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

Chubu Electric Power Co / Index Rebalance

<ul>
<li>There are 12 additions to the S&amp;P Global Clean Energy Index for Asia. The changes were announced on 8 April and will be implemented at the close on 22 April.</li>
<li>Largest inflows are on <a href="https://www.smartkarma.com/entities/chubu-electric-power-co-inc" target="_blank" data-smartkarma-citation="entities:14574:1" rel="noopener">Chubu Electric Power</a>, <a href="https://www.smartkarma.com/entities/china-yangtze-power-co-ltd" target="_blank" data-smartkarma-citation="entities:3210:1" rel="noopener">China Yangtze Power</a>, <a href="https://www.smartkarma.com/entities/adani-green-energy-ltd" target="_blank" data-smartkarma-citation="entities:29012:1" rel="noopener">Adani Green Energy</a>, <a href="https://www.smartkarma.com/entities/energy-absolute-pcl" target="_blank" data-smartkarma-citation="entities:10377:1" rel="noopener">Energy Absolute</a>, <a href="https://www.smartkarma.com/entities/longi-green-energy-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:12703:1" rel="noopener">LONGi Green Energy Technology</a>, <a href="https://www.smartkarma.com/entities/ja-solar-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:16597:1" rel="noopener">JA Solar Technology</a>, <a href="https://www.smartkarma.com/entities/tianjin-zhonghuan-semiconductor-co-ltd" target="_blank" data-smartkarma-citation="entities:6791:1" rel="noopener">Tianjin Zhonghuan Semiconductor</a> and <a href="https://www.smartkarma.com/entities/sungrow-power-supply-co-ltd" target="_blank" data-smartkarma-citation="entities:4255:1" rel="noopener">Sungrow Power Supply</a>.</li>
<li>The largest outflows are expected on <a href="https://www.smartkarma.com/entities/meridian-ener-partly-paid-sh" target="_blank" data-smartkarma-citation="entities:4327:1" rel="noopener">Meridian Energy (MEL NZ)</a>, <a href="https://www.smartkarma.com/entities/contact-energy-ltd" target="_blank" data-smartkarma-citation="entities:13136:1" rel="noopener">Contact Energy (CEN NZ)</a> and <a href="https://www.smartkarma.com/entities/xinyi-energy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:27808:1" rel="noopener">Xinyi Energy Holdings Ltd (3868 HK)</a>. </li>
</ul>


There are 12 additions to the S&amp;P Global Clean Energy Index for Asia. The changes were announced on 8 April and will be implemented at the close on 22 April.
Largest inflows are on Chubu Electric Power, China Yangtze Power, Adani Green Energy, Energy Absolute, LONGi Green Energy Technology, JA Solar Technology, Tianjin Zhonghuan Semiconductor and Sungrow Power Supply.
The largest outflows are expected on Meridian Energy (MEL NZ), Contact Energy (CEN NZ) and Xinyi Energy Holdings Ltd (3868 HK). 


S&P Global Clean Energy Index: Changes for Asia & Impact

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

DZT Research

DZT 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 analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine.</li>
<li>Most sectors experienced sell down except utilities and energy sector. </li>
<li>Top three sells were CATL, Ping An Insurance, and Moutai. </li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine.
Most sectors experienced sell down except utilities and energy sector. 
Top three sells were CATL, Ping An Insurance, and Moutai. 


<ul>
<li>We analyze the weekly Shanghai/Shenzhen Connect flows with our data engine.</li>
<li>Information technology, industrials, and material led the inflow while the financials , consumer discretionary  and consumer staple led the outflows.</li>
<li>We highlight inflows into Longi Green, Sungrow, Jiangxi Ganfeng, Zijin Mining, Yangtze Power, and outflows from BYD, Wuliangye, Ping An Insurance, CATL, and East Money.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen Connect flows with our data engine.
Information technology, industrials, and material led the inflow while the financials , consumer discretionary  and consumer staple led the outflows.
We highlight inflows into Longi Green, Sungrow, Jiangxi Ganfeng, Zijin Mining, Yangtze Power, and outflows from BYD, Wuliangye, Ping An Insurance, CATL, and East Money.


Northbound Flows: Longi Green, Sungrow, Jiangxi Ganfeng, Zijin Mining

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

Xinyi Solar’s multiples trail peers by a significant margin despite a strong position in solar glass and an extremely profitable solar farm business where proving business models in a grid parity environment could mean slightly lower margins but vastly expanded TAM.

Xinyi Solar’s multiples trail peers by a significant margin despite a strong position in solar glass and an extremely profitable solar farm business where proving business models in a grid parity environment could mean slightly lower margins but vastly expanded TAM.

