Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<div class="content-highlight">
<p>The "K-Stop movement" made its first real move on <a href="https://www.smartkarma.com/entities/hlb-inc" target="_blank" data-smartkarma-citation="entities:16969:1" rel="noopener">HLB Inc (028300 KS) </a>on July 15th. The K-Stop movement refers to "Korean Game Stop movement," where many Korean retail investors have gathered together to actively protest and trade against the institutional investors that have put short positions on various Korean stocks. There are lots of interesting developments with the K-Stop movement so we will update on these key issues in this insight. </p>
<p><strong>Korea Stock Investors Association (한국주식투자자연합회) (KSIA) is the main sponsoring entity of this K-Stop Movement. On 1 August,<a href="https://www.news1.kr/articles/?4388150" target="_blank" rel="noopener"> KSIA</a> mentioned that it will once again pool the resources of the retail investors to target a specific company to buy on August 10th.</strong> The date was originally scheduled on August 15th but they decided to use August 10th instead due to the latter date being on a Sunday. </p>
</div><ul>
<li>In KOSDAQ, the top two potential stocks that KSIA may target on August 10th include <a href="https://www.smartkarma.com/entities/kmw-co-ltd" target="_blank" data-smartkarma-citation="entities:2834:1" rel="noopener">KMW Co Ltd (032500 KS)</a> and <a href="https://www.smartkarma.com/entities/seegene-inc" target="_blank" data-smartkarma-citation="entities:11483:1" rel="noopener">Seegene Inc (096530 KS)</a>. </li>
<li>In KOSPI, the top three potential stocks that KSIA may target on August 10th include <a href="https://www.smartkarma.com/entities/lotte-tour-development-co-ltd" target="_blank" data-smartkarma-citation="entities:5526:1" rel="noopener">Lotte Tour Development Co, Ltd. (032350 KS)</a>, <a href="https://www.smartkarma.com/entities/lg-display-co-ltd" target="_blank" data-smartkarma-citation="entities:7145:1" rel="noopener">LG Display (034220 KS)</a>, and <a href="https://www.smartkarma.com/entities/shinpoong-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:7296:1" rel="noopener">Shinpoong Pharmaceutical (019170 KS)</a>.</li>
</ul>


The "K-Stop movement" made its first real move on HLB Inc (028300 KS) on July 15th. The K-Stop movement refers to "Korean Game Stop movement," where many Korean retail investors have gathered together to actively protest and trade against the institutional investors that have put short positions on various Korean stocks. There are lots of interesting developments with the K-Stop movement so we will update on these key issues in this insight. 
Korea Stock Investors Association (한국주식투자자연합회) (KSIA) is the main sponsoring entity of this K-Stop Movement. On 1 August, KSIA mentioned that it will once again pool the resources of the retail investors to target a specific company to buy on August 10th. The date was originally scheduled on August 15th but they decided to use August 10th instead due to the latter date being on a Sunday. 

In KOSDAQ, the top two potential stocks that KSIA may target on August 10th include KMW Co Ltd (032500 KS) and Seegene Inc (096530 KS). 
In KOSPI, the top three potential stocks that KSIA may target on August 10th include Lotte Tour Development Co, Ltd. (032350 KS), LG Display (034220 KS), and Shinpoong Pharmaceutical (019170 KS).


K-Stop Movement: Round 2 on August 10th - What Are the Targets?

<p>In this insight, we discuss the top 50 most shorted stocks in KOSPI and KOSDAQ, respectively in terms of Short Sale Volume/Free Float Volume, respectively. The KRX provides updated short sale data in terms of short sale volume amount/market cap. However, it does not provide the data in terms of free float basis which is probably a better figure to use when analyzing the short sale data. </p><p>We divided the tables for the KOSPI and KOSDAQ short sale volume into two parts. </p><ul>
<li>First, the 50 stocks are ranked in order of the short sale volume/free float volume ratio.</li>
<li>Second, because many institutional investors deal with larger market cap companies, we included only those companies with more than 1 trillion won in market cap. We also included data on the changes in the foreign ownership YTD. </li>
</ul>

In this insight, we discuss the top 50 most shorted stocks in KOSPI and KOSDAQ, respectively in terms of Short Sale Volume/Free Float Volume, respectively. The KRX provides updated short sale data in terms of short sale volume amount/market cap. However, it does not provide the data in terms of free float basis which is probably a better figure to use when analyzing the short sale data. We divided the tables for the KOSPI and KOSDAQ short sale volume into two parts. 
First, the 50 stocks are ranked in order of the short sale volume/free float volume ratio.
Second, because many institutional investors deal with larger market cap companies, we included only those companies with more than 1 trillion won in market cap. We also included data on the changes in the foreign ownership YTD. 


