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>With free float not meeting the thresholds, <a href="https://www.smartkarma.com/entities/zhongji-innolight" target="_blank" data-smartkarma-citation="entities:55331:1" rel="noopener">Zhongji InnoLight (3308 HK)</a> missed Fast Entry to all major local and global indexes at the time of listing.</li>
<li>We forecast local and global index inclusions for <a href="https://www.smartkarma.com/entities/zhongji-innolight" target="_blank" data-smartkarma-citation="entities:55331:1" rel="noopener">Zhongji InnoLight (3308 HK)</a> in a 3-week period starting end November that will require passives to buy US$1bn of stock.</li>
<li>The passive buying is around 20% of H-share float and is partly responsible for <a href="https://www.smartkarma.com/entities/zhongji-innolight" target="_blank" data-smartkarma-citation="entities:55331:1" rel="noopener">Zhongji InnoLight (3308 HK)</a> trading at a 13% premium to <a href="https://www.smartkarma.com/entities/zhongji-innolight-co-ltd" target="_blank" data-smartkarma-citation="entities:6986:1" rel="noopener">Zhongji Innolight (300308 CH)</a>. </li>
</ul>


With free float not meeting the thresholds, Zhongji InnoLight (3308 HK) missed Fast Entry to all major local and global indexes at the time of listing.
We forecast local and global index inclusions for Zhongji InnoLight (3308 HK) in a 3-week period starting end November that will require passives to buy US$1bn of stock.
The passive buying is around 20% of H-share float and is partly responsible for Zhongji InnoLight (3308 HK) trading at a 13% premium to Zhongji Innolight (300308 CH). 


Zhongji Innolight (3308 HK): Upcoming Index Inclusions Drive H-Shares to Premium Vs A-Shares

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

Shenton Research

Shenton 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.

Quantitative Analysis

<ul>
<li>We analyzed the changes in margin trading positions of A-share stocks as of Sep 30th. The aggregated net margin trading position is USD352,195m.</li>
<li>We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.</li>
<li>We highlight net margin buy/sell changes in ANHUI JIANGHUAI AUTOMOBILE, BEIJING COMPASS TECHNOLOGY DEVELOPMENT, SICHUAN EM TECHNOLOGY, ROCKCHIP ELECTRONICS, GUIZHOU REDSTAR DEVELOPING.</li>
</ul>


We analyzed the changes in margin trading positions of A-share stocks as of Sep 30th. The aggregated net margin trading position is USD352,195m.
We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.
We highlight net margin buy/sell changes in ANHUI JIANGHUAI AUTOMOBILE, BEIJING COMPASS TECHNOLOGY DEVELOPMENT, SICHUAN EM TECHNOLOGY, ROCKCHIP ELECTRONICS, GUIZHOU REDSTAR DEVELOPING.


A-Share Margin Trading Weekly (Sep 30th): ANHUI JIANGHUAI AUTOMOBILE, SICHUAN EM TECHNOLOGY

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.

Thematic (Sector/Industry)

<ul><li>Nvidia (NVDA US, NR) released its 4QFY26 earnings, with revenue up 73% YoY/20% QoQ to US$68bn (beating BBG consensus by 2.6%), and EPS up 82% YoY/25% QoQ to US$1.62 (beating BBG consensus by 5.0%).</li><li>GPM was 75.2%, improving from 73.6% in 3Q and beating BBG consensus of 74.3%. Mgmt. guides 1QFY27 revenue to be US$78bn, implying ~US$10bn step-up (vs. US$11bn last quarter), while GPM is guided to be 75%.</li><li>Overall, Nvidia delivered another strong beat-and-raise 4Q, confirming the robust compute demand from hyperscalers, neo-clouds, sovereign AI, enterprises, etc. </li></ul><p><em>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.</em></p>

Nvidia (NVDA US, NR) released its 4QFY26 earnings, with revenue up 73% YoY/20% QoQ to US$68bn (beating BBG consensus by 2.6%), and EPS up 82% YoY/25% QoQ to US$1.62 (beating BBG consensus by 5.0%).GPM was 75.2%, improving from 73.6% in 3Q and beating BBG consensus of 74.3%. Mgmt. guides 1QFY27 revenue to be US$78bn, implying ~US$10bn step-up (vs. US$11bn last quarter), while GPM is guided to be 75%.Overall, Nvidia delivered another strong beat-and-raise 4Q, confirming the robust compute demand from hyperscalers, neo-clouds, sovereign AI, enterprises, etc. 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.

