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

<p>PI Advanced Materials, a company specializing in polyimide, which has the largest market share globally, received final approval from KRX for a transfer listing from KOSDAQ to KOSPI. Since April of this year, PI Advanced Materials has been pursuing a transfer listing to KOSPI.</p><div class="content-highlight"><p><strong>Therefore, PI Advanced Materials will be delisted on the KOSDAQ and newly listed on the KOSPI at the same time on August 9th.</strong></p></div><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/221/644/original/1.png?1627885803" class="editor-image img-responsive" data-smartkarma-image-id="221644"></figure><p></p></section><h2>KOSDAQ 150 exclusion</h2><p>PI Advanced Materials is currently a constituent of the KOSDAQ 150. Based on yesterday's closing price, the index weight is 0.61%. When the company is newly listed on the KOSPI on August 9th, it will be delisted from the KOSDAQ. So, it will be excluded from the KOSDAQ 150 on that day.</p><div class="content-highlight"><p><strong>This means that rebalancing trading should be done by index funds and ETFs that track the KOSDAQ 150 at the closing price of the previous trading day, August 6th.</strong></p></div><hr><p><em>In the case of KOSPI 200 inclusion, KRX considers transfer listings to be new listings. Therefore, the same rules as the fast entry rules applied to new listings apply, and if the conditions are not met, we have to wait until regular rebalancing.</em></p><p><em>The current market cap of PI Advanced Materials is far from conceivable for Fast Entry. So, we should aim for inclusion in the regular rebalancing this December, but the current situation is a bit tight to beat the buffer rule.</em></p>

PI Advanced Materials, a company specializing in polyimide, which has the largest market share globally, received final approval from KRX for a transfer listing from KOSDAQ to KOSPI. Since April of this year, PI Advanced Materials has been pursuing a transfer listing to KOSPI.Therefore, PI Advanced Materials will be delisted on the KOSDAQ and newly listed on the KOSPI at the same time on August 9th.KOSDAQ 150 exclusionPI Advanced Materials is currently a constituent of the KOSDAQ 150. Based on yesterday's closing price, the index weight is 0.61%. When the company is newly listed on the KOSPI on August 9th, it will be delisted from the KOSDAQ. So, it will be excluded from the KOSDAQ 150 on that day.This means that rebalancing trading should be done by index funds and ETFs that track the KOSDAQ 150 at the closing price of the previous trading day, August 6th.In the case of KOSPI 200 inclusion, KRX considers transfer listings to be new listings. Therefore, the same rules as the fast entry rules applied to new listings apply, and if the conditions are not met, we have to wait until regular rebalancing.The current market cap of PI Advanced Materials is far from conceivable for Fast Entry. So, we should aim for inclusion in the regular rebalancing this December, but the current situation is a bit tight to beat the buffer rule.

PI Advanced Materials KOSDAQ→KOSPI Relisting on August 9: Passive Flow Tracking

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<p>Post market close on 2 July, the KRX announced that <a href="https://www.smartkarma.com/entities/mcnex-co-ltd" target="_blank" data-smartkarma-citation="entities:18108:1" rel="noopener">Mcnex Co Ltd (097520 KS)</a> would be deleted from the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> following the move of the stock from the KOSDAQ market to the KOSPI market.</p><p>PSK (319660 KS) will be added to the index as a replacement to take the number of constituents back to 150.</p><p>The changes will be effective after the close of trading on Monday, 5 July.</p><p>The change will make <a href="https://www.smartkarma.com/entities/mcnex-co-ltd" target="_blank" data-smartkarma-citation="entities:18108:1" rel="noopener">Mcnex Co Ltd (097520 KS)</a> ineligible for short selling while PSK will become eligible for short selling.</p><p>Given its small market cap compared to its peers from the Information Technology sector, <a href="https://www.smartkarma.com/entities/mcnex-co-ltd" target="_blank" data-smartkarma-citation="entities:18108:1" rel="noopener">Mcnex Co Ltd (097520 KS)</a> will not get inclusion to the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a>.</p><p>Passive funds will need to sell nearly 4 days of ADV on <a href="https://www.smartkarma.com/entities/mcnex-co-ltd" target="_blank" data-smartkarma-citation="entities:18108:1" rel="noopener">Mcnex Co Ltd (097520 KS)</a> and buy over 2 days of ADV on PSK.</p>

Post market close on 2 July, the KRX announced that Mcnex Co Ltd (097520 KS) would be deleted from the KOSDAQ 150 Index (KOSDQ150 INDEX) following the move of the stock from the KOSDAQ market to the KOSPI market.PSK (319660 KS) will be added to the index as a replacement to take the number of constituents back to 150.The changes will be effective after the close of trading on Monday, 5 July.The change will make Mcnex Co Ltd (097520 KS) ineligible for short selling while PSK will become eligible for short selling.Given its small market cap compared to its peers from the Information Technology sector, Mcnex Co Ltd (097520 KS) will not get inclusion to the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX).Passive funds will need to sell nearly 4 days of ADV on Mcnex Co Ltd (097520 KS) and buy over 2 days of ADV on PSK.

