Most Read

The slide in Ricoh Company Ltd (7752 JP)‘s stock price over the last few months could lead to the deletion of the stock from a global index in August.
Ricoh Company Ltd (7752 JP) has underperformed its peers over the last couple of months and trades cheaper than the average of its peers.
There are indications of positioning in the stock. However, positioning is likely smaller than the estimated passive selling and there could be more downside for the stock near-term.

India: Potential Free Float Changes & Passive Flows in August

Companies in India have disclosed their shareholding pattern as of end-June in July. There are companies with significant float changes from end-March and/or end-December.
The changes in free float could be reflected in domestic and global indices over the next few weeks and months resulting in flow from passive trackers.
Depending on the date that the shareholding was published, there could be 11 stocks with passive inflows from global trackers while 5 could have passive outflows in August.

60 Stocks Screened by Tax Draft Setup — Short-Term Policy Flow Targets

Revisions to the draft are almost certain, but near-term flows will still trade off the current framework—so screening now helps front-run likely winners before the final version lands.
Out of 386 stocks with FY1/FY2 consensus data, 60 names screen in based on FY2: payout ≥40% or ≥25% with DPS up 5%+ vs. 3Y avg.
This tax reform will still drive near-term KOSPI flow—these screened names are core policy plays worth building setups around.

Laopu Gold (6181 HK): Potential Inclusion in Both Global Indices

Laopu Gold (6181 HK) missed global index inclusion in May following completion of full circulation. The primary placement in May then improved chances of index inclusion in August.
The stock rose nearly 60% in the 2 months following the placement and has lost more than a third of its value from the peak in the last month.
The stock could be added to both global indices with one inclusion at the end of August and one in mid-September. That could provide short-term support for the stock.

Inside Samsung’s HBM3E Chicken Game

Samsung’s playing its old game—sacrificing margins to shake rivals—aiming to disrupt DRAM and win HBM4, assuming it clears NVIDIA’s HBM3E qual test soon.
Local intel says no official word from Samsung yet, but the street thinks qual’s done—hence Samsung’s bold HBM3E tone and oversupply warning on the call.
There’s urgency—Samsung’s undercutting Hynix now to stop them from reinvesting cash into DRAM fab expansion, a playbook Samsung once dominated with.

HKBN (1310 HK): Pre-Cons Satisfied. Offer To Open Shortly

Almost exactly eight months after HKBN Ltd (1310 HK) announced a pre-conditional Offer, China Mobile (941 HK) has now satisfied all pre-cons.
The Offer Doc will be dispatched on or around the 12th August, at which time the Offer will be open for acceptances.
This could turn unconditional early September. Trading tight at a gross spread of 1.5%. Keep in mind a basket of peers are up 23% since the Offer was announced.

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (04 Aug)

By Gaudenz Schneider

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.
Highlight: Currently six pair trade opportunities across three markets and three sectors persist.
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.

Krosaki Harima (5352 JP): Nippon Steel’s Preconditional Tender Offer at JPY4,200

By Arun George

Krosaki Harima (5352 JP) has recommended a preconditional tender offer from Nippon Steel Corporation (5401 JP), the parent, at JPY4,200, a 21.7% premium to the last close price of JPY3,450.
The offer is attractive as it represents an all-time high and is above the mid-point of the special committee IFA DCF valuation range.
The precondition relates to regulatory approvals in Japan and India. The tender offer is expected to start in early February 2026. This is a done deal.

Taiwan Dual-Listings Monitor: TSMC Spread Short Setup, ASE ADR at Historically Rare Discount

By Vincent Fernando, CFA

TSMC: +23.9% Premium; Continued Opportunity to Short the ADR Premium
UMC: -0.4% Discount; Wait for More Extreme Levels Before Going Long or Short
ASE: -1.5% Discount; Historically Rare Discount Presents Opportunity to Long the ADR Spread

Dentsu Group (4324 JP): Global Index Deletion Likely

The drop in Dentsu Inc (4324 JP)‘s stock price over the last few months could lead to the deletion of the stock from a global index in August.
Dentsu Inc (4324 JP) has underperformed its peers over the last year and trades cheaper than the average of its Advertising peers.
There is positioning in Dentsu Inc (4324 JP), though it is likely to be smaller than the estimated passive selling. A relative selloff could be used to enter the stock.

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Aug 03

Most Read: Bank Central Asia, WuXi AppTec, GDS Holdings , Hyosung Heavy Industries Corp, GF Securities (H), NSDL, China Huarong Asset Management, Hitachi Energy India, Ricoh Company Ltd, PT Petrindo Jaya Kreasi Tbk and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

IDX30/LQ45/IDX80 Index Rebalance: Changes Across the Indices
WuXi AppTec (2359 HK) Placement: Strong Momentum & Index Flows
GDS Holdings (9698 HK): Global Index Inclusion as Shorts Build Up
Hyosung Heavy (298040 KS): Positioning Not Extreme as Index Inclusion Nears
GF Securities (1776 HK): Global Index Inclusion as Sector Rallies
NSDL (NSDL IN) IPO: Offering Details & Index Inclusion Timeline
China Citic Financial (2799 HK): Global Index Inclusion as Valuation Blows Out
Hitachi Energy India (POWERIND IN): Powering into a Global Index in August
Ricoh (7752 JP): Potential Global Index Deletion in August
Petrindo Jaya Kreasi (CUAN IJ): Potential Global Index Inclusion & The Risks

IDX30/LQ45/IDX80 Index Rebalance: Changes Across the Indices

There are 2 constituent changes each for the IDX30 Index and the LQ45 Index, and 3 constituent changes for IDX80 Index to be implemented at the close on 31 July.
The largest passive flows are expected in Bank Central Asia, Bank Rakyat Indonesia, PT Adaro Andalan Indonesia, Mitra Adiperkasa, XLSMART Telecom Sejahtera, Indo Tambangraya Megah and Bank Mandiri Persero.
With only 4 days to implementation, there could be relatively big moves on stocks that have large flow/impact from passive fund trading.

WuXi AppTec (2359 HK) Placement: Strong Momentum & Index Flows

WuXi AppTec (2359 HK) is looking to raise US$650m at a price range of HK$104.16-106.4/share, a 5-7% discount from last close.
There will be passive buying from global index trackers around the time of settlement of the placement shares. Then there will be some Hang Seng Index buying in August.
Short interest in WuXi AppTec (2359 HK) has spiked and some shorts could cover into the placement. The AH premium could move higher following the placement.

GDS Holdings (9698 HK): Global Index Inclusion as Shorts Build Up

Following a rally in the stock over the last 3 months, GDS Holdings (9698 HK) / GDS Holdings (ADR) (GDS US) could be added to a global index in August.
Short interest in GDS Holdings (9698 HK) has been increasing. Add the short interest in GDS Holdings (ADR) (GDS US) and the number is pretty big.
Despite the recent rally, GDS Holdings (9698 HK) trades cheaper than its closest peer and there could be opportunities to enter market neutral trades.

Hyosung Heavy (298040 KS): Positioning Not Extreme as Index Inclusion Nears

In an all too familiar sight across a range of stocks across a range of markets, Hyosung Heavy Industries‘ stock price has doubled over the last 3 months.
The increased market cap should result in index inclusion and passive trackers are estimated to buy 358k shares (US$291m; 4.5x ADV) at the close on 26 August.
Hyosung Heavy has outperformed most peers over the last few months but still trades at reasonable relative valuations. Positioning does not appear excessive relative to peers.

