Smartkarma AI, Smartkarma

αSK

Smartkarma AI

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>
Dominant Regional Franchise with Strong Capitalization: <a href="https://smartkarma.com/entities/shizuoka-bank-ltd">Shizuoka Bank</a> is one of Japan's largest and most respected regional banks, boasting a commanding market share in its home prefecture of Shizuoka. Its credit ratings are among the highest for any Japanese financial institution, reflecting a strong capital base and sound asset quality.</li>
 <li>
Poised to Benefit from Monetary Policy Normalization: After years of margin compression from the Bank of Japan's (BOJ) ultra-low interest rate policies, the recent shift towards normalization presents a significant tailwind. Higher interest rates are expected to improve net interest margins (NIMs), a key driver of profitability for the banking sector.</li>
 <li>
Structural Headwinds and Competitive Pressures Remain: The bank faces long-term challenges from Japan's demographic trends, including a shrinking and aging population in its core operating region, which dampens loan demand. Competition is also intensifying from larger "megabanks,"other regional players, and non-bank financial institutions.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Dominant Regional Franchise with Strong Capitalization: Shizuoka Bank is one of Japan's largest and most respected regional banks, boasting a commanding market share in its home prefecture of Shizuoka. Its credit ratings are among the highest for any Japanese financial institution, reflecting a strong capital base and sound asset quality.
  
Poised to Benefit from Monetary Policy Normalization: After years of margin compression from the Bank of Japan's (BOJ) ultra-low interest rate policies, the recent shift towards normalization presents a significant tailwind. Higher interest rates are expected to improve net interest margins (NIMs), a key driver of profitability for the banking sector.
  
Structural Headwinds and Competitive Pressures Remain: The bank faces long-term challenges from Japan's demographic trends, including a shrinking and aging population in its core operating region, which dampens loan demand. Competition is also intensifying from larger "megabanks,"other regional players, and non-bank financial institutions.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Shizuoka Bank (8355 JP) - Oct 2025

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The Nikkei Index team has been quite conscious of market impact since the April 2000 debacle. For a few years after, things were quieter. In 2005, Fast Retailing spurred introspection.</li>
<li>Float was low and became lower. Selection behaviour changed. Now there is a new consultation where "technical listings" would stay in, and phased "stepwise" inclusion would reduce inclusion impact.</li>
<li>The proposal increases subjectivity, reduces the attractiveness of bets, but otherwise increases the likelihood they will follow the other selection rules. It STILL does not solve the high weight problem.</li>
</ul>


The Nikkei Index team has been quite conscious of market impact since the April 2000 debacle. For a few years after, things were quieter. In 2005, Fast Retailing spurred introspection.
Float was low and became lower. Selection behaviour changed. Now there is a new consultation where "technical listings" would stay in, and phased "stepwise" inclusion would reduce inclusion impact.
The proposal increases subjectivity, reduces the attractiveness of bets, but otherwise increases the likelihood they will follow the other selection rules. It STILL does not solve the high weight problem.


Nikkei 225 Index Consultation Makes Things Weirder, but Still a 0️⃣🍔

<ul>
<li>The Nikkei announced its Annual Nikkei 225 Average Review on 5 September. It was 3 OUT 3 IN as expected. Then they added <a href="https://www.smartkarma.com/entities/shizuoka-bank-ltd" target="_blank" data-smartkarma-citation="entities:4437:1" rel="noopener">Shizuoka Bank (8355 JP)</a> to the mix. </li>
<li>ShizuGin will form a holding company, so out it goes on Wednesday. NIDEC (6594) goes in. Then SMC (6273) and (7741) replace Unitika (3103) and Oki Electric (6703) Friday.</li>
<li>Then ShizuGin goes back in Monday, and Maruha Nichiro (1333) is deleted. The "big trade" here? The ¥550bn+ funding trade. But the change in ADDs' Real World Float is Real.</li>
</ul>


The Nikkei announced its Annual Nikkei 225 Average Review on 5 September. It was 3 OUT 3 IN as expected. Then they added Shizuoka Bank (8355 JP) to the mix. 
ShizuGin will form a holding company, so out it goes on Wednesday. NIDEC (6594) goes in. Then SMC (6273) and (7741) replace Unitika (3103) and Oki Electric (6703) Friday.
Then ShizuGin goes back in Monday, and Maruha Nichiro (1333) is deleted. The "big trade" here? The ¥550bn+ funding trade. But the change in ADDs' Real World Float is Real.


