Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>The current HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.</li>
<li>A new methodology has been proposed and if implemented, index composition could change drastically in the next index rebal event.</li>
<li>There could be at least 20 changes to the index as the new methodology aims to increase index member count from 30 to 50 in December 2026.</li>
</ul>


The current HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
A new methodology has been proposed and if implemented, index composition could change drastically in the next index rebal event.
There could be at least 20 changes to the index as the new methodology aims to increase index member count from 30 to 50 in December 2026.


Quiddity Leaderboard HSTECH Dec26: OLD Vs NEW Methodology; Mega Flows Possible

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

<ul>
<li>The changes to the Hang Seng family of indices were announced post market close on 21 August - final capping will use closing prices from the close on 1 September.</li>
<li>There are 2 adds for the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">HSI</a>, no constituent changes <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">HSCEI</a>, 1 change for the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">HSTECH</a>, 5 changes for the HSIII, and 1 change for the HSBIO.</li>
<li>There are 61 adds and 15 deletes for the Hang Seng Composite Index and that should lead to 54 additions to Southbound Stock Connect from the open on 7 September.</li>
</ul>


The changes to the Hang Seng family of indices were announced post market close on 21 August - final capping will use closing prices from the close on 1 September.
There are 2 adds for the HSI, no constituent changes HSCEI, 1 change for the HSTECH, 5 changes for the HSIII, and 1 change for the HSBIO.
There are 61 adds and 15 deletes for the Hang Seng Composite Index and that should lead to 54 additions to Southbound Stock Connect from the open on 7 September.


Hang Seng Indexes: US$3.2bn of Flows Post Capping + Stock Connect Changes (Sep 2026)

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Equity Capital Markets

Unitree Robotics / Equity Capital Markets

<ul>
<li>Chinese robot maker Yushu Technology (Unitree Robotics, 688836 CH Equity) priced its initial public offering (STAR market) in a deal that would make it the first mainland-listed humanoid robot manufacturer. </li>
<li>The retail portion was 8,000x oversubscribed with 9.8 million individual investor orders, marking a landmark moment for China's embodied-AI sector. China's global market share in humanoid robots is &gt;85%.</li>
<li>The nearest listed competitor is <a href="https://www.smartkarma.com/entities/ubtech-robotics-corp-ltd-class-h" target="_blank" data-smartkarma-citation="entities:36469:1" rel="noopener">UBTECH Robotics (9880 HK)</a>; however, Agibot, the world's largest humanoid robot company by unit sales, is slated to list on the Shanghai exchange soon.</li>
</ul>


Chinese robot maker Yushu Technology (Unitree Robotics, 688836 CH Equity) priced its initial public offering (STAR market) in a deal that would make it the first mainland-listed humanoid robot manufacturer. 
The retail portion was 8,000x oversubscribed with 9.8 million individual investor orders, marking a landmark moment for China's embodied-AI sector. China's global market share in humanoid robots is &gt;85%.
The nearest listed competitor is UBTECH Robotics (9880 HK); however, Agibot, the world's largest humanoid robot company by unit sales, is slated to list on the Shanghai exchange soon.


IPO WATCH: Unitree Robotics - One Small Step for Man, One Giant Leap for Humanoids

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

Shenton Research

Shenton 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.

<ul>
<li>We screen the HS TECH eligible universe ahead of the September 2026 quarterly review.</li>
<li>One stock ranks inside the ADD Zone this cycle, paired with one Buffer Zone DELETE.</li>
<li>Both calls are mid-conviction, as the DELETE candidate is inside the Buffer Zone and close to the DELETE Zone.</li>
</ul>


We screen the HS TECH eligible universe ahead of the September 2026 quarterly review.
One stock ranks inside the ADD Zone this cycle, paired with one Buffer Zone DELETE.
Both calls are mid-conviction, as the DELETE candidate is inside the Buffer Zone and close to the DELETE Zone.


HS TECH Sep 2026 Index Rebalance Forecast

<ul>
<li>We review the proposed HS TECH rule changes and screen an early beneficiary list for the December 2026 rebalance.</li>
<li>Our screening returns 20 ADD candidates, 10 based on market value and 10 based on revenue growth.</li>
<li>We expect all 30 current constituents are retained. 10 MV based stocks to be mechanical and sales growth for 10 growth based stocks to be cut off at 30%.</li>
</ul>


We review the proposed HS TECH rule changes and screen an early beneficiary list for the December 2026 rebalance.
Our screening returns 20 ADD candidates, 10 based on market value and 10 based on revenue growth.
We expect all 30 current constituents are retained. 10 MV based stocks to be mechanical and sales growth for 10 growth based stocks to be cut off at 30%.


HS TECH Index Consultation: Rules and Beneficiary Analysis

China

UBTECH Robotics is a leading company specializing in the research, development, design, production, and commercialization of humanoid and smart service robots. Their product offerings include AI education solutions, smart logistics robots, and various sector-tailored service robots. The company was founded in March 2012 and is headquartered in Shenzhen, China.

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UBTECH Robotics (9880 HK)

Quiddity Leaderboard HSTECH Dec26: OLD Vs NEW Methodology; Mega Flows Possible

There could be several high-impact additions in December 2026 if the newly proposed methodology is implemented. The one-way flow could be around...

Janaghan Jeyakumar, CFA

Hang Seng Indexes: US$3.2bn of Flows Post Capping + Stock Connect Changes (Sep 2026)

The Sep rebalance of the HSI, HSCEI, HSTECH, HSIII indices will use 1 Sep closing prices for capping. The round-trip trade across the four indices...

Brian Freitas

IPO WATCH: Unitree Robotics - One Small Step for Man, One Giant Leap for Humanoids

Unitree Robotics shares surged 460% in their Shanghai trading debut after the company raised 6.1 billion yuan ($904 million) in an initial public...

David Mudd

HS TECH Sep 2026 Index Rebalance Forecast

We expect Iluvatar Corex to enter and Tongcheng Travel to be deleted, both MID conviction, as Tongcheng ranks 36th, the last Buffer Zone position.

Ke Yan, CFA, FRM

HS TECH Index Consultation: Rules and Beneficiary Analysis

HSIL announced HS TECH consultation on proposed rule changes. In this note, we analysis the proposed new rules changes and preview the potential...

Ke Yan, CFA, FRM

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