Top 50 Most Shorted Stocks in KOSPI & KOSDAQ (Short Sale Vol/Free Float Vol)

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.

Lotte Tour Development Co, Ltd. / Event-Driven

Lotte Tour Development Co, Ltd. (032350 KS)

<p>Those with a high level of unconverted CB balance would be among the early target groups by short sellers from May 3 in Korea.</p><p>Among the Short 350 (KOSPI 200 and KOSDAQ 150), five names pop up as a heavy CB carrier with the conversion in progress.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 210px;" data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="text-align: right; width: 95px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 126.667px;" data-sheets-value='{"1":2,"2":"CB balance (₩B)"}'>CB balance at FY2020 yearend (₩B)</td>
<td style="text-align: right; width: 113.333px;" data-sheets-value='{"1":2,"2":"Time to expiration (days)"}'>Time to expiration (days)</td>
<td style="text-align: right; width: 95.8333px;" data-sheets-value='{"1":2,"2":"Conversion"}'>Conversion</td>
</tr>
<tr>
<td style="width: 210px;" data-sheets-value='{"1":2,"2":"LG Display Co Ltd"}'>LG Display</td>
<td style="text-align: right; width: 95px;" data-sheets-value='{"1":2,"2":"034220"}'>034220</td>
<td style="text-align: right; width: 126.667px;" data-sheets-value='{"1":3,"3":813.4}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>813.4</td>
<td style="text-align: right; width: 113.333px;" data-sheets-value='{"1":3,"3":1209}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>1,209</td>
<td style="text-align: right; width: 95.8333px;" data-sheets-value='{"1":3,"3":19845}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'>₩19,845</td>
</tr>
<tr>
<td style="width: 210px;" data-sheets-value='{"1":2,"2":"Hwaseung Enterprise Co Ltd"}'>Hwaseung Enterprise</td>
<td style="text-align: right; width: 95px;" data-sheets-value='{"1":2,"2":"241590"}'>241590</td>
<td style="text-align: right; width: 126.667px;" data-sheets-value='{"1":3,"3":150}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>150.0</td>
<td style="text-align: right; width: 113.333px;" data-sheets-value='{"1":3,"3":10529}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>10,529</td>
<td style="text-align: right; width: 95.8333px;" data-sheets-value='{"1":3,"3":17542}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'>₩17,542</td>
</tr>
<tr>
<td style="width: 210px;" data-sheets-value='{"1":2,"2":"GS Engineering &amp; Construction Corp"}'>GS E&amp;C</td>
<td style="text-align: right; width: 95px;" data-sheets-value='{"1":2,"2":"006360"}'>006360</td>
<td style="text-align: right; width: 126.667px;" data-sheets-value='{"1":3,"3":77.8}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>77.8</td>
<td style="text-align: right; width: 113.333px;" data-sheets-value='{"1":3,"3":84}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>84</td>
<td style="text-align: right; width: 95.8333px;" data-sheets-value='{"1":3,"3":30239}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'>₩30,239</td>
</tr>
<tr>
<td style="width: 210px;" data-sheets-value='{"1":2,"2":"KIWOOM Securities Co., Ltd."}'>KIWOOM Securities</td>
<td style="text-align: right; width: 95px;" data-sheets-value='{"1":2,"2":"039490"}'>039490</td>
<td style="text-align: right; width: 126.667px;" data-sheets-value='{"1":3,"3":127.1}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>127.1</td>
<td style="text-align: right; width: 113.333px;" data-sheets-value='{"1":3,"3":423}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>423</td>
<td style="text-align: right; width: 95.8333px;" data-sheets-value='{"1":3,"3":105247}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'>₩105,247</td>
</tr>
<tr>
<td style="width: 210px;" data-sheets-value='{"1":2,"2":"Lotte Tour Development Co., Ltd."}'>Lotte Tour Dev</td>