GF Securities (1776 HK): Global Index Inclusion as Sector Rallies

Following a rally in the stock over the last 4 months, GF Securities (H) (1776 HK) could be added to a global index in August.
GF Securities (H) (1776 HK)‘ peers have also rallied over the same time frame and the stock trades in line with its peers on various valuation metrics.
Positioning in the stock is in line with its peers and shorts have continued to increase as the stock price has moved higher.

NSDL (NSDL IN) IPO: Offering Details & Index Inclusion Timeline

NSDL (NSDL IN) is looking to list on the exchanges by selling up to INR 40bn (US$464m) of stock at a valuation of up to INR 160bn (US$1.85bn).
The stock will not get Fast Entry to either of the global indices. The earliest inclusion in a global index should take place in November.
Central Depository Services (CDSL IN)‘s stock price has dropped following the announcement of NSDL‘s IPO price band and the muted results could lead to further downside in the stock.

China Citic Financial (2799 HK): Global Index Inclusion as Valuation Blows Out

A doubling of the stock price over the last 4 months could lead to China Huarong Asset Management (2799 HK)‘s inclusion in a global index in August.
China Huarong Asset Management (2799 HK) has outperformed its closest peer and trades at a much higher price to book.
China Huarong Asset Management (2799 HK) was added to Southbound Stock Connect in March and investors have been buying the stock via the link.

Hitachi Energy India (POWERIND IN): Powering into a Global Index in August

A big rally in Hitachi Energy India (POWERIND IN) this year could lead to the stock being added to a global index in August.
Hitachi Energy India (POWERIND IN) has outperformed its peers and now trades at significantly higher valuations compared to its peer group.
There is positioning in the stock and early entrants could be looking to unwind some of their holdings over the next couple of weeks.

Ricoh (7752 JP): Potential Global Index Deletion in August

The slide in Ricoh Company Ltd (7752 JP)‘s stock price over the last few months could lead to the deletion of the stock from a global index in August.
Ricoh Company Ltd (7752 JP) has underperformed its peers over the last couple of months and trades cheaper than the average of its peers.
There are indications of positioning in the stock. However, positioning is likely smaller than the estimated passive selling and there could be more downside for the stock near-term.

Petrindo Jaya Kreasi (CUAN IJ): Potential Global Index Inclusion & The Risks

PT Petrindo Jaya Kreasi Tbk (CUAN IJ) could be added to a global index in August but there are multiple risks for the stock.
PT Petrindo Jaya Kreasi Tbk (CUAN IJ) trades at significantly higher multiples compared to its peers and the recent price spike raises the risk of addition to the UMA list.
PT Petrindo Jaya Kreasi Tbk (CUAN IJ) has outperformed its peers and positioning is big, raising the risk of the stock moving lower over the next few weeks.

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Aug 02

Most Read: Bank Central Asia, WuXi AppTec, China Huarong Asset Management, PT Petrindo Jaya Kreasi Tbk, Ricoh Company Ltd, Nihon Chouzai, Joy City Property, Samyang Comtech and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

IDX30/LQ45/IDX80 Index Rebalance: Changes Across the Indices
WuXi AppTec (2359 HK) Placement: Strong Momentum & Index Flows
China Citic Financial (2799 HK): Global Index Inclusion as Valuation Blows Out
Petrindo Jaya Kreasi (CUAN IJ): Potential Global Index Inclusion & The Risks
Ricoh (7752 JP): Potential Global Index Deletion in August
[Japan M&A] Nihon Chouzai (3341 JP) Gets the Deal Done – Nice Process, Nice Price
Joy City (207 HK): Minorities Should Take The Cash
EA: Sticky Summer Inflation
HEW: Atlantic Jobs Divide
Samyang Comtech IPO Book Building Results Analysis

IDX30/LQ45/IDX80 Index Rebalance: Changes Across the Indices

There are 2 constituent changes each for the IDX30 Index and the LQ45 Index, and 3 constituent changes for IDX80 Index to be implemented at the close on 31 July.
The largest passive flows are expected in Bank Central Asia, Bank Rakyat Indonesia, PT Adaro Andalan Indonesia, Mitra Adiperkasa, XLSMART Telecom Sejahtera, Indo Tambangraya Megah and Bank Mandiri Persero.
With only 4 days to implementation, there could be relatively big moves on stocks that have large flow/impact from passive fund trading.

WuXi AppTec (2359 HK) Placement: Strong Momentum & Index Flows

WuXi AppTec (2359 HK) is looking to raise US$650m at a price range of HK$104.16-106.4/share, a 5-7% discount from last close.
There will be passive buying from global index trackers around the time of settlement of the placement shares. Then there will be some Hang Seng Index buying in August.
Short interest in WuXi AppTec (2359 HK) has spiked and some shorts could cover into the placement. The AH premium could move higher following the placement.

China Citic Financial (2799 HK): Global Index Inclusion as Valuation Blows Out

A doubling of the stock price over the last 4 months could lead to China Huarong Asset Management (2799 HK)‘s inclusion in a global index in August.
China Huarong Asset Management (2799 HK) has outperformed its closest peer and trades at a much higher price to book.
China Huarong Asset Management (2799 HK) was added to Southbound Stock Connect in March and investors have been buying the stock via the link.

Petrindo Jaya Kreasi (CUAN IJ): Potential Global Index Inclusion & The Risks

PT Petrindo Jaya Kreasi Tbk (CUAN IJ) could be added to a global index in August but there are multiple risks for the stock.
PT Petrindo Jaya Kreasi Tbk (CUAN IJ) trades at significantly higher multiples compared to its peers and the recent price spike raises the risk of addition to the UMA list.
PT Petrindo Jaya Kreasi Tbk (CUAN IJ) has outperformed its peers and positioning is big, raising the risk of the stock moving lower over the next few weeks.

Ricoh (7752 JP): Potential Global Index Deletion in August

The slide in Ricoh Company Ltd (7752 JP)‘s stock price over the last few months could lead to the deletion of the stock from a global index in August.
Ricoh Company Ltd (7752 JP) has underperformed its peers over the last couple of months and trades cheaper than the average of its peers.
There are indications of positioning in the stock. However, positioning is likely smaller than the estimated passive selling and there could be more downside for the stock near-term.

[Japan M&A] Nihon Chouzai (3341 JP) Gets the Deal Done – Nice Process, Nice Price

This family-owned dispensing pharmacy business saw the founding family decide to bail a year ago. So the company decided to set up a sales process.
This process was a model for how this kind of sale process should be conducted. Multiple parties. Easy accommodation. Getting experts in.
This should be a done deal because the family and cross-holders/insiders get them to the minimum.

Joy City (207 HK): Minorities Should Take The Cash

Chinese property play Joy City (207 HK) has announced a Scheme buyback, with a price of $0.62/share (declared final), a 67.57% premium; but more like a 158% premium to undisturbed.
Yes, this is a 70% discount to NAV. Yet Joy City has traded at P/B of 0.14x, on average, the past five years. Earnings have trended south in that timeframe.
The IFA will likely cite liquidity and Joy City’s historical discount to NAV, and opine “reasonable”, and probably even “fair”. It is what it is for long-suffering shareholders.