KOSDAQ150 Index Rebalance: MCNEX Transfers to KOSPI; PSK (319660) Included

KMW and HLB are at the top in both short and loan interests among the KOSDAQ stocks (excluding SillaJen).KMW has a 4.83% short interest (as a % of SO), closely followed by HLB at 4.57%.Not much change in their short interest, but KMW had a substantial weekly increase in its loan interest, +18.42% and +2.18%p. Its loan interest now sits at a whopping 18.42% of the SO.













Top 20 short interest
Ticker
K150
Short
1W Δ
1W Δ %p
Loan
1W Δ
1W Δ %p


KMW Co Ltd
032500
126
4.83%
-0.10%
0.00%p
14.02%
18.42%
2.18%p


HLB Inc
028300
82
4.57%
1.26%
0.06%p
10.92%
4.51%
0.47%p


Apam Corp
073070
#N/A
2.41%
0.00%
0.00%p
4.09%
0.00%
0.00%p


Sangsangin Co Ltd
038540
50
2.08%
-4.34%
-0.09%p
4.11%
-0.76%
-0.03%p


Toptec Co Ltd
108230
137
2.07%
-1.95%
-0.04%p
4.05%
0.60%
0.02%p


NatureCell Co Ltd
007390
19
1.96%
4.13%
0.08%p
5.31%
-0.76%
-0.04%p


Kuk Il Paper MFG Co Ltd
078130
17
1.92%
3.92%
0.07%p
6.75%
1.77%
0.12%p


Komipharm International Co., Ltd.
041960
128
1.84%
-1.23%
-0.02%p
4.51%
1.30%
0.06%p


BH Co Ltd
090460
45
1.79%
0.30%
0.01%p
4.90%
0.96%
0.05%p


Power Logics
047310
#N/A
1.75%
-0.12%
0.00%p
2.85%
-7.12%
-0.22%p


Innovation For Creative Devices Co Ltd
040910
#N/A
1.73%
-0.92%
-0.02%p
2.83%
0.57%
0.02%p


