_blank" data-smartkarma-citation="entities:46000:1" rel="noopener">Shenzhen Zhaowei Machinery (003021 CH)</a>, aims to raise around US$254m in its H-share listing.</li>
<li>Shenzhen Zhaowei Machinery &amp; Electronic (SZME) is a provider of integrated micro transmission and drive system solutions ranking first in China and fourth globally by revenue, according to F&amp;S.</li>
<li>We have looked at the company’s past performance in our previous note. In this note, we talk about the pricing.</li>
</ul>



Shenzhen Zhaowei Machinery (003021 CH), aims to raise around US$254m in its H-share listing.
Shenzhen Zhaowei Machinery &amp; Electronic (SZME) is a provider of integrated micro transmission and drive system solutions ranking first in China and fourth globally by revenue, according to F&amp;S.
We have looked at the company’s past performance in our previous note. In this note, we talk about the pricing.


Aequitas: Shenzhen Zhaowei A/H Listing - Hoping to Catch the Robotics Wave

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ke-holdings-inc-897e2a03-d4ba-4c49-ac07-1f74df96fdbf" target="_blank" data-smartkarma-citation="entities:40644:1" rel="noopener">KE Holdings</a> and <a href="https://www.smartkarma.com/entities/horizon-robotics-inc" target="_blank" data-smartkarma-citation="entities:35637:1" rel="noopener">Horizon Robotics</a> will replace <a href="https://www.smartkarma.com/entities/china-resources-beer-holdings" target="_blank" data-smartkarma-citation="entities:399:1" rel="noopener">China Resources Beer</a> and <a href="https://www.smartkarma.com/entities/china-mengniu-dairy-co" target="_blank" data-smartkarma-citation="entities:354:1" rel="noopener">China Mengniu Dairy</a> in the <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">Hang Seng China Enterprises Index (HSCEI INDEX)</a> in March.</li>
<li>Estimated one-way turnover at the rebalance is 2.8% resulting in a round-trip trade of HK$3.6bn (US$461m). The final capping will use the close of trading on 3 March.</li>
<li>
<a href="https://www.smartkarma.com/entities/ke-holdings-inc-897e2a03-d4ba-4c49-ac07-1f74df96fdbf" target="_blank" data-smartkarma-citation="entities:40644:1" rel="noopener">KE Holdings (2423 HK)</a> has been added after passing the Velocity Test and could be a surprise to some market participants.</li>
</ul>



KE Holdings and Horizon Robotics will replace China Resources Beer and China Mengniu Dairy in the Hang Seng China Enterprises Index (HSCEI INDEX) in March.
Estimated one-way turnover at the rebalance is 2.8% resulting in a round-trip trade of HK$3.6bn (US$461m). The final capping will use the close of trading on 3 March.

KE Holdings (2423 HK) has been added after passing the Velocity Test and could be a surprise to some market participants.


HSCEI Index Rebalance: BEKE, Horizon Robotics In; CR Beer, Mengniu Out

<ul>
<li>As expected, there are no constituent changes for the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng TECH Index (HSTECH INDEX)</a> in March. However, there are float and capping changes.</li>
<li>Estimated one-way turnover is 2.6% leading to a round-trip trade of HK$18.15bn (US$2.3bn). Most stocks will have same-way flows from passive trackers of other indices in the Hang Seng family.</li>
<li>Short interest is elevated in some of the stocks with large flows and shorts could be active in the stocks over the next couple of weeks.</li>
</ul>


As expected, there are no constituent changes for the Hang Seng TECH Index (HSTECH INDEX) in March. However, there are float and capping changes.
Estimated one-way turnover is 2.6% leading to a round-trip trade of HK$18.15bn (US$2.3bn). Most stocks will have same-way flows from passive trackers of other indices in the Hang Seng family.
Short interest is elevated in some of the stocks with large flows and shorts could be active in the stocks over the next couple of weeks.


HSTECH Index Rebalance: No Constituent Changes; Float/Capping Changes Lead to US$2.3bn Trade

China

Horizon Robotics develops artificial intelligence (AI) chips and software platforms for intelligent vehicles, focusing on self-driving cars and advanced driver assistance systems (ADAS). The company offers integrated solutions, including its Journey™ series AI processors and Brain Processing Unit (BPU) architecture. Horizon Robotics is headquartered in Beijing, China, and was founded in 2015.

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Horizon Robotics (9660 HK)

HSI, HSCEI, HSTECH, HSIII, HSBIO Index Rebalance: US$5bn of Flows Post Capping (Mar 2026)

The March rebalance of the HSI, HSCEI, HSTECH, HSIII, HSHKBIO indices will use today's closing prices for capping. The round-trip trade across the...

Brian Freitas

HS TECH Index Earning Revision (Feb): MEITUAN, JD.COM, TENCENT, XPENG, BYD, Kuaishou, NIO

We analyzed HS TECH's consensus for Feb 2026 and highlighted changes of EPS in MEITUAN, JD.COM, TENCENT, XPENG, BYD, Kuaishou, NIO.

Ke Yan, CFA, FRM

Aequitas: Shenzhen Zhaowei A/H Listing - Hoping to Catch the Robotics Wave

Shenzhen Zhaowei Machinery (003021 CH), aims to raise around US$254m in its H-share listing. In this note, we talk about pricing.

Sumeet Singh

HSCEI Index Rebalance: BEKE, Horizon Robotics In; CR Beer, Mengniu Out

KE Holdings and Horizon Robotics replace CR Beer and Mengniu in March. We see underpositioning in BEKE and CR Beer. Big increase in shorts for...

Brian Freitas

HSTECH Index Rebalance: No Constituent Changes; Float/Capping Changes Lead to US$2.3bn Trade

There are no constituent changes but float and capping changes result in one-way turnover of 2.6% and a round-trip trade of US$2.3bn. Shorts are...

Brian Freitas

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