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>On 7 October, Hang Seng announced the conclusions of the market consultation to increase the number of <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> constituents from 30 to 50.</li>
<li>While most of the proposals will be implemented as proposed, a liquidity requirement has been tightened, and revenue thresholds have been imposed for companies qualifying through the Sales Growth Stream.</li>
<li>The changes will be implemented in a single step at the December rebalance and that creates a lot of flow for all the index members, current and new.</li>
</ul>


On 7 October, Hang Seng announced the conclusions of the market consultation to increase the number of Hang Seng TECH Index (HSTECH INDEX) constituents from 30 to 50.
While most of the proposals will be implemented as proposed, a liquidity requirement has been tightened, and revenue thresholds have been imposed for companies qualifying through the Sales Growth Stream.
The changes will be implemented in a single step at the December rebalance and that creates a lot of flow for all the index members, current and new.


HSTECH Index: Market Consultation Conclusions, Updated Potential Adds & The Borderline Names

<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

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul><li>Cover Story: China Tech Firms Drive AI Data Center Boom in Southeast Asia Inside the Hong Kong Convention and Exhibition Centre on a hot and humid day in July, the Data Center Asia event was packed.</li><li>The crowd included Chinese data center operators, colocation providers and suppliers of energy and liquid-cooling systems.</li><li>But Southeast Asian companies were just as visible.</li></ul>

Cover Story: China Tech Firms Drive AI Data Center Boom in Southeast Asia Inside the Hong Kong Convention and Exhibition Centre on a hot and humid day in July, the Data Center Asia event was packed.The crowd included Chinese data center operators, colocation providers and suppliers of energy and liquid-cooling systems.But Southeast Asian companies were just as visible.

CX Daily Aug. 25: China Tech Firms Drive AI Data Center Boom in Southeast Asia 

<ul>
<li>There could be 2 changes for 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. Announcement is on 13 February with implementation at the close on 5 March.</li>
<li>The forecast adds have outperformed the forecast deletes and the index over the last couple of months and there could be more upside over the near-term.</li>
<li>Estimated one-way turnover at the rebalance is 1.8% resulting in a round-trip trade of HK$2.3bn. There is more than 1x ADV to trade in a few stocks.</li>
</ul>


There could be 2 changes for the Hang Seng China Enterprises Index (HSCEI INDEX) in March. Announcement is on 13 February with implementation at the close on 5 March.
The forecast adds have outperformed the forecast deletes and the index over the last couple of months and there could be more upside over the near-term.
Estimated one-way turnover at the rebalance is 1.8% resulting in a round-trip trade of HK$2.3bn. There is more than 1x ADV to trade in a few stocks.


HSCEI Index Rebalance Preview: 2 Sets of Changes Likely in March

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>The Hong Kong Alpha portfolio beat the Hong Kong indexes in June and was flat to its benchmark with a loss of 6.98%.</li>
<li>The Hong Kong market experienced heavy selling in the second half of June, as both foreign and mainland investors reduced their exposure.</li>
<li>At the end of June, we sold positions in the electric utilities, technology, consumer, and property sectors. We added positions in the broker, biotech, telecom, and industrial sectors.</li>
</ul>


The Hong Kong Alpha portfolio beat the Hong Kong indexes in June and was flat to its benchmark with a loss of 6.98%.
The Hong Kong market experienced heavy selling in the second half of June, as both foreign and mainland investors reduced their exposure.
At the end of June, we sold positions in the electric utilities, technology, consumer, and property sectors. We added positions in the broker, biotech, telecom, and industrial sectors.


China

KE Holdings operates an integrated online and offline platform for housing transactions and services in China, encompassing existing and new home sales, home rentals, and home renovation and furnishing. It leverages brands like Beike and Lianjia to connect buyers, sellers, landlords, tenants, and service providers. Incorporated in 2018, it is headquartered in Beijing, China.

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

KE Holdings (2423 HK)

HSTECH Index: Market Consultation Conclusions, Updated Potential Adds & The Borderline Names

Introduction/tightening of revenue/liquidity criteria changes the list of potential adds. Estimated one-way turnover at the Dec rebalance is 14.2%...

Brian Freitas

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

CX Daily Aug. 25: China Tech Firms Drive AI Data Center Boom in Southeast Asia

Cover Story: China Tech Firms Drive AI Data Center Boom in Southeast Asia Inside the Hong Kong Convention and Exhibition Centre on a...

Caixin Global

HSCEI Index Rebalance Preview: 2 Sets of Changes Likely in March

There could be 2 changes for the HSCEI in March. Estimated turnover is 1.8% and round-trip trade is HK$2.3bn. KE Holdings could potentially be...

Brian Freitas

HONG KONG ALPHA PORTFOLIO: (June 2026)

At mid-month, we note that pc makers are passing on higher chip and component costs to consumers. For this reason, we sold our positions in Lenovo...

David Mudd

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)