Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted capped index composed of 400 constituents.</li>
<li>The annual index review takes place in August every year. We look at the latest rankings of potential ADDs/DELs every month.</li>
<li>Below is a look at potential ADDs/DELs for the JPX-Nikkei 400 rebalance to come in August 2027 based on trading data as of end-September 2026.</li>
</ul>


JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted capped index composed of 400 constituents.
The annual index review takes place in August every year. We look at the latest rankings of potential ADDs/DELs every month.
Below is a look at potential ADDs/DELs for the JPX-Nikkei 400 rebalance to come in August 2027 based on trading data as of end-September 2026.


Quiddity JPX-Nikkei 400 Rebal 2027: End-Sep 2026 Ranks

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.

<ul>
<li>MS-Japan rebalance one ADD, Kokusai Electric, and two DELETEs, JFE Holdings and Seibu Holdings, on 1 Sep 2026. We review the completed bridge against nine prior cycles.</li>
<li>Kokusai Electric added +2.8% alpha over the bridge on top of its +13.5% pre-announcement run. Both DELETEs were near flat over the bridge after negative announcement days.</li>
<li>Historically, positive-bridge ADDs gave back in the first implementation week. The historical DELETE first-week record after a positive bridge is flat.</li>
</ul>


MS-Japan rebalance one ADD, Kokusai Electric, and two DELETEs, JFE Holdings and Seibu Holdings, on 1 Sep 2026. We review the completed bridge against nine prior cycles.
Kokusai Electric added +2.8% alpha over the bridge on top of its +13.5% pre-announcement run. Both DELETEs were near flat over the bridge after negative announcement days.
Historically, positive-bridge ADDs gave back in the first implementation week. The historical DELETE first-week record after a positive bridge is flat.


MS-Japan Sep 2026 Index Rebalance: Pre-Implementation Update

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kokusai-electric-corp" target="_blank" data-smartkarma-citation="entities:40152:1" rel="noopener">Kokusai Electric (6525 JP)</a> saw large selldowns by PE funds and pre-IPO investors such as <a href="https://www.smartkarma.com/entities/applied-materials-inc" target="_blank" data-smartkarma-citation="entities:283:1" rel="noopener">Applied Materials (AMAT US)</a> from last year to this year. Last selldowns in Q2.</li>
<li>There are index events upcoming which will substantially change the shape of the float. There could be another index event, depending on whether the TSE adapts ad hoc.</li>
<li>These events - starting today - have a low flow/ADV count, but that is deceptive. A look at shareholder structure is instructive.</li>
</ul>



Kokusai Electric (6525 JP) saw large selldowns by PE funds and pre-IPO investors such as Applied Materials (AMAT US) from last year to this year. Last selldowns in Q2.
There are index events upcoming which will substantially change the shape of the float. There could be another index event, depending on whether the TSE adapts ad hoc.
These events - starting today - have a low flow/ADV count, but that is deceptive. A look at shareholder structure is instructive.


[Japan Flow] Don't Sleep on Kokusai Elec (6525) Index Flows

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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 Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a> (SKH), a leading global memory producer, aims to raise over US$10bn via an ADR listing.</li>
<li>SKH has confidentially filed for an ADR issuance which could see it potentially launch a raising in July 2026, as per media reports.</li>
<li>In this note, we look at its past performance and other deal dynamics that might impact the listing.</li>
</ul>



SK Hynix (000660 KS) (SKH), a leading global memory producer, aims to raise over US$10bn via an ADR listing.
SKH has confidentially filed for an ADR issuance which could see it potentially launch a raising in July 2026, as per media reports.
In this note, we look at its past performance and other deal dynamics that might impact the listing.


Aequitas: SK Hynix ADR Listing - Part 2 - The Quest for a US$1tn+ Valuation

<ul>
<li>MS Global adds Kokusai Electric (6525 JP) and deletes JFE Holdings (5411 JP) and Seibu Holdings (9024 JP), effective 1 Sep 2026.</li>
<li>Kokusai Electric enters bridge window with +13.5% pre-announcement alpha. Historical data suggest fading upon positive gap in post-announcement.</li>
<li>We assign both DELETEs to the high-velocity group. Flat-to-down opens suggest a DELETE bridge fade.</li>
</ul>


MS Global adds Kokusai Electric (6525 JP) and deletes JFE Holdings (5411 JP) and Seibu Holdings (9024 JP), effective 1 Sep 2026.
Kokusai Electric enters bridge window with +13.5% pre-announcement alpha. Historical data suggest fading upon positive gap in post-announcement.
We assign both DELETEs to the high-velocity group. Flat-to-down opens suggest a DELETE bridge fade.


MS-Japan Sep 2026 Index Rebalance: Post-Announcement Positioning

Japan

Kokusai Electric Corporation manufactures and distributes semiconductor manufacturing systems. The Company produces batch processing systems, single wafer processing systems, and other systems. Kokusai Electric also operates advanced thermal process technology development, training, and other businesses.

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Kokusai Electric (6525 JP)

Quiddity JPX-Nikkei 400 Rebal 2027: End-Sep 2026 Ranks

In total, there are 33 Potential ADDs and 34 Potential DELs (unique names) presented in the current Quiddity Leaderboard. It is early in the...

Janaghan Jeyakumar, CFA

MS-Japan Sep 2026 Index Rebalance: Pre-Implementation Update

MS-Japan enters implementation on 1 Sep with one ADD and two DELETEs. We update post-announcement stock performance and discuss implementation trades.

Ke Yan, CFA, FRM

[Japan Flow] Don't Sleep on Kokusai Elec (6525) Index Flows

Kokusai Electric stock has risen on the back of AI demand for SPEs. that means an M _ _ _ inclusion/upgrade today, and likely Nikkei 225 inclusion...

Travis Lundy

Aequitas: SK Hynix ADR Listing - Part 2 - The Quest for a US$1tn+ Valuation

SK Hynix (000660 KS) (SKH), a leading global memory producer, aims to raise over US$10bn via an ADR listing. In this note, we have a look at the...

Sumeet Singh

MS-Japan Sep 2026 Index Rebalance: Post-Announcement Positioning

MS announced the Index Review results after market close on 12 Aug with one ADD and two DELETEs, effective 1 Sep. We review the pre-announcement...

Ke Yan, CFA, FRM

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