EA: Sticky Summer Inflation

The ECB’s victory party can continue for another month, as inflation proved surprisingly sticky at the target. But the hangover is disappointing, amid broad-based upside news.
Two-thirds of national outcomes exceeded our expectations, with a slight skew higher, and pressures concentrated in services. Seasonal travel parts would be payback-prone.
Another upside surprise to the ECB’s forecast makes the profile likely to shift higher in September. The news is the opposite of what is needed for another rate cut.

HEW: Atlantic Jobs Divide

Depressing revisions to US payroll data clash with the resilience seen in other data, and compare poorly with the bullish revisions to the Euro area’s labour market.
Jobs data challenge the Fed’s patient posture, while the Euro area’s sticky inflation and tighter labour markets should encourage it to keep rolling rate cuts later.
Thursday’s BoE decision sets unemployment’s rise against inflation persistence, leaving the outcome uncertain, yet it is likely to yield another split vote for a rate cut.

Samyang Comtech IPO Book Building Results Analysis

By Douglas Kim

Samyang Comtech completed solid book building results. The IPO price has been finalized at 7,700 won per share, which was at the high end of the IPO price range.
A 48.4% of the total IPO shares are under various lock-up periods lasting from 15 days to 6 months. This is a bullish signal.
Our valuation analysis suggests target price of 13,187 won, which represents a 71% upside from IPO price. Given the excellent upside, we have a Positive view of this IPO.

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Aug 01

Most Read: Shibaura Electronics, WuXi AppTec, Prosus NV, ROHM Co Ltd, PT Petrindo Jaya Kreasi Tbk, Nihon Chouzai, Hanmi Semiconductor, Ricoh Company Ltd, MAC Copper and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

[Japan M&A] YAGEO Extends Shibaura TOB Limbo at FSA/METI/BOJ Request on FEFTA
WuXi AppTec (2359 HK) Placement: Strong Momentum & Index Flows
Prosus Is Elevated Vs. Tencent As The Accretion Trade Unfolds
Denso (6902) Buys Large Rohm (6963 JP) Stake – Register Gets Squeezier
Petrindo Jaya Kreasi (CUAN IJ): Potential Global Index Inclusion & The Risks
[Japan M&A] Nihon Chouzai (3341 JP) Gets the Deal Done – Nice Process, Nice Price
ECB Job Tightened By Jobs
Samsung Earnings Call Signals Samsung-Hanmi HBM4 Talks: Catalyst Brewing for Both Stocks
Ricoh (7752 JP): Potential Global Index Deletion in August
MAC Copper (MAC AU/MTAL US): 29th August Vote On Harmony’s Offer

[Japan M&A] YAGEO Extends Shibaura TOB Limbo at FSA/METI/BOJ Request on FEFTA

YAGEO’s deal for Shibaura Electronics (6957 JP) had been extended a couple of times – once for Shibaura’s yuho, and once for Taiwan Investment Commission Approval.
YAGEO had re-filed its notification for FEFTA on 2 June, and the “normal” 30 day waiting period expired 1 July. YAGEO extended by 4 business days to 15 July.
The TRS amendment was less informative than the TDNET release today. That’s worth reading. More waiting ahead. But the timing may be politically strategic.

WuXi AppTec (2359 HK) Placement: Strong Momentum & Index Flows

WuXi AppTec (2359 HK) is looking to raise US$650m at a price range of HK$104.16-106.4/share, a 5-7% discount from last close.
There will be passive buying from global index trackers around the time of settlement of the placement shares. Then there will be some Hang Seng Index buying in August.
Short interest in WuXi AppTec (2359 HK) has spiked and some shorts could cover into the placement. The AH premium could move higher following the placement.

Prosus Is Elevated Vs. Tencent As The Accretion Trade Unfolds

Since unwinding the Naspers (NPN SJ)/Prosus (PRX NA) circularity, Prosus has been selling Tencent shares, and buying back its share. Separately, Tencent is buying its shares to offset Prosus’ selling.
Prosus’ stake in Tencent has now edged below 23%, a little over seven months since dipping below 24%.
On an implied stub and relative value, Prosus is elevated to Tencent, suggesting an unwinding of the stub.

Denso (6902) Buys Large Rohm (6963 JP) Stake – Register Gets Squeezier

Today after the close, a Nikkei article said Denso Corp (6902 JP) had recently lifted its stake in ROHM Co Ltd (6963 JP) from “about 0.3%” to “just under 5%.”
Given the recent buy of 28mm shares of Rohm into the Nikkei 225, that means ~11.5% or perhaps more has been taken out of the public’s hands.
Some may have come from cross-holders, but it’s not clear there are that many. This renders the stock more squeeze-able going forward. Rohm reports next week.

Petrindo Jaya Kreasi (CUAN IJ): Potential Global Index Inclusion & The Risks

PT Petrindo Jaya Kreasi Tbk (CUAN IJ) could be added to a global index in August but there are multiple risks for the stock.
PT Petrindo Jaya Kreasi Tbk (CUAN IJ) trades at significantly higher multiples compared to its peers and the recent price spike raises the risk of addition to the UMA list.
PT Petrindo Jaya Kreasi Tbk (CUAN IJ) has outperformed its peers and positioning is big, raising the risk of the stock moving lower over the next few weeks.

[Japan M&A] Nihon Chouzai (3341 JP) Gets the Deal Done – Nice Process, Nice Price

This family-owned dispensing pharmacy business saw the founding family decide to bail a year ago. So the company decided to set up a sales process.
This process was a model for how this kind of sale process should be conducted. Multiple parties. Easy accommodation. Getting experts in.
This should be a done deal because the family and cross-holders/insiders get them to the minimum.

ECB Job Tightened By Jobs

The EA labour market proved tighter than the ECB expected in Q2 as the unemployment rate held at a downwardly revised 6.2%. That is hawkish news to its neutral stance.
Most countries still face falling unemployment, suggesting monetary conditions were slightly loose, and avoiding pressure to lower underlying inflation further.
A hawkish domestic surprise should keep the ECB on hold, especially with the US trade policy risk fading. Passthrough of past cuts may mean the ECB needs to hike later.

Samsung Earnings Call Signals Samsung-Hanmi HBM4 Talks: Catalyst Brewing for Both Stocks

Samsung confirmed PRA sign-off for 1c HBM4, shipped samples to NVIDIA, went full redesign on base die, and is in talks with vendors like Hanmi for hybrid bonding gear.
From a trading POV: Samsung pivoting to Hanmi signals “speed over pride”—a clear tell they’re serious about ramping HBM4 fast, even if it means breaking from vertical integration.
For the move to stick, yields and customer wins matter — but Hanmi’s stepping up, and this could give Samsung’s HBM4 story a real leg up if it plays out.

Ricoh (7752 JP): Potential Global Index Deletion in August

The slide in Ricoh Company Ltd (7752 JP)‘s stock price over the last few months could lead to the deletion of the stock from a global index in August.
Ricoh Company Ltd (7752 JP) has underperformed its peers over the last couple of months and trades cheaper than the average of its peers.
There are indications of positioning in the stock. However, positioning is likely smaller than the estimated passive selling and there could be more downside for the stock near-term.

