Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Cross Asset Strategy

<ul>
<li>Korea Exchange announced its KOSPI200 rebalance changes on 27 May. It added 8 companies and deleted 8 companies. KRX also added 9 companies and deleted 9 companies in KOSDAQ 150. </li>
<li>These 8 new inclusions in KOSPI200 are up on average 49.8% in the past one year. The 8 deletions to KOSPI200 are down on average 45.2% in the past one year.</li>
<li>There were numerous surprises to the KOSDAQ150 rebalances.  In particular, three companies are relative surprises to the KOSDAQ150 additions including Solid Inc, Zeus Co, and Wemade Max.   </li>
</ul>


Korea Exchange announced its KOSPI200 rebalance changes on 27 May. It added 8 companies and deleted 8 companies. KRX also added 9 companies and deleted 9 companies in KOSDAQ 150. 
These 8 new inclusions in KOSPI200 are up on average 49.8% in the past one year. The 8 deletions to KOSPI200 are down on average 45.2% in the past one year.
There were numerous surprises to the KOSDAQ150 rebalances.  In particular, three companies are relative surprises to the KOSDAQ150 additions including Solid Inc, Zeus Co, and Wemade Max.   


KOSPI 200 and KOSDAQ 150 Constituent Changes Announced: A Few Surprises

Asia Pac ECM and Index Rebal, DZT 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 Apr 17th. The aggregated short interest was USD16.7bn.</li>
<li>We tabulate league tables 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 highlight short interest changes in SK Hynix, KOLON IND, GS E&amp;C, LS ELECTRIC, DWEC.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Apr 17th. The aggregated short interest was USD16.7bn.
We tabulate league tables 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 highlight short interest changes in SK Hynix, KOLON IND, GS E&amp;C, LS ELECTRIC, DWEC.


KRX Short Interest Weekly (Apr 17th): SK Hynix, KOLON IND, GS E&C, LS ELECTRIC, DWEC

<ul>
<li>We analyzed the changes in short interest of KRX stocks as of Mar 27th. The aggregated short interest was USD14.6bn.</li>
<li>We tabulate league tables 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 highlight short interest changes in HDKSOE, HyundaiEng&amp;Const, Hanmi Semi, HYBE, ECOPROBM.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Mar 27th. The aggregated short interest was USD14.6bn.
We tabulate league tables 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 highlight short interest changes in HDKSOE, HyundaiEng&amp;Const, Hanmi Semi, HYBE, ECOPROBM.


KRX Short Interest Weekly (Mar 27th): HDKSOE, HyundaiEng&Const, Hanmi Semi, HYBE, ECOPROBM

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>Doronicum owns nearly 90% of <a href="https://www.smartkarma.com/entities/douzone-bizon-co-ltd" target="_blank" data-smartkarma-citation="entities:20161:1" rel="noopener">Douzone Bizon (012510 KS)</a> and they have launched another tender offer to buy the remaining shares.</li>
<li>Once the exchange has concluded there is a high probability of delisting, <a href="https://www.smartkarma.com/entities/douzone-bizon-co-ltd" target="_blank" data-smartkarma-citation="entities:20161:1" rel="noopener">Douzone Bizon (012510 KS)</a> will be deleted from the indices and there will be replacements.</li>
<li>With <a href="https://www.smartkarma.com/entities/douzone-bizon-co-ltd" target="_blank" data-smartkarma-citation="entities:20161:1" rel="noopener">Douzone Bizon</a> in the top 3 group for the KRX Internet Top10 Index and a part of the KRX BBIG Index, there will be a replacement and a rebalance.</li>
</ul>


Doronicum owns nearly 90% of Douzone Bizon (012510 KS) and they have launched another tender offer to buy the remaining shares.
Once the exchange has concluded there is a high probability of delisting, Douzone Bizon (012510 KS) will be deleted from the indices and there will be replacements.
With Douzone Bizon in the top 3 group for the KRX Internet Top10 Index and a part of the KRX BBIG Index, there will be a replacement and a rebalance.


KRX Internet Top 10/ BBIG Index Rebalance Preview: Replacements for Douzone Bizon

<ul>
<li>There are 9 changes for the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> in June. Most of the adds and all of the deletes were forecast.</li>
<li>The index committee have used their discretion and kept <a href="https://www.smartkarma.com/entities/fadu-inc" target="_blank" data-smartkarma-citation="entities:39896:1" rel="noopener">Fadu (440110 KS)</a> and <a href="https://www.smartkarma.com/entities/snh-inc" target="_blank" data-smartkarma-citation="entities:12212:1" rel="noopener">Snh Inc (051980 KS)</a> out of the index for yet another rebalance - no reason provided.</li>
<li>There's been little movement in the relative performance of the adds/deletes the last few months. The announcement of the changes could see the stocks move over the next few weeks.</li>
</ul>


There are 9 changes for the KOSDAQ 150 Index (KOSDQ150 INDEX) in June. Most of the adds and all of the deletes were forecast.
The index committee have used their discretion and kept Fadu (440110 KS) and Snh Inc (051980 KS) out of the index for yet another rebalance - no reason provided.
There's been little movement in the relative performance of the adds/deletes the last few months. The announcement of the changes could see the stocks move over the next few weeks.


KOSDAQ150 Index Rebalance: 9 Changes as Fadu Ignored Again

South Korea

Solid Inc. manufactures networking equipment.  The Company's products include in building hybrid fiber coax systems, tunnel optic repeaters, high power hybrid fiber coax systems, and gap fillers for digital multimedia broadcasting (DMB). Solid Technologies provides its products to KT Freetel and SK Telecom.

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Solid Inc (050890 KS)

KOSPI 200 and KOSDAQ 150 Constituent Changes Announced: A Few Surprises

Korea Exchange announced its KOSPI200 rebalance changes on 27 May. It added 8 companies and deleted 8 companies. KRX also added 9 companies and...

Douglas Kim

KRX Short Interest Weekly (Apr 17th): SK Hynix, KOLON IND, GS E&C, LS ELECTRIC, DWEC

We analyzed KRX short interest report for the past week and highlighted short interest changes in SK Hynix, KOLON IND, GS E&C, LS ELECTRIC, DWEC.

Ke Yan, CFA, FRM

KRX Short Interest Weekly (Mar 27th): HDKSOE, HyundaiEng&Const, Hanmi Semi, HYBE, ECOPROBM

We analyzed KRX short interest report for the past week and highlighted short interest changes in HDKSOE, HyundaiEng&Const, Hanmi Semi, HYBE,...

Ke Yan, CFA, FRM

KRX Internet Top 10/ BBIG Index Rebalance Preview: Replacements for Douzone Bizon

Doronicum owns ~90% of DouzoneBizon and has launched another tender offer. There will be 1 add to the Internet Top10 Index and 1 add to the BBIG...

Brian Freitas

KOSDAQ150 Index Rebalance: 9 Changes as Fadu Ignored Again

There are 9 changes as Fadu and Joongang AM have been kept out of the index again. Passive impact varies from 0.2-8.6x ADV. Performance has been...

Brian Freitas

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