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

DZT Research

DZT 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.

Event-Driven

<ul>
<li>Shanghai Stock Exchange and Shenzhen Stock Exchange confirmed 40 ADDs and 25 DELETEs for Connect implementation on 9 March 2026.</li>
<li>The DELETE trade has worked well, with mean WAI return of -10.0% (21/25 negative); ADD stocks underperformed during WAI at -3.3% mean, consistent with the September 2025 event study.</li>
<li>Selectivity remains critical into implementation: favor narrative-aligned ADDs with moderate pre-event extension, maintain DELETE shorts on high-Connect-holding names, and monitor the three delayed ADDs for secondary entry points.</li>
</ul>


Shanghai Stock Exchange and Shenzhen Stock Exchange confirmed 40 ADDs and 25 DELETEs for Connect implementation on 9 March 2026.
The DELETE trade has worked well, with mean WAI return of -10.0% (21/25 negative); ADD stocks underperformed during WAI at -3.3% mean, consistent with the September 2025 event study.
Selectivity remains critical into implementation: favor narrative-aligned ADDs with moderate pre-event extension, maintain DELETE shorts on high-Connect-holding names, and monitor the three delayed ADDs for secondary entry points.


HSCI / HK Connect (March 2026): Implementation Today & Positioning

<ul>
<li>Hang Seng Index Company announced HSCI review results after market close on Feb 13. In our previous note, we reviewed the Sep 2025 HK Connect cycle.</li>
<li>In this note, we provide an update on the forecasted upcoming implementation action by the mainland exchanges based on implementation rules and highlight stock performance thus far.</li>
<li>Our analysis suggests that selectivity will be critical in this cycle, with differentiation driven by pre-positioning, narrative alignment, and ownership structure rather than mechanical inclusion alone.</li>
</ul>


Hang Seng Index Company announced HSCI review results after market close on Feb 13. In our previous note, we reviewed the Sep 2025 HK Connect cycle.
In this note, we provide an update on the forecasted upcoming implementation action by the mainland exchanges based on implementation rules and highlight stock performance thus far.
Our analysis suggests that selectivity will be critical in this cycle, with differentiation driven by pre-positioning, narrative alignment, and ownership structure rather than mechanical inclusion alone.


HK Connect March 2026: Implementation Forecast and Positioning Framework

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tongda-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:18625:1" rel="noopener">Tongda Group Holdings (698 HK)</a> has issued a profit alert recently, thanks to the disposal of its precision business.</li>
<li>Its subsidiary in A shares is trading at RMB 3.2 billion, implying a hidden value of Tongda Group of HKD 1.3 billion, 2x of the current market value. </li>
<li>Special dividend, and shares buy back are potential for Tongda Group Holdings as it is now trading at 0.3x PBR and 0.2 P/sales. </li>
</ul>



Tongda Group Holdings (698 HK) has issued a profit alert recently, thanks to the disposal of its precision business.
Its subsidiary in A shares is trading at RMB 3.2 billion, implying a hidden value of Tongda Group of HKD 1.3 billion, 2x of the current market value. 
Special dividend, and shares buy back are potential for Tongda Group Holdings as it is now trading at 0.3x PBR and 0.2 P/sales. 


Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Kalon is unlikely to overbid KKR for <a href="https://www.smartkarma.com/entities/mandom-corp" target="_blank" data-smartkarma-citation="entities:8353:1" rel="noopener">Mandom (4917 JP)</a>. KKR is unlikely to walk despite the earnings guidance revision after the DD.  ¥3,100+ is a fine place to sell.</li>
<li>Panama’s Supreme Court dings <a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison (1 HK)</a>'s port concessions. CKH/Beijing won't go down without a fight; and rejigging a deal for the remaining ports will (likely) be perennially delayed.</li>
<li>
<a href="https://www.smartkarma.com/entities/hisamitsu-pharmaceutical-co" target="_blank" data-smartkarma-citation="entities:17008:1" rel="noopener">Hisamitsu Pharmaceutical Co (4530 JP)</a>is trading through terms. The family Tender Offer is light, but it likely has enormous crossholder support. They could still claim majority of minority.</li>
</ul>


Kalon is unlikely to overbid KKR for Mandom (4917 JP). KKR is unlikely to walk despite the earnings guidance revision after the DD.  ¥3,100+ is a fine place to sell.
Panama’s Supreme Court dings CK Hutchison (1 HK)'s port concessions. CKH/Beijing won't go down without a fight; and rejigging a deal for the remaining ports will (likely) be perennially delayed.