<td style="text-align: right; width: 95px;" data-sheets-value='{"1":2,"2":"032350"}'>032350</td>
<td style="text-align: right; width: 126.667px;" data-sheets-value='{"1":3,"3":71.04}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>71.0</td>
<td style="text-align: right; width: 113.333px;" data-sheets-value='{"1":3,"3":852}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>852</td>
<td style="text-align: right; width: 95.8333px;" data-sheets-value='{"1":3,"3":13850}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'>₩13,850</td>
</tr>
<tr><td colspan="5" rowspan="1" style="width: 724.167px;" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p>All of them enjoy a substantial gain in price, ranging from 2.90% to 52.12%. We should see a strong incentive in conversion, potentially resulting in an active shorting inflow.</p><p>CB balance (as of FY2020 yearend) * Delta (σ, 21 TD) should estimate potential shorting inflow, suggesting LG Display sitting at the top with ₩623.5B.</p><p>As a % of MC, Hwaseung Ent leads the pack at 13.15%.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 124.167px;" data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 76.6667px;" data-sheets-value='{"1":2,"2":"Price"}'>Price</td>
<td style="text-align: right; width: 96.6667px;" data-sheets-value='{"1":2,"2":"% to conversion"}'>Price gain from the conversion</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":2,"2":"Delta"}'>Delta (σ, 21 TD)</td>
<td style="text-align: right; width: 75.8333px;" data-sheets-value='{"1":2,"2":"CB balance*Delta (₩B)"}'>CB balance * Delta (₩B)</td>
<td style="text-align: right; width: 74.1667px;" data-sheets-value='{"1":2,"2":"% of MC"}'>% of MC</td>
</tr>
<tr>
<td style="width: 124.167px;" data-sheets-value='{"1":2,"2":"LG Display Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>LG Display</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":2,"2":"034220"}' data-sheets-formula='="034220"'>034220</td>
<td style="text-align: right; width: 76.6667px;" data-sheets-value='{"1":3,"3":24900}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")'>₩24,900</td>
<td style="text-align: right; width: 96.6667px;" data-sheets-value='{"1":3,"3":0.254724111866969}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-1]-R[0]C[5])/R[0]C[5]">25.47%</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":3,"3":0.7665}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000","3":1}'>0.7665</td>
<td style="text-align: right; width: 75.8333px;" data-sheets-value='{"1":3,"3":623.4711}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[2]*R[0]C[-1]"><strong>623.5</strong></td>
<td style="text-align: right; width: 74.1667px;" data-sheets-value='{"1":3,"3":0.06997736544260075}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/(googlefinance(R[0]C[-5], "marketcap")/1000000000)'><strong>7.00%</strong></td>
</tr>
<tr>
<td style="width: 124.167px;" data-sheets-value='{"1":2,"2":"Hwaseung Enterprise Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Hwaseung Enterprise</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":2,"2":"241590"}' data-sheets-formula='="241590"'>241590</td>
<td style="text-align: right; width: 76.6667px;" data-sheets-value='{"1":3,"3":18000}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")'>₩18,000</td>
<td style="text-align: right; width: 96.6667px;" data-sheets-value='{"1":3,"3":0.02610876752935811}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-1]-R[0]C[5])/R[0]C[5]">2.61%</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":3,"3":0.9556}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000","3":1}'>0.9556</td>
<td style="text-align: right; width: 75.8333px;" data-sheets-value='{"1":3,"3":143.34}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[2]*R[0]C[-1]"><strong>143.3</strong></td>
