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

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.

Index Rebalance

<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

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Guangdong True Health Medical Technology Development / Equity Capital Markets

Guangdong True Health Medical Technology Development (THMT HK)

Guangdong True Health Medical Technology Development

<ul>
<li>True Health does not enter the highly competitive fields of endoscopic or orthopedic robotic surgery. Instead, it chooses the niche market of percutaneous puncture and ablation surgery robots.</li>
<li>True Health hasn't yet entered the stage of large-scale revenue generation. It faces high dependence on hospital purchases and policy-driven uncertainties, and shares the common problem of low penetration rate.</li>
<li>We think valuation of True Health would be lower than <a href="https://www.smartkarma.com/entities/shenzhen-edge-medical-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:48939:1" rel="noopener">Edge Medical (2675 HK)</a> and <a href="https://www.smartkarma.com/entities/shanghai-microport-medbot-group-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:33485:1" rel="noopener">Shanghai MicroPort MedBot (2252 HK)</a> due to its smaller revenue scale and weaker commercialization channels.</li>
</ul>


True Health does not enter the highly competitive fields of endoscopic or orthopedic robotic surgery. Instead, it chooses the niche market of percutaneous puncture and ablation surgery robots.
True Health hasn't yet entered the stage of large-scale revenue generation. It faces high dependence on hospital purchases and policy-driven uncertainties, and shares the common problem of low penetration rate.
We think valuation of True Health would be lower than Edge Medical (2675 HK) and Shanghai MicroPort MedBot (2252 HK) due to its smaller revenue scale and weaker commercialization channels.


Pre-IPO Guangdong True Health Medical Technology (PHIP Updates) - Some Points Worth the Attention

<ul>
<li>Following HSCI's quarterly review in May 2026, we expect six names to become HK Connect eligible effective 8 June 2026.</li>
<li>Four of these names fell through the bridge window. Two recorded positions returned in the pre-implementation window.</li>
<li>Historically, the implementation-day opening has been the moment to capture. The full first week for prior Connect ADDs skewed negative, with gains tending to reverse after the open.</li>
</ul>


Following HSCI's quarterly review in May 2026, we expect six names to become HK Connect eligible effective 8 June 2026.
Four of these names fell through the bridge window. Two recorded positions returned in the pre-implementation window.
Historically, the implementation-day opening has been the moment to capture. The full first week for prior Connect ADDs skewed negative, with gains tending to reverse after the open.


HSCI / HK Connect June 2026: Pre-Implementation Update

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 June rebalance of the Hang Seng family of indices will use today's closing prices to cap the index constituent weights.</li>
<li>The net round-trip trade across all stocks across the five indices is estimated at HK$49.6bn (US$6.33bn). There is size to trade in a lot of stocks.</li>
<li>The stocks with forecast inflows marginally outperformed the stocks with forecast outflows prior to announcement of the changes, but there has been underperformance since announcement.</li>
</ul>


The June rebalance of the Hang Seng family of indices will use today's closing prices to cap the index constituent weights.
The net round-trip trade across all stocks across the five indices is estimated at HK$49.6bn (US$6.33bn). There is size to trade in a lot of stocks.
The stocks with forecast inflows marginally outperformed the stocks with forecast outflows prior to announcement of the changes, but there has been underperformance since announcement.


HSI, HSCEI, HSTECH, HSIII, HSBIO Index Rebalance: US$6.3bn of Flows Post Capping (June 2026)

<ul>
<li>The changes to the Hang Seng family of indices were announced post market close on Friday - final capping will use closing prices from 2 June.</li>
<li>There are 3 adds for the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">HSI</a>, 2 changes each for the<a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener"> HSCEI</a> and <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">HSTECH</a>, 1 change for the HSBIO Index and 7 adds for the HSCI Index.</li>
<li>There will be positioning in most stocks but there could be continued positioning in the names that will be added to Southbound Stock Connect.</li>
</ul>


The changes to the Hang Seng family of indices were announced post market close on Friday - final capping will use closing prices from 2 June.
There are 3 adds for the HSI, 2 changes each for the HSCEI and HSTECH, 1 change for the HSBIO Index and 7 adds for the HSCI Index.
There will be positioning in most stocks but there could be continued positioning in the names that will be added to Southbound Stock Connect.


Hang Seng Indexes: Changes Lead to US$6.6bn Trade; Plus Stock Connect & Global Index Inclusions

China

Edge Medical specializes in the design, development, manufacturing, and sale of advanced surgical robot systems, including multi-port and single-port endoscopic robots and bronchoscopy systems. The company aims to advance surgical technologies and deliver high-quality robotic solutions to healthcare institutions globally. It was founded in Shenzhen, China, on May 4, 2017.

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Shenzhen Edge Medical (2675 HK)

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

The HK Connect June 2026 implementation has passed the first post-implementation month. We review what worked, what did not, and how current...

Ke Yan, CFA, FRM

Pre-IPO Guangdong True Health Medical Technology (PHIP Updates) - Some Points Worth the Attention

The fundamental reason for weak performance is True Health is in a crucial stage of transitioning from "R&D verification period" to "full-scale...

Xinyao (Criss) Wang

HSCI / HK Connect June 2026: Pre-Implementation Update

We expect HK Connect to announce six names eligible prior to market open on 8 June 2026. We update stock performance post HSCI announcement and...

Ke Yan, CFA, FRM

HSI, HSCEI, HSTECH, HSIII, HSBIO Index Rebalance: US$6.3bn of Flows Post Capping (June 2026)

The June rebalance of the HSI, HSCEI, HSTECH, HSIII, HSHKBIO indices will use 2 June closing prices for capping. The round-trip trade across the...

Brian Freitas

Hang Seng Indexes: Changes Lead to US$6.6bn Trade; Plus Stock Connect & Global Index Inclusions

There are a number of constituent, float and capping changes for the Hang Seng family, leading to a US$6.6bn trade. Stock Connect additions, lock...

Brian Freitas

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