Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

Korea Stock Exchange KOSPI 200 / Event-Driven

<ul>
<li>The new rule mandates that retail pool fees be tied to the fees paid by institutional borrowers, and this information must be publicly disclosed.</li>
<li>This rule ensures faster, more accurate market release of stock-specific borrow fees, which are now tied to actual fees received, replacing the arbitrarily set rates by brokerages.</li>
<li>With short-selling resuming next April, this rule could drive new flow trading strategies and significantly influence target screening in the short-selling market.</li>
</ul>


The new rule mandates that retail pool fees be tied to the fees paid by institutional borrowers, and this information must be publicly disclosed.
This rule ensures faster, more accurate market release of stock-specific borrow fees, which are now tied to actual fees received, replacing the arbitrarily set rates by brokerages.
With short-selling resuming next April, this rule could drive new flow trading strategies and significantly influence target screening in the short-selling market.


Korea's New Retail Pool Borrow Fee Calculation & Disclosure Rules: Impacts on Flow Trading

Pan-Asia Tactical Market Calls (Quant-Driven), MRM Research

Nico Rosti

Pan-Asia Tactical Market Calls (Quant-Driven)

MRM Research

Quantitative Research

Equity Derivatives

Korea Stock Exchange KOSPI 200 / Equity Derivatives

<ul>
<li>After a large sell-off, similar to other major global markets, the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200 INDEX</a> last week rebounded and closed strongly up. In this insight we want to evaluate what's next.</li>
<li>According to our pattern models, at the moment the index is not overbought yet, so in theory the index could rise higher, this week.</li>
<li>Pay attention when the index reaches the <strong>385 price area</strong>, from there the index could start to encounter some <strong>resistance</strong>.</li>
</ul>


After a large sell-off, similar to other major global markets, the KOSPI 200 INDEX last week rebounded and closed strongly up. In this insight we want to evaluate what's next.
According to our pattern models, at the moment the index is not overbought yet, so in theory the index could rise higher, this week.
Pay attention when the index reaches the 385 price area, from there the index could start to encounter some resistance.


EQD | KOSPI 200 Rising With Room to Go Higher (This Week Only)

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>With the start of the review period around the corner, there could be two changes for the FnGuide Semiconductor Top10 Index at the October rebalance.</li>
<li>
<a href="https://www.smartkarma.com/entities/wonik-ips-co-ltd-5d7417b7-5438-41d4-a6e4-8016d24d818a" target="_blank" data-smartkarma-citation="entities:26912:1" rel="noopener">Wonik Ips (240810 KS)</a> and <a href="https://www.smartkarma.com/entities/techwing-inc" target="_blank" data-smartkarma-citation="entities:5735:1" rel="noopener">Techwing Inc (089030 KS)</a> are potential adds while <a href="https://www.smartkarma.com/entities/isc-co-ltd" target="_blank" data-smartkarma-citation="entities:13560:1" rel="noopener">ISC Co Ltd (095340 KS)</a> and <a href="https://www.smartkarma.com/entities/dongjin-semichem-co-ltd" target="_blank" data-smartkarma-citation="entities:19607:1" rel="noopener">Dongjin Semichem (005290 KS)</a> are potential deletes.</li>
<li>Passives will need to trade more than 2x ADV on two potential changes and more than 1x ADV on another potential change.</li>
</ul>


With the start of the review period around the corner, there could be two changes for the FnGuide Semiconductor Top10 Index at the October rebalance.

Wonik Ips (240810 KS) and Techwing Inc (089030 KS) are potential adds while ISC Co Ltd (095340 KS) and Dongjin Semichem (005290 KS) are potential deletes.
Passives will need to trade more than 2x ADV on two potential changes and more than 1x ADV on another potential change.


FnGuide Semiconductor Top10 Index Rebalance Preview: Two Changes Likely in October

<ul>
<li>This final guideline formalizes earlier drafts by the FSS. Though not strictly mandatory, its detailed requirements mean it functions as a de facto rule that must be followed closely.</li>
<li>The new, stringent requirements are likely to eliminate common stock borrowing practices in Korea, making timely transactions difficult.</li>
<li>New trading patterns and market flows may emerge when short selling resumes in April, with increased importance of borrow balance data and potential rise in counter-flow trading.</li>
</ul>


This final guideline formalizes earlier drafts by the FSS. Though not strictly mandatory, its detailed requirements mean it functions as a de facto rule that must be followed closely.
The new, stringent requirements are likely to eliminate common stock borrowing practices in Korea, making timely transactions difficult.
New trading patterns and market flows may emerge when short selling resumes in April, with increased importance of borrow balance data and potential rise in counter-flow trading.


