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>There are 4 changes for the CSI Medical Service Index that will be implemented at the close on 8 December.</li>
<li>The constituent changes plus capping result in one-way turnover of 5.9% and in a one-way trade of CNY 1.86bn (US$261m).</li>
<li>Some stocks will have passive flows from global trackers at the end of November while there will be flows from other local passive trackers at the close on 8 December.</li>
</ul>


There are 4 changes for the CSI Medical Service Index that will be implemented at the close on 8 December.
The constituent changes plus capping result in one-way turnover of 5.9% and in a one-way trade of CNY 1.86bn (US$261m).
Some stocks will have passive flows from global trackers at the end of November while there will be flows from other local passive trackers at the close on 8 December.


CSI Medical Service Index Rebalance: Chunky Flows for Some Stocks

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>Although WuXi XDC has financing needs, we’re more inclined to view this spin-off listing as another capital operation of WuXi AppTec/WuXi Bio, who may not want to take risks alone.</li>
<li>Global ADC/broader bioconjugate market is at a nascent stage of development, with high R&amp;D risks/commercialization uncertainties. We cannot guarantee whether WuXi XDC will maintain its industry-leading position in the future.</li>
<li>Although high growth can bring good stories, we're not sure how much actual market space WuXi XDC will have in the future,which is the key to determining the valuation ceiling.</li>
</ul>


Although WuXi XDC has financing needs, we’re more inclined to view this spin-off listing as another capital operation of WuXi AppTec/WuXi Bio, who may not want to take risks alone.
Global ADC/broader bioconjugate market is at a nascent stage of development, with high R&amp;D risks/commercialization uncertainties. We cannot guarantee whether WuXi XDC will maintain its industry-leading position in the future.
Although high growth can bring good stories, we're not sure how much actual market space WuXi XDC will have in the future,which is the key to determining the valuation ceiling.


Pre-IPO WuXi XDC - The Beautiful Story and the Truth Behind

Shanghai Haoyuan Chemexpress C / Equity Capital Markets

Shanghai Haoyuan Chemexpress C (688131 CH)

<p>Recently, small market capitalization and undervalued CRO companies are favored by the market. For example, the most eye-catching rebound came from the <a href="https://www.smartkarma.com/entities/viva-biotech-holdings" target="_blank" data-smartkarma-citation="entities:27850:1" rel="noopener">Viva Biotech Holdings (1873 HK)</a> (up over 60% in May) and <a href="https://www.smartkarma.com/entities/hitgen-inc" target="_blank" data-smartkarma-citation="entities:30371:1" rel="noopener">HitGen Inc (688222 CH)</a> (up over 27% in May). In fact, the investment logic in CRO industry can be divided into two aspects: One is to invest in the leading companies with higher certainty, such as <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 HK)</a>, <a href="https://www.smartkarma.com/entities/hangzhou-tigermed-consulting-co-ltd-1008d609-73bd-4d76-8315-b29502a448ff" target="_blank" data-smartkarma-citation="entities:29212:1" rel="noopener">Hangzhou Tigermed Consulting (H) (3347 HK)</a>, <a href="https://www.smartkarma.com/entities/pharmaron-beijing-co-ltd" target="_blank" data-smartkarma-citation="entities:28428:1" rel="noopener">Pharmaron Beijing Co Ltd-H (3759 HK)</a> and so on; The other is to pursue flexibility and choose to invest some targets that have made certain achievements in subdivision fields, such as the <a href="https://www.smartkarma.com/entities/viva-biotech-holdings" target="_blank" data-smartkarma-citation="entities:27850:1" rel="noopener">Viva Biotech Holdings (1873 HK)</a> and <a href="https://www.smartkarma.com/entities/hitgen-inc" target="_blank" data-smartkarma-citation="entities:30371:1" rel="noopener">HitGen Inc (688222 CH)</a> mentioned above. Here comes a new CRO/CDMO company that worth the attention, <a href="https://www.smartkarma.com/entities/shanghai-haoyuan-chemexpress" target="_blank" data-smartkarma-citation="entities:33415:1" rel="noopener">Shanghai Haoyuan Chemexpress (688131 CH)</a>, which will list on the SSE STAR Market soon. The following insight mainly analyzes the industry characteristics, business, financial performance and potential risks of the Company.</p>

Recently, small market capitalization and undervalued CRO companies are favored by the market. For example, the most eye-catching rebound came from the Viva Biotech Holdings (1873 HK) (up over 60% in May) and HitGen Inc (688222 CH) (up over 27% in May). In fact, the investment logic in CRO industry can be divided into two aspects: One is to invest in the leading companies with higher certainty, such as WuXi AppTec Co. Ltd. (2359 HK), Hangzhou Tigermed Consulting (H) (3347 HK), Pharmaron Beijing Co Ltd-H (3759 HK) and so on; The other is to pursue flexibility and choose to invest some targets that have made certain achievements in subdivision fields, such as the Viva Biotech Holdings (1873 HK) and HitGen Inc (688222 CH) mentioned above. Here comes a new CRO/CDMO company that worth the attention, Shanghai Haoyuan Chemexpress (688131 CH), which will list on the SSE STAR Market soon. The following insight mainly analyzes the industry characteristics, business, financial performance and potential risks of the Company.

Pre-IPO Shanghai Haoyuan Chemexpress - A New CRO/CDMO with Continued High Growth Potential

China

Shanghai Haoyuan Chemexpress Co., Ltd. manufactures and distributes small molecule drugs. The Company produces molecular block and pharmaceutical tool compounds and provides contract research organization, chemical manufacturing and control, and contract development manufacture organization services. Shanghai Haoyuan Chemexpress serves clients across worldwide.

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Shanghai Haoyuan Chemexpress C (688131 CH)

CSI Medical Service Index Rebalance: Chunky Flows for Some Stocks

There are 4 changes for the CSI Medical Service Index in Dec. There are chunky flows on some stocks. There is overlap between global and local...

Brian Freitas

Pre-IPO WuXi XDC - The Beautiful Story and the Truth Behind

How far WuXi XDC can go in the future depends on the real market space of ADC and the company's performance. But as a capital operation, good story...

Xinyao (Criss) Wang

Pre-IPO Shanghai Haoyuan Chemexpress - A New CRO/CDMO with Continued High Growth Potential

As CRO/CDMO continues to be a hot sector for investors and have outstanding performance, the new pre-IPO company Haoyuan Chemexpress with high...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)