Xinyi Solar – Putting Its Balance Sheet to Work Could Generate Significant Upside

HK/China Equity Long-Short

Osbert Tang, CFA

China Power International Development / Equity Bottom-Up

China Power International Development (2380 HK)

<a href="https://www.smartkarma.com/entities/china-power-international" target="_blank" data-smartkarma-citation="entities:15548:1" rel="noopener">China Power International (2380 HK)</a> (CPI) thinks that power storage in China will stay on in the near term, as supply-side structural issues are further exacerbated by cyclical demand issues. That said, the reform in power tariff will be a major policy direction in the future and will lead to a more market driven power sector in China. In our view, new/renewable energy sub-segment is likely to better place in the industry and we still prefer <a href="https://www.smartkarma.com/entities/china-longyuan-power-group-corp-ltd" target="_blank" data-smartkarma-citation="entities:14215:1" rel="noopener">China Longyuan Power Group Corp (916 HK)</a>.However, we think CPI is more interesting than many power conglomerates. It has the highest proportion of clean/renewable installed capacity (47.1%) when compared with <a href="https://www.smartkarma.com/entities/china-resources-power-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:5385:1" rel="noopener">China Resources Power (836 HK)</a>, <a href="https://www.smartkarma.com/entities/datang-international-power-generation-company-h" target="_blank" data-smartkarma-citation="entities:3664:1" rel="noopener">Datang International (991 HK)</a>, <a href="https://www.smartkarma.com/entities/huaneng-power-intl-inc-h" target="_blank" data-smartkarma-citation="entities:28:1" rel="noopener">Huaneng Power Intl (902 HK)</a> and <a href="https://www.smartkarma.com/entities/huadian-power-intl-corp-h" target="_blank" data-smartkarma-citation="entities:2506:1" rel="noopener">Huadian Power Intl (1071 HK)</a>, and this has also protected its 1H21 profit. Its plan to speed up disposal of coal-fired power plants also adds justification to its valuations. Relative to new energy plays' average of 18x PER and 2.1x P/B FY21F, CPI's 11.9x and 0.9x are clearly not expensive.

China Power International (2380 HK) (CPI) thinks that power storage in China will stay on in the near term, as supply-side structural issues are further exacerbated by cyclical demand issues. That said, the reform in power tariff will be a major policy direction in the future and will lead to a more market driven power sector in China. In our view, new/renewable energy sub-segment is likely to better place in the industry and we still prefer China Longyuan Power Group Corp (916 HK).However, we think CPI is more interesting than many power conglomerates. It has the highest proportion of clean/renewable installed capacity (47.1%) when compared with China Resources Power (836 HK), Datang International (991 HK), Huaneng Power Intl (902 HK) and Huadian Power Intl (1071 HK), and this has also protected its 1H21 profit. Its plan to speed up disposal of coal-fired power plants also adds justification to its valuations. Relative to new energy plays' average of 18x PER and 2.1x P/B FY21F, CPI's 11.9x and 0.9x are clearly not expensive. 

China Power International (2380 HK): Industry and Company Updates, Looks Relatively Inexpensive

China

LONGi Green Energy Technology Co., Ltd. develops, manufactures and sells silicon rods and silicon wafers. The Company's main products include 6 inch, 6.5 inch and 8 inch monocrystalline silicon rods and wafers.

LONGi Green Energy Technology (601012 CH)

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LONGi Green Energy Technology (601012 CH)

S&P Global Clean Energy Index: Changes for Asia & Impact

There are 12 adds for Asia as a part of the S&P Global Clean Energy Index rebal, plus other changes. There have not been any big price moves since...

Brian Freitas

Northbound Flows: Big Sell Down

We highlight big sell down of USD 5.6bn last week by northbound investors, and highlight top three weekly sells were CATL, Ping An Insurance, and...

Ke Yan, CFA, FRM

Northbound Flows: Longi Green, Sungrow, Jiangxi Ganfeng, Zijin Mining

We highlight weekly Northbound inflows into Longi Green, Sungrow, Jiangxi Ganfeng, Zijin Mining, Yangtze Power, and outflows from BYD, Wuliangye,...

Ke Yan, CFA, FRM

Xinyi Solar – Putting Its Balance Sheet to Work Could Generate Significant Upside

Xinyi Solar’s multiples trail peers by a significant margin despite a strong position in solar glass and an extremely profitable solar farm business.

Mio Kato

China Power International (2380 HK): Industry and Company Updates, Looks Relatively Inexpensive

China Power Intl is interesting as a new/renewable energy play among the traditional large power conglomerates in China. It has a high 47.1%...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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