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>On 7 October, Hang Seng announced the conclusions of the market consultation to increase the number of <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng TECH Index (HSTECH INDEX)</a> constituents from 30 to 50.</li>
<li>While most of the proposals will be implemented as proposed, a liquidity requirement has been tightened, and revenue thresholds have been imposed for companies qualifying through the Sales Growth Stream.</li>
<li>The changes will be implemented in a single step at the December rebalance and that creates a lot of flow for all the index members, current and new.</li>
</ul>


On 7 October, Hang Seng announced the conclusions of the market consultation to increase the number of Hang Seng TECH Index (HSTECH INDEX) constituents from 30 to 50.
While most of the proposals will be implemented as proposed, a liquidity requirement has been tightened, and revenue thresholds have been imposed for companies qualifying through the Sales Growth Stream.
The changes will be implemented in a single step at the December rebalance and that creates a lot of flow for all the index members, current and new.


HSTECH Index: Market Consultation Conclusions, Updated Potential Adds & The Borderline Names

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Bottom-Up

Unisound AI Technology / Equity Bottom-Up

<ul>
<li>Unisound AI Technology, a Beijing-based AI solution provider focusing on the sales of conversational AI products and solutions, completed an initial public offering at HK$205.00/share in June 2025.  </li>
<li>Lock-Up agreements usually prevent pre-IPO shareholders and cornerstone investors from selling shares during the lock-up period after the IPO.  </li>
<li>The company’s IPO lock-up release for pre-IPO and cornerstone investors expires on June 29, 2026 and up to ~46M shares will be available for trading.  </li>
</ul>


Unisound AI Technology, a Beijing-based AI solution provider focusing on the sales of conversational AI products and solutions, completed an initial public offering at HK$205.00/share in June 2025.  
Lock-Up agreements usually prevent pre-IPO shareholders and cornerstone investors from selling shares during the lock-up period after the IPO.  
The company’s IPO lock-up release for pre-IPO and cornerstone investors expires on June 29, 2026 and up to ~46M shares will be available for trading.  


Unisound AI: Pre-IPO/Cornerstone Lockup Expiry Will Likely Weigh On The Stock In The Near Term

Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<ul>
  <li>Unisound AI is a prominent player in China's rapidly expanding AI and voice recognition sector, demonstrating strong revenue growth driven by its applications in smart life and smart healthcare.</li>
  <li>Despite impressive top-line growth, the company remains significantly unprofitable, with substantial net losses and negative operating cash flows, reflecting heavy investment in R&amp;D and intense market competition.</li>
  <li>The company's valuation appears stretched, with a high price-to-book ratio, suggesting the market has priced in a high degree of future success and a clear path to profitability which is not yet evident.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  Unisound AI is a prominent player in China's rapidly expanding AI and voice recognition sector, demonstrating strong revenue growth driven by its applications in smart life and smart healthcare.
  Despite impressive top-line growth, the company remains significantly unprofitable, with substantial net losses and negative operating cash flows, reflecting heavy investment in R&amp;D and intense market competition.
  The company's valuation appears stretched, with a high price-to-book ratio, suggesting the market has priced in a high degree of future success and a clear path to profitability which is not yet evident.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Unisound AI Technology (9678 HK) - Apr 2026

<ul>
<li>Unisound AI Technology, a Beijing-based AI solution provider focusing on the sales of conversational AI products and solutions, completed an initial public offering at HK$205/share in June.</li>
<li>The company raised HK$251M in its Hong Kong IPO, including additional net proceeds from the over-allotment shares issued upon the full exercise of the over-allotment option.</li>
<li>The stock peaked at HK$879.00 in September and fell ~41% over the next two months. The company’s early IPO lockup will expire on December 29, 2025.</li>
</ul>


Unisound AI Technology, a Beijing-based AI solution provider focusing on the sales of conversational AI products and solutions, completed an initial public offering at HK$205/share in June.
The company raised HK$251M in its Hong Kong IPO, including additional net proceeds from the over-allotment shares issued upon the full exercise of the over-allotment option.
The stock peaked at HK$879.00 in September and fell ~41% over the next two months. The company’s early IPO lockup will expire on December 29, 2025.


