Daily BriefsMost Read

Most Read: Hitachi Construction Machinery, LG Energy Solution, Kweichow Moutai and more

In today’s briefing:

  • LG Energy Solution (373220 KS) IPO: Comprehensive Index (Fast) Entry List
  • Hitachi Finally Bailing on Hitachi Construction (6305); Too Early To Buy
  • LG Energy Bookbuilding: Detailed Results
  • China Property Services: Pair Trades in a Beaten Down Industry
  • FTSE China A50 Index Ground Rule Change: Big Flows & Large Turnover in March

LG Energy Solution (373220 KS) IPO: Comprehensive Index (Fast) Entry List

By Brian Freitas

  • The LG Energy Solution (373220 KS) IPO will be the largest ever in Korea and will result in Fast Entry to a lot of local and global indices.
  • A lot of the passive flow will be front loaded across the KOSPI200, local Battery indices, BBIG, MSCI Korea, FTSE All-World with back end flow on global battery indices.
  • Given the passive assets tracking the Battery ETFs locally and globally, a significant portion of LG Energy Solution (373220 KS)‘s float will be locked up in passive products.

Hitachi Finally Bailing on Hitachi Construction (6305); Too Early To Buy

By Travis Lundy

  • An NHK report today post-close said Hitachi Ltd (6501 JP) would sell “about half” its stake in sub Hitachi Construction Machinery (6305 JP) to Itochu and Japan Industrial Partners.
  • That is quite similar to the announcement 15 months ago in the Nikkei which precipitated a large drop. While unconfirmed, it smells like there is fire behind the smoke.
  • The big question is What Next? and What Impact for shareholders? That’s a tough couple of questions. 

LG Energy Bookbuilding: Detailed Results

By Sanghyun Park

  • This IPO led to unusually high interest from local active funds. This is evidenced by the order volume
  • Nevertheless, many local institutions must have felt burdened with LG Energy’s valuation, so they wanted to avoid setting the offering price above the upper end.
  • As for the relatively poor lockup result, the issuer’s refusal to incentivize lockup to set the float rate to around 10% may also have played a part.

China Property Services: Pair Trades in a Beaten Down Industry

By Brian Freitas

  • Stocks in the China Property Services industry have taken a beating over the last year on heightened regulatory fears, placements and potential stake sales by their large property developer holders.
  • The Hang Seng Property Service and Management Index (HSPSM) has underperformed the Hang Seng Mainland Property Index (HSMPI) over the last 3 months and there could be some recovery.
  • We take a look at some pair trades that could provide outperformance in the short-term with a lower level of risk.

FTSE China A50 Index Ground Rule Change: Big Flows & Large Turnover in March

By Brian Freitas


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