Two Days Left Til Nikkei 225 Juggled Review Starts

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>The <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> September rebalance will be done in three parts due to the delisting of <a href="https://www.smartkarma.com/entities/shizuoka-bank-ltd" target="_blank" data-smartkarma-citation="entities:4437:1" rel="noopener">Shizuoka Bank (8355 JP)</a> and the relisting of Shizuoka Financial Group (5831).</li>
<li>
<a href="https://www.smartkarma.com/entities/nidec-corp" target="_blank" data-smartkarma-citation="entities:7245:1" rel="noopener">Nidec Corp (6594 JP)</a>, <a href="https://www.smartkarma.com/entities/smc-corp" target="_blank" data-smartkarma-citation="entities:20866:1" rel="noopener">SMC Corp (6273 JP)</a> and <a href="https://www.smartkarma.com/entities/hoya-corp" target="_blank" data-smartkarma-citation="entities:8990:1" rel="noopener">Hoya Corp (7741 JP)</a> replace <a href="https://www.smartkarma.com/entities/unitika-ltd" target="_blank" data-smartkarma-citation="entities:7669:1" rel="noopener">Unitika Ltd (3103 JP)</a>, <a href="https://www.smartkarma.com/entities/oki-electric-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:2181:1" rel="noopener">Oki Electric Industry (6703 JP)</a> and <a href="https://www.smartkarma.com/entities/maruha-nichiro-corp" target="_blank" data-smartkarma-citation="entities:20640:1" rel="noopener">Maruha Nichiro (1333 JP)</a>. </li>
<li>Passive trackers need to buy over 10 days ADV on the adds and there is a large impact of the funding trade given the add/delete size difference.</li>
</ul>


The Nikkei 225 (NKY INDEX) September rebalance will be done in three parts due to the delisting of Shizuoka Bank (8355 JP) and the relisting of Shizuoka Financial Group (5831).

Nidec Corp (6594 JP), SMC Corp (6273 JP) and Hoya Corp (7741 JP) replace Unitika Ltd (3103 JP), Oki Electric Industry (6703 JP) and Maruha Nichiro (1333 JP). 
Passive trackers need to buy over 10 days ADV on the adds and there is a large impact of the funding trade given the add/delete size difference.


Nikkei 225 Index Rebalance: Mostly on Expected Lines

<ul>
<li>The Nikkei Index Team announced the Nikkei 225 Annual Review today, days earlier than I expected. <a href="https://www.smartkarma.com/entities/nidec-corp" target="_blank" data-smartkarma-citation="entities:7245:1" rel="noopener">Nidec Corp (6594 JP)</a>, <a href="https://www.smartkarma.com/entities/smc-corp" target="_blank" data-smartkarma-citation="entities:20866:1" rel="noopener">SMC Corp (6273 JP)</a>, <a href="https://www.smartkarma.com/entities/hoya-corp" target="_blank" data-smartkarma-citation="entities:8990:1" rel="noopener">Hoya Corp (7741 JP)</a> are IN.</li>
<li>
<a href="https://www.smartkarma.com/entities/unitika-ltd" target="_blank" data-smartkarma-citation="entities:7669:1" rel="noopener">Unitika Ltd (3103 JP)</a>, <a href="https://www.smartkarma.com/entities/maruha-nichiro-corp" target="_blank" data-smartkarma-citation="entities:20640:1" rel="noopener">Maruha Nichiro (1333 JP)</a>, and <a href="https://www.smartkarma.com/entities/oki-electric-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:2181:1" rel="noopener">Oki Electric Industry (6703 JP)</a> are OUT. They did not go for my subjective choices to improve sector balance. Next time.</li>
<li>The inclusion/exclusion events are staggered over 3 days out of four because of the deletion and re-inclusion of <a href="https://www.smartkarma.com/entities/shizuoka-bank-ltd" target="_blank" data-smartkarma-citation="entities:4437:1" rel="noopener">Shizuoka Bank (8355 JP)</a> due to its formation of a holding company. </li>
</ul>


The Nikkei Index Team announced the Nikkei 225 Annual Review today, days earlier than I expected. Nidec Corp (6594 JP), SMC Corp (6273 JP), Hoya Corp (7741 JP) are IN.

Unitika Ltd (3103 JP), Maruha Nichiro (1333 JP), and Oki Electric Industry (6703 JP) are OUT. They did not go for my subjective choices to improve sector balance. Next time.
The inclusion/exclusion events are staggered over 3 days out of four because of the deletion and re-inclusion of Shizuoka Bank (8355 JP) due to its formation of a holding company. 


Nikkei 225 Review Results: Nidec, SMC, Hoya IN

Japan

The Shizuoka Bank, Ltd. is a regional bank that mainly operates in Shizuoka and its surrounding area. The Bank provides general banking services such as deposits, loans, and exchange transactions. The Shizuoka Bank also offers trust banking, securities brokerage, leasing, and consulting services.

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Shizuoka Bank (8355 JP)

Primer: Shizuoka Bank (8355 JP) - Oct 2025

Dominant Regional Franchise with Strong Capitalization: Shizuoka Bank is one of Japan's largest and most respected regional banks, boasting a...

αSK

Nikkei 225 Index Consultation Makes Things Weirder, but Still a 0️⃣🍔

The Nikkei 225 proposal does little. It reduces impact. That likely increases the chances the Nikkei Index Team will follow existing rules. And it...

Travis Lundy

Two Days Left Til Nikkei 225 Juggled Review Starts

The Nikkei 225 Rebal starts Wednesday, skips Thurs, then trades Friday and Monday. There is a large net buy on three ADDs and ¥560bn of funding....

Travis Lundy

Nikkei 225 Index Rebalance: Mostly on Expected Lines

There are 4 changes to the index that will be executed in three parts - changes were mostly expected. One-way turnover is expected at 2.68% and...

Brian Freitas

Nikkei 225 Review Results: Nidec, SMC, Hoya IN

The Nikkei 225 Annual Review announcement was released today. The top 3 names went in (top 75 rule) and the bottom 3 went out. My hopes for a...

Travis Lundy

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