Korea FSS Releases Final Guidelines for Short Selling Compliance: Trading Implications

Topsports International Holdings / Event-Driven

<ul>
<li>The China equity markets have continued to trade lower with the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-inde" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI 300 Index</a> outperforming other mainland indices as the National Team continues to pump money into ETFs tracking the index.</li>
<li>We currently estimate selling of around US$1.39bn across 74 stocks listed on the mainland and in Hong Kong. There could be fewer deletions depending on the review date chosen.</li>
<li>The potential deletes have dropped a lot since the start of the calendar year with big underperformance versus the <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">HSCEI Index</a>, <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-inde" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI 300 Index</a> and <a href="https://www.smartkarma.com/entities/csi-smallcap-500-index-shang" target="_blank" data-smartkarma-citation="entities:35347:1" rel="noopener">CSI Smallcap 500 Index</a>.</li>
</ul>


The China equity markets have continued to trade lower with the CSI 300 Index outperforming other mainland indices as the National Team continues to pump money into ETFs tracking the index.
We currently estimate selling of around US$1.39bn across 74 stocks listed on the mainland and in Hong Kong. There could be fewer deletions depending on the review date chosen.
The potential deletes have dropped a lot since the start of the calendar year with big underperformance versus the HSCEI Index, CSI 300 Index and CSI Smallcap 500 Index.


China: Passive Selling Expected Later This Month

South Korea

The KOSPI 200 Index is a capitalization-weighted index of 200 Korean stocks which make up 93% of the total market value of the Korea Stock Exchange. The index was developed with a base value of 100 as of January 3, 1990.

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

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

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

Korea's New Retail Pool Borrow Fee Calculation & Disclosure Rules: Impacts on Flow Trading

This post outlines the Korean Financial Supervisory Service's newly released rules on calculating and disclosing retail pool borrow fees and...

Sanghyun Park

EQD | KOSPI 200 Rising With Room to Go Higher (This Week Only)

The KOSPI 200 INDEX rebounded after the latest global sell-off, it could rise higher this week but watch for resistance at 385-390 price area.

Nico Rosti

FnGuide Semiconductor Top10 Index Rebalance Preview: Two Changes Likely in October

There could be two changes for the FnGuide Semiconductor Top10 Index in October. Some stocks have similar market caps and will need to be...

Brian Freitas

Korea FSS Releases Final Guidelines for Short Selling Compliance: Trading Implications

This morning, the Korea FSS released the final version of its short selling compliance guidelines. This post explores the guidelines and their...

Sanghyun Park

China: Passive Selling Expected Later This Month

We currently estimate passive selling of around US$1.39bn across 74 stocks listed in China and HK. The potential deletes have underperformed...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Korea's New Retail Pool Borrow Fee Calculation & Disclosure Rules: Impacts on Flow Trading

This post outlines the Korean Financial Supervisory Service's newly released rules on calculating and disclosing retail pool borrow fees and...

Sanghyun Park

EQD | KOSPI 200 Rising With Room to Go Higher (This Week Only)

​The KOSPI 200 INDEX rebounded after the latest global sell-off, it could rise higher this week but watch for resistance at 385-390 price area.

Nico Rosti

FnGuide Semiconductor Top10 Index Rebalance Preview: Two Changes Likely in October

There could be two changes for the FnGuide Semiconductor Top10 Index in October. Some stocks have similar market caps and will need to be...

Brian Freitas

Korea FSS Releases Final Guidelines for Short Selling Compliance: Trading Implications

This morning, the Korea FSS released the final version of its short selling compliance guidelines. This post explores the guidelines and their...

Sanghyun Park

China: Passive Selling Expected Later This Month

We currently estimate passive selling of around US$1.39bn across 74 stocks listed in China and HK. The potential deletes have underperformed...

Brian Freitas

The KOSPI 200 INDEX rebounded after the latest global sell-off, it could rise higher this week but watch for resistance at 385-390 price area.