Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Thematic (Sector/Industry)

<ul>
<li>Following on from our last HK piece, we take a closer look at the tech sector</li>
<li>While the overall HSTECH index provides a good risk-reward, some</li>
<li>Individual E-commerce &amp; software names offer much more upside than  downside</li>
</ul>


Following on from our last HK piece, we take a closer look at the tech sector
While the overall HSTECH index provides a good risk-reward, some
Individual E-commerce &amp; software names offer much more upside than  downside


HSTECH Index. Identifying Individual Names with Greater Potential Upside

HarmoniQ Insights

William Mann

Independent Insight Provider

At HarmoniQ Insights, we empower investors to enhance their investment strategies by integrating cutting-edge quantitative research processes and technologies. Our solutions provide access to leading quantitative data providers and services, tailored to align with each client’s unique goals. By bridging the gap between traditional investment approaches and advanced data-driven methods, we help clients gain a competitive edge through innovation in both process and technology.

Cross Asset Strategy

<ul>
<li>A Q1 2025 tactical ETF Portfolio, on four themes: Technology &amp; AI Leadership (30% exposure), Cryptocurrency Ecosystem (15% exposure), Quality Factor (35% exposure), and Strategic Regional Opportunities (12% net exposure).</li>
<li>Investment approach includes sophisticated risk management framework with position-level controls, crypto-specific risk management, stop-loss strategy, and a three-phase implementation process designed to balance risk and capitalize on emerging market trends.</li>
<li>Targets 130% Gross, net long exposure of 45%, information ratio above 0.85, 12% maximum drawdown, seeks risk-adjusted return of +15%, ETF positions in AI, Crypto, Cash Flow, and regional hedges.</li>
</ul>


A Q1 2025 tactical ETF Portfolio, on four themes: Technology &amp; AI Leadership (30% exposure), Cryptocurrency Ecosystem (15% exposure), Quality Factor (35% exposure), and Strategic Regional Opportunities (12% net exposure).
Investment approach includes sophisticated risk management framework with position-level controls, crypto-specific risk management, stop-loss strategy, and a three-phase implementation process designed to balance risk and capitalize on emerging market trends.
Targets 130% Gross, net long exposure of 45%, information ratio above 0.85, 12% maximum drawdown, seeks risk-adjusted return of +15%, ETF positions in AI, Crypto, Cash Flow, and regional hedges.


The Trump Transition Trade: Q1 2025 AI-Designed Tactical Alpha Capture ETF Portfolio

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>The December rebalance of the <a href="https://www.smartkarma.com/entities/kraneshares-csi-china-internet-etf" target="_blank" data-smartkarma-citation="entities:28208:1" rel="noopener">KraneShares CSI China Internet ETF (KWEB US)</a> will take place at the close of trading on 13 December.</li>
<li>
<a href="https://www.smartkarma.com/entities/cloud-village-inc" target="_blank" data-smartkarma-citation="entities:33412:1" rel="noopener">Cloud Village (9899 HK)</a> is an add while <a href="https://www.smartkarma.com/entities/lufax-holding-ltd" target="_blank" data-smartkarma-citation="entities:29690:1" rel="noopener">Lufax Holding (LU US)</a>, <a href="https://www.smartkarma.com/entities/ping-an-healthcare-and-technology-company-limited" target="_blank" data-smartkarma-citation="entities:27008:1" rel="noopener">Ping An Healthcare and Technology (1833 HK)</a>, <a href="https://www.smartkarma.com/entities/zx-inc" target="_blank" data-smartkarma-citation="entities:36624:1" rel="noopener">ZX (9890 HK)</a> and <a href="https://www.smartkarma.com/entities/ysb-inc" target="_blank" data-smartkarma-citation="entities:35982:1" rel="noopener">YSB (9885 HK)</a> are deletes.</li>
<li>The deletions of <a href="https://www.smartkarma.com/entities/ping-an-healthcare-and-technology-company-limited" target="_blank" data-smartkarma-citation="entities:27008:1" rel="noopener">Ping An Healthcare (1833 HK)</a>, <a href="https://www.smartkarma.com/entities/zx-inc" target="_blank" data-smartkarma-citation="entities:36624:1" rel="noopener">ZX (9890 HK)</a> and <a href="https://www.smartkarma.com/entities/ysb-inc" target="_blank" data-smartkarma-citation="entities:35982:1" rel="noopener">YSB (9885 HK)</a> were forecast and there will be positioning in the stocks. <a href="https://www.smartkarma.com/entities/lufax-holding-ltd" target="_blank" data-smartkarma-citation="entities:29690:1" rel="noopener">Lufax</a> was a close delete.</li>
</ul>


The December rebalance of the KraneShares CSI China Internet ETF (KWEB US) will take place at the close of trading on 13 December.

Cloud Village (9899 HK) is an add while Lufax Holding (LU US), Ping An Healthcare and Technology (1833 HK), ZX (9890 HK) and YSB (9885 HK) are deletes.
The deletions of Ping An Healthcare (1833 HK), ZX (9890 HK) and YSB (9885 HK) were forecast and there will be positioning in the stocks. Lufax was a close delete.


