Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Capital Markets

Renesas Electronics / Equity Capital Markets

<ul>
<li>Last November saw the clean-up trade of INCJ getting out of <a href="https://www.smartkarma.com/entities/renesas-electronics-corp" target="_blank" data-smartkarma-citation="entities:15933:1" rel="noopener">Renesas Electronics (6723 JP)</a>. That was 180+mm shares, well over-subscribed.  </li>
<li>Today we have news Hitachi and NEC are getting out of their stakes. That's 123mm shares in an Accelerated Block Offering of about US$2bn. I expect it will go well.</li>
<li>Recent gains in semiconductor stocks globally make this larger discount attractive. I expect a little heaviness but not much. There are index repercussions for international indices.</li>
</ul>


Last November saw the clean-up trade of INCJ getting out of Renesas Electronics (6723 JP). That was 180+mm shares, well over-subscribed.  
Today we have news Hitachi and NEC are getting out of their stakes. That's 123mm shares in an Accelerated Block Offering of about US$2bn. I expect it will go well.
Recent gains in semiconductor stocks globally make this larger discount attractive. I expect a little heaviness but not much. There are index repercussions for international indices.


Renesas (6723 JP) ANOTHER Clean-Up Block Trade as Hitachi/NEC Exit

Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>Overseas: SPX +0.7%, Nasdaq +1.1%; Microsoft +2% after OpenAi drama; Nvidia +2%</li>
<li>Today: NKY Futs 0% v cash. JPY 148.4/$; Nikkei Hits 33-Year High Amid Foreign Investment Surge</li>
<li>JapanX: Mitsubishi Electric and Nexperia partner for SiC power semiconductors; SiC tech fuels global green transformation.</li>
</ul>


Overseas: SPX +0.7%, Nasdaq +1.1%; Microsoft +2% after OpenAi drama; Nvidia +2%
Today: NKY Futs 0% v cash. JPY 148.4/$; Nikkei Hits 33-Year High Amid Foreign Investment Surge
JapanX: Mitsubishi Electric and Nexperia partner for SiC power semiconductors; SiC tech fuels global green transformation.


Ohayo Japan | Microsoft Hits All-Time High; Mitsubishi Elec Partners on SiC Chips

Event-Driven

Shinko Electric Industries / Event-Driven

<ul>
<li>Yesterday about 5 minutes before the close, <a href="https://www.smartkarma.com/entities/shinko-electric-industries" target="_blank" data-smartkarma-citation="entities:15066:1" rel="noopener">Shinko Electric Industries (6967 JP)</a> went into kehai, rising 8.6%, then falling back to end + 3% on the day. </li>
<li>This morning, the stock opened down 2%, rose 4%, fell 4%, then rose 4%. All in the first 45 minutes. Then it fell back 4% and ended down 2% today.</li>
<li>The proximate cause of all of this was a <a href="https://www.reuters.com/markets/deals/mitsubishi-corp-considering-bid-fujitsus-chip-unit-shinko-electric-sources-2023-10-17/" target="_blank" rel="noopener">Reuters article</a> out 5mins before the close yesterday suggesting <a href="https://www.smartkarma.com/entities/mitsubishi-corp" target="_blank" data-smartkarma-citation="entities:20668:1" rel="noopener">Mitsubishi Corp (8058 JP)</a> is considering bidding for Shinko Electric.</li>
</ul>


Yesterday about 5 minutes before the close, Shinko Electric Industries (6967 JP) went into kehai, rising 8.6%, then falling back to end + 3% on the day. 
This morning, the stock opened down 2%, rose 4%, fell 4%, then rose 4%. All in the first 45 minutes. Then it fell back 4% and ended down 2% today.
The proximate cause of all of this was a Reuters article out 5mins before the close yesterday suggesting Mitsubishi Corp (8058 JP) is considering bidding for Shinko Electric.


Shinko Electric (6967) Update - MitCorp In The Mix?

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>An ad hoc <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a> rebalance will be implemented at the close on 17 October with <a href="https://www.smartkarma.com/entities/light-wonder-inc-7e7d040f-e811-4fb9-9710-796a39af299e" target="_blank" data-smartkarma-citation="entities:40171:1" rel="noopener">Light &amp; Wonder (LNW AU)</a> replacing <a href="https://www.smartkarma.com/entities/united-malt-group-ltd" target="_blank" data-smartkarma-citation="entities:29116:1" rel="noopener">United Malt Group Ltd (UMG AU)</a>. </li>
<li>The rebalances of <a href="https://www.smartkarma.com/entities/wisdomtree-emerging-markets-146edc02-f8a5-4ac5-968b-5f0f7c89e476" target="_blank" data-smartkarma-citation="entities:32683:1" rel="noopener">Wisdomtree Emerging Markets (DEM US)</a>, <a href="https://www.smartkarma.com/entities/wisdomtree-em-small-cap" target="_blank" data-smartkarma-citation="entities:32679:1" rel="noopener">Wisdomtree Em Small Cap (DGS US)</a> and <a href="https://www.smartkarma.com/entities/wisdmtree-emerg-mkt-ex-st-ow" target="_blank" data-smartkarma-citation="entities:32798:1" rel="noopener">Wisdmtree Emerg Mkt Ex-St Ow (XSOE US)</a> will be implemented on 18 October.</li>
<li>There were net outflows from onshore China ETFs with inflows to larger cap ETFs and outflows mainly from the <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> and CSI 1000 Index trackers.</li>
</ul>


