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 March rebalance of the Hang Seng family of indices will use today's closing prices to cap the index constituent weights.</li>
<li>The net round-trip trade across all stocks across the five indices is estimated at HK$38.8bn (US$4.96bn). There is size to trade in a lot of stocks.</li>
<li>
<a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent</a>, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi</a>, <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan</a>, <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba</a>, <a href="https://www.smartkarma.com/entities/horizon-robotics-inc" target="_blank" data-smartkarma-citation="entities:35637:1" rel="noopener">Horizon Robotics</a>, <a href="https://www.smartkarma.com/entities/netease-inc" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase</a> and <a href="https://www.smartkarma.com/entities/china-molybdenum-co-ltd-d9c46a67-e31f-431f-9f5f-02222265d701" target="_blank" data-smartkarma-citation="entities:8585:1" rel="noopener">China Molybdenum</a> are the largest net buys, while <a href="https://www.smartkarma.com/entities/hsbc-holdings-plc" target="_blank" data-smartkarma-citation="entities:516:1" rel="noopener">HSBC Holdings</a>, <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD</a>, <a href="https://www.smartkarma.com/entities/semiconductor-manufacturing-international-corp-smic" target="_blank" data-smartkarma-citation="entities:14231:1" rel="noopener">SMIC</a>, <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com</a> and <a href="https://www.smartkarma.com/entities/lenovo-group-ltd" target="_blank" data-smartkarma-citation="entities:13359:1" rel="noopener">Lenovo</a> are the largest net sells.</li>
</ul>


The March rebalance of the Hang Seng family of indices will use today's closing prices to cap the index constituent weights.
The net round-trip trade across all stocks across the five indices is estimated at HK$38.8bn (US$4.96bn). There is size to trade in a lot of stocks.

Tencent, Xiaomi, Meituan, Alibaba, Horizon Robotics, NetEase and China Molybdenum are the largest net buys, while HSBC Holdings, BYD, SMIC, JD.com and Lenovo are the largest net sells.


HSI, HSCEI, HSTECH, HSIII, HSBIO Index Rebalance: US$5bn of Flows Post Capping (Mar 2026)

<ul>
<li>In line with forecasts, there will be 3 changes for the Hang Seng Internet &amp; Information Technology Index (HSIII Index) at the March rebalance.</li>
<li>Estimated one-way turnover at the rebalance is 5.1% resulting in a round-trip trade of HK$4.4bn (US$567m). Final capping will be done after the close on 3 March.</li>
<li>
<a href="https://www.smartkarma.com/entities/deepexi-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:45104:1" rel="noopener">Deepexi Technology</a> is an inclusion to the HSCI at the close on 6 March, and the stock will be added to Southbound Stock Connect from the open on 9 March.</li>
</ul>


In line with forecasts, there will be 3 changes for the Hang Seng Internet &amp; Information Technology Index (HSIII Index) at the March rebalance.
Estimated one-way turnover at the rebalance is 5.1% resulting in a round-trip trade of HK$4.4bn (US$567m). Final capping will be done after the close on 3 March.

Deepexi Technology is an inclusion to the HSCI at the close on 6 March, and the stock will be added to Southbound Stock Connect from the open on 9 March.


Hang Seng Internet & IT Index (HSIII) Rebalance: Also, PonyAI in a Global Index, Deepexi in Connect

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Chinasoft International / Index Rebalance

<ul>
<li>The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).</li>
<li>We continue to expect four index changes for March 2026 and we estimate there to be capping flows making one-way flows US$205mn.</li>
<li>The index changes will be announced after the close on Friday 13th February 2026.</li>
</ul>


The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
We continue to expect four index changes for March 2026 and we estimate there to be capping flows making one-way flows US$205mn.
The index changes will be announced after the close on Friday 13th February 2026.


Quiddity Leaderboard HSIII Mar26: Announcement Next Week; 4 Changes Likely

<ul>
<li>The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).</li>
<li>In this insight, we take a look at potential index changes and capping flows for HSIII index rebal event in March 2026.</li>
<li>Based on the latest data, we see four index changes for March 2026 with one-way flow of around US$230mn.</li>
</ul>


The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
In this insight, we take a look at potential index changes and capping flows for HSIII index rebal event in March 2026.
Based on the latest data, we see four index changes for March 2026 with one-way flow of around US$230mn.


Quiddity Leaderboard HSIII Mar26: Final Ranks; 4 Changes Expected

<ul>
<li>There could be 3 constituent changes for the HSIII Index in March along with capping changes for the largest index members.</li>
<li>Estimated one-way turnover is 3.3% resulting in a round-trip trade of HK$2.77bn. There are a few stocks with over 1x ADV to trade.</li>
<li>
<a href="https://www.smartkarma.com/entities/pony-ai-inc-f40ea771-20a4-48e1-9405-0a35b4c4aadb" target="_blank" data-smartkarma-citation="entities:46237:1" rel="noopener">Pony AI (2026 HK)</a> has been trading higher over the last several weeks on expectations of large passive buying over the next couple of months.</li>
</ul>


There could be 3 constituent changes for the HSIII Index in March along with capping changes for the largest index members.
Estimated one-way turnover is 3.3% resulting in a round-trip trade of HK$2.77bn. There are a few stocks with over 1x ADV to trade.

Pony AI (2026 HK) has been trading higher over the last several weeks on expectations of large passive buying over the next couple of months.


Hang Seng Internet & IT Index (HSIII) Rebalance Preview: 3 Changes as Pony AI Jumps

China

TravelSky Technology Ltd. is a dominant provider of information technology solutions for China's aviation and travel industry. It offers electronic travel distribution, airport passenger processing, and settlement and clearing services for airlines, airports, and travel agencies. The company is headquartered in Beijing, China, and was incorporated in 2000.

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TravelSky Technology (696 HK)

HSI, HSCEI, HSTECH, HSIII, HSBIO Index Rebalance: US$5bn of Flows Post Capping (Mar 2026)

The March rebalance of the HSI, HSCEI, HSTECH, HSIII, HSHKBIO indices will use today's closing prices for capping. The round-trip trade across the...

Brian Freitas

Hang Seng Internet & IT Index (HSIII) Rebalance: Also, PonyAI in a Global Index, Deepexi in Connect

There are 3 changes for the HSIII in March. PonyAI is also an add to a global index while Deepexi is an HSCI (and Stock Connect) add. No near-term...

Brian Freitas

Quiddity Leaderboard HSIII Mar26: Announcement Next Week; 4 Changes Likely

Couple of the expected DELs have more than 1x ADV to sell. NetEase (9999 HK) and Xiaomi (1810 HK) have ~US$62mn and ~US$72mn net inflows expected...

Janaghan Jeyakumar, CFA

Quiddity Leaderboard HSIII Mar26: Final Ranks; 4 Changes Expected

The top two expected inflow names and the top two expected outflow names have more than 1x ADV to trade. The flow expectations can change until the...

Janaghan Jeyakumar, CFA

Hang Seng Internet & IT Index (HSIII) Rebalance Preview: 3 Changes as Pony AI Jumps

There could be 3 constituent changes in March along with capping changes. Estimated one-way turnover is 3.3% resulting in a round-trip trade of...

Brian Freitas

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