Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<p>The Hang Seng Indexes Company Limited (HSIL) announced the results of its review of the Hang Seng Family of Indexes post market close on 13 November. The constituent changes will be effective after the close of trading on 4 December.</p><p>For the Hang Seng TECH Index, there are 2 inclusions and 2 exclusions.</p><p>The inclusions are <a href="https://www.smartkarma.com/entities/ming-yuan-cloud-group" target="_blank" data-smartkarma-citation="entities:29268:1" rel="noopener">Ming Yuan Cloud Group (909 HK)</a> and <a href="https://www.smartkarma.com/entities/archosaur-games" target="_blank" data-smartkarma-citation="entities:28948:1" rel="noopener">Archosaur Games (9990 HK)</a>, while the deletions are <a href="https://www.smartkarma.com/entities/hengten-networks-group-ltd" target="_blank" data-smartkarma-citation="entities:3296:1" rel="noopener">HengTen Ltd (136 HK)</a> and <a href="https://www.smartkarma.com/entities/netdragon-websoft-inc" target="_blank" data-smartkarma-citation="entities:3703:1" rel="noopener">Netdragon Websoft (777 HK)</a>.</p><p> One way turnover is 7.97% due to the inclusions/ exclusions, capping, and free float changes.</p><p>Both inclusions have 0.67 days of ADV to buy, <a href="https://www.smartkarma.com/entities/hengten-networks-group-ltd" target="_blank" data-smartkarma-citation="entities:3296:1" rel="noopener">HengTen Ltd (136 HK)</a> has 0.6 days of ADV to sell, while <a href="https://www.smartkarma.com/entities/netdragon-websoft-inc" target="_blank" data-smartkarma-citation="entities:3703:1" rel="noopener">Netdragon Websoft (777 HK)</a> has 1 day of ADV to sell.</p>

The Hang Seng Indexes Company Limited (HSIL) announced the results of its review of the Hang Seng Family of Indexes post market close on 13 November. The constituent changes will be effective after the close of trading on 4 December.For the Hang Seng TECH Index, there are 2 inclusions and 2 exclusions.The inclusions are Ming Yuan Cloud Group (909 HK) and Archosaur Games (9990 HK), while the deletions are HengTen Ltd (136 HK) and Netdragon Websoft (777 HK). One way turnover is 7.97% due to the inclusions/ exclusions, capping, and free float changes.Both inclusions have 0.67 days of ADV to buy, HengTen Ltd (136 HK) has 0.6 days of ADV to sell, while Netdragon Websoft (777 HK) has 1 day of ADV to sell.

Hang Seng TECH Index Rebalance: Two Changes as Assets Continue to Grow

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

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<p>Back on the 13 September 2019, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a> and Hammer Capital tabled a preliminary non-binding <a href="http://ir.bitauto.com/news-releases/news-release-details/bitauto-announces-receipt-preliminary-non-binding-going-private" target="_blank" rel="noopener">proposal</a> for <a href="https://www.smartkarma.com/entities/bitauto-holdings-ltd-adr" target="_blank" data-smartkarma-citation="entities:12004:1" rel="noopener">Bitauto Holdings Ltd Adr (BITA US)</a> at US$16/ADS, a ~20.6% premium to last close.</p>
<p>On the 12 June of this year, Bitauto <a href="http://ir.bitauto.com/news-releases/news-release-details/bitauto-enters-definitive-agreement-going-private-transaction" target="_blank" rel="noopener">announced</a> it had entered into a definitive Merger Agreement with Tencent and Hammer at US$16/ADS. Shareholders holding 55.3% of shares out have agreed to vote in favour of the Merger. The proposal required two-thirds. As discussed in <a href="https://skr.ma/BkDTp" target="_blank" rel="noopener">T<em>encent's Potential Downstream Offer For Yixin</em></a> and <em><a href="https://skr.ma/dCrB8" target="_blank" rel="noopener">Bitauto (BITA US): Done Deal. Keep An Eye on Yixin's MGO</a></em>, the deal was done.</p>
<p>Bitauto shareholders <a href="https://ir.bitauto.com/static-files/e04db9da-f521-4630-9b28-4db300df73a7" target="_blank" rel="noopener">approved</a> the merger plan on the 23 October - 88.9% of shares out attended the vote (present or via proxy), 99.9% of which voted for the merger.</p>
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<p>Bitauto owns ~43.72% of shares out in <a href="https://www.smartkarma.com/entities/yixin-group-ltd" target="_blank" data-smartkarma-citation="entities:26008:1" rel="noopener">Yixin Group Ltd (2858 HK)</a>. Tencent holds 20.58%, JD.com 10.73%, and Hammer 1.48%. Once the Bitauto proposal completes, there will be a change in statutory control in Yixin, obligating Tencent and concert parties to make an <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0615/2020061501449.pdf" target="_blank" rel="noopener">unconditional mandatory general</a> offer (MGO). The downstream Offer will be HK$1.9088/share.</p>
<p><strong>The New News</strong></p>
<p>All conditions to the Bitauto merger were fulfilled on the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1106/2020110600073.pdf" target="_blank" rel="noopener">4 November</a>. The MGO is now triggered. The Composite Document is expected to be despatched on or before the 11 November, following which the offer will be open to acceptances.</p>
<p>More below the fold.</p>
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Back on the 13 September 2019, Tencent Holdings (700 HK) and Hammer Capital tabled a preliminary non-binding proposal for Bitauto Holdings Ltd Adr (BITA US) at US$16/ADS, a ~20.6% premium to last close.
On the 12 June of this year, Bitauto announced it had entered into a definitive Merger Agreement with Tencent and Hammer at US$16/ADS. Shareholders holding 55.3% of shares out have agreed to vote in favour of the Merger. The proposal required two-thirds. As discussed in Tencent's Potential Downstream Offer For Yixin and Bitauto (BITA US): Done Deal. Keep An Eye on Yixin's MGO, the deal was done.
Bitauto shareholders approved the merger plan on the 23 October - 88.9% of shares out attended the vote (present or via proxy), 99.9% of which voted for the merger.


