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>There are 24 adds and 14 deletes for the Hang Seng Composite Index (HSCI) at the September rebalance to take the number of index constituents up to 518.</li>
<li>19 of the 24 HSCI inclusions will be added to Southbound Stock Connect, while 12 of the 14 HSCI deletions will be removed from Southbound Stock Connect.</li>
<li>Five of the HSCI constituents could be removed from Southbound Stock Connect only since the average market cap over the last year is less than HK$5bn.</li>
</ul>


There are 24 adds and 14 deletes for the Hang Seng Composite Index (HSCI) at the September rebalance to take the number of index constituents up to 518.
19 of the 24 HSCI inclusions will be added to Southbound Stock Connect, while 12 of the 14 HSCI deletions will be removed from Southbound Stock Connect.
Five of the HSCI constituents could be removed from Southbound Stock Connect only since the average market cap over the last year is less than HK$5bn.


HSCI Index Rebalance: 24 Adds, 14 Deletes & Changes to Stock Connect

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.

Equity Bottom-Up

<ul>
<li>China just announced game approval for August batch. More games were approved in August compared to July and June.</li>
<li>Pace of China game approval continued to pick up albeit at a much slower pace than pre-tightening.</li>
<li>Both Tencent and Netease will be under increasing pressure as the duo continue to score zero in August, making it the fourth time with no games approved since resumption . </li>
</ul>


China just announced game approval for August batch. More games were approved in August compared to July and June.
Pace of China game approval continued to pick up albeit at a much slower pace than pre-tightening.
Both Tencent and Netease will be under increasing pressure as the duo continue to score zero in August, making it the fourth time with no games approved since resumption . 


Tencent/Netease: Increasing Pressure with Zero Approval in August Batch & Thoughts on Trading

<ul>
<li>China just announced game approval for July batch. More games were approved in July compared to June and May.</li>
<li>Pace of China game approval has picked up albeit at a much slower pace than pre-tightening.</li>
<li>Tencent and Netease will be under pressure as they continue to score zero in July domestic game approval. </li>
</ul>


China just announced game approval for July batch. More games were approved in July compared to June and May.
Pace of China game approval has picked up albeit at a much slower pace than pre-tightening.
Tencent and Netease will be under pressure as they continue to score zero in July domestic game approval. 


Tencent/Netease: Under Pressure with No Game Approval in July

<ul>
<li>We see 28 potential inclusions to the HSCI in September, plus another 9 stocks that are close to the inclusion cutoff. Some stocks are already a part of Stock Connect.</li>
<li>There could be 22 deletions from the index on market cap, liquidity and prolonged suspension. Most of the deletions would be moved to the 'sell-only' Southbound Stock Connect list.</li>
<li>Some of the stocks that remain in the HSCI could move to the 'sell-only' Southbound Stock Connect list since their average market cap drops below HKD 5bn.</li>
</ul>


We see 28 potential inclusions to the HSCI in September, plus another 9 stocks that are close to the inclusion cutoff. Some stocks are already a part of Stock Connect.
There could be 22 deletions from the index on market cap, liquidity and prolonged suspension. Most of the deletions would be moved to the 'sell-only' Southbound Stock Connect list.
Some of the stocks that remain in the HSCI could move to the 'sell-only' Southbound Stock Connect list since their average market cap drops below HKD 5bn.


HSCI Index Rebalance and Stock Connect: Potential Changes in September

<ul>
<li>China announced game approval last night for June batch, after a break in May.</li>
<li>We discussed in our previous note that China had resume game approval but at a slower pace.</li>
<li>Tencent and Netease continue to score zero in June domestic game approval.</li>
</ul>


China announced game approval last night for June batch, after a break in May.
We discussed in our previous note that China had resume game approval but at a slower pace.
Tencent and Netease continue to score zero in June domestic game approval.


Tencent/Netease: Smell of Common Prosperity in June Game Approval

China

iDreamSky Technology operates a digital entertainment platform, primarily publishing and operating mobile games through apps and websites in China. The company also develops mobile games, offers in-game information and advertising services, and engages in IP derivatives business, including console game experiences and sales of trendy products. It was founded in 2009 and is headquartered in Shenzhen, China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

iDreamSky Technology (1119 HK)

HSCI Index Rebalance: 24 Adds, 14 Deletes & Changes to Stock Connect

There are 24 adds and 14 deletes for the HSCI at the September rebalance. 19 stocks will be added to Stock Connect and 12 will be removed. Some of...

Brian Freitas

Tencent/Netease: Increasing Pressure with Zero Approval in August Batch & Thoughts on Trading

We analyzed the August batch of game approval. We note that Tencent and Netease continued to score zero in this batch, for the 4th consecutive...

Ke Yan, CFA, FRM

Tencent/Netease: Under Pressure with No Game Approval in July

China regulator released July batch of game approval. Tencent and Netease will be under pressure as they continue to score zero.

Ke Yan, CFA, FRM

HSCI Index Rebalance and Stock Connect: Potential Changes in September

We see 28 potential adds and 9 close adds for the HSCI in September. There are 22 potential deletes on market cap, liquidity and prolonged...

Brian Freitas

Tencent/Netease: Smell of Common Prosperity in June Game Approval

We analyzed the latest mobile game approval in China released last night. Though it is encouraging that China gives game approval after a break in...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)