Semiconductors - Nvidia’s 4Q Earnings: Widening the Moat with Multi-Year Visibility

<ul>
<li>We analysed the earning revision of component stocks of CSI 100 in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on CHINA VANKE, COSCO SHIPPING, CHINA STATE CONSTRUCTION ENGINEERING, Longi Green, POWERCHINA, AVIC SHENYANG AIRCRAFT.</li>
</ul>


We analysed the earning revision of component stocks of CSI 100 in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on CHINA VANKE, COSCO SHIPPING, CHINA STATE CONSTRUCTION ENGINEERING, Longi Green, POWERCHINA, AVIC SHENYANG AIRCRAFT.


CSI 100 Index Earning Revision (Sep): CHINA VANKE, COSCO SHIPPING, Longi Green, POWERCHINA

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Moore Threads Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/moore-threads-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:40221:1" rel="noopener">Moore Threads Technology (688795 CH)</a> (MTT), a domestic GPU producer, aims to raise over &gt;US$1bn in its H-share listing.</li>
<li>MTT mainly engages in the research, design, and sales of GPUs and related products. It listed its A-shares just last year.</li>
<li>We looked at its past performance in our earlier note. In this note, undertake a peer comparison and talk about valuations.</li>
</ul>



Moore Threads Technology (688795 CH) (MTT), a domestic GPU producer, aims to raise over &gt;US$1bn in its H-share listing.
MTT mainly engages in the research, design, and sales of GPUs and related products. It listed its A-shares just last year.
We looked at its past performance in our earlier note. In this note, undertake a peer comparison and talk about valuations.


Aequitas: Moore Threads Technology A/H Listing - Peer Comparison and Thoughts on Valuations

China

Zhongji Innolight Co., Ltd. manufactures and distributes industrial machines and machine parts. The Company produces motor stator windings, insulating machines, coil winding equipment, automatic production lines, and more. Zhongji Innolight mainly conducts businesses domestically.

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Zhongji Innolight (300308 CH)

Zhongji Innolight (3308 HK): Upcoming Index Inclusions Drive H-Shares to Premium Vs A-Shares

Zhongji Innolight H-shares will have multiple index inclusions in a 3-week period starting end-Nov that will require passives to buy US$1bn of...

Brian Freitas

Semiconductors - Nvidia’s 4Q Earnings: Widening the Moat with Multi-Year Visibility

Nvidia (NVDA US, NR) released its 4QFY26 earnings, with revenue up 73% YoY/20% QoQ to US$68bn (beating BBG consensus by 2.6%), and EPS up 82% YoY...

CMB International

CSI 100 Index Earning Revision (Sep): CHINA VANKE, COSCO SHIPPING, Longi Green, POWERCHINA

We analyzed CSI 100's consensus for Sep 2026 and highlighted changes of EPS in CHINA VANKE, COSCO SHIPPING, CHINA STATE CONSTRUCTION ENGINEERING,...

Ke Yan, CFA, FRM

Aequitas: Moore Threads Technology A/H Listing - Peer Comparison and Thoughts on Valuations

Moore Threads Technology (688795 CH), a domestic GPU producer, aims to raise over >US$1bn in its H-share listing. In this note, we undertake a peer...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Zhongji Innolight (3308 HK): Upcoming Index Inclusions Drive H-Shares to Premium Vs A-Shares

Zhongji Innolight H-shares will have multiple index inclusions in a 3-week period starting end-Nov that will require passives to buy US$1bn of...

Brian Freitas

A-Share Margin Trading Weekly (Sep 30th): ANHUI JIANGHUAI AUTOMOBILE, SICHUAN EM TECHNOLOGY

We analyzed A-share margin trading positions report for the past week and highlighted ANHUI JIANGHUAI AUTOMOBILE (600418 CH), BEIJING COMPASS...

Ke Yan, CFA, FRM

Semiconductors - Nvidia’s 4Q Earnings: Widening the Moat with Multi-Year Visibility

Nvidia (NVDA US, NR) released its 4QFY26 earnings, with revenue up 73% YoY/20% QoQ to US$68bn (beating BBG consensus by 2.6%), and EPS up 82% YoY...

CMB International

CSI 100 Index Earning Revision (Sep): CHINA VANKE, COSCO SHIPPING, Longi Green, POWERCHINA

We analyzed CSI 100's consensus for Sep 2026 and highlighted changes of EPS in CHINA VANKE, COSCO SHIPPING, CHINA STATE CONSTRUCTION ENGINEERING,...

Ke Yan, CFA, FRM

Aequitas: Moore Threads Technology A/H Listing - Peer Comparison and Thoughts on Valuations

Moore Threads Technology (688795 CH), a domestic GPU producer, aims to raise over >US$1bn in its H-share listing. In this note, we undertake a peer...

Sumeet Singh