MAC Copper (MAC AU/MTAL US): 29th August Vote On Harmony’s Offer

Back on the 27th May 2025, dual-listed MAC Copper (MAC AU/MTAL US), a NSW copper miner, entered into a Scheme Implementation Deed with Harmony Gold Mining (HAR SJ).
Harmony offered US$12.25 for each MAC Share, a 20.7% premium to last close. The A$ consideration for MAC CDIs pivots off the USD/AUD exchange rate around the Record Date.
A copy of the Circular is now available, with a shareholder vote on the 29th August. Barrenjoey, the FA, says fair & reasonable. 22.54% of shares out are supportive.

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Jul 31

Most Read: GQG Partners , GMO Internet, KB Financial, WuXi AppTec, ROHM Co Ltd, China Huarong Asset Management, Hitachi Energy India, Fujitec Co Ltd, SK Innovation and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

S&P/ASX Indices: Proposed Methodology Changes & The BIG September Rebalance
GMO Internet (4784) – GMO Internet Parent Has Been SELLING In The Market
ADR Arb on Korean Divvy Names: A Side Play Riding the Policy-Driven Liquidity Wave
WuXi AppTec (2359 HK) Placement: Strong Momentum & Index Flows
Denso (6902) Buys Large Rohm (6963 JP) Stake – Register Gets Squeezier
Wuxi AppTec Placement – Momentum Is Very Strong, Though It Is a Bit Opportunistic
China Citic Financial (2799 HK): Global Index Inclusion as Valuation Blows Out
Hitachi Energy India (POWERIND IN): Powering into a Global Index in August
Fujitec (6406 JP): EQT’s Takeunder Likely a Done Deal
SK Innovation Cleanup: Watch Out for a Classic NAV Compression Play

S&P/ASX Indices: Proposed Methodology Changes & The BIG September Rebalance

S&P DJI have proposed methodology changes to the S&P/ASX family of indices to enhance representativeness and more quickly reflecting changing market conditions.
The main changes are lowering the minimum float threshold, shortening the market cap calculation period and the liquidity calculation period, and including buffers for additions and deletions.
We currently forecast 47 changes to the S&P/ASX family of indices in September and the short market cap computation period could lead to more change over the next two months.

GMO Internet (4784) – GMO Internet Parent Has Been SELLING In The Market

I have harped on the fact that GMO Internet Group (9449 JP) has to sell GMO Internet (4784 JP) shares with the goal to get 35% tradable shares by end-2025.
I have written about it here, here, here, and here. The price needs to be lower so the parent can launch a HUGE block. The stock must be less squeeze-able.
It turns out the parent started selling in the market the day after the Offering was cancelled. The setup is delicious now.

ADR Arb on Korean Divvy Names: A Side Play Riding the Policy-Driven Liquidity Wave

ETF rebalancing’s key, but still too early to front-run — both use FnGuide screens based on FY1 DPS and prices from 20 days before November-end.
Beyond the rebalance noise, ADR-local spreads have been widening — KB hit +6%, Shinhan’s also drifting. Likely tied to the recent liquidity surge in dividend names.
ADR arb’s more doable with NXT tightening slippage. With proper FX hedging, it’s a clean side play riding the policy-driven liquidity wave.

WuXi AppTec (2359 HK) Placement: Strong Momentum & Index Flows

WuXi AppTec (2359 HK) is looking to raise US$650m at a price range of HK$104.16-106.4/share, a 5-7% discount from last close.
There will be passive buying from global index trackers around the time of settlement of the placement shares. Then there will be some Hang Seng Index buying in August.
Short interest in WuXi AppTec (2359 HK) has spiked and some shorts could cover into the placement. The AH premium could move higher following the placement.

Denso (6902) Buys Large Rohm (6963 JP) Stake – Register Gets Squeezier

Today after the close, a Nikkei article said Denso Corp (6902 JP) had recently lifted its stake in ROHM Co Ltd (6963 JP) from “about 0.3%” to “just under 5%.”
Given the recent buy of 28mm shares of Rohm into the Nikkei 225, that means ~11.5% or perhaps more has been taken out of the public’s hands.
Some may have come from cross-holders, but it’s not clear there are that many. This renders the stock more squeeze-able going forward. Rohm reports next week.

Wuxi AppTec Placement – Momentum Is Very Strong, Though It Is a Bit Opportunistic

By Sumeet Singh

WuXi AppTec (2359 HK) aims to raise around US$650m via its H-share placement.
The stock has been on a roll this year and recently announced strong earnings as well. Although it’s now trading at its 52-week highs.
In this note, we will talk about the placement and run the deal through our ECM framework.

China Citic Financial (2799 HK): Global Index Inclusion as Valuation Blows Out

A doubling of the stock price over the last 4 months could lead to China Huarong Asset Management (2799 HK)‘s inclusion in a global index in August.
China Huarong Asset Management (2799 HK) has outperformed its closest peer and trades at a much higher price to book.
China Huarong Asset Management (2799 HK) was added to Southbound Stock Connect in March and investors have been buying the stock via the link.

Hitachi Energy India (POWERIND IN): Powering into a Global Index in August

A big rally in Hitachi Energy India (POWERIND IN) this year could lead to the stock being added to a global index in August.
Hitachi Energy India (POWERIND IN) has outperformed its peers and now trades at significantly higher valuations compared to its peer group.
There is positioning in the stock and early entrants could be looking to unwind some of their holdings over the next couple of weeks.

Fujitec (6406 JP): EQT’s Takeunder Likely a Done Deal

By Arun George

Fujitec Co Ltd (6406 JP) has recommended a preconditional tender offer from EQT (EQT SS) at JPY5,700, an 8.1% discount to the last close price of JPY6,205.
The precondition relates to regulatory approvals in several countries. The tender offer is expected to commence in late January 2026.
Although the offer is light, it is likely to succeed, as it resulted from an auction process and was supported by irrevocables from the two prominent activists on the register.

SK Innovation Cleanup: Watch Out for a Classic NAV Compression Play

Facing tough fundraising, SK avoided a rights issue, opting for a complex deal to limit dilution and ease investor worries.
It all hinges on how the market views SK On’s cleanup plus Enmove’s steady cash flow—SK Innovation looks oversold, making this a decent long setup.
Enmove’s stable earnings boost SK On’s P&L, likely triggering a rerate for SK Innovation and setting up a classic NAV compression trade.

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Jul 30

Most Read: BayCurrent Consulting , Doosan Enerbility, Topcon Corp, Hogy Medical, GF Securities (H), GMO Internet, NSDL, CK Hutchison Holdings, JTC Inc/Fukuoka, Hana Micron Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Nikkei 225 Index Rebalance Preview (Sep 2025): Potential Adds, Deletes, PAF, Capping & Other Changes
Solactive Global Uranium & Nuclear Components Index Rebalance: Two Adds & US$1.4bn Trade
[Japan M&A] – KKR Launches Still-Too-Light Topcon (7732) Deal
[Japan Activism/M&A] Hogy Medical (3593) Reportedly Up For Auction – Totally Unsurprising
GF Securities (1776 HK): Global Index Inclusion as Sector Rallies
GMO Internet (4784) – GMO Internet Parent Has Been SELLING In The Market
NSDL (NSDL IN) IPO: Offering Details & Index Inclusion Timeline
CKH (1 HK): Intervention Towards Securing Participation
A Tender Offer of JTC by Affirma Capital
Hana Micron Split Cancellation: Trades Targeting Position Unwinding and Korea Discount Compression

Nikkei 225 Index Rebalance Preview (Sep 2025): Potential Adds, Deletes, PAF, Capping & Other Changes

The review period for the Nikkei 225 (NKY INDEX) September rebalance ends in 4 weeks. There could be one outright change and one or two others driven by sector balance.
There will be passive buying in BayCurrent Consulting as the PAF moves from 0.5 to 1. Fast Retailing (9983 JP)‘s index weight is below the 10% cap for now.
ROHM Co Ltd (6963 JP) replaces NTT Data Corp (9613 JP) later this week and there will be a lot of focus on those names.