An ad hoc S&amp;P/ASX 200 (AS51 INDEX) rebalance will be implemented at the close on 17 October with Light &amp; Wonder (LNW AU) replacing United Malt Group Ltd (UMG AU). 
The rebalances of Wisdomtree Emerging Markets (DEM US), Wisdomtree Em Small Cap (DGS US) and Wisdmtree Emerg Mkt Ex-St Ow (XSOE US) will be implemented on 18 October.
There were net outflows from onshore China ETFs with inflows to larger cap ETFs and outflows mainly from the CSI Smallcap 500 Index and CSI 1000 Index trackers.


Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, TOPIX FFW, SSE50, AS51, ChiNext, Kenedix, Liontown

<ul>
<li>At the October rebalance, Free Float Weight (FFW) will be reduced on 284 stocks and increased on 458 stocks. 43 stocks will be removed from Phased Weight Reduction.</li>
<li>Estimated one-way turnover is 1.77% resulting in a one-way trade of ¥1.45tn. 364 stocks have over 4 days ADV to trade, 97 stocks have over 8 days ADV to trade.</li>
<li>Over the last 6 months, the stocks with inflows (&gt;US$25m) have outperformed the stocks with outflows (&gt;US$25m) with most of the outperformance coming in the last three months.</li>
</ul>


At the October rebalance, Free Float Weight (FFW) will be reduced on 284 stocks and increased on 458 stocks. 43 stocks will be removed from Phased Weight Reduction.
Estimated one-way turnover is 1.77% resulting in a one-way trade of ¥1.45tn. 364 stocks have over 4 days ADV to trade, 97 stocks have over 8 days ADV to trade.
Over the last 6 months, the stocks with inflows (&gt;US$25m) have outperformed the stocks with outflows (&gt;US$25m) with most of the outperformance coming in the last three months.


TOPIX October 2023 Rebalance: Round Trip Trade of US$20bn; Upweights Outperform Downweights

Japan

Mitsubishi Electric Corporation develops, manufactures, and markets electronic equipment.  The Company's products include industrial machinery, heavy electric machinery, data communications systems, electronic devices, and consumer electronics.

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Mitsubishi Electric (6503 JP)

Renesas (6723 JP) ANOTHER Clean-Up Block Trade as Hitachi/NEC Exit

Hitachi and NEC are selling their stakes in Renesas Electronics, with an expected value of $2bn, benefiting from the recent surge in semiconductor...

Travis Lundy

Ohayo Japan | Microsoft Hits All-Time High; Mitsubishi Elec Partners on SiC Chips

Global stock markets rise, led by Nasdaq and SPX; Microsoft and Nvidia gain after OpenAi controversy; Nikkei reaches a 33-year high due to...

Mark Chadwick

Shinko Electric (6967) Update - MitCorp In The Mix?

Shinko Electric Industries' stock experienced significant fluctuations after reports emerged that Mitsubishi Corp is considering a bid for the...

Travis Lundy

Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, TOPIX FFW, SSE50, AS51, ChiNext, Kenedix, Liontown

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

TOPIX October 2023 Rebalance: Round Trip Trade of US$20bn; Upweights Outperform Downweights

There are FFW changes for 700+ stocks and changes to the Phased Weight Reduction list. Round trip trade is around US$20bn and there is over 8 days...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Renesas (6723 JP) ANOTHER Clean-Up Block Trade as Hitachi/NEC Exit

​Hitachi and NEC are selling their stakes in Renesas Electronics, with an expected value of $2bn, benefiting from the recent surge in semiconductor...

Travis Lundy

Ohayo Japan | Microsoft Hits All-Time High; Mitsubishi Elec Partners on SiC Chips

​Global stock markets rise, led by Nasdaq and SPX; Microsoft and Nvidia gain after OpenAi controversy; Nikkei reaches a 33-year high due to...

Mark Chadwick

Shinko Electric (6967) Update - MitCorp In The Mix?

​Shinko Electric Industries' stock experienced significant fluctuations after reports emerged that Mitsubishi Corp is considering a bid for the...

Travis Lundy

Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, TOPIX FFW, SSE50, AS51, ChiNext, Kenedix, Liontown

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

TOPIX October 2023 Rebalance: Round Trip Trade of US$20bn; Upweights Outperform Downweights

There are FFW changes for 700+ stocks and changes to the Phased Weight Reduction list. Round trip trade is around US$20bn and there is over 8 days...

Brian Freitas

Hitachi and NEC are selling their stakes in Renesas Electronics, with an expected value of $2bn, benefiting from the recent surge in semiconductor...

Global stock markets rise, led by Nasdaq and SPX; Microsoft and Nvidia gain after OpenAi controversy; Nikkei reaches a 33-year high due to...

Shinko Electric Industries' stock experienced significant fluctuations after reports emerged that Mitsubishi Corp is considering a bid for the...