In today’s briefing:
- HSCEI Index Rebalance: Bilibili Replaces Sunac Next Week
- JPX-Nikkei 400 2022 Rebal: Final Predictions
- Elon Suddenly Admits Massive Tesla Losses (Because Other News Out Soon Is Even Worse)
- End of Mandatory Lock-Up Periods for 40 Companies in Korea in July 2022
- Defensive & Diversifying Strategies in YTD 2022
HSCEI Index Rebalance: Bilibili Replaces Sunac Next Week
- Bilibili (9626 HK) will replace Sunac China Holdings (1918 HK) in the Hang Seng China Enterprises Index (HSCEI INDEX) at the close of trading on 8 July.
- While Bilibili (9626 HK)‘s index inclusion is a surprise, the impact from passive fund trading is not a lot. Nothing much one can do on Sunac China Holdings (1918 HK).
- The Hang Seng China Enterprises Index (HSCEI INDEX) will drop 16.12 points at the close on 8 July. Something for traders to watch out for over the next week.
JPX-Nikkei 400 2022 Rebal: Final Predictions
- JPX-Nikkei 400 is composed of stocks listed on the Tokyo Stock Exchange selected based on multiple metrics relating to size, liquidity, financial performance, and corporate governance.
- The annual rebalance of the JPX-Nikkei 400 Index takes place in August every year and the cut-off date for the data used for this rebalance is the end of June.
- In this insight, we take a look at Quiddity’s final predictions for Potential ADDs/DELs for the August 2022 review.
Elon Suddenly Admits Massive Tesla Losses (Because Other News Out Soon Is Even Worse)
- Elon Musk suddenly admitted Tesla is burning billions at its Austin & Berlin plants.
- This happened to come just as he likely saw Q2 becoming “super bad,” as I had warned, since plunging China sales mean Tesla can’t mask big losses as usual.
- Tesla’s problems are bigger than second quarter woes—and they’re not going away anytime soon.
End of Mandatory Lock-Up Periods for 40 Companies in Korea in July 2022
- We discuss end of the mandatory lock-up periods for 40 stocks in Korea in July 2022, among which 7 are in KOSPI and 33 are in KOSDAQ.
- These 40 stocks on average could be subject to further selling pressures in July and could underperform relative to the market.
- Among these 40 stocks, LG Energy Solution (373220 KS) and Heung A Shipping (003280 KS) could face further selling pressures in the coming weeks.
Defensive & Diversifying Strategies in YTD 2022
- Most defensive and diversifying strategies generated negative returns in YTD 2022
- The correlation of almost all of these strategies to equities was too high
- Only managed futures generated attractive diversification benefits in YTD 2022
Before it’s here, it’s on Smartkarma
