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>In line with forecasts, there will be 3 changes for the Hang Seng Internet &amp; Information Technology Index (HSIII Index) at the March rebalance.</li>
<li>Estimated one-way turnover at the rebalance is 5.1% resulting in a round-trip trade of HK$4.4bn (US$567m). Final capping will be done after the close on 3 March.</li>
<li>
<a href="https://www.smartkarma.com/entities/deepexi-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:45104:1" rel="noopener">Deepexi Technology</a> is an inclusion to the HSCI at the close on 6 March, and the stock will be added to Southbound Stock Connect from the open on 9 March.</li>
</ul>


In line with forecasts, there will be 3 changes for the Hang Seng Internet &amp; Information Technology Index (HSIII Index) at the March rebalance.
Estimated one-way turnover at the rebalance is 5.1% resulting in a round-trip trade of HK$4.4bn (US$567m). Final capping will be done after the close on 3 March.

Deepexi Technology is an inclusion to the HSCI at the close on 6 March, and the stock will be added to Southbound Stock Connect from the open on 9 March.


Hang Seng Internet & IT Index (HSIII) Rebalance: Also, PonyAI in a Global Index, Deepexi in Connect

<ul>
<li>There could be 3 constituent changes for the HSIII Index in March along with capping changes for the largest index members.</li>
<li>Estimated one-way turnover is 3.3% resulting in a round-trip trade of HK$2.77bn. There are a few stocks with over 1x ADV to trade.</li>
<li>
<a href="https://www.smartkarma.com/entities/pony-ai-inc-f40ea771-20a4-48e1-9405-0a35b4c4aadb" target="_blank" data-smartkarma-citation="entities:46237:1" rel="noopener">Pony AI (2026 HK)</a> has been trading higher over the last several weeks on expectations of large passive buying over the next couple of months.</li>
</ul>


There could be 3 constituent changes for the HSIII Index in March along with capping changes for the largest index members.
Estimated one-way turnover is 3.3% resulting in a round-trip trade of HK$2.77bn. There are a few stocks with over 1x ADV to trade.

Pony AI (2026 HK) has been trading higher over the last several weeks on expectations of large passive buying over the next couple of months.


Hang Seng Internet & IT Index (HSIII) Rebalance Preview: 3 Changes as Pony AI Jumps

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>Hong Kong market continues to languish, trading flat for the year.  The telecom sector has shown some strength following the rollout of new token packages in May.</li>
<li>Materials and energy sectors have gone from top performers to lagging sectors since the ceasefire was announced in early April.  </li>
<li>
<a href="https://www.smartkarma.com/entities/pony-ai-inc-class-a" target="_blank" data-smartkarma-citation="entities:46237:1" rel="noopener">Pony.ai (2026 HK)</a> shares jumped after the company announced it's increasing its robotaxi fleet target for this year, following stronger-than-expected 1Q26 revenue driven by growth in robotaxi and intelligent solutions.
</li>
</ul>


Hong Kong market continues to languish, trading flat for the year.  The telecom sector has shown some strength following the rollout of new token packages in May.
Materials and energy sectors have gone from top performers to lagging sectors since the ceasefire was announced in early April.  

Pony.ai (2026 HK) shares jumped after the company announced it's increasing its robotaxi fleet target for this year, following stronger-than-expected 1Q26 revenue driven by growth in robotaxi and intelligent solutions.



The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (May 2026)

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.

Equity Capital Markets

Ligent Technologies / Equity Capital Markets

<ul>
<li>Ligent, a China-based manufacturer of optical transceivers and optical network terminals, raised HKD 5,445m (USD 694m) from its global offering and will list on HKEX on Tuesday, September 22, 2026.</li>
<li>In our previous note, we looked at the deal terms and the company's valuation.</li>
<li>In this note, we provide an update for the IPO before its trading debut.</li>
</ul>


Ligent, a China-based manufacturer of optical transceivers and optical network terminals, raised HKD 5,445m (USD 694m) from its global offering and will list on HKEX on Tuesday, September 22, 2026.
In our previous note, we looked at the deal terms and the company's valuation.
In this note, we provide an update for the IPO before its trading debut.


Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

<ul>
<li>The current HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.</li>
<li>A new methodology has been proposed and if implemented, index composition could change drastically in the next index rebal event.</li>
<li>There could be at least 20 changes to the index as the new methodology aims to increase index member count from 30 to 50 in December 2026.</li>
</ul>


The current HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
A new methodology has been proposed and if implemented, index composition could change drastically in the next index rebal event.
There could be at least 20 changes to the index as the new methodology aims to increase index member count from 30 to 50 in December 2026.


Quiddity Leaderboard HSTECH Dec26: OLD Vs NEW Methodology; Mega Flows Possible

China

Pony.ai is a global leader in autonomous driving technology, developing full-stack AI-driven self-driving solutions. The company provides robotaxi and robotruck services, alongside licensing and applications for personally-owned vehicles. Founded in 2016, Pony.ai maintains headquarters in Fremont, California, and Guangzhou, China.

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Pony.ai (2026 HK)

Hang Seng Internet & IT Index (HSIII) Rebalance: Also, PonyAI in a Global Index, Deepexi in Connect

There are 3 changes for the HSIII in March. PonyAI is also an add to a global index while Deepexi is an HSCI (and Stock Connect) add. No near-term...

Brian Freitas

Hang Seng Internet & IT Index (HSIII) Rebalance Preview: 3 Changes as Pony AI Jumps

There could be 3 constituent changes in March along with capping changes. Estimated one-way turnover is 3.3% resulting in a round-trip trade of...

Brian Freitas

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (May 2026)

Pony.ai shares jumped after the company announced it's increasing its robotaxi fleet target for 2026, after stronger-than-expected 1Q26 revenue...

David Mudd

Ligent (纳真科技) IPO Trading

Ligent raised USD 694m to list on HKEX on Tuesday, September 22. We are cautious on debut performance given the lukewarm subscription and the weak...

Ke Yan, CFA, FRM

Quiddity Leaderboard HSTECH Dec26: OLD Vs NEW Methodology; Mega Flows Possible

There could be several high-impact additions in December 2026 if the newly proposed methodology is implemented. The one-way flow could be around...

Janaghan Jeyakumar, CFA

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