Unisound AI IPO Lockup (9678.HK): ~US$1.6B Early Lockup Release for Co-Founders

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

<ul>
<li>The HSTECH Index tracks the performance of the top technology companies listed in Hong Kong that have high business exposure to certain technology themes.</li>
<li>The market consultation results have been announced. All proposed changes will be adopted in full with two additional requirements to avoid low-liquidity and low-revenue names.</li>
<li>We expect 20 ADDs and no DELs in December 2026. We estimate one-way flow of around US$4bn with 11 expected ADDs having more than 3x ADV to buy.</li>
</ul>


The HSTECH Index tracks the performance of the top technology companies listed in Hong Kong that have high business exposure to certain technology themes.
The market consultation results have been announced. All proposed changes will be adopted in full with two additional requirements to avoid low-liquidity and low-revenue names.
We expect 20 ADDs and no DELs in December 2026. We estimate one-way flow of around US$4bn with 11 expected ADDs having more than 3x ADV to buy.


Quiddity Leaderboard HSTECH Dec26: New Rules Confirmed with Some Modifications; Latest Expectations

China

Unisound AI Technology specializes in artificial intelligence products and solutions, focusing on conversational AI, speech recognition, natural language processing, and large language models. The company offers its proprietary UniBrain central technology platform, which includes the UniGPT large language model, and provides intelligent voice interaction products, smart IoT solutions, and AI technical services for daily life and healthcare scenarios. Unisound AI Technology was founded in 2012 and is headquartered in Beijing, China.

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Unisound AI Technology (9678 HK)

HSTECH Index: Market Consultation Conclusions, Updated Potential Adds & The Borderline Names

Introduction/tightening of revenue/liquidity criteria changes the list of potential adds. Estimated one-way turnover at the Dec rebalance is 14.2%...

Brian Freitas

Unisound AI: Pre-IPO/Cornerstone Lockup Expiry Will Likely Weigh On The Stock In The Near Term

Upcoming IPO lockup expiry for pre-IPO investors will unlock up to ~US$1.5B worth of Unisound AI shares. Expect stock underperformance to continue...

Andrei Zakharov

Primer: Unisound AI Technology (9678 HK) - Apr 2026

Unisound AI is a prominent player in China's rapidly expanding AI and voice recognition sector, demonstrating strong revenue growth driven by...

αSK Primers

Unisound AI IPO Lockup (9678.HK): ~US$1.6B Early Lockup Release for Co-Founders

Beijing-based Unisound AI Technology completed an initial public offering at HK$205/share, raising HK$251M of net proceeds. The company's early...

Andrei Zakharov

Quiddity Leaderboard HSTECH Dec26: New Rules Confirmed with Some Modifications; Latest Expectations

There could be more than 5x ADV to buy for the top 5 expected ADDs. Many other names have more than 1x ADV to trade. The flow expectations can...

Janaghan Jeyakumar, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HSTECH Index: Market Consultation Conclusions, Updated Potential Adds & The Borderline Names

Introduction/tightening of revenue/liquidity criteria changes the list of potential adds. Estimated one-way turnover at the Dec rebalance is 14.2%...

Brian Freitas

Unisound AI: Pre-IPO/Cornerstone Lockup Expiry Will Likely Weigh On The Stock In The Near Term

Upcoming IPO lockup expiry for pre-IPO investors will unlock up to ~US$1.5B worth of Unisound AI shares. Expect stock underperformance to continue...

Andrei Zakharov

Primer: Unisound AI Technology (9678 HK) - Apr 2026

Unisound AI is a prominent player in China's rapidly expanding AI and voice recognition sector, demonstrating strong revenue growth driven by...

αSK Primers

Unisound AI IPO Lockup (9678.HK): ~US$1.6B Early Lockup Release for Co-Founders

​Beijing-based Unisound AI Technology completed an initial public offering at HK$205/share, raising HK$251M of net proceeds. The company's early...

Andrei Zakharov

Quiddity Leaderboard HSTECH Dec26: New Rules Confirmed with Some Modifications; Latest Expectations

There could be more than 5x ADV to buy for the top 5 expected ADDs. Many other names have more than 1x ADV to trade. The flow expectations can...

Janaghan Jeyakumar, CFA

Beijing-based Unisound AI Technology completed an initial public offering at HK$205/share, raising HK$251M of net proceeds. The company's early...