In today’s briefing:
- JFE Holdings (5411 JP) Vs Nippon Steel (5401 JP): Japan Steel Pair Hits Trigger
- [Quiddity Index] Advance Look at March 2027 Nikkei 225 Rebal Predictions – The 3rd DELETE Is Tough
- Japan: Relative Value Opportunities and Pair Trades (7 Sep 2026)
- Weekly Deals Digest (06 Sep) – Nikkon, Kadoya, Ichibanya, Con Aero, Ausgold, Longsys, Ligent, GCash
- Last Week In Event SPACE: SBI/BASE, Con Aero Tech, Mitsubishi Chem/Nippon Sanso, Swire Pac, Jollibee
- Asia-Pac Weekly Wrap: Dentsu Soken, Energy One, Yinson Holdings, Golfzon, Avarga
- This Revision to Corporate Governance Codes Could Be Perceived as Defending Outdated Practices
JFE Holdings (5411 JP) Vs Nippon Steel (5401 JP): Japan Steel Pair Hits Trigger
- Context: The Nippon Steel (5401 JP) vs. JFE Holdings (5411 JP) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlight: Going long JFE Holdings (5411 JP) and short Nippon Steel (5401 JP) targets a 6% return.
- Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.
[Quiddity Index] Advance Look at March 2027 Nikkei 225 Rebal Predictions – The 3rd DELETE Is Tough
- The September 2026 Nikkei 225 Review was announced today. Results are discussed in [Quiddity Index] Nikkei 225 Sep26 Rebal Results: 3 ADDs, 3 DELs, No New Rules Impact.
- Things went roughly as predicted for the selection of data they chose (there was a question about industry categorisation). Some people questioned discretionary ordering. That’s settled.
- With 92% of the Mar27 rebal data period behind us, we take a brief look at what the March 2027 rebal. It’s kind of confusing. The third delete is tough.
Japan: Relative Value Opportunities and Pair Trades (7 Sep 2026)
- Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.
- Highlights: In Japan, currently two pair trade opportunities persist across two sectors.
- Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.
Weekly Deals Digest (06 Sep) – Nikkon, Kadoya, Ichibanya, Con Aero, Ausgold, Longsys, Ligent, GCash
- A weekly summary of key developments in ECM and Event-Driven names that I track in Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India, and Chinese ADRs.
- ECM developments: Shenzhen Longsys Electronics (9976 HK), Ligent Technologies (LGT HK) and GCash (Mynt) (GCASH PM) IPOs.
- Event-Driven developments: Nikkon Holdings (9072 JP), Kadoya Sesame Mills (2612 JP), Ichibanya (7630 JP), Continental Aerospace Technologies (232 HK), Ausgold Ltd (AUC AU).
Last Week In Event SPACE: SBI/BASE, Con Aero Tech, Mitsubishi Chem/Nippon Sanso, Swire Pac, Jollibee
- SBI Holdings (8473 JP) wants to buy 20% of BASE (4477 JP) out of 46.7% likely available. That’s unlikely at ¥340; they’ll have to bump to get those shares.
- Continental Aerospace Technologies (232 HK) has played out nicely. There’s still money on the table – just a question mark on timing for the distribution from “surplus cash”.
- Mitsubishi Chemical (4188 JP)‘s turnaround narrative sees it trading rich (implied stub & simple ratio) to ~51%-held Nippon Sanso Holdings (4091 JP)‘s steady-as-you-go narrative.
Asia-Pac Weekly Wrap: Dentsu Soken, Energy One, Yinson Holdings, Golfzon, Avarga
- I tally 34 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
- One new deals were was discussed on Smartkarma this week: the indicative Offer for Yinson Holdings (YNS MK).
- Key updates/news also took place on: Dentsu Soken (4812 JP), Golfzon Holdings (121440 KS), Energy One Ltd (EOL AU), and Avarga (AVARGA SP).
This Revision to Corporate Governance Codes Could Be Perceived as Defending Outdated Practices
- With the unwinding of cross-shareholdings now irreversible, the company is keen to maintain its defensive stance. This defensive stance is aimed at managing the shareholders’ meeting.
- 81% of companies with fiscal years ending in March held their AGMs over a four-day period in late June, while only 1.6% of AGMs allowed for online questions and voting.
- While calls for AGM disclosures in annual securities reports were expected to help break with past conventions, only two companies changed record dates to postpone AGM dates to July.
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