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>
<a href="https://www.smartkarma.com/entities/netease-inc" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase (9999 HK)</a> becomes dual-primary listed on the <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing-ltd" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">Hong Kong Exchanges and Clearing (388 HK)</a> from the start of trading on 30 June.</li>
<li>There will be small buying from <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hang Seng Index (HSI INDEX)</a> and <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">Hang Seng China Enterprises Index (HSCEI INDEX)</a> trackers in June.</li>
<li>More importantly, <a href="https://www.smartkarma.com/entities/netease-inc" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase (9999 HK)</a> should be added to Southbound Stock Connect from the open of trading on 8 September and should bring a lot of mainland flows.</li>
</ul>



NetEase (9999 HK) becomes dual-primary listed on the Hong Kong Exchanges and Clearing (388 HK) from the start of trading on 30 June.
There will be small buying from Hang Seng Index (HSI INDEX) and Hang Seng China Enterprises Index (HSCEI INDEX) trackers in June.
More importantly, NetEase (9999 HK) should be added to Southbound Stock Connect from the open of trading on 8 September and should bring a lot of mainland flows.


Netease (9999 HK): Becomes Dual-Primary Listed Next Week; Implications

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

<ul>
<li>NetEase (9999 HK) announced on 26 Jun 2026 that its HK primary conversion will be effective on 30 Jun 2026. This note assesses the Connect eligibility path and inclusion timeline.</li>
<li>NetEase has no WVR, but Alibaba's recent regular-cycle ADD keeps September as the base case.</li>
<li>Prior Connect ADD cases show southbound inflows after ADD and positive returns post inclusion.</li>
</ul>


NetEase (9999 HK) announced on 26 Jun 2026 that its HK primary conversion will be effective on 30 Jun 2026. This note assesses the Connect eligibility path and inclusion timeline.
NetEase has no WVR, but Alibaba's recent regular-cycle ADD keeps September as the base case.
Prior Connect ADD cases show southbound inflows after ADD and positive returns post inclusion.


NetEase: Primary Conversion and Connect Inclusion Analysis

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>NetEase, Inc. reported a solid first quarter of 2026 with total net revenues of RMB 30.6 billion (approximately USD 4.4 billion), representing a 6% year-over-year increase.</li><li>The growth was primarily driven by the games and related value-added services segment, which generated RMB 25.7 billion in net revenues, a 7% rise year-over-year.</li><li>Online games revenues rose 7% year-over-year and 18% quarter-over-quarter, supported by strong performance from self-developed titles such as the Fantasy Westward Journey franchise and Where Winds Meet.</li></ul>

NetEase, Inc. reported a solid first quarter of 2026 with total net revenues of RMB 30.6 billion (approximately USD 4.4 billion), representing a 6% year-over-year increase.The growth was primarily driven by the games and related value-added services segment, which generated RMB 25.7 billion in net revenues, a 7% rise year-over-year.Online games revenues rose 7% year-over-year and 18% quarter-over-quarter, supported by strong performance from self-developed titles such as the Fantasy Westward Journey franchise and Where Winds Meet.

NetEase’s RMB 30.6 Billion Quarter: Is Gaming Momentum Reaccelerating?

<ul>
<li>China announced game approval for the May batch. The number of games approved remained at a higher level than in 2023 and 2024.</li>
<li>The pace of China game approval appears to have accelerated to the same level as pre-tightening.</li>
<li>Of the companies that we are monitoring, Netease and ByteDance got a total of 2 approvals.</li>
</ul>


China announced game approval for the May batch. The number of games approved remained at a higher level than in 2023 and 2024.
The pace of China game approval appears to have accelerated to the same level as pre-tightening.
Of the companies that we are monitoring, Netease and ByteDance got a total of 2 approvals.


Tencent/Netease: One Game for Netease in Consecutive Months

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Thematic (Sector/Industry)

<ul>
<li>China announced game approval for the August batch. The number of games approved remained at a higher level than in 2023 and 2024.</li>
<li>The pace of China game approval appears to have accelerated to the same level as pre-tightening.</li>
<li>None of the companies that we are monitoring got approval.</li>
</ul>


China announced game approval for the August batch. The number of games approved remained at a higher level than in 2023 and 2024.
The pace of China game approval appears to have accelerated to the same level as pre-tightening.
None of the companies that we are monitoring got approval.


Tencent/Netease: Zero Game Approval Despite New High in Approved Games

China

NetEase is a Chinese Internet technology company that provides online services across various sectors. Its core businesses include the development and operation of desktop and mobile games, alongside services in news aggregation, music streaming (NetEase Cloud Music), online education (Youdao), advertising, email, and e-commerce (Yanxuan). The company is headquartered in Hangzhou, China, and was founded in June 1997.

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NetEase (9999 HK)

Netease (9999 HK): Becomes Dual-Primary Listed Next Week; Implications

As expected, Netease will be added to Southbound Stock Connect from the open of trading on 30 June. The stock is up 10% over the last 2 trading...

Brian Freitas

NetEase: Primary Conversion and Connect Inclusion Analysis

NetEase (9999 HK) announced HK primary conversion effective 30 Jun 2026. Non-WVR precedent points to possible ad-hoc Connect ADD, but September is...

Ke Yan, CFA, FRM

NetEase’s RMB 30.6 Billion Quarter: Is Gaming Momentum Reaccelerating?

NetEase, Inc. reported a solid first quarter of 2026 with total net revenues of RMB 30.6 billion (approximately USD 4.4 billion), representing a...

Baptista Research

Tencent/Netease: One Game for Netease in Consecutive Months

NPPA released its May 2026 domestic game approval batch. NetEase and ByteDance each secured one game approved. NetEase received approval in two...

Ke Yan, CFA, FRM

Tencent/Netease: Zero Game Approval Despite New High in Approved Games

NPPA released its August 2026 domestic game approval batch. None of the companies we track received approval despite overall monthly approval...

Ke Yan, CFA, FRM

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