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>There are no constituent changes for the MVIS Australia Equal Weight Index at the March rebalance. </li>
<li>Float and capping changes will result in a one-way turnover of 4.4% and in a round-trip trade of A$195m.</li>
<li>We had <a href="https://www.smartkarma.com/entities/lendlease-group" target="_blank" data-smartkarma-citation="entities:11248:1" rel="noopener">Lendlease Group (LLC AU)</a>, <a href="https://www.smartkarma.com/entities/idp-education-ltd" target="_blank" data-smartkarma-citation="entities:1098:1" rel="noopener">IDP Education (IEL AU)</a> and <a href="https://www.smartkarma.com/entities/nib-holdings-ltd" target="_blank" data-smartkarma-citation="entities:7063:1" rel="noopener">nib holdings (NHF AU)</a> as close deletes and they will now have inflows due to capping.</li>
</ul>


There are no constituent changes for the MVIS Australia Equal Weight Index at the March rebalance. 
Float and capping changes will result in a one-way turnover of 4.4% and in a round-trip trade of A$195m.
We had Lendlease Group (LLC AU), IDP Education (IEL AU) and nib holdings (NHF AU) as close deletes and they will now have inflows due to capping.


MV Australia Equal Weight Index Rebalance: Float & Capping Changes to Drive Flow

<ul>
<li>With the review period complete, there are 3 stocks that are close to the deletion zone and could be removed from the index at the March rebalance.</li>
<li>Even if there are no constituent changes, capping changes will lead to one-way turnover of 4.4% and a one-way trade of A$97m.</li>
<li>There are 9 stocks with over A$5m to trade from passive trackers but the impact on the stocks is not very high.</li>
</ul>


With the review period complete, there are 3 stocks that are close to the deletion zone and could be removed from the index at the March rebalance.
Even if there are no constituent changes, capping changes will lead to one-way turnover of 4.4% and a one-way trade of A$97m.
There are 9 stocks with over A$5m to trade from passive trackers but the impact on the stocks is not very high.


MVIS Australia Equal Weight Index Rebalance Preview: Three Close Deletions

Research and Strategy for the Education Sector, Schoolhouse Solutions

Edward Slade

Research and Strategy for the Education Sector

Schoolhouse Solutions

Schoolhouse is a strategy and research provider for the Education sector. We publish differentiated reports and bespoke research on the sector, focused on private and public companies in Asia-Pacific. Our team has decades of experience working with Education companies ranging from K-12 to Tertiary and Edtech.

Strategy and Research Provider

Thematic (Sector/Industry)

<ul>
<li>Recovery in face-to-face education stocks will accelerate as Chinese international students return on-campus</li>
<li>International K-12 schools will perform strongly as hubs like Dubai and Singapore are booming.</li>
<li>Service providers like <a href="https://www.smartkarma.com/entities/idp-education-ltd" target="_blank" data-smartkarma-citation="entities:1098:1" rel="noopener">IDP Education (IEL AU), </a><a href="https://www.smartkarma.com/entities/flywire-corp" target="_blank" data-smartkarma-citation="entities:33339:1" rel="noopener">Flywire Corp (FLYW US)</a>; schools like Taaleem; and tertiary <a href="https://www.smartkarma.com/entities/china-education-group-holdin" target="_blank" data-smartkarma-citation="entities:18218:1" rel="noopener">China Education Group (839 HK)</a> , <a href="https://www.smartkarma.com/entities/laureate-education-inc" target="_blank" data-smartkarma-citation="entities:26388:1" rel="noopener">Laureate Education (LAUR US)</a>,  and <a href="https://www.smartkarma.com/entities/icollege-ltd" target="_blank" data-smartkarma-citation="entities:14576:1" rel="noopener">Icollege Ltd (ICT AU)</a> will outperform.</li>
</ul>


Recovery in face-to-face education stocks will accelerate as Chinese international students return on-campus
International K-12 schools will perform strongly as hubs like Dubai and Singapore are booming.
Service providers like IDP Education (IEL AU), Flywire Corp (FLYW US); schools like Taaleem; and tertiary China Education Group (839 HK) , Laureate Education (LAUR US),  and Icollege Ltd (ICT AU) will outperform.


International Education Stocks: Surging Student Volumes

APAC IPOs & Placements

Zhen Zhou, Toh

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 Bottom-Up

New Oriental Education & Techn / Equity Bottom-Up

<p>China online education are trading about 60% lower on average since a year ago. This was largely due to expectations that there will be tightening of regulations on after-school tutoring sector including online education sectors. </p><p>In this note, we will discuss how we would position heading into the tightening of regulations.</p>

China online education are trading about 60% lower on average since a year ago. This was largely due to expectations that there will be tightening of regulations on after-school tutoring sector including online education sectors. In this note, we will discuss how we would position heading into the tightening of regulations.

China Online Education - Diversified Revenue Stream Wins Here - Balance in All Things

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of ASX Stocks as of Apr 12th (reported today) which has an aggregated short interest worth USD19.0bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Rio Tinto, Computershare, NAB, Wisetech Global, South32.</li>
</ul>


We analyzed the changes in short interest of ASX Stocks as of Apr 12th (reported today) which has an aggregated short interest worth USD19.0bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Rio Tinto, Computershare, NAB, Wisetech Global, South32.


ASX Short Interest Weekly (Apr 12th): Rio Tinto, Computershare, NAB, Wisetech Global, South32

Australia

IDP Education Limited provides student placement services to enroll into universities, schools, and colleges. The Company offers student services, such as university and course guidance, visa application and scholarships assistance, and pre-departure support services. IDP Education operates worldwide.

IDP Education (IEL AU)

MV Australia Equal Weight Index Rebalance: Float & Capping Changes to Drive Flow

There are no constituent changes for the index in March but float and capping changes will result in a one-way turnover of 4.4% and in a round-trip...

Brian Freitas

MVIS Australia Equal Weight Index Rebalance Preview: Three Close Deletions

There are 3 close deletes for the index in March. Even if there are no changes, 1-way turnover is 4.4% and 1-way trade is A$97m. Shorts have been...

Brian Freitas

International Education Stocks: Surging Student Volumes

International education is surging following the end of the pandemic. China's re-opening will turbo-charge a sector that already booming from South...

Edward Slade

China Online Education - Diversified Revenue Stream Wins Here - Balance in All Things

China online education are trading about 60% lower on average since a year ago. This was largely due to expectations that there will be tightening...

Zhen Zhou, Toh

ASX Short Interest Weekly (Apr 12th): Rio Tinto, Computershare, NAB, Wisetech Global, South32

We analyzed ASX short interest report for the past week and highlight short interest changes in Rio Tinto, Computershare, NAB, Wisetech Global,...

Ke Yan, CFA, FRM