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

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.

Index Rebalance

<ul>
<li>We screen our HSCI September 2026 review candidates for southbound Connect action, with 36 Connect ADDs and 25 DELETEs.</li>
<li>ADD candidates split into 31 ADD-NEW and 5 ADD-REJOIN, with one WVR name deferred and seven A+H names already in Connect.</li>
<li>DELETE candidates are 23 MV cases and 2 velocity cases, after one A+H name is exempt from Connect deletion.</li>
</ul>


We screen our HSCI September 2026 review candidates for southbound Connect action, with 36 Connect ADDs and 25 DELETEs.
ADD candidates split into 31 ADD-NEW and 5 ADD-REJOIN, with one WVR name deferred and seven A+H names already in Connect.
DELETE candidates are 23 MV cases and 2 velocity cases, after one A+H name is exempt from Connect deletion.


HSCI / HK Connect Sep 2026 Inclusion Forecast and Positioning

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>The sharp surge in Omicron-driven local cases has driven more stringent measures by local governments. On ground in Shanghai, we see more tightened measures being implemented over the weekend. </li>
<li>The measures will reduce a lot of foot traffic and lower discretionary spending appetite in Mar, and this will negatively weigh on many 1Q22 results to be announced in late-Apr. </li>
<li>We advocate a long staples, short discretionary strategy in the near term. Also, travel sector will be hit, and on net-net basis, <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> looks to be a loser.</li>
</ul>


The sharp surge in Omicron-driven local cases has driven more stringent measures by local governments. On ground in Shanghai, we see more tightened measures being implemented over the weekend. 
The measures will reduce a lot of foot traffic and lower discretionary spending appetite in Mar, and this will negatively weigh on many 1Q22 results to be announced in late-Apr. 
We advocate a long staples, short discretionary strategy in the near term. Also, travel sector will be hit, and on net-net basis, Meituan (3690 HK) looks to be a loser.


China on the Ground: Escalating Measures to Combat Omicron and What Stocks Are Impacted?

<ul>
<li>We screen HK stocks ahead of the HSCI September 2026 half-yearly review, with 44 ADD candidates and 26 DELETE candidates.</li>
<li>ADD candidates are mostly new listings and prior constituents, including seven A+H names already in Connect.</li>
<li>DELETE candidates include 21 MV DELETEs, three retention-line borderline names, and two velocity cases.</li>
</ul>


We screen HK stocks ahead of the HSCI September 2026 half-yearly review, with 44 ADD candidates and 26 DELETE candidates.
ADD candidates are mostly new listings and prior constituents, including seven A+H names already in Connect.
DELETE candidates include 21 MV DELETEs, three retention-line borderline names, and two velocity cases.


HSCI / HK Connect Sep 2026 Rebalance Forecast

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

Victory Giant Technology (HuiZhou) / Index Rebalance

Victory Giant Technology (HuiZhou) (2476 HK)

<ul>
<li>There could be 55 potential inclusions and 14 potential deletions for the Hang Seng Composite Index in September. There are more stocks that are close on market cap/liquidity.</li>
<li>A lot of the potential adds are very recently listed stocks that have a limited trading history. The low free float could lead to price spikes in the stocks.</li>
<li>There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.</li>
</ul>


There could be 55 potential inclusions and 14 potential deletions for the Hang Seng Composite Index in September. There are more stocks that are close on market cap/liquidity.
A lot of the potential adds are very recently listed stocks that have a limited trading history. The low free float could lead to price spikes in the stocks.
There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.


HSCI Index Rebalance Preview and Stock Connect (Sep 2026): Adds Outnumber Deletes as IPOs Dominate

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<p>The recent lockdown in Hong Kong proves that unless everyone is vaccinated, the risk of a lockdown remains. Although it is over within 48 hours, the HK SAR government does not rule out the possibility of similar actions taking place in the future. </p>
<div class="content-highlight">
<p>For Long Only Investor - Going long <a href="https://www.smartkarma.com/entities/nissin-foods-co-ltd" target="_blank" data-smartkarma-citation="entities:26062:1" rel="noopener">Nissin Foods (1475 HK)</a> may not a superior return especially when Hong Kong is in the second outbreak but it will serve as a hedge when another lockdown is proposed.</p>
<p>For Long Short Investor - <a href="https://www.smartkarma.com/entities/cafe-de-coral-holdings-ltd" target="_blank" data-smartkarma-citation="entities:2568:1" rel="noopener">Cafe De Coral Holdings (341 HK)</a> is well known to be the go-to tea house for Hong Kong residents thus a lockdown in a few places will affect their business which means slower recovery and their home delivery service is not exactly performing well either. </p>
</div>

The recent lockdown in Hong Kong proves that unless everyone is vaccinated, the risk of a lockdown remains. Although it is over within 48 hours, the HK SAR government does not rule out the possibility of similar actions taking place in the future. 

For Long Only Investor - Going long Nissin Foods (1475 HK) may not a superior return especially when Hong Kong is in the second outbreak but it will serve as a hedge when another lockdown is proposed.
For Long Short Investor - Cafe De Coral Holdings (341 HK) is well known to be the go-to tea house for Hong Kong residents thus a lockdown in a few places will affect their business which means slower recovery and their home delivery service is not exactly performing well either. 


HK Lockdown Ideas: Long Nissin Food and Short Cafe De Coral

Hong Kong

Nissin Foods is a Japanese food company globally recognized for pioneering instant noodles, including its iconic Chicken Ramen and Cup Noodles brands. The company's product portfolio also extends to fresh and frozen noodles, cereals, and other ready-to-eat meals. It was founded in 1948 and is headquartered in Osaka, Japan.

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Nissin Foods (1475 HK)

HSCI / HK Connect Sep 2026 Inclusion Forecast and Positioning

We expect 36 southbound Connect ADDs, 31 new and 5 returning, and 25 DELETEs from the current Connect list at the HSCI September review, effective...

Ke Yan, CFA, FRM

China on the Ground: Escalating Measures to Combat Omicron and What Stocks Are Impacted?

Omicron combating measures have been stepped up over the weekend and this will make a dent on the Mar operations of many companies. This will be...

Osbert Tang, CFA

HSCI / HK Connect Sep 2026 Rebalance Forecast

We forecast 44 ADD candidates and 26 DELETE candidates for the HSCI September review, with the announcement expected on 21 Aug 2026.

Ke Yan, CFA, FRM

HSCI Index Rebalance Preview and Stock Connect (Sep 2026): Adds Outnumber Deletes as IPOs Dominate

There could be 80 changes for the HSCI in March. That could result in 70 changes to the Southbound Stock Connect list and also have implications...

Brian Freitas

HK Lockdown Ideas: Long Nissin Food and Short Cafe De Coral

The recent lockdown in HK proves that unless everyone is vaccinated, the risk remains. The HK SAR government does not rule out the possibility of...

Henry Soediarko

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