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 were 39 new listings on the Main Board of the <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a> in the first quarter of the calendar year. </li>
<li>Of the 39 new listings, we forecast 7 inclusions to the HSCI Index in June. 6 of those stocks will then be added to Southbound Stock Connect from 8 June.</li>
<li>Over US$15.5bn of cornerstone and pre-IPO shares will unlock in <a href="https://www.smartkarma.com/entities/minimax-group-inc" target="_blank" data-smartkarma-citation="entities:46185:1" rel="noopener">MiniMax Group (100 HK)</a> on 9 July. The stock will then be added to Southbound Stock Connect in August.</li>
</ul>


There were 39 new listings on the Main Board of the HKEX (388 HK) in the first quarter of the calendar year. 
Of the 39 new listings, we forecast 7 inclusions to the HSCI Index in June. 6 of those stocks will then be added to Southbound Stock Connect from 8 June.
Over US$15.5bn of cornerstone and pre-IPO shares will unlock in MiniMax Group (100 HK) on 9 July. The stock will then be added to Southbound Stock Connect in August.


HSCI Index Rebalance Preview: Stock Connect & Index Buying Vs Lock-Up Expiry Selling

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.

Equity Capital Markets

Shenzhen Inovance Technology Co., / Equity Capital Markets

Shenzhen Inovance Technology Co., (300124 CH)

<ul>
<li>Inovance is seeking to raise at least USD 100m via a Hong Kong listing. MS, CICC, GTJA, and BOA are the sponsors.</li>
<li>This note covers Inovance's industrial automation and NEV businesses, peer valuation.</li>
<li>We also discussed our preliminary thoughts on valuation, mainly drive by A-H premium.</li>
</ul>


Inovance is seeking to raise at least USD 100m via a Hong Kong listing. MS, CICC, GTJA, and BOA are the sponsors.
This note covers Inovance's industrial automation and NEV businesses, peer valuation.
We also discussed our preliminary thoughts on valuation, mainly drive by A-H premium.


Shenzhen Inovance A+H Pre-IPO: Early Thought

HK/China Equity Long-Short

Osbert Tang, CFA

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

Delton Technology / Equity Capital Markets

<ul>
<li>We updated our previous HK A+H listing study with deals in March and April.</li>
<li>International cornerstone participation in the deal is still a strong binary screen.</li>
<li>A-Share 1-month pre-listing momentum by quartile appears to be a leading indicator.</li>
</ul>


We updated our previous HK A+H listing study with deals in March and April.
International cornerstone participation in the deal is still a strong binary screen.
A-Share 1-month pre-listing momentum by quartile appears to be a leading indicator.


HK A+H IPO 2026 Update: Cornerstone Signal Returns, A-Share Momentum

Quantitative Analysis

<ul>
<li>We analyse the changes of A-H premium on 180 stocks over the last week. The average A-H premium was 67.6% as of Apr 17th.</li>
<li>The average A-H premium changed by -0.6ppt week-on-week, led by information technology, energy, materials and offset by utilities, consumer staples.</li>
<li>We highlight weekly changes in A-H premium for China Longyuan Power, PICC, China Coal Energy, Hans Cnc.</li>
</ul>


We analyse the changes of A-H premium on 180 stocks over the last week. The average A-H premium was 67.6% as of Apr 17th.
The average A-H premium changed by -0.6ppt week-on-week, led by information technology, energy, materials and offset by utilities, consumer staples.
We highlight weekly changes in A-H premium for China Longyuan Power, PICC, China Coal Energy, Hans Cnc.


A-H Premium Weekly (Apr 17th): China Longyuan Power, PICC, China Coal Energy, Hans Cnc

China

Shenzhen Han's CNC Technology is a national high-tech enterprise specializing in the R&D, manufacturing, and sales of special equipment for printed circuit boards (PCBs). The company offers one-stop solutions for PCB manufacturers, including equipment for drilling, exposure, routing, electrical performance testing, and stiffening. It was founded on April 22, 2002, and is headquartered in Shenzhen, Guangdong Province, China.

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Shenzhen Han's CNC Technology (3200 HK)

HSCI Index Rebalance Preview: Stock Connect & Index Buying Vs Lock-Up Expiry Selling

Announcement after market close tomorrow. There could be last-minute positioning next 2 weeks ahead of inclusion of the stocks in Stock Connect....

Brian Freitas

Shenzhen Inovance A+H Pre-IPO: Early Thought

Shenzhen Inovance is seeking to raise at least USD 100m in an A+H listing. In this note, we look at the company's business, its industry context...

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

A-H Premium Weekly (Apr 17th): China Longyuan Power, PICC, China Coal Energy, Hans Cnc

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Longyuan Power, PICC, China Coal Energy, Hans Cnc.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HSCI Index Rebalance Preview: Stock Connect & Index Buying Vs Lock-Up Expiry Selling

Announcement after market close tomorrow. There could be last-minute positioning next 2 weeks ahead of inclusion of the stocks in Stock Connect....

Brian Freitas

Shenzhen Inovance A+H Pre-IPO: Early Thought

Shenzhen Inovance is seeking to raise at least USD 100m in an A+H listing. In this note, we look at the company's business, its industry context...

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

HK A+H IPO 2026 Update: Cornerstone Signal Returns, A-Share Momentum

HK A+H IPO 2026 study is extended to 12 listings. Cornerstone participation, A-H premium band, and A-share momentum are the three signals that have...

Ke Yan, CFA, FRM

A-H Premium Weekly (Apr 17th): China Longyuan Power, PICC, China Coal Energy, Hans Cnc

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Longyuan Power, PICC, China Coal Energy, Hans Cnc.

Ke Yan, CFA, FRM

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