Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Index Rebalance

<ul>
<li>KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).</li>
<li>In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in June 2025.</li>
<li>We expect up to six ADDs and six DELs in the KOSPI 200 index during the June 2025 index rebal event based on the latest available data.</li>
</ul>


KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in June 2025.
We expect up to six ADDs and six DELs in the KOSPI 200 index during the June 2025 index rebal event based on the latest available data.


[Quiddity Index] KOSPI 200 Leaderboard Jun25: Up to 6 Changes Possible

Pan-Asia Tactical Market Calls (Quant-Driven), MRM Research

Nico Rosti

Pan-Asia Tactical Market Calls (Quant-Driven)

MRM Research

Quantitative Research

Equity Derivatives

Korea Stock Exchange KOSPI 200 / Equity Derivatives

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

<ul>
<li>While the short-selling ban for the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200 INDEX</a> will remain in place until the first months of 2025, that does not prevent the index from pulling back.</li>
<li>Pullbacks, in this context, are an opportunity to buy, in the hope the index will rise higher from its current position.</li>
<li>Our models right now are showing a short-term WEEKLY OVERBOUGHT scenario coming in the next 2 weeks. Keep reading for more details.</li>
</ul>


While the short-selling ban for the KOSPI 200 INDEX will remain in place until the first months of 2025, that does not prevent the index from pulling back.
Pullbacks, in this context, are an opportunity to buy, in the hope the index will rise higher from its current position.
Our models right now are showing a short-term WEEKLY OVERBOUGHT scenario coming in the next 2 weeks. Keep reading for more details.


Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>SK Square's market cap exceeds SK Networks' by over 10 times, qualifying this merger as small-scale. Thus, only SK Networks needs shareholder approval and grants appraisal rights solely to shareholders.</li>
<li>The current arbitrage spread for SK Networks' appraisal rights is 1.95%, and for the swap, it's 4.16%. These are nominal values excluding trading costs and taxes.</li>
<li>Today's SK Square and SK Networks prices reflect arbitrage spreads. Yesterday's 8% spread widened, focusing on narrowing appraisal rights and swap spreads, essential before next week's announcement.</li>
</ul>


SK Square's market cap exceeds SK Networks' by over 10 times, qualifying this merger as small-scale. Thus, only SK Networks needs shareholder approval and grants appraisal rights solely to shareholders.
The current arbitrage spread for SK Networks' appraisal rights is 1.95%, and for the swap, it's 4.16%. These are nominal values excluding trading costs and taxes.
Today's SK Square and SK Networks prices reflect arbitrage spreads. Yesterday's 8% spread widened, focusing on narrowing appraisal rights and swap spreads, essential before next week's announcement.


SK Square + SK Networks Merger Swap: A Guide to Pre-Merger Arb Spread Calculations

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>In a recent discussion with a client, one of the questions that was raised was regarding the impact the local investors are having on the corporate governance reforms in Korea.</li>
<li>The number of local investors in the Korean stock market has jumped in the past few years from 5.3 million in 2017 to 14.4 million in 2022.</li>
<li>All in all, I think Korea is about 3-5 years behind Japan in various corporate governance reforms. So it has a lot of catching up to do.</li>
</ul>


In a recent discussion with a client, one of the questions that was raised was regarding the impact the local investors are having on the corporate governance reforms in Korea.
The number of local investors in the Korean stock market has jumped in the past few years from 5.3 million in 2017 to 14.4 million in 2022.
All in all, I think Korea is about 3-5 years behind Japan in various corporate governance reforms. So it has a lot of catching up to do.


Locals Driving Corporate Reforms and 10 Korean Companies Recently Announcing Share Cancellations

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.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of KRX Stocks as of Jan 12th which has an aggregated short interest worth USD9.1bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We have highlighted KRX short interest weekly changes in Celltrion.</li>
</ul>


We analyzed the changes in short interest of KRX Stocks as of Jan 12th which has an aggregated short interest worth USD9.1bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We have highlighted KRX short interest weekly changes in Celltrion.


KRX Short Interest Weekly (Jan 12th): Celltrion

South Korea

SK Networks Co., Ltd. is a general trading company.  The Company trades general merchandise, such as steel, oil, timber, petrochemical, household appliances, clothing, textile products, and information technology equipment.  SK Networks provides insurance and financial services through subsidiaries.

Price Gauge
52-week Range	0.00 - 0.00
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SK Networks (001740 KS)

[Quiddity Index] KOSPI 200 Leaderboard Jun25: Up to 6 Changes Possible

The KOSPI 200 rebalance for June 2025 currently suggests up to 6 name changes are possible. One is a repeat of the last one where it did not get...

Travis Lundy

EQD | KOSPI 200 May Pullback Soon...

Pullbacks on the KOSPI 200 INDEX are currently a buy opportunity, given the short-selling ban still in place. We predict a short-term WEEKLY...

Nico Rosti

SK Square + SK Networks Merger Swap: A Guide to Pre-Merger Arb Spread Calculations

This post is a guide to pre-merger arb trading setups for merger swap events in the Korean local market, considering this potential merger...

Sanghyun Park

KRX Short Interest Weekly (Jan 12th): Celltrion

We analyzed KRX short interest report for the past week and we highlighted KRX short interest weekly changes in Celltrion.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Quiddity Index] KOSPI 200 Leaderboard Jun25: Up to 6 Changes Possible

The KOSPI 200 rebalance for June 2025 currently suggests up to 6 name changes are possible. One is a repeat of the last one where it did not get...

Travis Lundy

EQD | KOSPI 200 May Pullback Soon...

Pullbacks on the KOSPI 200 INDEX are currently a buy opportunity, given the short-selling ban still in place. We predict a short-term WEEKLY...

Nico Rosti

SK Square + SK Networks Merger Swap: A Guide to Pre-Merger Arb Spread Calculations

This post is a guide to pre-merger arb trading setups for merger swap events in the Korean local market, considering this potential merger...

Sanghyun Park

Locals Driving Corporate Reforms and 10 Korean Companies Recently Announcing Share Cancellations

On 17 April, Celltrion Inc announced that it will buyback shares worth 75 billion won. Including 75 billion won of share repurchase last month,...

Douglas Kim

KRX Short Interest Weekly (Jan 12th): Celltrion

We analyzed KRX short interest report for the past week and we highlighted KRX short interest weekly changes in Celltrion.

Ke Yan, CFA, FRM