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 the HS TECH eligible universe ahead of the September 2026 quarterly review.</li>
<li>One stock ranks inside the ADD Zone this cycle, paired with one Buffer Zone DELETE.</li>
<li>Both calls are mid-conviction, as the DELETE candidate is inside the Buffer Zone and close to the DELETE Zone.</li>
</ul>


We screen the HS TECH eligible universe ahead of the September 2026 quarterly review.
One stock ranks inside the ADD Zone this cycle, paired with one Buffer Zone DELETE.
Both calls are mid-conviction, as the DELETE candidate is inside the Buffer Zone and close to the DELETE Zone.


HS TECH Sep 2026 Index 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

<ul>
<li>The review period for the September rebalance of the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng TECH Index</a> ended on 30 June, the changes will be announced on 21 August and implemented on 4 September.</li>
<li>1 constituent change, float changes and capping changes will result in a one-way turnover of 3.9% resulting in a round-trip trade of HK$22.2bn (US$2.8bn).</li>
<li>Short interest has increased in the forecast add and forecast delete and there could be short covering ahead of the implementation of the changes.</li>
</ul>


The review period for the September rebalance of the Hang Seng TECH Index ended on 30 June, the changes will be announced on 21 August and implemented on 4 September.
1 constituent change, float changes and capping changes will result in a one-way turnover of 3.9% resulting in a round-trip trade of HK$22.2bn (US$2.8bn).
Short interest has increased in the forecast add and forecast delete and there could be short covering ahead of the implementation of the changes.


HSTECH Index Rebalance Preview: 🛫 780: Final Departure | 🛬 9903: Welcome Aboard; US$2.8bn Trade

Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

<ul>
 <li>
<a href="https://smartkarma.com/entities/shanghai-iluvatar-corex-semiconductor-co-ltd-class-h">Iluvatar CoreX</a> is a premier domestic designer of high-performance GPGPUs, strategically positioned to capitalize on China's surging demand for AI computing power and its push for technological self-sufficiency.</li>
 <li>The company is in a hyper-growth phase, evidenced by an 87% revenue CAGR from 2023-2025 and a landmark order from a major client, ByteDance. However, it remains deeply unprofitable with significant cash burn, reflecting high R&amp;D and operational investments.</li>
 <li>Future success hinges on the successful commercialization of its new product pipeline, including the TG300 GPU, while navigating intense competition from global incumbents, potential supply chain disruptions, and a complex geopolitical landscape.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Iluvatar CoreX is a premier domestic designer of high-performance GPGPUs, strategically positioned to capitalize on China's surging demand for AI computing power and its push for technological self-sufficiency.
  The company is in a hyper-growth phase, evidenced by an 87% revenue CAGR from 2023-2025 and a landmark order from a major client, ByteDance. However, it remains deeply unprofitable with significant cash burn, reflecting high R&amp;D and operational investments.
  Future success hinges on the successful commercialization of its new product pipeline, including the TG300 GPU, while navigating intense competition from global incumbents, potential supply chain disruptions, and a complex geopolitical landscape.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Iluvatar CoreX (9903 HK) - Aug 2026

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>We raise our TP for Iluvatar CoreX to HK$878 based on 25.8x 2027E P/S.</li><li>We favor the Company among China’s emerging AI accelerator vendors for its demonstrated ability to scale shipments, secure sizeable orders and build a broad customer base.</li><li>We believe the recent ByteDance order (according to Reuters) provides greater visibility into its near-term revenue trajectory, while the newly launched TG300 GPU adds a new growth driver for 2027E and beyond. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We raise our TP for Iluvatar CoreX to HK$878 based on 25.8x 2027E P/S.We favor the Company among China’s emerging AI accelerator vendors for its demonstrated ability to scale shipments, secure sizeable orders and build a broad customer base.We believe the recent ByteDance order (according to Reuters) provides greater visibility into its near-term revenue trajectory, while the newly launched TG300 GPU adds a new growth driver for 2027E and beyond. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Iluvatar CoreX (9903 HK) - Strong Order Momentum and New Product to Extend Growth Runway

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.

<ul>
<li>Following HSCI's May 2026 review, six names became HK Connect eligible in the June 2026 implementation, with no deletions. All post-implementation windows through weeks 2 to 4 are complete.</li>
<li>ADD first-week returns fell, but less than the historical first-week decline. Breadth was better than the historical base rate, and weeks 2 to 4 turned positive.</li>
<li>Our pre-implementation first-week decline read held for the positive-bridge names, while the negative-bridge group split against its severe-decline precedent.</li>
</ul>


Following HSCI's May 2026 review, six names became HK Connect eligible in the June 2026 implementation, with no deletions. All post-implementation windows through weeks 2 to 4 are complete.
ADD first-week returns fell, but less than the historical first-week decline. Breadth was better than the historical base rate, and weeks 2 to 4 turned positive.
Our pre-implementation first-week decline read held for the positive-bridge names, while the negative-bridge group split against its severe-decline precedent.


HSCI / HK Connect June 2026 Implementation: Post-Implementation Review

China

Iluvatar CoreX designs high-performance semiconductor chips, specifically general-purpose computing on graphics processing units (GPGPUs), and provides AI computing solutions. Its product portfolio includes GPGPU chips and accelerators for both training and inference scenarios, along with customized AI computing solutions such as GPGPU servers and clusters. The company was founded in December 2015 and is headquartered in Shanghai, China.

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Iluvatar CoreX (9903 HK)

HS TECH Sep 2026 Index Rebalance Forecast

We expect Iluvatar Corex to enter and Tongcheng Travel to be deleted, both MID conviction, as Tongcheng ranks 36th, the last Buffer Zone position.

Ke Yan, CFA, FRM

HSTECH Index Rebalance Preview: 🛫 780: Final Departure | 🛬 9903: Welcome Aboard; US$2.8bn Trade

Iluvatar CoreX (9903) could replace Tongcheng Travel (780) in the HSTECH in Sep. Estimated one-way turnover of 3.9% and a round-trip trade of...

Brian Freitas

Primer: Iluvatar CoreX (9903 HK) - Aug 2026

Iluvatar CoreX is a premier domestic designer of high-performance GPGPUs, strategically positioned to capitalize on China's surging demand for...

αSK Primers