Korea Alcohol Industrial
017890
#N/A
1.72%
3.37%
0.06%p
2.99%
0.00%
0.00%p


Cancer Rop Co Ltd
180400
#N/A
1.67%
0.00%
0.00%p
1.98%
-0.12%
0.00%p


Curocom Co., Ltd.
040350
#N/A
1.62%
3.46%
0.05%p
2.84%
0.00%
0.00%p


MS Autotech Co Ltd
123040
#N/A
1.50%
0.12%
0.00%p
2.73%
0.00%
0.00%p


Hyundai Bioscience Co Ltd
048410
148
1.49%
-0.67%
-0.01%p
4.50%
1.37%
0.06%p


ACT Co Ltd (Chungcheongbuk-do)
138360
#N/A
1.48%
0.00%
0.00%p
1.98%
0.00%
0.00%p


Orbitech Co Ltd
046120
#N/A
1.46%
-1.78%
-0.03%p
2.04%
0.39%
0.01%p


STCube Inc
052020
78
1.45%
0.82%
0.01%p
3.62%
1.94%
0.07%p


Chemtronics Co Ltd
089010
#N/A
1.45%
-1.14%
-0.02%p
3.23%
-0.21%
-0.01%p

Source: KRX &amp; KOFIA















Top 20 loan balance
Ticker
K150
Short
1W Δ
1W Δ %p
Loan
1W Δ
1W Δ %p


KMW Co Ltd
032500
126
4.83%
-0.10%
0.00%p
14.02%
18.42%
2.18%p


HLB Inc
028300
82
4.57%
1.26%
0.06%p
10.92%
4.51%
0.47%p


Easy Holdings Co Ltd
035810
113
0.46%
0.58%
0.00%p
8.08%
3.57%
0.28%p


Anterogen Co Ltd
065660
72
0.59%
1.17%
0.01%p
7.44%
-3.19%
-0.25%p


Medipost Co Ltd
078160
42
0.84%
-0.17%
0.00%p
7.36%
1.90%
0.14%p


Intops Co Ltd
049070
#N/A
0.07%
0.00%
0.00%p
7.33%
-28.64%
-2.94%p


Ecopro Co., Ltd.
086520
86
0.74%
-5.99%
-0.05%p
7.04%
1.68%
0.12%p


Kuk Il Paper MFG Co Ltd
078130
17
1.92%
3.92%
0.07%p
6.75%
1.77%
0.12%p


NHN KCP Corp
060250
9
0.09%
23.86%
0.02%p
6.72%
2.53%
0.17%p


Jusung Engineering Co., Ltd.
036930
118
0.42%
-9.99%
-0.05%p
6.52%
2.24%
0.14%p


PearlAbyss Corp
263750
142
0.43%
284.98%
0.32%p
6.52%
394.02%
5.20%p


Seegene Inc
096530
66
0.67%
-2.59%
-0.02%p
6.16%
23.97%
1.19%p


PARTRON Co Ltd
091700
141
1.41%
-26.86%
-0.52%p
6.11%
12.15%
0.66%p


Genic Co Ltd
123330
#N/A
0.33%
0.00%
0.00%p
6.07%
-0.13%
-0.01%p


TSE Co Ltd
131290
#N/A
0.07%
0.00%
0.00%p
5.88%
-11.63%
-0.77%p


MedyTox Inc
086900
41
0.60%
2.17%
0.01%p
5.86%
-0.01%
0.00%p


DAWONSYS CO., LTD
068240
26
0.76%
1.00%
0.01%p
5.86%
-6.62%
-0.41%p


JYP Entertainment Corp
035900
6
0.57%
96.86%
0.28%p
5.84%
-1.89%
-0.11%p


Cafe24 Corp
042000
123
1.21%
10.81%
0.12%p
5.59%
1.83%
0.10%p


L&amp;K Biomed Co Ltd
156100
#N/A
0.05%
53.16%
0.02%p
5.35%
-0.79%
-0.04%p

Source: KRX &amp; KOFIA

In the run-up to the May 3 short-selling resumption, we should probably focus on gainers in loan interest, which often serves as a leading indicator of short-selling.Last week, the biggest gainer was Pearl Abyss, with a 5.2%p increase to 6.52% of the SO. Kyhyoung and KMW follow distantly, with 3.24%p and 2.18%p, respectively.The market seems to be interested in shorting Pearl Abyss on the recent bounce, largely resulting from the stock split event.













Top 20 loan balance gainers
Ticker
K150
Short
1W Δ
1W Δ %p
Loan
1W Δ
1W Δ %p


PearlAbyss Corp
263750
142
0.43%
284.98%
0.32%p
6.52%
394.02%
5.20%p


Kohyoung Technology Inc
098460
15
1.10%
387.22%
0.87%p
4.04%
405.32%
3.24%p


KMW Co Ltd
032500
126
4.83%
-0.10%
0.00%p
14.02%
18.42%
2.18%p


Victek Co., Ltd.
065450
#N/A
0.19%
-73.11%
-0.53%p
2.64%
132.44%
1.51%p


Seegene Inc
096530
66
0.67%
-2.59%
-0.02%p
6.16%
23.97%
1.19%p


Ace Technologies Corp.
088800
81
0.82%
-0.75%
-0.01%p
3.67%
40.14%
1.05%p


HLB Life Science Co Ltd
067630
83
1.32%
-1.60%
-0.02%p
4.62%
23.87%
0.89%p


Bosung Power Technology Co., Ltd.
006910
#N/A
1.05%
-0.11%
0.00%p
2.43%
51.56%
0.83%p


Alteogen Inc
196170
74
0.26%
39.89%
0.07%p
3.20%
34.31%
0.82%p


Helixmith Co Ltd
084990
147
0.78%
-0.71%
-0.01%p
4.89%
15.94%
0.67%p


PARTRON Co Ltd
091700
141
1.41%
-26.86%
-0.52%p
6.11%
12.15%
0.66%p


Deutsch Motors Inc
067990
#N/A
0.89%
2.00%
0.02%p
2.81%
29.96%
0.65%p


Kakao Games Corp
293490
122
0.00%
-100.00%
-0.01%p
4.08%
18.68%
0.64%p


Youngsin Metal Industrial
007530
#N/A
0.00%
#DIV/0!
0.00%p
0.98%
171.75%
0.62%p


Eone Diagnomics Genome Center Co Ltd
245620
#N/A
0.32%
127.91%
0.18%p
1.46%
69.18%
0.60%p


Huons Global Co Ltd
084110
#N/A
0.08%
-10.97%
-0.01%p
1.23%
85.37%
0.57%p


FORMETAL CO., LTD.
119500
#N/A
0.00%
#DIV/0!
0.00%p
2.11%
36.06%
0.56%p


LET Co Ltd
297890
#N/A
0.00%
#DIV/0!
0.00%p
0.52%
#DIV/0!
0.52%p


HLB Inc
028300
82
4.57%
1.26%
0.06%p
10.92%
4.51%
0.47%p


Fantagio Corp
032800
#N/A
0.31%
400.00%
0.25%p
0.58%
307.70%
0.44%p

Source: KRX &amp; KOFIA



KOSDAQ Short/Loan Int: Pearl Abyss on Radar for Recent Bounce & Big Names KOSPI Moving