Hisamitsu Pharmaceutical Co (4530 JP)is trading through terms. The family Tender Offer is light, but it likely has enormous crossholder support. They could still claim majority of minority.


Last Week In Event SPACE: CK Hutchison, Hisamitsu Pharma, JCNC, Mandom, Sunny Optical, Rio

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>There could be 49 potential inclusions and 25 potential deletions for the Hang Seng Composite Index in March. There are more stocks that are close on market cap/liquidity.</li>
<li>A lot of the potential adds are very recently listed stocks that have a limited trading history. The low free float could lead to price spikes in the stocks.</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>


There could be 49 potential inclusions and 25 potential deletions for the Hang Seng Composite Index in March. There are more stocks that are close on market cap/liquidity.
A lot of the potential adds are very recently listed stocks that have a limited trading history. The low free float could lead to price spikes in the stocks.
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 (Mar 2026): Many Changes Following Huge IPO Quarter

Hong Kong

Wasion is a leading total solution provider of advanced metering, advanced distribution, and energy efficiency management in China. The company offers smart meters for electricity, water, gas, and heat, along with power quality monitoring devices, energy data collection terminals, and smart power distribution devices. Headquartered in Hong Kong, the company was founded in 2000.

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Wasion (3393 HK)

HSCI / HK Connect (March 2026): Implementation Today & Positioning

HSCI rebal/HK Connect implementation on March 9th: We provide a follow-up note on what have done well and what to monitor.

Ke Yan, CFA, FRM

HK Connect March 2026: Implementation Forecast and Positioning Framework

March Connect implementation is nearing: we forecast expected ADD/DELETE actions and assess how positioning, crowding, and southbound flows may...

Ke Yan, CFA, FRM

Tongda (698): Special Case

Tongda Group Holdings issues profit alert after disposal of precision business, with hidden value 2x current market value. Potential for special...

Henry Soediarko

Last Week In Event SPACE: CK Hutchison, Hisamitsu Pharma, JCNC, Mandom, Sunny Optical, Rio

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

HSCI Index Rebalance Preview and Stock Connect (Mar 2026): Many Changes Following Huge IPO Quarter

There could be 74 changes for the HSCI in March. That could result in 64 changes to the Southbound Stock Connect list and also have implications...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HSCI / HK Connect (March 2026): Implementation Today & Positioning

HSCI rebal/HK Connect implementation on March 9th: We provide a follow-up note on what have done well and what to monitor.

Ke Yan, CFA, FRM

HK Connect March 2026: Implementation Forecast and Positioning Framework

March Connect implementation is nearing: we forecast expected ADD/DELETE actions and assess how positioning, crowding, and southbound flows may...

Ke Yan, CFA, FRM

Tongda (698): Special Case

​Tongda Group Holdings issues profit alert after disposal of precision business, with hidden value 2x current market value. Potential for special...

Henry Soediarko

Last Week In Event SPACE: CK Hutchison, Hisamitsu Pharma, JCNC, Mandom, Sunny Optical, Rio

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

HSCI Index Rebalance Preview and Stock Connect (Mar 2026): Many Changes Following Huge IPO Quarter

There could be 74 changes for the HSCI in March. That could result in 64 changes to the Southbound Stock Connect list and also have implications...

Brian Freitas

Tongda Group Holdings issues profit alert after disposal of precision business, with hidden value 2x current market value. Potential for special...