Bitauto owns ~43.72% of shares out in Yixin Group Ltd (2858 HK). Tencent holds 20.58%, JD.com 10.73%, and Hammer 1.48%. Once the Bitauto proposal completes, there will be a change in statutory control in Yixin, obligating Tencent and concert parties to make an unconditional mandatory general offer (MGO). The downstream Offer will be HK$1.9088/share.
The New News
All conditions to the Bitauto merger were fulfilled on the 4 November. The MGO is now triggered. The Composite Document is expected to be despatched on or before the 11 November, following which the offer will be open to acceptances.
More below the fold.









Yixin (2858 HK)’s Downstream Unconditional MGO

<p><a href="https://www.smartkarma.com/entities/get-nice-holdings-ltd" target="_blank" data-smartkarma-citation="entities:16415:1" rel="noopener">Get Nice Holdings (64 HK)</a> (GNH) has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0916/2020091601148.pdf" target="_blank" rel="noopener">announced</a> its Hung Hon Man (CEO), with 29.99%, has made a voluntary cash offer of HK$0.17/share, a tiny premium to the undisturbed price. The Offer is conditional on  Hung and Concert Parties holding more than 50% of the voting rights in GNH.</p>
<p>GNH holds 72.99% in Get Nice Financial (1469 HK) (GNF). Should the Offer for GNH turn unconditional, the Offeror would be obligated to make a downstream Offer for GNF. That Offer price will be HK$0.4726/share, a 33.44% discount to last close.</p>
<p>Chain Principle Offers invariably offer minimum to negative premiums - but the mechanics of how they are calculated are always worth a look. </p>
<p>As always, more below the fold.</p>

Get Nice Holdings (64 HK) (GNH) has announced its Hung Hon Man (CEO), with 29.99%, has made a voluntary cash offer of HK$0.17/share, a tiny premium to the undisturbed price. The Offer is conditional on  Hung and Concert Parties holding more than 50% of the voting rights in GNH.
GNH holds 72.99% in Get Nice Financial (1469 HK) (GNF). Should the Offer for GNH turn unconditional, the Offeror would be obligated to make a downstream Offer for GNF. That Offer price will be HK$0.4726/share, a 33.44% discount to last close.
Chain Principle Offers invariably offer minimum to negative premiums - but the mechanics of how they are calculated are always worth a look. 
As always, more below the fold.

