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

<ul>
<li>KRX calculates floats fairly aggressively even in new IPOs. This was symbolically shown in the case of Kakao Pay, which received a 35% float rate.</li>
<li>So, we need a trading setup that raises the float rate prediction range in future KOSPI 200 Fast Entry cases.</li>
<li>Considering that rebalancing trading that occurs on the implementation day is now partially digested in regular trading hours, we need to consider getting out positions before the closing auction hours.</li>
</ul>


KRX calculates floats fairly aggressively even in new IPOs. This was symbolically shown in the case of Kakao Pay, which received a 35% float rate.
So, we need a trading setup that raises the float rate prediction range in future KOSPI 200 Fast Entry cases.
Considering that rebalancing trading that occurs on the implementation day is now partially digested in regular trading hours, we need to consider getting out positions before the closing auction hours.


KOSPI 200 New Entrants: KRX-Concluded Float Rates & Rebalancing Trading Pattern Today

<ul>
<li>The effective date for rebalancing KOSPI 200 and KOSDAQ 150 is this Friday. This is the first trading day that short selling is permitted on new stocks in these indexes.</li>
<li>From the 25th to today, immediately after the inclusion of these indexes was announced, the loan share balance of almost all stocks increased significantly.</li>
<li>Those stocks with substantial outperformance in price and relatively abundant liquidity have a high level of loan balance.</li>
</ul>


The effective date for rebalancing KOSPI 200 and KOSDAQ 150 is this Friday. This is the first trading day that short selling is permitted on new stocks in these indexes.
From the 25th to today, immediately after the inclusion of these indexes was announced, the loan share balance of almost all stocks increased significantly.
Those stocks with substantial outperformance in price and relatively abundant liquidity have a high level of loan balance.


Short Position Approach on the Index Entrants on December 10 in Korea

HD Hyundai Heavy Industries  / Event-Driven

<ul>
<li>The stocks we need to pay attention to are Hyundai Heavy Industries and Myoung Shin Industries.</li>
<li>HHI's 4.54% lockup release should cause short-term volatility in the price. We need to consider a setup that builds up a short position right after the KOSPI 200 effective date.</li>
<li>Myoung Shin Industrial's KOSPI 200 passive flow effect will be less than initially expected. Then, we need to look at the timing of entering the short position after December 10th.</li>
</ul>


The stocks we need to pay attention to are Hyundai Heavy Industries and Myoung Shin Industries.
HHI's 4.54% lockup release should cause short-term volatility in the price. We need to consider a setup that builds up a short position right after the KOSPI 200 effective date.
Myoung Shin Industrial's KOSPI 200 passive flow effect will be less than initially expected. Then, we need to look at the timing of entering the short position after December 10th.


KOSPI Major Lockup Releases: Hyundai Heavy Industries & Myoung Shin Industrial

Myoung Shin Industrial Co.,Ltd / Event-Driven

Myoung Shin Industrial Co.,Ltd (009900 KS)

<ul>
<li>This post measures how far the rebalancing trading of passive funds is progressing at this point. This can be essential data for setting up positions close to the effective date.</li>
<li>For this purpose, each stock's net purchase data of Pension and Insurance were collected from November 25 to today (30th).</li>
<li>As we move closer to the effective date, we need to consider selecting those with the relatively slow progress of rebalancing trading among the regular rebalancing stocks.</li>
</ul>


This post measures how far the rebalancing trading of passive funds is progressing at this point. This can be essential data for setting up positions close to the effective date.
For this purpose, each stock's net purchase data of Pension and Insurance were collected from November 25 to today (30th).
As we move closer to the effective date, we need to consider selecting those with the relatively slow progress of rebalancing trading among the regular rebalancing stocks.


KOSPI 200 Rebalancing Trading Progress Checkup

<ul>
<li>KOSPI 200 rebalancing results are out - 7 Additions: 4 (regular) + 2 (Fast Entry) + 1 (split) &amp; 7 Deletions: 6 (regular) + 1 (Fast Entry) 
</li>
<li>The passive impact of all additions is pretty significant. In particular, Meritiz, SL, and Kakao Pay are relatively larger.</li>
<li>For the deletes, it is worth considering approaching these stocks as an equal-weighted basket. Since their share prices have not been significantly corrected recently.</li>
</ul>


KOSPI 200 rebalancing results are out - 7 Additions: 4 (regular) + 2 (Fast Entry) + 1 (split) &amp; 7 Deletions: 6 (regular) + 1 (Fast Entry) 

The passive impact of all additions is pretty significant. In particular, Meritiz, SL, and Kakao Pay are relatively larger.
For the deletes, it is worth considering approaching these stocks as an equal-weighted basket. Since their share prices have not been significantly corrected recently.


7 Adds & 7 Deletes in KOSPI 200 Rebalancing: Passive Impact & Trade Setups

South Korea

Myoung Shin Industrial Co.,Ltd produces and sells auto parts. The Company provides hot stamping parts designing, manufacturing, sales and other services. Myoung Shin Industrial markets its products throughout Korea

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Myoung Shin Industrial Co.,Ltd (009900 KS)

KOSPI 200 New Entrants: KRX-Concluded Float Rates & Rebalancing Trading Pattern Today

Kakao Pay eventually received a 35% float rate, meaning that KRX has included all of Alipay's non-locked stake in the float.

Sanghyun Park

Short Position Approach on the Index Entrants on December 10 in Korea

The effective date for rebalancing KOSPI 200 and KOSDAQ 150 is this Friday, meaning that this is the first trading day that short selling is...

Sanghyun Park

KOSPI Major Lockup Releases: Hyundai Heavy Industries & Myoung Shin Industrial

This post looks at the significant lockup releases on KOSPI for this month: Hyundai Heavy Industries and Myoung Shin Industrial.

Sanghyun Park

KOSPI 200 Rebalancing Trading Progress Checkup

This post measures how far the rebalancing trading of local passive funds is progressing at this point. This can be important data when we set up...

Sanghyun Park

7 Adds & 7 Deletes in KOSPI 200 Rebalancing: Passive Impact & Trade Setups

The KRX officially unveiled the results of the December rebalancing for KOSPI 200: 7 adds & 7 deletes. This post has the complete list as well as...

Sanghyun Park

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