KWEB Index Rebalance: 1 Add & 4 Deletes in December

Ping An Healthcare and Technology / Index Rebalance

<ul>
<li>The review period for the December rebalance of the CSI Overseas China Internet Index ended 31 October. The changes should be announced 29 November and implemented close on 13 December.</li>
<li>
<a href="https://www.smartkarma.com/entities/ping-an-healthcare-and-technology-company-limited" target="_blank" data-smartkarma-citation="entities:27008:1" rel="noopener">Ping An Healthcare and Technology (1833 HK)</a>, <a href="https://www.smartkarma.com/entities/zx-inc" target="_blank" data-smartkarma-citation="entities:36624:1" rel="noopener">ZX (9890 HK)</a> and <a href="https://www.smartkarma.com/entities/ysb-inc" target="_blank" data-smartkarma-citation="entities:35982:1" rel="noopener">YSB (9885 HK)</a> could be deleted from the index at the December rebalance.</li>
<li>There is a lot to sell in <a href="https://www.smartkarma.com/entities/ping-an-healthcare-and-technology-company-limited" target="_blank" data-smartkarma-citation="entities:27008:1" rel="noopener">Ping An Healthcare and Technology (1833 HK)</a> and the recent jump in the stock price could provide an opportunity to exit/short.</li>
</ul>


The review period for the December rebalance of the CSI Overseas China Internet Index ended 31 October. The changes should be announced 29 November and implemented close on 13 December.

Ping An Healthcare and Technology (1833 HK), ZX (9890 HK) and YSB (9885 HK) could be deleted from the index at the December rebalance.
There is a lot to sell in Ping An Healthcare and Technology (1833 HK) and the recent jump in the stock price could provide an opportunity to exit/short.


KWEB Index Rebalance Preview: 3 Potential Deletions in December

KraneShares CSI China Internet ETF / Index Rebalance

<ul>
<li>Nearly US$140bn has flowed into mainland China listed ETFs year to date and there have been big creations in the last few weeks as stocks have surged.</li>
<li>97% of all inflows are in ETFs benchmarked to the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI300</a>, CSI1000, <a href="https://www.smartkarma.com/entities/csi-smallcap-500-index-shang" target="_blank" data-smartkarma-citation="entities:35347:1" rel="noopener">CSI500</a>, <a href="https://www.smartkarma.com/entities/shanghai-stock-exchange-sse-50-a-share-index" target="_blank" data-smartkarma-citation="entities:31073:1" rel="noopener">SSE50</a>, <a href="https://www.smartkarma.com/entities/chinext-index" target="_blank" data-smartkarma-citation="entities:25483:1" rel="noopener">ChiNext</a> and <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">STAR50</a> indices. But over US$4bn has gone into other ETFs in the last week.</li>
<li>The large ETF inflows over the last few weeks has led to index rebalance strategies underperforming in China. But that should reverse from now to rebalance implementation.</li>
</ul>


Nearly US$140bn has flowed into mainland China listed ETFs year to date and there have been big creations in the last few weeks as stocks have surged.
97% of all inflows are in ETFs benchmarked to the CSI300, CSI1000, CSI500, SSE50, ChiNext and STAR50 indices. But over US$4bn has gone into other ETFs in the last week.
The large ETF inflows over the last few weeks has led to index rebalance strategies underperforming in China. But that should reverse from now to rebalance implementation.


China ETF Inflows & Implications: YTD Inflows Nearing US$150bn

United States

KraneShares CSI China Internet Fund is an exchange-traded fund incorporated in the USA. The fund tracks the CSI Overseas China Internet Index. It invests in a universe of publicly traded China-based companies whose primary business is in the Internet and Internet-related sectors. It attempts to offer exposure to companies that benefit from increasing consumption by China's growing middle class.

KraneShares CSI China Internet ETF (KWEB US)

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

KraneShares CSI China Internet ETF (KWEB US)

HSTECH Index. Identifying Individual Names with Greater Potential Upside

The initial market reaction to the Deepseek news is to bid up Chinese tech names, both platform and semiconductor-related. The tariff newsflow will...

Rikki Malik

The Trump Transition Trade: Q1 2025 AI-Designed Tactical Alpha Capture ETF Portfolio

A Q1 2025 tactical ETF Portfolio focuses on Technology, Cryptocurrency, Quality, and Regional Opportunities with sophisticated risk management and...

William Mann

KWEB Index Rebalance: 1 Add & 4 Deletes in December

Cloud Village is an add while Lufax, Ping An Health, ZX and YSB are deletes. There will be capping flow for the large caps. Couple of surprises...

Brian Freitas

KWEB Index Rebalance Preview: 3 Potential Deletions in December

There could be 3 deletions in December plus selling in the 5 largest stocks due to capping. The largest selling is in Ping An Health. YSB and ZX...

Brian Freitas

China ETF Inflows & Implications: YTD Inflows Nearing US$150bn

Nearly US$150bn has flowed into mainland China ETFs year to date. 97% of that has gone into ETFs tracking headline indices, but there has been...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HSTECH Index. Identifying Individual Names with Greater Potential Upside

The initial market reaction to the Deepseek news is to bid up Chinese tech names, both platform and semiconductor-related. The tariff newsflow will...

Rikki Malik

The Trump Transition Trade: Q1 2025 AI-Designed Tactical Alpha Capture ETF Portfolio

​A Q1 2025 tactical ETF Portfolio focuses on Technology, Cryptocurrency, Quality, and Regional Opportunities with sophisticated risk management and...

William Mann

KWEB Index Rebalance: 1 Add & 4 Deletes in December

Cloud Village is an add while Lufax, Ping An Health, ZX and YSB are deletes. There will be capping flow for the large caps. Couple of surprises...

Brian Freitas

KWEB Index Rebalance Preview: 3 Potential Deletions in December

There could be 3 deletions in December plus selling in the 5 largest stocks due to capping. The largest selling is in Ping An Health. YSB and ZX...

Brian Freitas

China ETF Inflows & Implications: YTD Inflows Nearing US$150bn

Nearly US$150bn has flowed into mainland China ETFs year to date. 97% of that has gone into ETFs tracking headline indices, but there has been...

Brian Freitas

A Q1 2025 tactical ETF Portfolio focuses on Technology, Cryptocurrency, Quality, and Regional Opportunities with sophisticated risk management and...