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

Verisilicon Microelectronics S / Index Rebalance

<ul>
<li>There could be up to 4 constituent changes for the STAR&amp;CHINEXT 50 Index in December. The announcement of the changes will be made after market close on 28 November.</li>
<li>There will be between 0.1-0.35x ADV to trade in the changes but some of the forecast adds will have same-way flow from passive trackers of other indices.</li>
<li>The forecast adds outperformed the forecast deletes in July and August before giving up all the gains (and more) in a near one-way move over the last month.</li>
</ul>


There could be up to 4 constituent changes for the STAR&amp;CHINEXT 50 Index in December. The announcement of the changes will be made after market close on 28 November.
There will be between 0.1-0.35x ADV to trade in the changes but some of the forecast adds will have same-way flow from passive trackers of other indices.
The forecast adds outperformed the forecast deletes in July and August before giving up all the gains (and more) in a near one-way move over the last month.


STAR&CHINEXT 50 Index Rebalance Preview: Potential Changes in December

<ul>
<li>There could be one change for the CNI Semiconductor Chips Index with <a href="https://www.smartkarma.com/entities/verisilicon-microelectronics-s" target="_blank" data-smartkarma-citation="entities:32183:1" rel="noopener">Verisilicon Microelectronics S (688521 CH)</a> replacing <a href="https://www.smartkarma.com/entities/tianshui-huatian-technolog-a" target="_blank" data-smartkarma-citation="entities:20708:1" rel="noopener">Tianshui Huatian Technology Co, Ltd. (002185 CH)</a>. </li>
<li>Passive trackers will need to buy 0.5x ADV in <a href="https://www.smartkarma.com/entities/verisilicon-microelectronics-s" target="_blank" data-smartkarma-citation="entities:32183:1" rel="noopener">Verisilicon Microelectronics S (688521 CH)</a> and sell 0.4x ADV in <a href="https://www.smartkarma.com/entities/tianshui-huatian-technolog-a" target="_blank" data-smartkarma-citation="entities:20708:1" rel="noopener">Tianshui Huatian Technology Co, Ltd. (002185 CH)</a>. </li>
<li>There will be large selling in <a href="https://www.smartkarma.com/entities/cambricon-technologies-corp-lt" target="_blank" data-smartkarma-citation="entities:31068:1" rel="noopener">Cambricon Technologies Lt (688256 CH)</a> due to capping while there will be smaller inflows for the other index constituents.</li>
</ul>


There could be one change for the CNI Semiconductor Chips Index with Verisilicon Microelectronics S (688521 CH) replacing Tianshui Huatian Technology Co, Ltd. (002185 CH). 
Passive trackers will need to buy 0.5x ADV in Verisilicon Microelectronics S (688521 CH) and sell 0.4x ADV in Tianshui Huatian Technology Co, Ltd. (002185 CH). 
There will be large selling in Cambricon Technologies Lt (688256 CH) due to capping while there will be smaller inflows for the other index constituents.


CNI Semiconductor Chips Index Rebalance Preview: One Set of Changes in December

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Equity Bottom-Up

Verisilicon Microelectronics S / Equity Bottom-Up

<ul>
  <li>VeriSilicon operates under a unique "Silicon Platform as a Service"(SiPaaS) model, providing one-stop custom silicon services and semiconductor IP licensing, positioning it as a key enabler in China's push for semiconductor self-sufficiency.</li>
  <li>The company is currently unprofitable, with significant net losses and negative operating cash flows over the past two years, reflecting high R&amp;D expenditures and a challenging market environment.</li>
  <li>Growth is heavily tied to high-growth, capital-intensive sectors like automotive electronics, data centers, and AI/IoT, which present substantial opportunities but also expose the company to the cyclicality and intense competition of the semiconductor industry.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  VeriSilicon operates under a unique "Silicon Platform as a Service"(SiPaaS) model, providing one-stop custom silicon services and semiconductor IP licensing, positioning it as a key enabler in China's push for semiconductor self-sufficiency.
  The company is currently unprofitable, with significant net losses and negative operating cash flows over the past two years, reflecting high R&amp;D expenditures and a challenging market environment.
  Growth is heavily tied to high-growth, capital-intensive sectors like automotive electronics, data centers, and AI/IoT, which present substantial opportunities but also expose the company to the cyclicality and intense competition of the semiconductor industry.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Verisilicon Microelectronics S (688521 CH) - Sep 2025

