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/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

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Zijin Gold International / Index Rebalance

<ul>
<li>The Hang Seng Index is the benchmark index for Hong Kong stocks. It follows a highly-subjective selection process which makes it difficult to predict index changes.</li>
<li>In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes during the next review in March 2026.</li>
<li>The index changes are expected to be confirmed on 13th February 2026.</li>
</ul>


The Hang Seng Index is the benchmark index for Hong Kong stocks. It follows a highly-subjective selection process which makes it difficult to predict index changes.
In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes during the next review in March 2026.
The index changes are expected to be confirmed on 13th February 2026.


Quiddity Leaderboard Hang Seng Index Mar26: Zijin Gold, BeOne, XPeng Among Our Top 10 Picks

<ul>
<li>The HSCEI serves as a benchmark to reflect the overall performance of the top 50 "Mainland China" securities listed in Hong Kong.</li>
<li>The official index changes and indicative weights for the March 2026 index rebal event will be announced publicly after the close on Friday 13th February 2026.</li>
<li>We continue to expect one index change for March 2026 and we estimate there to be capping flows of US$114mn one-way.</li>
</ul>


The HSCEI serves as a benchmark to reflect the overall performance of the top 50 "Mainland China" securities listed in Hong Kong.
The official index changes and indicative weights for the March 2026 index rebal event will be announced publicly after the close on Friday 13th February 2026.
We continue to expect one index change for March 2026 and we estimate there to be capping flows of US$114mn one-way.


Quiddity Leaderboard HSCEI Mar26: One Index Change Likely; Announcement Soon

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 ALIBABA, JD.COM, LI AUTO, MEITUAN, XPENG.</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 ALIBABA, JD.COM, LI AUTO, MEITUAN, XPENG.


HS TECH Index Earning Revision (Jan): ALIBABA, JD.COM, LI AUTO, MEITUAN, XPENG

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)

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

Quiddity Leaderboard Hang Seng Index Mar26: Zijin Gold, BeOne, XPeng Among Our Top 10 Picks

Our Top 10 Picks have outperformed the Hang Seng index on average by +2.6% from 12th January 2026 to 9th February 2026. The ADDs/DELs and...

Janaghan Jeyakumar, CFA

Quiddity Leaderboard HSCEI Mar26: One Index Change Likely; Announcement Soon

We see China Mengniu Dairy Co (2319 HK) as a high-conviction DEL and Horizon Robotics (9660 HK) as the replacement ADD in March 2026.

Janaghan Jeyakumar, CFA

HS TECH Index Earning Revision (Jan): ALIBABA, JD.COM, LI AUTO, MEITUAN, XPENG

We analyzed HS TECH's consensus for Jan 2026 and highlighted changes of EPS in ALIBABA, JD.COM, LI AUTO, MEITUAN, XPENG.

Ke Yan, CFA, FRM

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