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

Shanghai Rural Commercial Bank / Index Rebalance

Shanghai Rural Commercial Bank (601825 CH)

<ul>
<li>There are 7 changes for 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>, 50 changes for the CSI 500 Index and 100 changes for the CSI1000 Index that will be implemented on 13 June.</li>
<li>There are 240 unique names that are adds or deletes and the round-trip trade across all 3 indices is close to US$12bn.</li>
<li>The adds have outperformed the deletes for 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> and the CSI 1000 Index but underperformed for the <a href="https://www.smartkarma.com/entities/csi-smallcap-500-index-shang" target="_blank" data-smartkarma-citation="entities:35347:1" rel="noopener">CSI 500 Index</a>.</li>
</ul>


There are 7 changes for the CSI 300 Index, 50 changes for the CSI 500 Index and 100 changes for the CSI1000 Index that will be implemented on 13 June.
There are 240 unique names that are adds or deletes and the round-trip trade across all 3 indices is close to US$12bn.
The adds have outperformed the deletes for the CSI 300 Index and the CSI 1000 Index but underperformed for the CSI 500 Index.


CSI300/CSI500/CSI1000 Index Rebalance: Changes Lead to US$12bn Trade

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Wingtech released its 1Q25 earnings. Revenue declined by 19.4% YoY to RMB13.1bn, while net profit surged by 82.3% YoY to RMB261mn.</li><li>GPM recovered to 14.0% (vs. 9.1%/9.2% in 4Q24/1Q24). By segment, ODM/ semi accounted for 72%/28% of 1Q sales.</li><li>The company has entered a transformation phase following the divestment of its ODM business. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Wingtech released its 1Q25 earnings. Revenue declined by 19.4% YoY to RMB13.1bn, while net profit surged by 82.3% YoY to RMB261mn.GPM recovered to 14.0% (vs. 9.1%/9.2% in 4Q24/1Q24). By segment, ODM/ semi accounted for 72%/28% of 1Q sales.The company has entered a transformation phase following the divestment of its ODM business. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Wingtech (600745 CH) - Resilient 1Q Semiconductor Sales

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

<ul><li>Wingtech sells ODM assets to Luxshare as they shift focus towards semiconductors, a strategic move for the Apple supplier.</li><li>India's PLI scheme falls short of goals, prompting a shift towards offering factory subsidies instead to incentivize growth in the industry.</li><li>Taiwan's IPC industry feels the impact of US tariffs, while Foxconn remains tight-lipped on potential collaboration with Mitsubishi Motors.</li></ul>

Wingtech sells ODM assets to Luxshare as they shift focus towards semiconductors, a strategic move for the Apple supplier.India's PLI scheme falls short of goals, prompting a shift towards offering factory subsidies instead to incentivize growth in the industry.Taiwan's IPC industry feels the impact of US tariffs, while Foxconn remains tight-lipped on potential collaboration with Mitsubishi Motors.

Tech Supply Chain Tracker (22-Mar-2025): Wingtech sells ODM assets to Luxshare.

<ul><li>Wingtech announced its preliminary FY24 results. The company expects a net loss to be around RMB3.5-4.55bn (vs. RMB1.1bn NP in FY23).</li><li>Mgmt. attributed the NL primarily to 1) impairment related to the sale of ODM business announced in Dec (link), 2) a write-down on deferred tax assets, and 3) further goodwill impairments (RMB600mn/RMB500mn in 2022/23, with RMB200mn to be fully impaired in 2024).</li><li>Despite short-term financial setbacks, we believe Wingtech is better-positioned for LT value creation as it moves forward with a lighter load as it transforms itself to a predominately semiconductor-focused company. Maintain BUY with TP unchanged at RMB52.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Wingtech announced its preliminary FY24 results. The company expects a net loss to be around RMB3.5-4.55bn (vs. RMB1.1bn NP in FY23).Mgmt. attributed the NL primarily to 1) impairment related to the sale of ODM business announced in Dec (link), 2) a write-down on deferred tax assets, and 3) further goodwill impairments (RMB600mn/RMB500mn in 2022/23, with RMB200mn to be fully impaired in 2024).Despite short-term financial setbacks, we believe Wingtech is better-positioned for LT value creation as it moves forward with a lighter load as it transforms itself to a predominately semiconductor-focused company. Maintain BUY with TP unchanged at RMB52.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Wingtech (600745 CH) - Entering 2025 with a Clean Slate, with the Worst Left Behind

Luxshare Precision Industry / Equity Bottom-Up

<ul><li>Infineon expands presence in Southeast Asia with new fab in Thailand for backend operations, strengthening its manufacturing capabilities in the region.</li><li>Biden's AI rules emphasize closed models, sparking discussion about the importance of open-source technology development in the industry.</li><li>EU urges Trump to lift AI export ban affecting 17 member states, imposed by Biden, to facilitate international cooperation in the field of artificial intelligence.</li></ul>

Infineon expands presence in Southeast Asia with new fab in Thailand for backend operations, strengthening its manufacturing capabilities in the region.Biden's AI rules emphasize closed models, sparking discussion about the importance of open-source technology development in the industry.EU urges Trump to lift AI export ban affecting 17 member states, imposed by Biden, to facilitate international cooperation in the field of artificial intelligence.

Tech Supply Chain Tracker (16-Jan-2025): Infineon builds new fab in Thailand

China

Wingtech Technology Co.,Ltd manufactures communications equipment. The Company produces mobile phones, tablets, smart devices, and other equipment. Wingtech Technology also operates real estate development, hotel management, financing, and other businesses.

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Wingtech Technology (600745 CH)

CSI300/CSI500/CSI1000 Index Rebalance: Changes Lead to US$12bn Trade

The 314 changes to the CSI300/500/1000 indices lead to 240 unique names. The round-trip trade across all three indices is around US$12bn. Some...

Brian Freitas

Wingtech (600745 CH) - Resilient 1Q Semiconductor Sales

Wingtech released its 1Q25 earnings. Revenue declined by 19.4% YoY to RMB13.1bn, while net profit surged by 82.3% YoY to RMB261mn. GPM recovered to...

CMB International

Tech Supply Chain Tracker (22-Mar-2025): Wingtech sells ODM assets to Luxshare.

Wingtech sells ODM assets to Luxshare, PLI scheme misses goals in India, Taiwan IPC industry impacted by tariffs, Foxconn remains silent on...

Tech Supply Chain Tracker

Wingtech (600745 CH) - Entering 2025 with a Clean Slate, with the Worst Left Behind

Wingtech announced its preliminary FY24 results. The company expects a net loss to be around RMB3.5-4.55bn (vs. RMB1.1bn NP in FY23).

CMB International

Tech Supply Chain Tracker (16-Jan-2025): Infineon builds new fab in Thailand

Infineon expands in Thailand, Biden's AI rules spark discussion, EU urges Trump to lift export ban, Indichip & Yitoa to build SiC fab in India, CES...

Tech Supply Chain Tracker

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