Solactive Global Uranium & Nuclear Components Index Rebalance: Two Adds & US$1.4bn Trade

Solactive has announced the constituent changes for the Global Uranium & Nuclear Components Index with implementation at the close on 31 July.
Nano Nuclear Energy (NNE US) and Atha Energy Corp (ATHA CN) will be added to the index. Estimated one-way turnover is 16.3% resulting in a round-trip trade of US$1.36bn.
There are only 3 trading days to implementation of the changes and we’d watch out for big moves on stocks that have more than 2x ADV to trade.

[Japan M&A] – KKR Launches Still-Too-Light Topcon (7732) Deal

In December-2024, this deal was mooted and it came out as expected. But the implied growth in management forecasts was higher than expected so the price came in quite light.
In March when the deal was announced, it seemed like a tough call, but three weeks later Value Act decided they would tender, but would reinvest in the back end.
The deal is now approved, and launches tomorrow. It gets done, I expect, but it is not a model deal other than being one showing the loopholes available to buyers.

[Japan Activism/M&A] Hogy Medical (3593) Reportedly Up For Auction – Totally Unsurprising

Hogy Medical (3593 JP)‘s founder passed and there was a re-arranging of Hoki family deckchairs in 2021. In 2022 there was a BIG buyback from the family at ¥3,130/share.
I discussed it here. I suggested that meant accretion, a family willing to sell, and an open register for a cheap company always heavily owned by value investors.
The stock went nowhere for 18mos as activists dallied. In 2024 it ran from ¥3,500 to ¥5,000 as Dalton bought 20%. Then they got a board seat. Now takeover noise.

GF Securities (1776 HK): Global Index Inclusion as Sector Rallies

Following a rally in the stock over the last 4 months, GF Securities (H) (1776 HK) could be added to a global index in August.
GF Securities (H) (1776 HK)‘ peers have also rallied over the same time frame and the stock trades in line with its peers on various valuation metrics.
Positioning in the stock is in line with its peers and shorts have continued to increase as the stock price has moved higher.

GMO Internet (4784) – GMO Internet Parent Has Been SELLING In The Market

I have harped on the fact that GMO Internet Group (9449 JP) has to sell GMO Internet (4784 JP) shares with the goal to get 35% tradable shares by end-2025.
I have written about it here, here, here, and here. The price needs to be lower so the parent can launch a HUGE block. The stock must be less squeeze-able.
It turns out the parent started selling in the market the day after the Offering was cancelled. The setup is delicious now.

NSDL (NSDL IN) IPO: Offering Details & Index Inclusion Timeline

NSDL (NSDL IN) is looking to list on the exchanges by selling up to INR 40bn (US$464m) of stock at a valuation of up to INR 160bn (US$1.85bn).
The stock will not get Fast Entry to either of the global indices. The earliest inclusion in a global index should take place in November.
Central Depository Services (CDSL IN)‘s stock price has dropped following the announcement of NSDL‘s IPO price band and the muted results could lead to further downside in the stock.

CKH (1 HK): Intervention Towards Securing Participation

Inviting a PRC investor to join the bidding consortium as a significant member, as opposed to a majority player, appears the panacea to get this port deal over the line.
Although CK Hutchison Holdings (1 HK) stopped short of naming the investor, China’s state-owned shipping conglomerate Cosco is widely expected/rumoured to join BlackRock and Swiss-Italian shipping company MSC.
Participation through effective intervention? Cosco’s involvement should all-but seal Chinese regulatory approvals. The green light from the US administration, the EU, and other jurisdictions, will pivot off how much involvement.

A Tender Offer of JTC by Affirma Capital

By Douglas Kim

On 28 July, it was announced that Affirma Capital will conduct a tender offer of JTC Inc/Fukuoka (950170 KS) which is a Japanese duty free operator listed on KOSDAQ.
This follows the exercise of a call option on all shares held by former JTC Chairman Gu Cheol-mo.
Despite some recent concerns about travelling to Japan due to Manga driven fears about earthquakes, there are some clear longer term signs that the global travelers visiting Japan are increasing.

Hana Micron Split Cancellation: Trades Targeting Position Unwinding and Korea Discount Compression

The split’s cancellation caught event-driven traders off guard, squeezing shorts and sparking short-covering flows, likely boosting the stock near term and removing governance overhang for a potential rerate.
Passive flow shifts as spinco’s planned KOSDAQ 150 inclusion is canceled, reversing early index rebalancing and pre-positioning by passive investors.
Hana Micron stays in the index, so no major passive outflows—just some trimming. Trade the short-cover pop, watch for passive cleanup dips as potential re-entry points.

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Jul 29

Most Read: Swiggy, Bank Central Asia, Hyundai Motor , Guangzhou Automobile Group, Doosan Enerbility, Pacific Industrial, Topcon Corp, Samsung Electronics, GF Securities (H) and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Swiggy/Eternal: Free Float Increase & Foreign Room Decrease ‘Delivering’ BIG Passive Flows
IDX30/LQ45/IDX80 Index Rebalance: Changes Across the Indices
Korean Policy Tailwinds: Preferred Shares Rerating Play
A/H Premium Tracker (To 25 July 2025): “Beautiful Skew” Raging Onward
Solactive Global Uranium & Nuclear Components Index Rebalance: Two Adds & US$1.4bn Trade
[Japan M&A] Pacific Industrial (7250) MBO Officially Being Done Dirt Cheap
[Japan M&A] – KKR Launches Still-Too-Light Topcon (7732) Deal
My Take on Samsung’s Big Foundry Deal with Tesla
Opec: Twist Or Stick?
GF Securities (1776 HK): Global Index Inclusion as Sector Rallies

Swiggy/Eternal: Free Float Increase & Foreign Room Decrease ‘Delivering’ BIG Passive Flows

Increased free float should result in passives buying Swiggy (SWIGGY IN) and lower foreign room should lead to passives selling Eternal (ETERNAL IN) at the end of August.
The increased free float should also result in passive buying for Swiggy (SWIGGY IN) in September.
Eternal has outperformed Swiggy last week following strong earnings. Swiggy announces earnings later this week and that could be a short-term catalyst for a narrowing of the spread.

IDX30/LQ45/IDX80 Index Rebalance: Changes Across the Indices

There are 2 constituent changes each for the IDX30 Index and the LQ45 Index, and 3 constituent changes for IDX80 Index to be implemented at the close on 31 July.
The largest passive flows are expected in Bank Central Asia, Bank Rakyat Indonesia, PT Adaro Andalan Indonesia, Mitra Adiperkasa, XLSMART Telecom Sejahtera, Indo Tambangraya Megah and Bank Mandiri Persero.
With only 4 days to implementation, there could be relatively big moves on stocks that have large flow/impact from passive fund trading.

