In today’s briefing:
- Softbank Group: Performance Powered by OpenAI. Exits NVIDIA, Bets Big on AI
- FXI Rebalance Preview: New Listings, Potential Inclusions, H/A Premiums
- STAR Chip Index Rebalance Preview: One Change for December
- TOPIX Inclusions: Who Is Ready (Nov 2025)
- Clear Recent Outperformance of Korean Preferred Vs. Common Shares
- ChiNext/ChiNext50 Index Rebalance Preview: Maxing Out the Changes
- Megaport Placement – Equity Raise Positioned for Scale and Global Expansion
- LONG GDS: A High-Beta Asia Digital Infrastructure DC Operator
- Monolithic Power Systems’ Bold Shift: From Chipmaker to Full Solution Powerhouse!
- TrueCar’s Acquisition by Fair Holdings: Potential Returns, Funding Challenges
Softbank Group: Performance Powered by OpenAI. Exits NVIDIA, Bets Big on AI
- Softbank Group (9984 JP) reported a record H1 net income of ¥2.9 trillion, driven principally by a USD 14.6 billion fair-value gain from its OpenAI investment and Rights to invest.
- The Group fully exited its USD 2.9 billion NVIDIA Corp (NVDA US) stake in October, realizing gross gains of USD 2.9 billion on sale proceeds of USD 5.8 billion.
- It also sold partial stakes in T-Mobile for USD 9.2 billion and Deutsche Telekom for USD 2.4 billion even as it raised its investment target in OpenAI to USD34.7 Bn.
FXI Rebalance Preview: New Listings, Potential Inclusions, H/A Premiums
- There could be 3 constituent changes for the iShares China Large-Cap (FXI) (FXI US) ETF in December. That could easily increase to 4.
- Two of the forecast inclusions will also have inflows from the FGlobal Index at the same time, increasing the impact. The third is a potential HSCEI INDEX add in December.
- The HA premiums for CATL (3750 HK) and Jiangsu Hengrui (1276 HK) have dropped ahead of lock-up expiry and there could be premium expansion closer to index/ETF inclusion.
STAR Chip Index Rebalance Preview: One Change for December
- There could be 1 constituent change for the STAR Chip Index at the December rebalance. There will also be a few capping changes.
- Estimated one-way turnover is 2.3% resulting in a round-trip trade of CNY 2.5bn (US$352m). Passives need to trade between 0.3-0.4x ADV in the potential changes.
- The forecast add and delete will have same-way flows from passive trackers of other indices and that will increase the impact on the stocks.
TOPIX Inclusions: Who Is Ready (Nov 2025)
- Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
- Japan Business Systems (5036 JP) and Orion Breweries (409A JP) were included in the TOPIX index at the end of October 2025.
- Japan Eyewear Holdings (5889 JP), FIT EASY (212A JP), and Tekscend Photomask (429A JP) will be included in the TOPIX index at the end of November 2025.
Clear Recent Outperformance of Korean Preferred Vs. Common Shares
- In this insight, we provide reasoning behind the clear recent outperformance of Korean preferred shares versus common shares.
- Among the 10 pairs, nine of them have preferred shares outperforming common shares in the past five days.
- One of the main reasons why the preferred shares have recently outperformed their common counterparts is because of the expectation of the higher probability of lowering tax on dividends.
ChiNext/ChiNext50 Index Rebalance Preview: Maxing Out the Changes
- With the review period complete, we forecast 10 changes for the ChiNext Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index in December.
- The largest flows will be in 2 stocks that are forecast adds for both indices. There are 14 stocks with over 0.5x ADV to trade from passive trackers.
- The forecast adds outperformed the forecast deletes from June to August, but there has been significant underperformance since then. Outperformance could resume as positioning kicks in prior to announcement.
Megaport Placement – Equity Raise Positioned for Scale and Global Expansion
- Megaport Ltd (MP1 AU) is looking to raise around US$131m via a fully underwritten primary placement.
- The company will use the proceeds to fund the acquisition of Latitude.sh and accelerate its network expansion into India.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
LONG GDS: A High-Beta Asia Digital Infrastructure DC Operator
- We like GDS holdings, a high-beta play on Asia data center market, on the back of strong AI and hyperscale cloud infra growth across Asia
- GDS is a high beta play through 3 ways: flexible capital deployment, high velocity AI growth, as well as diversification
- We think AI growth and utilization may surprise on the upside. Also, establishment of a C-REIT platform will enable asset recycling at a high multiple
Monolithic Power Systems’ Bold Shift: From Chipmaker to Full Solution Powerhouse!
- Monolithic Power Systems Inc. (“the company”) in its third quarter of 2025, reported a banner quarter, achieving record revenue levels of $737.2 million, marking sequential growth of 10.9% and an 18.9% increase from the same period in the prior year.
- This outcome underscores the efficacy of their diversified market approach and strategic innovations aimed at addressing specific customer needs across a variety of segments.
- On a positive note, the company has demonstrated a robust capacity for growth, amplified by its successful penetration into multiple market segments.
TrueCar’s Acquisition by Fair Holdings: Potential Returns, Funding Challenges
- TrueCar has signed a definitive agreement to be acquired by Fair Holdings for $2.55 per share in cash.
- The acquisition deal is 72% funded, with Fair Holdings needing to raise an additional $60 million.
- TrueCar’s past legal issues are unlikely to impact Fair’s fundraising efforts for the acquisition.
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