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

Event-Driven

<ul>
<li>Based on the close of 21 August, there could be two changes for the <a href="https://www.smartkarma.com/entities/ishares-ftse-a50-china-index-etf" target="_blank" data-smartkarma-citation="entities:249:1" rel="noopener">iShares A50 China (2823 HK)</a>/ <a href="https://www.smartkarma.com/entities/csop-ftse-china-a50-etf-26e3b671-fa47-4165-a12e-bf841640c5a3" target="_blank" data-smartkarma-citation="entities:23664:1" rel="noopener">CSOP A50 (HKD) (2822 HK)</a> in September.</li>
<li>
<a href="https://www.smartkarma.com/entities/nari-technology-co-ltd-a" target="_blank" data-smartkarma-citation="entities:4364:1" rel="noopener">NARI Technology Co Ltd A (600406 CH)</a> and <a href="https://www.smartkarma.com/entities/csc-financial-co-ltd" target="_blank" data-smartkarma-citation="entities:27823:1" rel="noopener">CSC Financial (601066 CH)</a> should replace <a href="https://www.smartkarma.com/entities/tongwei-co-ltd-a" target="_blank" data-smartkarma-citation="entities:14405:1" rel="noopener">Tongwei Co Ltd A (600438 CH)</a> and <a href="https://www.smartkarma.com/entities/shaanxi-coal-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:11254:1" rel="noopener">Shaanxi Coal Industry (601225 CH)</a> in the ETFs.</li>
<li>There are couple of stocks with over 1x ADV to trade from the ETFs. Plus there are cash and carry positions that will need to be rebalanced, adding to flow.</li>
</ul>


Based on the close of 21 August, there could be two changes for the iShares A50 China (2823 HK)/ CSOP A50 (HKD) (2822 HK) in September.

NARI Technology Co Ltd A (600406 CH) and CSC Financial (601066 CH) should replace Tongwei Co Ltd A (600438 CH) and Shaanxi Coal Industry (601225 CH) in the ETFs.
There are couple of stocks with over 1x ADV to trade from the ETFs. Plus there are cash and carry positions that will need to be rebalanced, adding to flow.


Offshore China ETFs Rebalance Preview: Two Changes Expected in September

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of April 3rd.</li>
<li>We estimate the weekly outflows to be US$448.8 million, led by consumer discretionary, information technology, consumer staples, and offset by industrials, utilities, communication services.</li>
<li>We highlight flows for CATL, Moutai. Note that the connect was closed for three days last week due to exchange holidays.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of April 3rd.
We estimate the weekly outflows to be US$448.8 million, led by consumer discretionary, information technology, consumer staples, and offset by industrials, utilities, communication services.
We highlight flows for CATL, Moutai. Note that the connect was closed for three days last week due to exchange holidays.


<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of March 8th.</li>
<li>We estimate the weekly outflows to be US$376.5 million, led by information technology, consumer discretionary, and offset by industrials, utilities, financials.</li>
<li>We highlight flows for China Yangtze Power, CATL, Tongwei, Foxconn Industrial Internet.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of March 8th.
We estimate the weekly outflows to be US$376.5 million, led by information technology, consumer discretionary, and offset by industrials, utilities, financials.
We highlight flows for China Yangtze Power, CATL, Tongwei, Foxconn Industrial Internet.


Northbound Flows (Mar 8th): China Yangtze Power, CATL, Tongwei, Foxconn Industrial Internet

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of February 2nd.</li>
<li>We estimate the weekly inflows to be US$1,618.3 million, led by information technology, industrials, consumer staples sectors, and offset by financials, energy.</li>
<li>We highlight flows for Moutai, CATL, Wuxi Apptec, and Midea.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of February 2nd.
We estimate the weekly inflows to be US$1,618.3 million, led by information technology, industrials, consumer staples sectors, and offset by financials, energy.
We highlight flows for Moutai, CATL, Wuxi Apptec, and Midea.


Northbound Flows (Feb 2nd): Moutai, CATL, Wuxi Apptec, Midea

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of January 12th.</li>
<li>We estimate the weekly outflows to be US$374.5 million, led by financials, consumer staples, and offset by consumer discretionary, information technology, industrials.</li>
<li>We highlight northbound connect flows for Moutai and Longi Green.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of January 12th.
We estimate the weekly outflows to be US$374.5 million, led by financials, consumer staples, and offset by consumer discretionary, information technology, industrials.
We highlight northbound connect flows for Moutai and Longi Green.


Northbound Flows (Jan 12th): Moutai, Longi Green

China

Tongwei Co., Ltd. produces and markets aquatic and animal feeds. The Company also sells animal medicines.

Tongwei Co Ltd A (600438 CH)

Offshore China ETFs Rebalance Preview: Two Changes Expected in September

There should be 2 changes for 2822/2823 HK in September. Impact of passive trading will be 0.5-1.5x ADV and could be higher due to cash and carry...

Brian Freitas

Northbound Flows (Apr 3rd): CATL, Moutai

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for CATL, Moutai. Not e that connect scheme was closed...

Ke Yan, CFA, FRM

Northbound Flows (Mar 8th): China Yangtze Power, CATL, Tongwei, Foxconn Industrial Internet

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for China Yangtze Power, CATL, Tongwei, Foxconn...

Ke Yan, CFA, FRM

Northbound Flows (Feb 2nd): Moutai, CATL, Wuxi Apptec, Midea

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Moutai, CATL, Wuxi Apptec, Midea.

Ke Yan, CFA, FRM

Northbound Flows (Jan 12th): Moutai, Longi Green

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight northbound connect flows for Moutai, Longi Green.

Ke Yan, CFA, FRM