<td style="text-align: right; width: 74.1667px;" data-sheets-value='{"1":3,"3":0.13152657984811297}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/(googlefinance(R[0]C[-5], "marketcap")/1000000000)'><strong>13.15%</strong></td>
</tr>
<tr>
<td style="width: 124.167px;" data-sheets-value='{"1":2,"2":"GS Engineering &amp; Construction Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>GS E&amp;C</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":2,"2":"006360"}' data-sheets-formula='="006360"'>006360</td>
<td style="text-align: right; width: 76.6667px;" data-sheets-value='{"1":3,"3":46000}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")'>₩46,000</td>
<td style="text-align: right; width: 96.6667px;" data-sheets-value='{"1":3,"3":0.5212143258705645}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-1]-R[0]C[5])/R[0]C[5]">52.12%</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":3,"3":0.9874}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000","3":1}'>0.9874</td>
<td style="text-align: right; width: 75.8333px;" data-sheets-value='{"1":3,"3":76.81972}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[2]*R[0]C[-1]"><strong>76.8</strong></td>
<td style="text-align: right; width: 74.1667px;" data-sheets-value='{"1":3,"3":0.01953417848061996}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/(googlefinance(R[0]C[-5], "marketcap")/1000000000)'><strong>1.95%</strong></td>
</tr>
<tr>
<td style="width: 124.167px;" data-sheets-value='{"1":2,"2":"KIWOOM Securities Co., Ltd."}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>KIWOOM Securities</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":2,"2":"039490"}' data-sheets-formula='="039490"'>039490</td>
<td style="text-align: right; width: 76.6667px;" data-sheets-value='{"1":3,"3":135000}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")'>₩135,000</td>
<td style="text-align: right; width: 96.6667px;" data-sheets-value='{"1":3,"3":0.2826968939732249}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-1]-R[0]C[5])/R[0]C[5]">28.27%</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":3,"3":0.8001}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000","3":1}'>0.8001</td>
<td style="text-align: right; width: 75.8333px;" data-sheets-value='{"1":3,"3":101.69271}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[2]*R[0]C[-1]"><strong>101.7</strong></td>
<td style="text-align: right; width: 74.1667px;" data-sheets-value='{"1":3,"3":0.02893417796460866}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/(googlefinance(R[0]C[-5], "marketcap")/1000000000)'><strong>2.89%</strong></td>
</tr>
<tr>
<td style="width: 124.167px;" data-sheets-value='{"1":2,"2":"Lotte Tour Development Co., Ltd."}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Lotte Tour Dev</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":2,"2":"032350"}' data-sheets-formula='="032350"'>032350</td>
<td style="text-align: right; width: 76.6667px;" data-sheets-value='{"1":3,"3":18100}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")'>₩18,100</td>
<td style="text-align: right; width: 96.6667px;" data-sheets-value='{"1":3,"3":0.30685920577617326}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-1]-R[0]C[5])/R[0]C[5]">30.69%</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":3,"3":0.7877}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000","3":1}'>0.7877</td>
<td style="text-align: right; width: 75.8333px;" data-sheets-value='{"1":3,"3":55.958208}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[2]*R[0]C[-1]"><strong>56.0</strong></td>
<td style="text-align: right; width: 74.1667px;" data-sheets-value='{"1":3,"3":0.04462769831973416}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/(googlefinance(R[0]C[-5], "marketcap")/1000000000)'><strong>4.46%</strong></td>
</tr>
<tr><td colspan="7" rowspan="1" style="width: 722.5px;" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