Korean Policy Tailwinds: Preferred Shares Rerating Play

Most expect prefs to be in policy crosshairs soon—watch for tighter rules on dividends, discounts, and liquidity, plus likely incentives for redemption or cancellation ahead of commons.
If Korea rolls out a pref stock overhaul, long-biased rerate plays could pop—focus on liquid, high-yield large-cap prefs trading at 35%+, yield north of 3%, and solid daily turnover.
Korea Inv, Kumho Petro, CJ Cheil, CJ Corp prefs already screen well; Doosan and Hanwha 3PB could join if dividend hikes materialize on back of strong sub earnings.

A/H Premium Tracker (To 25 July 2025): “Beautiful Skew” Raging Onward

AH premia down again among liquid names but “beautiful skew” of wide premia converging more than narrow premia continues bigly. It still pays well to be long wide H discounts.
This is the most significant 60-day AH pair average H outperformance in five years, maybe ever. Remarkable.
The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.

Solactive Global Uranium & Nuclear Components Index Rebalance: Two Adds & US$1.4bn Trade

Solactive has announced the constituent changes for the Global Uranium & Nuclear Components Index with implementation at the close on 31 July.
Nano Nuclear Energy (NNE US) and Atha Energy Corp (ATHA CN) will be added to the index. Estimated one-way turnover is 16.3% resulting in a round-trip trade of US$1.36bn.
There are only 3 trading days to implementation of the changes and we’d watch out for big moves on stocks that have more than 2x ADV to trade.

[Japan M&A] Pacific Industrial (7250) MBO Officially Being Done Dirt Cheap

The MBO for Pacific Industrial (7250 JP) starts with the father+son Chairman and CEO, – combined stake 2.92% – putting nothing in to buy this, with help from banks.
The Takeover Price is priced at 0.7x book, and a Net Debt to EBITDA of 2x (when adjusted for securities+pension assets+DTLs) and 5-6x average 2026-2030 FCF.
This is being done too cheap: Toyota is the main customer, one third of revenues comes from Japan, and the company is set for a transition to EVs.

[Japan M&A] – KKR Launches Still-Too-Light Topcon (7732) Deal

In December-2024, this deal was mooted and it came out as expected. But the implied growth in management forecasts was higher than expected so the price came in quite light.
In March when the deal was announced, it seemed like a tough call, but three weeks later Value Act decided they would tender, but would reinvest in the back end.
The deal is now approved, and launches tomorrow. It gets done, I expect, but it is not a model deal other than being one showing the loopholes available to buyers.

My Take on Samsung’s Big Foundry Deal with Tesla

The A16 chip Samsung fabs is mainly for real-time inference in Tesla’s FSD cars, not data-center training, which remains dominated by Dojo and NVIDIA hardware.
If Tesla’s deal includes AI chips with HBM, it’s a major catalyst; if just A16, it’s not proof HBM yield issues are solved.
Tesla’s deal isn’t a sure sign Samsung’s HBM4 passed NVIDIA’s qual tests, but it’s a key reference boosting market hype—time to consider a Samsung long, SK Hynix short setup.

Opec: Twist Or Stick?

By Alastair Newton

The further acceleration by ‘Opec+ eight’ in unwinding the second package of voluntary output cuts was a surprise, albeit one that left markets unmoved.
The cartel now appears to be firmly on track to complete its unwinding in September, even though its stated justifications for increasing output remain highly questionable.
Despite downside global growth risks, the Saudis in particular may press to start unwinding the first package, a move which may be announced as early as next week.

GF Securities (1776 HK): Global Index Inclusion as Sector Rallies

Following a rally in the stock over the last 4 months, GF Securities (H) (1776 HK) could be added to a global index in August.
GF Securities (H) (1776 HK)‘ peers have also rallied over the same time frame and the stock trades in line with its peers on various valuation metrics.
Positioning in the stock is in line with its peers and shorts have continued to increase as the stock price has moved higher.

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Jul 28

Most Read: Bank Central Asia, Swiggy, GDS Holdings , Hyundai Motor , Hyosung Heavy Industries Corp, Shibaura Electronics, Pacific Industrial, LG Energy Solution, China Traditional Chinese Medicine and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

IDX30/LQ45/IDX80 Index Rebalance: Changes Across the Indices
[Japan M&A] Nikkei Reports Pacific Industrial (7250) To Go Private Via MBO at ¥110bn
Swiggy/Eternal: Free Float Increase & Foreign Room Decrease ‘Delivering’ BIG Passive Flows
GDS Holdings (9698 HK): Global Index Inclusion as Shorts Build Up
Korean Policy Tailwinds: Preferred Shares Rerating Play
Hyosung Heavy (298040 KS): Positioning Not Extreme as Index Inclusion Nears
Merger Arb Mondays (28 Jul) – Shibaura, Abacus Storage, Insignia, Mayne, Santos, ENN, Smart Share
[Japan M&A] Pacific Industrial (7250) MBO Officially Being Done Dirt Cheap
LG Energy Solution: Light At the End of the Tunnel?
China TCM (570.HK) – About the 25H1 Profit Warning and the Outlook

IDX30/LQ45/IDX80 Index Rebalance: Changes Across the Indices

There are 2 constituent changes each for the IDX30 Index and the LQ45 Index, and 3 constituent changes for IDX80 Index to be implemented at the close on 31 July.
The largest passive flows are expected in Bank Central Asia, Bank Rakyat Indonesia, PT Adaro Andalan Indonesia, Mitra Adiperkasa, XLSMART Telecom Sejahtera, Indo Tambangraya Megah and Bank Mandiri Persero.
With only 4 days to implementation, there could be relatively big moves on stocks that have large flow/impact from passive fund trading.

[Japan M&A] Nikkei Reports Pacific Industrial (7250) To Go Private Via MBO at ¥110bn

Overnight, the Nikkei carried an article saying Toyota valve supplier Pacific Industrial (7250 JP) would go private at a 40% premium in an MBO.
The implied price would match its ATH, but would remain far below book value, which is disappointing for a company with a very strong customer base and market share.
This is potentially blockable, but it would need to be activism from scratch I think. An activist or collection of them would need about 18-20% to block this deal.

Swiggy/Eternal: Free Float Increase & Foreign Room Decrease ‘Delivering’ BIG Passive Flows

Increased free float should result in passives buying Swiggy (SWIGGY IN) and lower foreign room should lead to passives selling Eternal (ETERNAL IN) at the end of August.
The increased free float should also result in passive buying for Swiggy (SWIGGY IN) in September.
Eternal has outperformed Swiggy last week following strong earnings. Swiggy announces earnings later this week and that could be a short-term catalyst for a narrowing of the spread.

GDS Holdings (9698 HK): Global Index Inclusion as Shorts Build Up

Following a rally in the stock over the last 3 months, GDS Holdings (9698 HK) / GDS Holdings (ADR) (GDS US) could be added to a global index in August.
Short interest in GDS Holdings (9698 HK) has been increasing. Add the short interest in GDS Holdings (ADR) (GDS US) and the number is pretty big.
Despite the recent rally, GDS Holdings (9698 HK) trades cheaper than its closest peer and there could be opportunities to enter market neutral trades.

