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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

Qi An Xin Technology Group  / Index Rebalance

The SSE Science and Technology Innovation Board 50 Index, also know as the <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">SSE STAR 50 (STAR50 INDEX)</a>, is made up of 50 stocks with the largest full market cap and good liquidity listed on the SSE Science and Technology Innovation Board (the STAR Market). The index is free float market cap weighted and the weight of each stock is capped at 10%. In addition, the total weight of the top 5 constituents should not exceed 40%.
ETFs benchmarked to the <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">SSE STAR 50 (STAR50 INDEX)</a> raised just over CNY 21bn at launch and assets have since swelled to CNY 28.2bn due to inflows. The large amount of assets benchmarked to stocks with low free float and trading volumes creates an ideal environment for index rebalance trades to work, as we have seen in the upcoming review which will be implemented at the close of trading on 11 December.
With a maximum of 5 changes permitted in a single review, that is what we will get in March. Potential inclusions are <a href="https://www.smartkarma.com/entities/cambricon-technologies-corp" target="_blank" data-smartkarma-citation="entities:31068:1" rel="noopener">Cambricon Technologies Corp (688256 CH)</a>, <a href="https://www.smartkarma.com/entities/qi-an-xin-technology-group-a" target="_blank" data-smartkarma-citation="entities:31069:1" rel="noopener">Qi An Xin Technology Group (688561 CH)</a>, <a href="https://www.smartkarma.com/entities/shanghai-junshi-bioscience-a" target="_blank" data-smartkarma-citation="entities:31070:1" rel="noopener">Shanghai Junshi Bioscience (688180 CH)</a>, <a href="https://www.smartkarma.com/entities/trina-solar-co-ltd" target="_blank" data-smartkarma-citation="entities:30404:1" rel="noopener">Trina Solar Co Ltd (688599 CH)</a> and <a href="https://www.smartkarma.com/entities/farasis-energy-gan-zhou-co-a" target="_blank" data-smartkarma-citation="entities:28385:1" rel="noopener">Farasis Energy Gan Zhou (688567 CH)</a>.
The potential deletions are <a href="https://www.smartkarma.com/entities/longyan-zhuoyue-new-energy-co" target="_blank" data-smartkarma-citation="entities:30364:1" rel="noopener">Longyan Zhuoyue New Energy Co (688196 CH)</a>, <a href="https://www.smartkarma.com/entities/suzhou-tztek-technology-co-a" target="_blank" data-smartkarma-citation="entities:28232:1" rel="noopener">Suzhou Tztek Technology Co-A (688003 CH)</a>, <a href="https://www.smartkarma.com/entities/beijing-seeyon-internet-so-a" target="_blank" data-smartkarma-citation="entities:30393:1" rel="noopener">Beijing Seeyon Internet So-A (688369 CH)</a>, <a href="https://www.smartkarma.com/entities/tianjin-jiuri-new-material-a" target="_blank" data-smartkarma-citation="entities:30366:1" rel="noopener">Tianjin Jiuri New Material-A (688199 CH)</a> and <a href="https://www.smartkarma.com/entities/fujian-forecam-optics-co-ltd" target="_blank" data-smartkarma-citation="entities:30306:1" rel="noopener">Fujian Forecam Optics Co Ltd (688010 CH)</a>.
One-way turnover is around 13% and there is big impact expected on the stocks, especially on the deletes, and a trade of buying the expected inclusions and selling the expected exclusions could perform well.

The SSE Science and Technology Innovation Board 50 Index, also know as the SSE STAR 50 (STAR50 INDEX), is made up of 50 stocks with the largest full market cap and good liquidity listed on the SSE Science and Technology Innovation Board (the STAR Market). The index is free float market cap weighted and the weight of each stock is capped at 10%. In addition, the total weight of the top 5 constituents should not exceed 40%.
ETFs benchmarked to the SSE STAR 50 (STAR50 INDEX) raised just over CNY 21bn at launch and assets have since swelled to CNY 28.2bn due to inflows. The large amount of assets benchmarked to stocks with low free float and trading volumes creates an ideal environment for index rebalance trades to work, as we have seen in the upcoming review which will be implemented at the close of trading on 11 December.
With a maximum of 5 changes permitted in a single review, that is what we will get in March. Potential inclusions are Cambricon Technologies Corp (688256 CH), Qi An Xin Technology Group (688561 CH), Shanghai Junshi Bioscience (688180 CH), Trina Solar Co Ltd (688599 CH) and Farasis Energy Gan Zhou (688567 CH).
The potential deletions are Longyan Zhuoyue New Energy Co (688196 CH), Suzhou Tztek Technology Co-A (688003 CH), Beijing Seeyon Internet So-A (688369 CH), Tianjin Jiuri New Material-A (688199 CH) and Fujian Forecam Optics Co Ltd (688010 CH).
One-way turnover is around 13% and there is big impact expected on the stocks, especially on the deletes, and a trade of buying the expected inclusions and selling the expected exclusions could perform well.

STAR Board: STAR50 Index Rebalance March21: Rising AUM and a New Index Make an Exciting Combination

China

Qi An Xin Technology Group Inc. develops and distributes cyber security products. The Company produces infrastructure security products, next generation information technology infrastructure protection products, big data intelligent security detection and control products, and others. Qi An Xin Technology Group also produces computer software and hardware products.

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STAR Board: STAR50 Index Rebalance March21: Rising AUM and a New Index Make an Exciting Combination

Increasing assets benchmarked to the STAR50 index and comparatively low trading volumes on the expected inclusions and exclusions provide an ideal...

Brian Freitas