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>The KRX gives three heads-up types: WARNING (illegal trading), ADMINISTRATIVE (insolvency), &amp; ATTENTION (inappropriate accounting). Those losing eligibility are ADMINISTRATIVE (KOSPI 200) and ADMINISTRATIVE + ATTENTION (KOSDAQ 150).</li>
<li>
Those designated as WARNING keep the eligibility for KOSPI 200/KOSDAQ 150 unless delisting is decided. We can find these heads-up designations on the KRX website, which is available in English.</li>
<li>
 Osstem is currently an ATTENTION issue, so ineligible at this point. Knotus was designated as a WARNING issue in June and underwent a trade suspension. Nevertheless, it maintains eligibility.</li>
</ul>


The KRX gives three heads-up types: WARNING (illegal trading), ADMINISTRATIVE (insolvency), &amp; ATTENTION (inappropriate accounting). Those losing eligibility are ADMINISTRATIVE (KOSPI 200) and ADMINISTRATIVE + ATTENTION (KOSDAQ 150).

Those designated as WARNING keep the eligibility for KOSPI 200/KOSDAQ 150 unless delisting is decided. We can find these heads-up designations on the KRX website, which is available in English.

 Osstem is currently an ATTENTION issue, so ineligible at this point. Knotus was designated as a WARNING issue in June and underwent a trade suspension. Nevertheless, it maintains eligibility.


Clarifying KRX's Confusing Heads-Up Designation System for KOSPI 200/KOSDAQ 150 Review

<ul>
<li>From August 26 to September 2, the net buying of investors classified as "Other Corporation" was substantial at 500K shares or 3.5% of SO, which amounted to about ₩60B.</li>
<li>It seems almost sure that the KCGI has made a move. As a result, the possibility that the Hanjin Kal event will be repeated is also relatively high.</li>
<li>The first inflection point would be when the KCGI passes the 5% stake and makes a regulatory filing. We will see a pretty intense momentum trading on proxy battle expectations.</li>
</ul>


From August 26 to September 2, the net buying of investors classified as "Other Corporation" was substantial at 500K shares or 3.5% of SO, which amounted to about ₩60B.
It seems almost sure that the KCGI has made a move. As a result, the possibility that the Hanjin Kal event will be repeated is also relatively high.
The first inflection point would be when the KCGI passes the 5% stake and makes a regulatory filing. We will see a pretty intense momentum trading on proxy battle expectations.


Explaining the Unusual Flow Situation of Osstem Implant

<ul>
<li>KOSDAQ 150 will replace Osstem with Caregen at the close on March 16.</li>
<li>Even if we conservatively assume KOSPI 150's direct rebalancing trading funds at ₩1.5T, Caregen will likely face a passive inflow of 4.76x ADTV.</li>
<li>So, it seems appropriate to approach this event as a short-term momentum trading with a small volume on Caregen right before the inclusion effective date.</li>
</ul>


KOSDAQ 150 will replace Osstem with Caregen at the close on March 16.
Even if we conservatively assume KOSPI 150's direct rebalancing trading funds at ₩1.5T, Caregen will likely face a passive inflow of 4.76x ADTV.
So, it seems appropriate to approach this event as a short-term momentum trading with a small volume on Caregen right before the inclusion effective date.


KOSDAQ 150 Special Change: Momentum Trading on Caregen Right Before Inclusion

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>On 18 February, the KRX announced that the deletion of Osstem Implant (048260 KS) and the inclusion of Caregen Co Ltd (214370 KS) in KOSDAQ150.</li>
<li>The South Korean Presidential election will be held on 9 March and the KRX is not likely to make sensitive decisions such as the delisting of Osstem Implant in March.</li>
<li>We continue to like the pair trade (long KOSPI200 and short KOSDAQ150) which has worked out well in the past month and we expect continued gains on this trade.</li>
</ul>


On 18 February, the KRX announced that the deletion of Osstem Implant (048260 KS) and the inclusion of Caregen Co Ltd (214370 KS) in KOSDAQ150.
The South Korean Presidential election will be held on 9 March and the KRX is not likely to make sensitive decisions such as the delisting of Osstem Implant in March.
We continue to like the pair trade (long KOSPI200 and short KOSDAQ150) which has worked out well in the past month and we expect continued gains on this trade.


KOSDAQ150: Details of Osstem Implant Exclusion & Caregen Inclusion and Case Study of SillaJen

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<ul>
<li>Hang Seng announced the results of the March rebalance post market close Friday. Two adds for the HSI, one set of changes for HSCEI, three sets for HSTECH.</li>
<li>An ad hoc rebalance was announced for the KOSDAQ150 following Osstem being designated an 'Administrative Issue'. In IPO world, we have LIC in India and SBI Sumishin NetBank coming up.</li>
<li>Friday was the review cutoff date for the March rebalance of the ASX200 Index. The ATO has provided Aventus with the tax ruling and that creates a timing issue.</li>
</ul>


Hang Seng announced the results of the March rebalance post market close Friday. Two adds for the HSI, one set of changes for HSCEI, three sets for HSTECH.
An ad hoc rebalance was announced for the KOSDAQ150 following Osstem being designated an 'Administrative Issue'. In IPO world, we have LIC in India and SBI Sumishin NetBank coming up.
Friday was the review cutoff date for the March rebalance of the ASX200 Index. The ATO has provided Aventus with the tax ruling and that creates a timing issue.


Index Rebalance & ETF Flow Recap: HSI, HSCEI, HSTECH, HSCI, S&P/ASX, SET50, LIC, SBI Sumishin, Crown

South Korea

Osstem Implant Co., Ltd. manufactures dental implant system. The Company also markets dental management software. Osstem Implant provides products for dental surgery and exports abroad.

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Osstem Implant (048260 KS)

Clarifying KRX's Confusing Heads-Up Designation System for KOSPI 200/KOSDAQ 150 Review

Different heads-ups confuse the KOSPI 200/KOSDAQ 150 rebalancing implementation rules. So, this post aims to clarify their differences and how they...

Sanghyun Park

Explaining the Unusual Flow Situation of Osstem Implant

This post investigates the unusual flow situation of Osstem Implant from late last month. Apparently, the KCGI Fund, the most prominent local...

Sanghyun Park

KOSDAQ 150 Special Change: Momentum Trading on Caregen Right Before Inclusion

KOSDAQ 150 will implement the special change (Osstem Out and Caregen In) at the close on March 16, providing short-term momentum trading on Caregen...

Sanghyun Park

KOSDAQ150: Details of Osstem Implant Exclusion & Caregen Inclusion and Case Study of SillaJen

The South Korean Presidential election will be held on 9 March and the KRX is not likely to make sensitive decisions such as the delisting of...

Douglas Kim

Index Rebalance & ETF Flow Recap: HSI, HSCEI, HSTECH, HSCI, S&P/ASX, SET50, LIC, SBI Sumishin, Crown

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

Brian Freitas

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