Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).</li>
<li>In this insight, we take a look at our flow expectations for the June 2025 index rebal event.</li>
<li>We have also presented our index change expectations for the next semiannual index review which will take place in September 2025 (regular ADDs/DELs only take place in March and September).</li>
</ul>


The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
In this insight, we take a look at our flow expectations for the June 2025 index rebal event.
We have also presented our index change expectations for the next semiannual index review which will take place in September 2025 (regular ADDs/DELs only take place in March and September).


Quiddity Leaderboard HSIII Jun25: US$317mn One-Way in June; Three Changes Likely in September

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Cross Asset Strategy

<ul>
<li>Paul Atkins, the new head of U.S. SEC could accelerate the delisting of Chinese stocks from the U.S. stock exchanges. </li>
<li>There are about 280 companies from mainland China that are listed in the U.S. with a combined market cap of about $880 billion.</li>
<li>There could be two major reasons to accelerate this delisting (require Chinese companies to abide by US GAAP accounting and fully delist Chinese companies with ties to Chinese military).</li>
</ul>


Paul Atkins, the new head of U.S. SEC could accelerate the delisting of Chinese stocks from the U.S. stock exchanges. 
There are about 280 companies from mainland China that are listed in the U.S. with a combined market cap of about $880 billion.
There could be two major reasons to accelerate this delisting (require Chinese companies to abide by US GAAP accounting and fully delist Chinese companies with ties to Chinese military).


Atkins to Accelerate the Delisting of Chinese Stocks From the US Stock Exchanges in 2025/2026?

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/profiles/janaghan-jeyakumar-cfa" target="_blank" data-smartkarma-citation="accounts:3173" rel="noopener">Janaghan Jeyakumar, CFA</a> put out June rebal predictions on <a href="https://www.smartkarma.com/insights/quiddity-leaderboard-hscei-jun25-large-price-swings-needed-to-trigger-index-changes" target="_blank" rel="noopener">HSCEI</a>, <a href="https://www.smartkarma.com/insights/quiddity-leaderboard-hstech-jun25-us-204mn-one-way-no-index-changes-likely" target="_blank" rel="noopener">HSTECH</a>, and <a href="https://www.smartkarma.com/insights/quiddity-leaderboard-hsiii-jun25-sep25-capping-flows-in-june-and-index-changes-in-september" target="_blank" rel="noopener">Hang Seng Internet &amp; Infotech</a> on 17-Mar-25 (and 7 mainland indices 19-21 March) and...</li>
<li>...the Quiddity team put out its regular predictions of all 7 major HS indices and 11 mainland indices, but on 21-March after the close, the Hang Seng team updated methodology.</li>
<li>They changed the way float is calculated for Secondary Listings in Hang Seng indices. It affects only a few names, but this adds US$2.7bn of buying to three names.</li>
</ul>



Janaghan Jeyakumar, CFA put out June rebal predictions on HSCEI, HSTECH, and Hang Seng Internet &amp; Infotech on 17-Mar-25 (and 7 mainland indices 19-21 March) and...
...the Quiddity team put out its regular predictions of all 7 major HS indices and 11 mainland indices, but on 21-March after the close, the Hang Seng team updated methodology.
They changed the way float is calculated for Secondary Listings in Hang Seng indices. It affects only a few names, but this adds US$2.7bn of buying to three names.


Changes to Hang Seng Methodology - Early Doors but $3bn a Side Across Major Indices

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>Our take is JD.com's expansion to O2O/Food Delivery is still measured and constrained. It mainly serves the premium members;</li>
<li>Meituan, PDD' and Beike posted results broadly both in-line/slightly exceed expectations. Meituan and Beike raised AI capex while PDD and JD.com didn't mention;</li>
<li>Game received first official recognition in government's 30 stimulative measures for consumption.  Our TOP PICK is NTES.</li>
</ul>


Our take is JD.com's expansion to O2O/Food Delivery is still measured and constrained. It mainly serves the premium members;
Meituan, PDD' and Beike posted results broadly both in-line/slightly exceed expectations. Meituan and Beike raised AI capex while PDD and JD.com didn't mention;
Game received first official recognition in government's 30 stimulative measures for consumption.  Our TOP PICK is NTES.