Quantitative Analysis

<p>Multiple news outlets in Korea have reported late last night that the Korea FSC would announce the first-phase measures of new restrictions for short selling as early as today. We are still in a sort of the first phase. So, the FSC wouldn't go as far as an across-the-board ban at this time. Then, what would it be? Reportedly, the FSC will tighten the one-day ban of overheated short-selling stocks. Currently, the KRX classifies and designates so-called overheated stocks with a sudden and abnormal increase of short-sale transactions and bans them from further short-selling on the following day. The FSC will likely extend the banning period. Moreover, it will probably tighten the designation criteria.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/122/132/original/1.png?1583784320" class="editor-image img-responsive" data-smartkarma-image-id="122132"></figure><p>Then, let's examine what names would emerge as a potential short-term short squeezing target from a quant angle.</p>

Multiple news outlets in Korea have reported late last night that the Korea FSC would announce the first-phase measures of new restrictions for short selling as early as today. We are still in a sort of the first phase. So, the FSC wouldn't go as far as an across-the-board ban at this time. Then, what would it be? Reportedly, the FSC will tighten the one-day ban of overheated short-selling stocks. Currently, the KRX classifies and designates so-called overheated stocks with a sudden and abnormal increase of short-sale transactions and bans them from further short-selling on the following day. The FSC will likely extend the banning period. Moreover, it will probably tighten the designation criteria.Then, let's examine what names would emerge as a potential short-term short squeezing target from a quant angle.

Short-Selling Rule Change in Korea: Potential Names for Short Squeezing

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

<div class="content-highlight">
<p><strong>In this insight, I analyze the top 200 Youtube channels in Korea and provide the top 7 investment ideas from this data. For the top 200 most popular Youtube channels, I used the ranking from <a href="https://socialblade.com/youtube/top/country/kr" target="_blank" rel="noopener">Socialblade website</a>. </strong></p>
<p>Youtube has become one of the most watched contents in Korea, taking away significant market share from other contents including terrestrial TV, cable TV, cinema movies, and other Internet contents. By better understanding what Koreans are watching on Youtube, investors are likely to better understand the fast changing dynamics of the Korean media and OTT industries. </p>
<p><em>To prepare for this insight, I have taken look at all 200 of these Youtube channels and their videos. It took many hours to go through them all (even glancing at some of these videos quickly) but I hope you enjoy the insight!</em></p>
</div>


In this insight, I analyze the top 200 Youtube channels in Korea and provide the top 7 investment ideas from this data. For the top 200 most popular Youtube channels, I used the ranking from Socialblade website. 
Youtube has become one of the most watched contents in Korea, taking away significant market share from other contents including terrestrial TV, cable TV, cinema movies, and other Internet contents. By better understanding what Koreans are watching on Youtube, investors are likely to better understand the fast changing dynamics of the Korean media and OTT industries. 
To prepare for this insight, I have taken look at all 200 of these Youtube channels and their videos. It took many hours to go through them all (even glancing at some of these videos quickly) but I hope you enjoy the insight!


Top 7 Investment Ideas from Top 200 Youtube Channels in Korea (Mukbang Included)

South Korea

Mcnex Co., Ltd. manufactures and develops camera module for mobile phones and automobiles.

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MCNEX Co Ltd (097520 KS)

PI Advanced Materials KOSDAQ→KOSPI Relisting on August 9: Passive Flow Tracking

PI Advanced Materials will be delisted on KOSDAQ and newly listed on KOSPI at the same time on August 9, meaning that rebalancing trading will be...

Sanghyun Park

KOSDAQ150 Index Rebalance: MCNEX Transfers to KOSPI; PSK (319660) Included

PSK (319660) will replace MCNEX (097520) in the KQ150 at the close on 5 July following MCNEX's transfer to the KOSPI market. Passive buying of 2+...

Brian Freitas

KOSDAQ Short/Loan Int: Pearl Abyss on Radar for Recent Bounce & Big Names KOSPI Moving

This post compiles weekly flow in short/loan interest for KOSDAQ stocks. It looks into Pearl Abyss for a substantial increase in loan interest and...

Sanghyun Park

Short-Selling Rule Change in Korea: Potential Names for Short Squeezing

Multiple news outlets in Korea have reported late last night that the Korea FSC would announce the first-phase measures of new restrictions for...

Sanghyun Park

Top 7 Investment Ideas from Top 200 Youtube Channels in Korea (Mukbang Included)

In this insight, I analyze the top 200 Youtube channels in Korea and provide the top 7 investment ideas from this data. For the top 200 most...

Douglas Kim

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)