Those with a high level of unconverted CB balance would be among the early target groups by short sellers from May 3 in Korea.Among the Short 350 (KOSPI 200 and KOSDAQ 150), five names pop up as a heavy CB carrier with the conversion in progress.









Name
Ticker
CB balance at FY2020 yearend (₩B)
Time to expiration (days)
Conversion


LG Display
034220
813.4
1,209
₩19,845


Hwaseung Enterprise
241590
150.0
10,529
₩17,542


GS E&amp;C
006360
77.8
84
₩30,239


KIWOOM Securities
039490
127.1
423
₩105,247


Lotte Tour Dev
032350
71.0
852
₩13,850

Source: DART

All of them enjoy a substantial gain in price, ranging from 2.90% to 52.12%. We should see a strong incentive in conversion, potentially resulting in an active shorting inflow.CB balance (as of FY2020 yearend) * Delta (σ, 21 TD) should estimate potential shorting inflow, suggesting LG Display sitting at the top with ₩623.5B.As a % of MC, Hwaseung Ent leads the pack at 13.15%.











Name
Ticker
Price
Price gain from the conversion
Delta (σ, 21 TD)
CB balance * Delta (₩B)
% of MC


LG Display
034220
₩24,900
25.47%
0.7665
623.5
7.00%


Hwaseung Enterprise
241590
₩18,000
2.61%
0.9556
143.3
13.15%


GS E&amp;C
006360
₩46,000
52.12%
0.9874
76.8
1.95%


KIWOOM Securities
039490
₩135,000
28.27%
0.8001
101.7
2.89%


Lotte Tour Dev
032350
₩18,100
30.69%
0.7877
56.0
4.46%

Source: DART



CB Balance X Delta (σ, 21 TD) Based Potential Shorting Inflow Among Korea Short 350

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<p>The short sell ban in Korea that was instated on 16 March 2020 is set to expire on 15 March.</p><p>However, with mayoral elections in Seoul and Busan around the corner, politicians are said to be leaning on the FSC to extend the short sell ban. Add to that the retail outrage - from petitions to the Blue House, bus tours, and posts on K-Streetbets of targeting stocks with high short interest.</p><p>There is a high likelihood that the short sell ban gets extended by three more months to tide the politicians over the mayoral elections.</p><p>In the event that the short sell ban expires, we highlight stocks that have seen the most short covering since the start of the short sell ban, stocks with high short interest as a percentage of market cap and free float, and high days of ADV to cover.</p><p>This will have implications for many strategies and will open the door to trade the ordinaries vs preferred shares, long/short and other related strategies.</p>

The short sell ban in Korea that was instated on 16 March 2020 is set to expire on 15 March.However, with mayoral elections in Seoul and Busan around the corner, politicians are said to be leaning on the FSC to extend the short sell ban. Add to that the retail outrage - from petitions to the Blue House, bus tours, and posts on K-Streetbets of targeting stocks with high short interest.There is a high likelihood that the short sell ban gets extended by three more months to tide the politicians over the mayoral elections.In the event that the short sell ban expires, we highlight stocks that have seen the most short covering since the start of the short sell ban, stocks with high short interest as a percentage of market cap and free float, and high days of ADV to cover.This will have implications for many strategies and will open the door to trade the ordinaries vs preferred shares, long/short and other related strategies.

Korea Short Sell Ban: Elections, Public Outrage, Bus Tours, Blue House Petitions, K-Streetbets

Index Rebalance

<p>The KRX announced the list of inclusions and exclusions to the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" rel="noopener" data-smartkarma-citation="entities:26021:1">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> today. The rebalance is effective as of 12 June and all passive buying/selling will be done at the closing auction on 11 June.</p><p>There are 11 inclusions and 11 exclusions in the June 2020 review with an estimated one-way turnover of 0.87%.</p><p>The inclusions and exclusions are tabulated here.</p><table class="table table-striped">
<colgroup><col span="4"></colgroup>
<tbody>
<tr>
<td style="text-align: center; width: 96pt;" colspan="2">INCLUSIONS</td>
<td style="text-align: center; width: 96pt;" colspan="2">EXCLUSIONS</td>
</tr>
<tr>
<td>003670.KS</td>
<td>Posco Chemical Co Ltd</td>
<td>001520.KS</td>
<td>Tongyang Inc</td>
</tr>
<tr>
<td>007700.KS</td>
<td>F&amp;F Co Ltd</td>
<td>002960.KS</td>
<td>Hankook Shell Oil Co Ltd</td>
</tr>
<tr>
<td>009410.KS</td>
<td>Taeyoung Engineering &amp; Construction Co Ltd</td>
<td>003620.KS</td>
<td>Ssangyong Motor Co Ltd</td>
</tr>
<tr>
<td>011200.KS</td>
<td>HMM Co Ltd</td>
<td>003920.KS</td>
<td>Namyang Dairy Products Co Ltd</td>
</tr>
<tr>
<td>016380.KS</td>
<td>KG DongbuSteel Co Ltd</td>
<td>005850.KS</td>
<td>SL Corp</td>
</tr>
<tr>
<td>020560.KS</td>
<td>Asiana Airlines Inc</td>
<td>006840.KS</td>
<td>AK Holdings Inc</td>
</tr>
<tr>
<td>032350.KS</td>
<td>Lotte Tour Development Co Ltd</td>
<td>008060.KS</td>
<td>Daeduck Co Ltd</td>
</tr>
<tr>
<td>180640.KS</td>
<td>Hanjin Kal</td>
<td>025540.KS</td>
<td>Korea Electric Terminal Co Ltd</td>
</tr>
<tr>
<td>192080.KS</td>
<td>DoubleU Games Co Ltd</td>
<td>079430.KS</td>
<td>Hyundai Livart Furniture Co Ltd</td>
</tr>
<tr>
<td>241590.KS</td>
<td>Hwaseung Enterprise Co Ltd</td>
<td>096760.KS</td>
<td>JW Holdings Corp</td>
</tr>
<tr>
<td>284740.KS</td>
<td>Cuckoo Homesys Co Ltd</td>
<td>298040.KS</td>
<td>Hyosung Heavy Industries Corp</td>
</tr>
</tbody>
</table><p>There are 11 days trading days to implementation day and there is significant volume to trade on quite a few of the inclusions and exclusions, so there will be a fair bit of volatility and opportunities to make money.</p>