Korean Policy Tailwinds: Preferred Shares Rerating Play

Most expect prefs to be in policy crosshairs soon—watch for tighter rules on dividends, discounts, and liquidity, plus likely incentives for redemption or cancellation ahead of commons.
If Korea rolls out a pref stock overhaul, long-biased rerate plays could pop—focus on liquid, high-yield large-cap prefs trading at 35%+, yield north of 3%, and solid daily turnover.
Korea Inv, Kumho Petro, CJ Cheil, CJ Corp prefs already screen well; Doosan and Hanwha 3PB could join if dividend hikes materialize on back of strong sub earnings.

Hyosung Heavy (298040 KS): Positioning Not Extreme as Index Inclusion Nears

In an all too familiar sight across a range of stocks across a range of markets, Hyosung Heavy Industries‘ stock price has doubled over the last 3 months.
The increased market cap should result in index inclusion and passive trackers are estimated to buy 358k shares (US$291m; 4.5x ADV) at the close on 26 August.
Hyosung Heavy has outperformed most peers over the last few months but still trades at reasonable relative valuations. Positioning does not appear excessive relative to peers.

Merger Arb Mondays (28 Jul) – Shibaura, Abacus Storage, Insignia, Mayne, Santos, ENN, Smart Share

By Arun George

I summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: Mayne Pharma (MYX AU), Yichang HEC Changjiang Pharma (1558 HK), ENN Energy (2688 HK), Pacific Industrial (7250 JP), Santos Ltd (STO AU), Smart Share Global (EM US).
Lowest spreads: Bright Smart Securities (1428 HK), Hainan Meilan International Airport (357 HK), Humm Group (HUM AU), New World Resources (NWC AU), Nippon Concept (9386 JP).

[Japan M&A] Pacific Industrial (7250) MBO Officially Being Done Dirt Cheap

The MBO for Pacific Industrial (7250 JP) starts with the father+son Chairman and CEO, – combined stake 2.92% – putting nothing in to buy this, with help from banks.
The Takeover Price is priced at 0.7x book, and a Net Debt to EBITDA of 2x (when adjusted for securities+pension assets+DTLs) and 5-6x average 2026-2030 FCF.
This is being done too cheap: Toyota is the main customer, one third of revenues comes from Japan, and the company is set for a transition to EVs.

LG Energy Solution: Light At the End of the Tunnel?

By Douglas Kim

LG Energy Solution has been on a dark, long tunnel in the past two and half years. However, there is finally some light showing post its excellent 2Q 2025 results.
LG Energy Solution reported much better than expected operating profit in 2Q25. It had operating profit of 492.2 billion won (up 152% YoY) and 56.3% higher than consensus in 2Q25.
The company is showing initial signs of a turnaround, with a significantly better than expected operating profit in 2Q 2025.

China TCM (570.HK) – About the 25H1 Profit Warning and the Outlook

By Xinyao (Criss) Wang

China TCM’s Profit Warning indicates a weak 25H1 results. Performance downturn is longer-than-expected. But as an industry leader, China TCM will enhance its bargaining power by integrating the industrial chain.
Investors have reignited interest in betting on privatization of China TCM and potential merger with Taiji, as deadline is approaching.Privatization price may be lower considering China TCM’s weak 25H1 results.
HK$0.84-2.17/Share is the reasonable share price range at this stage.The catalyst for China TCM’s share price is CNPGC may announce how to address the horizontal competition issue within three months.

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Jul 27

Most Read: Mazagon Dock Shipbuilders , 3SBio Inc, Doosan Corp, Cloud Village, Maxio Technology Hangzhou, Meitu Inc, LIG Nex1 Co, NIFTY Index, Bank Central Asia, Telix Pharmaceuticals and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

NIFTY NEXT50 Index Rebalance Preview: Potential Changes & Close Names
3SBio (1530 HK): Global Index Inclusion as Stock Soars
Doosan Corp (000150 KS): Global Index Inclusion & A Relative Value Trade
Netease Cloud Music (9899 HK): Stock Up; Short Interest Up; Global Index Inclusion
STAR Chip Index Rebalance Preview: Forecast Changes for September
Meitu (1357 HK): AI-Driven Global Index Inclusion
LIG Nex1 (079550 KS): Stock Soars; Momentum Stalls; Global Index Inclusion Next
NIFTY50 Index Outlook Amid Ongoing Rebalance Review
IDX30/LQ45/IDX80 Index Rebalance: Changes Across the Indices
Telix Pharmaceuticals (TLX AU): Why Negative Impact of SEC Probe Is A Temporary Setback

NIFTY NEXT50 Index Rebalance Preview: Potential Changes & Close Names

With the review period nearing completion, there could be 4 changes (including 1 migration) for the NSE Nifty Next 50 Index (NIFTYJR INDEX) in September.
There is one stock close to inclusion zone and one stock close to deletion zone and price movements over the rest of the month will determine the final changes.
Estimated one-way turnover is 7.8% resulting in a one-way trade of INR 30.06bn (US$350m). Six of the eight potential changes will have over 2x ADV to trade from passive trackers.

3SBio (1530 HK): Global Index Inclusion as Stock Soars

3SBio Inc (1530 HK)‘s stock price has soared over the last couple of months, and the higher market cap should result in global index inclusion in August.
3SBio Inc (1530 HK) has gone from middle/bottom of the pack to best performer among its peer group over the last two months.
There will be a lot of positioning in the stock, but we see a similar trend across stocks in the industry.

Doosan Corp (000150 KS): Global Index Inclusion & A Relative Value Trade

A doubling of the stock price over the last 3 months could lead to Doosan Corp (000150 KS) being included in a global index in August.
Doosan Corp (000150 KS) has outperformed its peers over the last few months and now trades at a huge valuation premium to its peer group.
The stock is 17% off its recent highs and that provides an opportunity for a relative value trade heading into the index inclusion event.

Netease Cloud Music (9899 HK): Stock Up; Short Interest Up; Global Index Inclusion

Cloud Village (9899 HK)‘s stock price has doubled over the last quarter and the increased market cap should lead to global index inclusion in August.
Short interest in Cloud Village (9899 HK) is at an all-time high and has increased in lockstep with the stock price.
Cloud Village (9899 HK) has outperformed Tencent Music Entertainment Group (1698 HK) and now trades at much higher valuations. A pair trade looks attractive here.

STAR Chip Index Rebalance Preview: Forecast Changes for September

There could be 2 constituent change for the STAR Chip Index at the September rebalance. There will also be a few capping changes.
Estimated one-way turnover is 1.4% resulting in a round-trip trade of CNY 983m (US$137m). Passives need to trade between 0.4-1.9x ADV in the potential changes.
Both forecast inclusions are newly eligible for index inclusion and the passive buying could provide some support following the drop in the stock price post listing.

Meitu (1357 HK): AI-Driven Global Index Inclusion

Meitu Inc (1357 HK)‘s stock price has more than tripled over the last few months and the significantly higher market cap should lead to global index inclusion in August.
Shorts covered a lot in 2024 and that has continued this year as the stock price has moved higher.
Meitu Inc (1357 HK) has outperformed its peers significantly and there could be a pullback in the stock following index inclusion.

