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Most Read: SenseTime Group, SK Telecom, Infomedia Ltd, Ping An Insurance (H), Hana Tour Service and more

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: HSCEI, LQ45, Kakao Pay, Thai Life
  • SK Telecom / KT Corp: Foreign Room, Passive Flow & Trade Update
  • Merger Arb Mondays (20 Jun) – Link Admin, Infomedia, ResApp, Ramsay Health, Frasers Hospitality
  • Ping An A/H: Position for Premium Contraction
  • TIGER Theme ETF “Tour Leisure” Rebalancing Projections: Hanatour, Asiana, Kangwon Land, & T’way Air

Index Rebalance & ETF Flow Recap: HSCEI, LQ45, Kakao Pay, Thai Life

By Brian Freitas

  • It was a busy Friday with multiple implementations of the June rebalance – FTSE All-World/All-Cap, FTSE China 50/A50/TW50, S&P/ASX, REMX and GDXJ among others.
  • We highlight potential upcoming changes to the HSCEI INDEX and LQ45 Index, when Kakao Pay (377300 KS) could be added in MSCI Korea & the Thai Life IPO index inclusion.
  • There were large inflows to China and Korea focused ETFs during the week.

SK Telecom / KT Corp: Foreign Room, Passive Flow & Trade Update

By Brian Freitas



Ping An A/H: Position for Premium Contraction

By Brian Freitas

  • The Ping An AH premium has traded around 10% over the last few days – this is near its historical highs and close to where reversals take place from.
  • The AH premium of the broader market is below its highs, while the AH premium on large cap financials has been trending lower over the last few months.
  • Northbound Stock Connect holdings on the A-shares have been decreasing, while Southbound Stock Connect holdings on the H-shares have been increasing over the last few months.

TIGER Theme ETF “Tour Leisure” Rebalancing Projections: Hanatour, Asiana, Kangwon Land, & T’way Air

By Sanghyun Park

  • This ETF’s AUM has decreased by 17% over the past three months to ₩200B. It has 18 constituents, and it is unlikely that there will be any addition/deletion.
  • The first thing to note is Hana Tour because the increase in the number of shares through an offering will be reflected its the market cap right before the rebalancing.
  • Among the top stocks by market cap, Asiana Airlines (020560 KS) (+0,.20x ADTV) and Kangwon Land (035250 KS) (-0.21x ADTV) will likely have a significant passive impact.

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