Get Nice (64 HK)'s VGO. Possible Downstream Offer For Get Nice (1469 HK)

Last Week in Event SPACE: Toshiba, Softbank, Cardinal Resources, Sembcorp, Intouch, SingTel, 58.Com

<p>On 20 July, the Hang Seng Indexes Company announced that they would be launching the Hang Seng TECH Index on 27 July. The next day the index jumped 7.2%, helped in no small part by the news of <a href="https://www.smartkarma.com/entities/ant-financial-services-group" target="_blank" data-smartkarma-citation="entities:24240:1" rel="noopener">Ant Financial (1051260D CH)</a>'s impending listing. </p><div>
<p>The Hang Seng TECH index (HSTECH) is a free float adjusted market cap weighted index that tracks the 30 largest technology stocks listed in Hong Kong and covers companies that have high business exposure to selected technology themes, including internet, fintech, cloud, e-commerce and digital activities. Eligible candidates are further screened by whether they operate via a technology-enabled platform, their research and development expenses to revenue ratio, and their revenue growth.</p>
<p>We wondered when ETFs tracking the index would be launched. We did not have to wait too long. On 28 August, CSOP launched the first ETF (3033 HK) linked to the HSTECH index. The fund raised around HKD 180m in seed money prior to listing. The first day of trading saw 382.16m shares (HKD 3.045bn of notional) trade, making it the highest traded volume for an ETF on launch day since the Tracker Fund (2800 HK) in 1999. It was also sixth most traded listing for the day on the HKEX behind <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a>, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>, <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a>, <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan Dianping (3690 HK)</a> and <a href="https://www.smartkarma.com/entities/aia-group-ltd" target="_blank" data-smartkarma-citation="entities:14895:1" rel="noopener">AIA Group Ltd (1299 HK)</a>. </p>
<p>There are two more ETFs tracking the HSTECH index that will be launched shortly: Hang Seng TECH Index ETF (3032 HK) and ChinaAMC Hang Seng TECH Index ETF (3088 HK).</p>
<p>In this Insight, we take a look at the index, the index methodology, the impact on the stocks, and what the Fast Entry of large listings could mean for smaller names in the index.</p>
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On 20 July, the Hang Seng Indexes Company announced that they would be launching the Hang Seng TECH Index on 27 July. The next day the index jumped 7.2%, helped in no small part by the news of Ant Financial (1051260D CH)'s impending listing. 
The Hang Seng TECH index (HSTECH) is a free float adjusted market cap weighted index that tracks the 30 largest technology stocks listed in Hong Kong and covers companies that have high business exposure to selected technology themes, including internet, fintech, cloud, e-commerce and digital activities. Eligible candidates are further screened by whether they operate via a technology-enabled platform, their research and development expenses to revenue ratio, and their revenue growth.
We wondered when ETFs tracking the index would be launched. We did not have to wait too long. On 28 August, CSOP launched the first ETF (3033 HK) linked to the HSTECH index. The fund raised around HKD 180m in seed money prior to listing. The first day of trading saw 382.16m shares (HKD 3.045bn of notional) trade, making it the highest traded volume for an ETF on launch day since the Tracker Fund (2800 HK) in 1999. It was also sixth most traded listing for the day on the HKEX behind Xiaomi Corp (1810 HK), Tencent Holdings (700 HK), Alibaba Group (9988 HK), Meituan Dianping (3690 HK) and AIA Group Ltd (1299 HK). 
There are two more ETFs tracking the HSTECH index that will be launched shortly: Hang Seng TECH Index ETF (3032 HK) and ChinaAMC Hang Seng TECH Index ETF (3088 HK).
In this Insight, we take a look at the index, the index methodology, the impact on the stocks, and what the Fast Entry of large listings could mean for smaller names in the index.


Hang Seng TECH Index - 'NASDAQ of the East' ETFs Are Here

China

Yixin Group Limited offers an online automobile finance transaction platform. The Company provides loan facilitation, car rental, and other services. Yixin Group operates in China.

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Yixin Group (2858 HK)

Hang Seng TECH Index Rebalance: Two Changes as Assets Continue to Grow

The first review of the Hang Seng TECH index has 2 inclusions and 2 deletions. Assets benchmarked to the index are north of US$1.1bn and will...

Brian Freitas

Yixin (2858 HK)’s Downstream Unconditional MGO

With Tencent at the helm, investors are playing the back-end. You effectively have a hard floor (or put) on the stock through to early December....

David Blennerhassett

Get Nice (64 HK)'s VGO. Possible Downstream Offer For Get Nice (1469 HK)

Get Nice Holdings (64 HK)has announced its major shareholder, with

David Blennerhassett

Last Week in Event SPACE: Toshiba, Softbank, Cardinal Resources, Sembcorp, Intouch, SingTel, 58.Com

Last Week in Event SPACE ... Plus, other events, CCASS movements and Mood Spins. (This insight covers specific insights & comments...

David Blennerhassett

Hang Seng TECH Index - 'NASDAQ of the East' ETFs Are Here

On 20 July, the Hang Seng Indexes Company announced that they would be launching the Hang Seng TECH Index on 27 July. The next day the index jumped...

Brian Freitas

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