[Blue Lotus Non-US Internet Weekly, 12/52]: The Tug of War Between JD and Meituan Intensifies

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Bottom-Up

<ul>
<li>China announced game approval for the March batch. The number of games approved remained at a higher level than 2023.</li>
<li>The pace of China game approval appears to have accelerated to the same level as pre-tightening. We see pick up in approval rate this month.</li>
<li>Both Tencent and Netease received approval for one game. In addition, Kingsoft received approval for its legendary Sword Heroes series.</li>
</ul>


China announced game approval for the March batch. The number of games approved remained at a higher level than 2023.
The pace of China game approval appears to have accelerated to the same level as pre-tightening. We see pick up in approval rate this month.
Both Tencent and Netease received approval for one game. In addition, Kingsoft received approval for its legendary Sword Heroes series.


Tencent/Netease: One Game Approved Each in March

China

NetEase, Inc. operates as an leading internet technology company providing online services including content, community, communication, and commerce. The Company develops and operates online games, electronic commerce, internet media, innovative business, and other businesses. NetEase expands its businesses to Japan, North American, and other other international markets.

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NetEase (9999 HK)

Quiddity Leaderboard HSIII Jun25: US$317mn One-Way in June; Three Changes Likely in September

We expect US$317mn one-way flows in June 2025 and then there could be three ADDs and three DELs in September 2025. The September 2025 rankings can...

Janaghan Jeyakumar, CFA

Atkins to Accelerate the Delisting of Chinese Stocks From the US Stock Exchanges in 2025/2026?

Paul Atkins, the new head of US SEC could accelerate delisting of Chinese stocks from the US stock exchanges. Chinese companies listed in the US...

Douglas Kim

Changes to Hang Seng Methodology - Early Doors but $3bn a Side Across Major Indices

A few days ago, the Hang Seng Index Team announced a rule change for counting float of Secondary Listings. Small beans perhaps but the top three...

Travis Lundy

[Blue Lotus Non-US Internet Weekly, 12/52]: The Tug of War Between JD and Meituan Intensifies

JD.com's measured expansion into O2O/Food Delivery targets premium members. Government recognition of gaming in consumption stimulus measures...

Blue Lotus Research Institute

Tencent/Netease: One Game Approved Each in March

We analyzed the game approval issued by NPPA for Chinese online game players for the month of March. Game approvals for large players are slow so...

Ke Yan, CFA, FRM

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Quiddity Leaderboard HSIII Jun25: US$317mn One-Way in June; Three Changes Likely in September

We expect US$317mn one-way flows in June 2025 and then there could be three ADDs and three DELs in September 2025. The September 2025 rankings can...

Janaghan Jeyakumar, CFA

Atkins to Accelerate the Delisting of Chinese Stocks From the US Stock Exchanges in 2025/2026?

Paul Atkins, the new head of US SEC could accelerate delisting of Chinese stocks from the US stock exchanges. Chinese companies listed in the US...

Douglas Kim

Changes to Hang Seng Methodology - Early Doors but $3bn a Side Across Major Indices

A few days ago, the Hang Seng Index Team announced a rule change for counting float of Secondary Listings. Small beans perhaps but the top three...

Travis Lundy

[Blue Lotus Non-US Internet Weekly, 12/52]: The Tug of War Between JD and Meituan Intensifies

​JD.com's measured expansion into O2O/Food Delivery targets premium members. Government recognition of gaming in consumption stimulus measures...

Blue Lotus Research Institute

Tencent/Netease: One Game Approved Each in March

We analyzed the game approval issued by NPPA for Chinese online game players for the month of March. Game approvals for large players are slow so...

Ke Yan, CFA, FRM

JD.com's measured expansion into O2O/Food Delivery targets premium members. Government recognition of gaming in consumption stimulus measures...