Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Cross Asset Strategy

<ul>
<li>There will be 12 ETFs related to the Corporate Value Up program that will be launched in Korea on 4 November.</li>
<li>Initially, there will be a total of 510 billion won allocated to these ETFs and ETNs related to the Corporate Value Up program in Korea.</li>
<li>Some of the major KOSPI 100 stocks including KB Financial and KT Corp that are not currently included in the Korea Value Up index could be included in these ETFs. </li>
</ul>


There will be 12 ETFs related to the Corporate Value Up program that will be launched in Korea on 4 November.
Initially, there will be a total of 510 billion won allocated to these ETFs and ETNs related to the Corporate Value Up program in Korea.
Some of the major KOSPI 100 stocks including KB Financial and KT Corp that are not currently included in the Korea Value Up index could be included in these ETFs. 


Launch of the Korea Value-Up ETFs on 4 November

<ul>
<li>The Korea Exchange is expected to announce its long awaited KRX Korea Value-Up index on 24 September. However, the actual launch of this index will begin on 30 September.</li>
<li>It is expected to produce two types of indices including a basic price index (PR) and a total return index (TR) under the name of KRX Korea Value-Up index.</li>
<li>In this insight, we also provide a list of 20 small cap stocks that could be included in the Korea Value Up index.</li>
</ul>


The Korea Exchange is expected to announce its long awaited KRX Korea Value-Up index on 24 September. However, the actual launch of this index will begin on 30 September.
It is expected to produce two types of indices including a basic price index (PR) and a total return index (TR) under the name of KRX Korea Value-Up index.
In this insight, we also provide a list of 20 small cap stocks that could be included in the Korea Value Up index.


Announcement of Value-Up Index in Korea on 24 September

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

Shenton Research

Shenton 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 Sep 4th. The aggregated holding was USD1,642.8bn.</li>
<li>We estimate that foreign flows to be outflows of USD2,855mln. 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, Woori Financial, Samsung Electronics, Samsung Elec (PREF), Samsung SDI.</li>
</ul>


We analyzed the changes in foreign holdings of KRX stocks as of Sep 4th. The aggregated holding was USD1,642.8bn.
We estimate that foreign flows to be outflows of USD2,855mln. 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, Woori Financial, Samsung Electronics, Samsung Elec (PREF), Samsung SDI.


KRX Foreign Holding Weekly (Sep 4th): SK Hynix, Woori Financial, Samsung Electronics, Samsung SDI

<ul>
<li>In this insight, we compare the outstanding shares changes in the Korean stock market (KOSPI and KOSDAQ) relative to M7 (Magnificent 7) companies. </li>
<li>In Korea, there are more companies such as Samsung C&amp;T, KB Financial, and KT&amp;G that are actively reducing their outstanding shares and investors are rewarding them with higher share prices.</li>
<li>Top 10 companies in KOSPI that reduced their outstanding shares (from end of 2019 to 5 Sept 24) experienced average share price increase of 116% on average in this period.</li>
</ul>


In this insight, we compare the outstanding shares changes in the Korean stock market (KOSPI and KOSDAQ) relative to M7 (Magnificent 7) companies. 
In Korea, there are more companies such as Samsung C&amp;T, KB Financial, and KT&amp;G that are actively reducing their outstanding shares and investors are rewarding them with higher share prices.
Top 10 companies in KOSPI that reduced their outstanding shares (from end of 2019 to 5 Sept 24) experienced average share price increase of 116% on average in this period.


Corporate Value Up in Korea - Focus On Reducing Outstanding Shares and Comparison to M7

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

<ul>
<li>South Korean Financials are experiencing a significant increase in fund ownership. Average fund weights are approaching record highs at 1.94%, with a record 52% positioned overweight.</li>
<li>At the fund level, a strong buy-side bias is evident, with 37 funds opening positions compared to just 3 closures over the last 6-months.</li>
<li>Strong ownership momentum in KB Financial, DB Insurance, Shinhan Financial, and SK Square have contributed to the sector-wide bullishness.</li>
</ul>


South Korean Financials are experiencing a significant increase in fund ownership. Average fund weights are approaching record highs at 1.94%, with a record 52% positioned overweight.
At the fund level, a strong buy-side bias is evident, with 37 funds opening positions compared to just 3 closures over the last 6-months.
Strong ownership momentum in KB Financial, DB Insurance, Shinhan Financial, and SK Square have contributed to the sector-wide bullishness.


South Korean Financials:  Conviction Move Higher in Positioning

South Korea

KB Financial Group Inc. (the "Company"), in accordance with Financial Holding Companies Act, was established on September 29, 2008, through stock transfer with the former shareholders of its subsidiaries including Kookmin Bank in order to provide management services and financing to associated companies. The headquarters are located at Seoul, Korea

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

KB Financial (105560 KS)

Launch of the Korea Value-Up ETFs on 4 November

There will be 12 ETFs related to the Corporate Value Up program that will be launched in Korea on 4 November. Initially, there will be a total of...

Douglas Kim

Announcement of Value-Up Index in Korea on 24 September

The Korea Exchange is expected to announce its long awaited KRX Korea Value-Up index on 24 September. We also provide a list of 20 small cap stocks...

Douglas Kim

KRX Foreign Holding Weekly (Sep 4th): SK Hynix, Woori Financial, Samsung Electronics, Samsung SDI

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

Ke Yan, CFA, FRM

Corporate Value Up in Korea - Focus On Reducing Outstanding Shares and Comparison to M7

Top 10 companies in KOSPI (ranked by market cap) that reduced their outstanding shares (from end of 2019 to 5 Sept 24) experienced average share...

Douglas Kim

South Korean Financials: Conviction Move Higher in Positioning

South Korean Financials are experiencing a significant increase in fund ownership. Average fund weights are approaching record highs at 1.94%,...

Steven Holden

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)