In today’s briefing:
- HSCI Index Rebalance Preview and Stock Connect: Potential Changes in September
- MVIS Global Rare Earth/Strategic Metals Index Rebalance Preview: Changes Afoot
- Index Rebalance & ETF Flow Recap: CSI300/500, Chinext, China Semi Chips, Nifty Next50, SET50, REMX
- KWEB Index Rebalance: Few Changes at the Close Today
- KRX New Deal Index Rebalance Preview: A Change for Each Index
- Semiconductor Events Deserving Your Attention @ 10/6/23
- Details of the Lutronic Tender Offer M&A by Hahn & Company
- HDFC Ltd – Funding Benefits Can Be Immediate, Substantial
- MVIS Global Junior Gold Miners Index Rebalance: Big Float & Capping Changes
- Index Rebalance & ETF Flow Recap: HSCI, GDXJ, KRX New Deal, AMFI, Amman Mineral, Infratil
HSCI Index Rebalance Preview and Stock Connect: Potential Changes in September
- Fenbi Ltd (2469 HK) was added to the Hang Seng Composite Index (HSCI) at the close Friday and will be added to Southbound Stock Connect from open of trading today.
- We see 22 potential adds, 19 potential deletes, couple of close deletes, 5 deletes on prolonged suspension and 4 close liquidity deletes for the HSCI in September.
- There are 11 potential deletions where holdings via Stock Connect are more than 20% of shares outstanding. There could be some unwinding of positions over the next couple of months.
MVIS Global Rare Earth/Strategic Metals Index Rebalance Preview: Changes Afoot
- The review period for the June rebalance ended on 31 May. Announcement of the changes will be made on 9 June with implementation at the close on 16 June.
- There could be 3 or 4 A-share additions due to their inclusion in Northbound Stock Connect. That in turn expands the index universe and could result in 2-3 deletions.
- If there are 4 adds and 2 deletes at the June rebalance, estimated one-way turnover at the rebalance will be 13.4% and will result in a one-way trade of US$81m.
Index Rebalance & ETF Flow Recap: CSI300/500, Chinext, China Semi Chips, Nifty Next50, SET50, REMX
- It was a busy week with index rebalance implementations and announcements of index changes.
- The coming week has the KOSPI200 and KOSDAQ150 rebalancing on Thursday and a bunch of onshore China indices rebalancing on Friday.
- There were big inflows to China ETFs during the week while the largest inflows went to the Tracker Fund of Hong Kong Ltd (2800 HK) ETF.
KWEB Index Rebalance: Few Changes at the Close Today
- The June rebalance of the KraneShares CSI China Internet ETF (KWEB US) will take place at the close of trading today.
- There are a couple of deletions and one inclusion. Plus there will be capping changes on the other stocks, but the impact of those changes is not large.
- The stocks have already been moving in the right direction during the day and the pre-positions could be flipped to the ETF at the close.
KRX New Deal Index Rebalance Preview: A Change for Each Index
- The review period for the September rebalance ends on 31 July, the changes will be announced towards end August and implemented at the close of trading on 7 September.
- There is one change currently for each of the Secondary Battery, Bio, Internet and Game indices. Large stock price moves mean no changes for the BBIG Index currently.
- Douzone Bizon (012510 KS) has flipped from a passive sell to a passive buy over the last month and the stock could move higher from here.
Semiconductor Events Deserving Your Attention @ 10/6/23
- WSTS updates global semiconductor FY2023 forecast to reflect a 10% YoY decline
- TSMC’s May revenue jumps 19.4% MoM reflecting the generative AI-driven surge in orders from NVIDIA
- Intel plumbs new depths with a ridiculous IDC SAM analysis
Details of the Lutronic Tender Offer M&A by Hahn & Company
- In this insight, we provide details of the Lutronic tender offer M&A by Hahn & Company.
- We believe that Hahn & Co is likely to successfully complete this M&A tender offer of Lutronic.
- In our view, most of the shareholders of Lutronic are likely to tender their shares, given the sharp share price appreciation and reasonable tender offer premium.
HDFC Ltd – Funding Benefits Can Be Immediate, Substantial
- HDFC Ltd will merge into HDFC Bank perhaps within some weeks
- Amalgamation presumed benefits are a long list: scale, cross-sell, funding, loan mix, etc
- Improvements in total funding costs may be immediate and significant, beyond expectations
MVIS Global Junior Gold Miners Index Rebalance: Big Float & Capping Changes
- The changes to the MVIS Global Junior Gold Miners Index (MVGDXJ) were announced on 9 June and will be implemented at the close on 16 June.
- Though there are no constituent changes, changes to free floats and capping factors will result in an estimated one-way turnover of 6.26% and in a one-way trade of US$251m.
- The largest passive inflows will be in Alamos Gold (AGI US), Kinross Gold Corp (KGC US), Endeavour Mining (EDV CN), B2Gold Corp (BTG US) and Centerra Gold (CG CN).
Index Rebalance & ETF Flow Recap: HSCI, GDXJ, KRX New Deal, AMFI, Amman Mineral, Infratil
- The changes for the KOSPI2 INDEX, KOSDAQ150 Index, CSI300 Index, STAR50 INDEX and a bunch of other onshore China indices were implemented last week.
- The coming week has a lot of rebalance implementations on Friday with the S&P/ASX family and the MVIS family, among others.
- AUM for the Yuanta/P-shares Taiwan Top 50 ETF (0050 TT) has continued to increase with big inflows in the last week.
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