LIG Nex1 (079550 KS): Stock Soars; Momentum Stalls; Global Index Inclusion Next

LIG Nex1 Co (079550 KS)‘s stock price has doubled over the last 3 months, and the increased market cap could now result in a global index inclusion.
LIG Nex1 Co (079550 KS) has outperformed most of its peers over the last few months and now trades expensive on a range of metrics.
While momentum could take the stock higher, there is a risk of pullback as positioning in the stock is unwound.

NIFTY50 Index Outlook Amid Ongoing Rebalance Review

By Nico Rosti

As outlined by Brian Freitas , the NIFTY Index ‘s September rebalance ends July 31st, the announcement of the changes will take place end August and implemented on September 29th.
The index has been pulling back for 3 weeks, it’s oversold according to our model, 75% probability of reversing up this week.
Lower support limit would be 24319, while a rally could take the index to 25642 across a couple of weeks. The rally won’t last more than 2 weeks probably.

IDX30/LQ45/IDX80 Index Rebalance: Changes Across the Indices

There are 2 constituent changes each for the IDX30 Index and the LQ45 Index, and 3 constituent changes for IDX80 Index to be implemented at the close on 31 July.
The largest passive flows are expected in Bank Central Asia, Bank Rakyat Indonesia, PT Adaro Andalan Indonesia, Mitra Adiperkasa, XLSMART Telecom Sejahtera, Indo Tambangraya Megah and Bank Mandiri Persero.
With only 4 days to implementation, there could be relatively big moves on stocks that have large flow/impact from passive fund trading.

Telix Pharmaceuticals (TLX AU): Why Negative Impact of SEC Probe Is A Temporary Setback

By Tina Banerjee

Telix Pharmaceuticals (TLX AU) received a subpoena from the SEC seeking various documents and information primarily relating to the company’s disclosures regarding the development of prostate cancer therapeutic candidates.
Telix is in the process of responding to the information request. The company has elected to notify the Australian Securities and Investments Commission of the SEC’s information request.
SEC subpoena will not affect the normal business operation of Telix. While the matter is ongoing, Telix will continue clinical development programs for its prostate cancer therapy candidates.

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Jul 26

Most Read: IFBH, Sony Corp, Mitsui Matsushima, Doosan Corp, Cloud Village, Vishal Mega Mart, Meitu Inc, SK Telecom, Pacific Industrial and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

HSCI Index Rebalance Preview and Stock Connect (Sep 2025): Plenty of Recent IPOs Could Be Added
Nikkei 225 Proposal for Dealing With Sony’s (6758) Sony Finl Spinoff – A Non-Event but TOPIX Isn’t
[Japan Activism] Mitsui Matsushima (1518 JP) Buyback Tender – Surprising Results and Implications
Doosan Corp (000150 KS): Global Index Inclusion & A Relative Value Trade
Netease Cloud Music (9899 HK): Stock Up; Short Interest Up; Global Index Inclusion
Vishal Mega Mart (VMM IN): Increased Float & Global Index Inclusion
Meitu (1357 HK): AI-Driven Global Index Inclusion
SKT Foreign Room Heating Up — Time to Front-Run?
[Japan M&A] Nikkei Reports Pacific Industrial (7250) To Go Private Via MBO at ¥110bn
HEW: Trade Deals & Fiscal Slippage

HSCI Index Rebalance Preview and Stock Connect (Sep 2025): Plenty of Recent IPOs Could Be Added

We see 28 potential and close adds and 34 potential and close deletes for the Hang Seng Composite Index in September. Some of the stocks 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.

Nikkei 225 Proposal for Dealing With Sony’s (6758) Sony Finl Spinoff – A Non-Event but TOPIX Isn’t

A couple of years ago, Sony Corp (6758 JP) announced they would spin off Sony Financial Holdings (8729 JP) (called Sony Financial Group Inc). That spinoff is due in Sep-2025.
The extra capital required for a tech/industrial to hold the financial business is significant, but some of the other reasons Sony has offered are just management-speak hogwash.
The problem? It creates a new event in the Nikkei 225 paradigm for which there was no rule. Now the Nikkei has proposed a rule. It isn’t perfect.

[Japan Activism] Mitsui Matsushima (1518 JP) Buyback Tender – Surprising Results and Implications

Today, Mitsui Matsushima (1518 JP) announced the results of its Buyback Tender Offer to repurchase up to 3,999,999 shares (35.8% of shares out ex-Treasury) at ¥5,000/share.
Murakami-San owned 42% of the voting rights at announcement, then bought more on the dip just below ¥5,000/share.
The Tender Offer Buyback was “successful” in that it bought back 3.3mm shares. But the result was FAR more interesting than I expected. Surprising Results with Surprising Implications

Doosan Corp (000150 KS): Global Index Inclusion & A Relative Value Trade

A doubling of the stock price over the last 3 months could lead to Doosan Corp (000150 KS) being included in a global index in August.
Doosan Corp (000150 KS) has outperformed its peers over the last few months and now trades at a huge valuation premium to its peer group.
The stock is 17% off its recent highs and that provides an opportunity for a relative value trade heading into the index inclusion event.

Netease Cloud Music (9899 HK): Stock Up; Short Interest Up; Global Index Inclusion

Cloud Village (9899 HK)‘s stock price has doubled over the last quarter and the increased market cap should lead to global index inclusion in August.
Short interest in Cloud Village (9899 HK) is at an all-time high and has increased in lockstep with the stock price.
Cloud Village (9899 HK) has outperformed Tencent Music Entertainment Group (1698 HK) and now trades at much higher valuations. A pair trade looks attractive here.

Vishal Mega Mart (VMM IN): Increased Float & Global Index Inclusion

An increase in the stock price and free float should result in Vishal Mega Mart (VMM IN)‘s inclusion in a global index in August.
Estimated passive buying is 191m shares (US$312m; 5.8x ADV; 15.4x delivery volume) at the close of trading on 26 August.
The index inclusion could take the stock higher in the short-term but buyers in the June placement could be looking for an exit.

Meitu (1357 HK): AI-Driven Global Index Inclusion

Meitu Inc (1357 HK)‘s stock price has more than tripled over the last few months and the significantly higher market cap should lead to global index inclusion in August.
Shorts covered a lot in 2024 and that has continued this year as the stock price has moved higher.
Meitu Inc (1357 HK) has outperformed its peers significantly and there could be a pullback in the stock following index inclusion.

SKT Foreign Room Heating Up — Time to Front-Run?

SKT’s foreign room jumped from 12% to 20% in two months; if the pace holds, 25% is in play by next review, with ongoing foreign outflows from the SIM leak.
FOL shifts from foreign room swings have been a classic long-short play in Korea telcos — and the current setup looks similar, with most SIM leak risks already priced in.
If SKT’s foreign room nears 25%, expect front-running and passive flow imbalances to kick in — a familiar long-short setup that’s historically moved the telco tape early.

[Japan M&A] Nikkei Reports Pacific Industrial (7250) To Go Private Via MBO at ¥110bn

Overnight, the Nikkei carried an article saying Toyota valve supplier Pacific Industrial (7250 JP) would go private at a 40% premium in an MBO.
The implied price would match its ATH, but would remain far below book value, which is disappointing for a company with a very strong customer base and market share.
This is potentially blockable, but it would need to be activism from scratch I think. An activist or collection of them would need about 18-20% to block this deal.

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