Guotai Junan Securities   / Index Rebalance

<ul>
<li>There could be 23 changes for the CSI A500 Index at the December rebalance. Turnover is estimated at 2.9% and the round-trip trade is around US$1.6bn.</li>
<li>There is a fair amount of balance between sectors with Consumer Discretionary and Health Care expected to lose index spots to Industrials, Information Technology and Materials.</li>
<li>The forecast adds outperformed the forecast deletes from June-September but have given up gains since then. Position in stocks that will have same-way flows from passive trackers of other indices.</li>
</ul>


There could be 23 changes for the CSI A500 Index at the December rebalance. Turnover is estimated at 2.9% and the round-trip trade is around US$1.6bn.
There is a fair amount of balance between sectors with Consumer Discretionary and Health Care expected to lose index spots to Industrials, Information Technology and Materials.
The forecast adds outperformed the forecast deletes from June-September but have given up gains since then. Position in stocks that will have same-way flows from passive trackers of other indices.


CSI A500 Index Rebalance Preview: Bunch of Changes to Lead to US$1.6bn Trade

Victory Giant Technology -A / Index Rebalance

<ul>
<li>There could be 12 changes at the December rebalance with the Information Technology sector gaining 2 index spots and a smaller number of changes in the other sectors.</li>
<li>We estimate one-way turnover of 2.7% at the rebalance leading to a round-trip trade of CNY 69.8bn (US$9.8bn). There are 8 stocks with over 2x ADV to trade.</li>
<li>The forecast adds have outperformed the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI 300 Index</a> over the last 5 months while the forecast deletes have underperformed the index.</li>
</ul>


There could be 12 changes at the December rebalance with the Information Technology sector gaining 2 index spots and a smaller number of changes in the other sectors.
We estimate one-way turnover of 2.7% at the rebalance leading to a round-trip trade of CNY 69.8bn (US$9.8bn). There are 8 stocks with over 2x ADV to trade.
The forecast adds have outperformed the CSI 300 Index over the last 5 months while the forecast deletes have underperformed the index.


CSI300 Index Rebalance Preview: 12 Changes a Side as Trade Nears US$10bn

China

Verisilicon Microelectronics (Shanghai) Co., Ltd. manufactures and distributes chips. The Company provides chips designing, production, testing, marketing, and other related services. Verisilicon Microelectronics (Shanghai) markets its products worldwide.

Verisilicon Microelectronics S (688521 CH)

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Verisilicon Microelectronics S (688521 CH)

STAR&CHINEXT 50 Index Rebalance Preview: Potential Changes in December

There could be up to 4 changes in Dec. The forecast adds will have same-way flow from passive trackers of other indices. There is between 0.1-0.35x...

Brian Freitas

CNI Semiconductor Chips Index Rebalance Preview: One Set of Changes in December

Verisilicon could replace Tianshui Huatian in the index in Dec. Verisilicon is an expected add to a few other indices at the same time and flow...

Brian Freitas

Primer: Verisilicon Microelectronics S (688521 CH) - Sep 2025

VeriSilicon operates under a unique "Silicon Platform as a Service"(SiPaaS) model, providing one-stop custom silicon services and semiconductor...

αSK

CSI A500 Index Rebalance Preview: Bunch of Changes to Lead to US$1.6bn Trade

There could be 23 changes for the CSI A500 Index at the Dec rebal. Estimated turnover is 2.9% and round-trip trade is US$1.6bn. Adds outperformed...

Brian Freitas

CSI300 Index Rebalance Preview: 12 Changes a Side as Trade Nears US$10bn

There could be 12 changes in Dec. Estimate one-way turnover is 2.7% resulting in a round-trip trade of US$9.8bn. The adds have outperformed the...

Brian Freitas

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