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 foreign holdings of KRX stocks as of Oct 3rd. The aggregated holding was USD743.8bn.</li>
<li>We estimate that foreign flows to be outflows of USD96mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in SK Hynix, Samsung Electronics, Samsung Elec (PREF), NAVER, HANWHA AEROSPACE.</li>
</ul>


We analyzed the changes in foreign holdings of KRX stocks as of Oct 3rd. The aggregated holding was USD743.8bn.
We estimate that foreign flows to be outflows of USD96mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in SK Hynix, Samsung Electronics, Samsung Elec (PREF), NAVER, HANWHA AEROSPACE.


KRX Foreign Holding Weekly (Oct 3rd): SK Hynix, Samsung Electronics, Samsung Elec (PREF), NAVER

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus NV (PRX NA)</a> is elevated vs. <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> as the accretion trade unfolds.</li>
<li>As rates go up, investors may opt for direct exposure to <a href="https://www.smartkarma.com/entities/japan-post-bank-co-ltd" target="_blank" data-smartkarma-citation="entities:838:1" rel="noopener">Japan Post Bank (7182 JP)</a>, as opposed to <a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post Holdings (6178 JP)</a> indirectly, contributing to short squeezing JPB.</li>
<li>Expect near-term weakness in <a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison Holdings (1 HK)</a>, IF the exclusivity with Blackrock/MSC ends this weekend without resolution.</li>
</ul>



Prosus NV (PRX NA) is elevated vs. Tencent (700 HK) as the accretion trade unfolds.
As rates go up, investors may opt for direct exposure to Japan Post Bank (7182 JP), as opposed to Japan Post Holdings (6178 JP) indirectly, contributing to short squeezing JPB.
Expect near-term weakness in CK Hutchison Holdings (1 HK), IF the exclusivity with Blackrock/MSC ends this weekend without resolution.


Last Week In Event SPACE: Prosus/Tencent, Japan Post Bank, CK Holdings, Seven & I

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>The management ownership stake of Hyundai Hyms is up for sale. J&amp;P Private Equity firm which owns 52.88% stake in Hyundai Hyms has sent out teaser letters to potential buyers. </li>
<li>Including a management premium ranging from 30% to 50%, the potential acquisition price (including management premium) could be worth about 481 billion won to 555 billion won.</li>
<li>Since the second largest shareholder, HD Korea Shipbuilding &amp; Offshore Engineering (HD KSOE) (20.89% stake), has the right of first negotiation, the selling side must first negotiate with HD KSOE.</li>
</ul>


The management ownership stake of Hyundai Hyms is up for sale. J&amp;P Private Equity firm which owns 52.88% stake in Hyundai Hyms has sent out teaser letters to potential buyers. 
Including a management premium ranging from 30% to 50%, the potential acquisition price (including management premium) could be worth about 481 billion won to 555 billion won.
Since the second largest shareholder, HD Korea Shipbuilding &amp; Offshore Engineering (HD KSOE) (20.89% stake), has the right of first negotiation, the selling side must first negotiate with HD KSOE.


M&A of Hyundai Hyms - Who Will Buy Controlling Stake?

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 the review period for the June rebalance complete, we highlight 11 potential changes for the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a>. </li>
<li>The estimated impact on the potential inclusions ranges from 0.2-7.5 days of ADV while the impact on the potential deletions varies from 0.2-5.8 days of ADV.</li>
<li>The forecast adds have outperformed the forecast deletes over the last 6-7 months with a big move higher in the last month. Trim positions into strength.</li>
</ul>


With the review period for the June rebalance complete, we highlight 11 potential changes for the KOSDAQ 150 Index (KOSDQ150 INDEX). 
The estimated impact on the potential inclusions ranges from 0.2-7.5 days of ADV while the impact on the potential deletions varies from 0.2-5.8 days of ADV.
The forecast adds have outperformed the forecast deletes over the last 6-7 months with a big move higher in the last month. Trim positions into strength.


KOSDAQ150 Index Rebalance Preview: Announcement Around the Corner

Equity Bottom-Up

<ul>
<li>In the Korean stock market, one of the biggest positive catalysts of Donald Trump becoming the next United States President has been the shipbuilding sector.</li>
<li>About 20 years, the United States had a dominant naval superiority versus China. That is no longer the case. </li>
<li>There is a likely scenario of the US Navy increasingly outsourcing the construction and after-service of its fleet to Korean companies such as Hanwha Ocean and HD Hyundai Heavy Industries.</li>
</ul>


In the Korean stock market, one of the biggest positive catalysts of Donald Trump becoming the next United States President has been the shipbuilding sector.
About 20 years, the United States had a dominant naval superiority versus China. That is no longer the case. 
There is a likely scenario of the US Navy increasingly outsourcing the construction and after-service of its fleet to Korean companies such as Hanwha Ocean and HD Hyundai Heavy Industries.


Trump Catalyst - Korean Shipbuilding Sector

South Korea

Hyundai Hyms Co., Ltd. manufactures and distributes shipbuilding components. The Company produces fore blocks, aft blocks, ship pipes and steel outfittings, steel pretreatment, section cutting and built up, and other related products. Hyundai Hyms also produces gas generators.

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Hyundai Hyms (460930 KS)

KRX Foreign Holding Weekly (Oct 3rd): SK Hynix, Samsung Electronics, Samsung Elec (PREF), NAVER

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in SK Hynix, Samsung Electronics, Samsung Elec...

Ke Yan, CFA, FRM

Last Week In Event SPACE: Prosus/Tencent, Japan Post Bank, CK Holdings, Seven & I

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

M&A of Hyundai Hyms - Who Will Buy Controlling Stake?

The management ownership stake of Hyundai Hyms is up for sale. J&P Private Equity firm which owns 52.88% stake in Hyundai Hyms has sent out teaser...

Douglas Kim

KOSDAQ150 Index Rebalance Preview: Announcement Around the Corner

We highlight 11 potential changes for the index in June. Impact varies from 0.2-7.5x ADV. The forecast adds have outperformed the forecast deletes...

Brian Freitas

Trump Catalyst - Korean Shipbuilding Sector

KDB is pushing for the sale of some of its Hanwha Ocean shares (13 million initially, more later on) through block deal sale which is likely to...

Douglas Kim

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