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

<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

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.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of May 29th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Alibaba, SMIC, Tencent, Petrochina, Yofc, China Resources Land, AIA.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of May 29th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Alibaba, SMIC, Tencent, Petrochina, Yofc, China Resources Land, AIA.


HK Connect Flows Weekly (May 29th): Alibaba, SMIC, Tencent, Petrochina, Yofc, China Resources Land

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

Shanghai Top Numerical Control Technology / Equity Capital Markets

Shanghai Top Numerical Control Technology (7688 HK)

Shanghai Top Numerical Control Technology

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-top-numerical-control-technology" target="_blank" data-smartkarma-citation="entities:45697:1" rel="noopener">Shanghai Top Numerical Control Technology (7688 HK)</a>'s IPO looks somewhat pricy, in our view, though the current IPO sentiment should bode well for it. </li>
<li>It is expected to stay in the red in FY26, with the adjusted net profit for FY27 and FY28 mostly generated from IPO interest income. </li>
<li>At 13.6x, its P/S is the highest among all peers. While revenue growth is decent, even parking it with the most expensive stock, there is still 15% downside.</li>
</ul>



Shanghai Top Numerical Control Technology (7688 HK)'s IPO looks somewhat pricy, in our view, though the current IPO sentiment should bode well for it. 
It is expected to stay in the red in FY26, with the adjusted net profit for FY27 and FY28 mostly generated from IPO interest income. 
At 13.6x, its P/S is the highest among all peers. While revenue growth is decent, even parking it with the most expensive stock, there is still 15% downside.


Shanghai Top Numerical Control (7688 HK) IPO: Not so Appealing

China

Precision Tsugami (China) manufactures and distributes high-precision computer numerical control (CNC) machine tools, including lathes, machining centers, and grinding machines, under the TSUGAMI brand. These products serve various industries such as automotive, IT electronics, industrial automation, and medical instruments. The company was founded in 2003 and is headquartered in Pinghu, China.

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Precision Tsugami (China) (1651 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

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 Connect Flows Weekly (May 29th): Alibaba, SMIC, Tencent, Petrochina, Yofc, China Resources Land

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Alibaba, SMIC, Tencent, Petrochina, Yofc, China Resources...

Ke Yan, CFA, FRM

Shanghai Top Numerical Control (7688 HK) IPO: Not so Appealing

Shanghai Top Numerical Control Technology's IPO may be pricey, with potential for downside despite decent revenue growth and IPO interest income...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

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 Connect Flows Weekly (May 29th): Alibaba, SMIC, Tencent, Petrochina, Yofc, China Resources Land

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Alibaba, SMIC, Tencent, Petrochina, Yofc, China Resources...

Ke Yan, CFA, FRM

Shanghai Top Numerical Control (7688 HK) IPO: Not so Appealing

​Shanghai Top Numerical Control Technology's IPO may be pricey, with potential for downside despite decent revenue growth and IPO interest income...

Osbert Tang, CFA

Shanghai Top Numerical Control Technology's IPO may be pricey, with potential for downside despite decent revenue growth and IPO interest income...