The KRX announced the list of inclusions and exclusions to the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) today. The rebalance is effective as of 12 June and all passive buying/selling will be done at the closing auction on 11 June.There are 11 inclusions and 11 exclusions in the June 2020 review with an estimated one-way turnover of 0.87%.The inclusions and exclusions are tabulated here.



INCLUSIONS
EXCLUSIONS


003670.KS
Posco Chemical Co Ltd
001520.KS
Tongyang Inc


007700.KS
F&amp;F Co Ltd
002960.KS
Hankook Shell Oil Co Ltd


009410.KS
Taeyoung Engineering &amp; Construction Co Ltd
003620.KS
Ssangyong Motor Co Ltd


011200.KS
HMM Co Ltd
003920.KS
Namyang Dairy Products Co Ltd


016380.KS
KG DongbuSteel Co Ltd
005850.KS
SL Corp


020560.KS
Asiana Airlines Inc
006840.KS
AK Holdings Inc


032350.KS
Lotte Tour Development Co Ltd
008060.KS
Daeduck Co Ltd


180640.KS
Hanjin Kal
025540.KS
Korea Electric Terminal Co Ltd


192080.KS
DoubleU Games Co Ltd
079430.KS
Hyundai Livart Furniture Co Ltd


241590.KS
Hwaseung Enterprise Co Ltd
096760.KS
JW Holdings Corp


284740.KS
Cuckoo Homesys Co Ltd
298040.KS
Hyosung Heavy Industries Corp


There are 11 days trading days to implementation day and there is significant volume to trade on quite a few of the inclusions and exclusions, so there will be a fair bit of volatility and opportunities to make money.

South Korea

Lotte Tour Development Co., Ltd. provides various tour package service. The Company franchises travel agencies, offers home-based travel businesses, and provides leisure-travel information.  The Company also engages in property development and building management and operates duty-free shop business.

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

Lotte Tour Development Co, Ltd. (032350 KS)

K-Stop Movement: Round 2 on August 10th - What Are the Targets?

On 1 August, Korea Stock Investors Association mentioned that it will once again pool the resources of the retail investors to target a specific...

Douglas Kim

Top 50 Most Shorted Stocks in KOSPI & KOSDAQ (Short Sale Vol/Free Float Vol)

In this insight, we discuss the top 50 most shorted stocks in KOSPI and KOSDAQ, respectively in terms of Short Sale Volume/Free Float Volume,...

Douglas Kim

CB Balance X Delta (σ, 21 TD) Based Potential Shorting Inflow Among Korea Short 350

This post looks into the potential shorting inflow of the heavy CB issuers among the Korea Short 350 based on the CB balance X delta (σ, 21 TD).

Sanghyun Park

Korea Short Sell Ban: Elections, Public Outrage, Bus Tours, Blue House Petitions, K-Streetbets

With the short sell ban in Korea scheduled to expire 15 March, we look at stocks that have seen the most short covering since the start of the ban,...

Brian Freitas

KOSPI200 Index Review - A Few Surprises

The KRX announced the list of inclusions and exclusions to the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) today. The rebalance is...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)