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>We see 37 potential adds (including plenty of new listings) and 25 potential deletes (on market cap and liquidity) for the Hang Seng Composite Index in September.</li>
<li>We expect 32 stocks to be added to Southbound Stock Connect following the rebalance while 24 stocks could be deleted from the trading link and become Sell-only.</li>
<li>There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.</li>
</ul>


We see 37 potential adds (including plenty of new listings) and 25 potential deletes (on market cap and liquidity) for the Hang Seng Composite Index in September.
We expect 32 stocks to be added to Southbound Stock Connect following the rebalance while 24 stocks could be deleted from the trading link and become Sell-only.
There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.


HSCI Index Rebalance Preview and Stock Connect: Potential Changes in September

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>As the Hong Kong bourse languishes, recent Hong Kong privatisation include mainland Chinese firms such as <a href="https://www.smartkarma.com/entities/vinda-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:475:1" rel="noopener">Vinda International (3331 HK)</a> and <a href="https://www.smartkarma.com/entities/china-traditional-chinese-medicine" target="_blank" data-smartkarma-citation="entities:351:1" rel="noopener">China Traditional Chinese Medicine (570 HK)</a> . </li>
<li>Reportedly (Reuters) <a href="https://www.smartkarma.com/entities/li-ning-co-ltd" target="_blank" data-smartkarma-citation="entities:6047:1" rel="noopener">Li Ning (2331 HK)</a> is now in the crosshairs.  Shares are up 7.8% as I type.</li>
<li>Olympic champion Li Ning holds ~10.5% in his self-named company, which was recently in the news after acquiring a HK$2.2bn commercial building from <a href="https://www.smartkarma.com/entities/henderson-land-development-co" target="_blank" data-smartkarma-citation="entities:376:1" rel="noopener">Henderson Land (12 HK) </a> as its headquarters.</li>
</ul>


As the Hong Kong bourse languishes, recent Hong Kong privatisation include mainland Chinese firms such as Vinda International (3331 HK) and China Traditional Chinese Medicine (570 HK) . 
Reportedly (Reuters) Li Ning (2331 HK) is now in the crosshairs.  Shares are up 7.8% as I type.
Olympic champion Li Ning holds ~10.5% in his self-named company, which was recently in the news after acquiring a HK$2.2bn commercial building from Henderson Land (12 HK)  as its headquarters.


Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>I visited a Clarks store in Putney, London today. I provide details of this store visit. </li>
<li>Clarks is well poised to stage a major turnaround in business, capitalizing on improving popularity of its core Wallabee shoes and expansion into other distribution channels such as Deichmann. </li>
<li>Clarks hired Jonathan Ram as its new CEO in April 2022. Previously, Ram headed up HanesBrands global activewear since 2018. He also worked 16 years at New Balance.</li>
</ul>


I visited a Clarks store in Putney, London today. I provide details of this store visit. 
Clarks is well poised to stage a major turnaround in business, capitalizing on improving popularity of its core Wallabee shoes and expansion into other distribution channels such as Deichmann. 
Clarks hired Jonathan Ram as its new CEO in April 2022. Previously, Ram headed up HanesBrands global activewear since 2018. He also worked 16 years at New Balance.


Visit to a Clarks Store in London, A New CEO, & The Surprising Popularity of Clarks' Wallabees

<ul>
<li>
<a href="https://www.smartkarma.com/entities/viva-china-holdings-ltd" target="_blank" data-smartkarma-citation="entities:15864:1" rel="noopener">Viva China (8032 HK)</a> trades at a large discount to its 10.6% holding in <a href="https://www.smartkarma.com/entities/li-ning-co-ltd" target="_blank" data-smartkarma-citation="entities:6047:1" rel="noopener">Li Ning (2331 HK)</a>. </li>
<li>Apart from its Li Ning exposure, Viva has a controlling stake in <a href="https://www.smartkarma.com/entities/bossini-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:4085:1" rel="noopener">Bossini International Holdings (592 HK)</a>, a sports experience segment, and net cash.</li>
<li>The current NAV discount of ~46% is unlikely to meaningfully narrow near term given management's reluctance to pay out a large dividend or undertake a corporate restructuring. </li>
</ul>



Viva China (8032 HK) trades at a large discount to its 10.6% holding in Li Ning (2331 HK). 
Apart from its Li Ning exposure, Viva has a controlling stake in Bossini International Holdings (592 HK), a sports experience segment, and net cash.
The current NAV discount of ~46% is unlikely to meaningfully narrow near term given management's reluctance to pay out a large dividend or undertake a corporate restructuring. 


Viva China: Perennially Inexpensive Li Ning Exposure

<ul>
<li>Viva China Holdings is a deep value stock with several key catalysts. Viva China Holdings'10.36% stake in Li Ning (2331 HK) alone is worth 152% of its market cap.</li>
<li>In addition, Viva China Holdings is making solid acquisitions in the global footwear/apparel sector such as Clarks, which is one of the most well known footwear brands in the U.K.</li>
<li>A major ongoing risk factor is the recent major lockdowns in Shanghai and other cities in China, which is intent on pursing a zero COVID policy.</li>
</ul>


Viva China Holdings is a deep value stock with several key catalysts. Viva China Holdings'10.36% stake in Li Ning (2331 HK) alone is worth 152% of its market cap.
In addition, Viva China Holdings is making solid acquisitions in the global footwear/apparel sector such as Clarks, which is one of the most well known footwear brands in the U.K.
A major ongoing risk factor is the recent major lockdowns in Shanghai and other cities in China, which is intent on pursing a zero COVID policy.


Viva China: M&A of Global Footwear Brands at Discount & Its Stake in Li Ning Is More than Market Cap

Hong Kong

Viva Goods is an investment holding company primarily engaged in multi-brand apparel and footwear, and sports experience businesses. It designs, develops, brands, and sells apparel and footwear under various brands, and manages sports parks, centers, ice-skating rinks, and e-sports clubs. The company was incorporated in 2000 and is headquartered in Hong Kong.

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Viva Goods (933 HK)

HSCI Index Rebalance Preview and Stock Connect: Potential Changes in September

There could be nearly 80 adds/deletes for the HSCI in September. That will trigger changes to the Southbound Stock Connect list and increase flows...

Brian Freitas

Li Ning (2331 HK): Value Trap Play?

IF you are an arbitrageur, I might dip my toe in here. IF you are a long only investor, I'd probably be buying around here. But neither are strong...

David Blennerhassett

Visit to a Clarks Store in London, A New CEO, & The Surprising Popularity of Clarks' Wallabees

I visited a Clarks store in Putney, London today. I provide details of this store visit. Clarks is well poised to stage a major turnaround in...

Douglas Kim

Viva China: Perennially Inexpensive Li Ning Exposure

Unless the Li family pays out excess cash or undertakes a company restructuring, I would avoid the stock at this level, and look to enter when the...

David Blennerhassett

Viva China: M&A of Global Footwear Brands at Discount & Its Stake in Li Ning Is More than Market Cap

Viva China Holdings is a deep value stock with several key catalysts. Viva China Holdings'10.36% stake in Li Ning (2331 HK) alone is worth 152% of...

Douglas Kim

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