In today’s briefing:
- AMFI Stock Reclassification Preview (Dec 2025): New Listings Shaking Up the Rankings
- HSTECH Index Rebalance: Leapmotor (9863 HK) To Replace ASMPT (522 HK) As Trade Hits US$3.5bn
- Yuanta/P-Shares Taiwan Div+ ETF Rebalance Preview: 3 Changes; US$4bn Trade
- HSCEI Index Rebalance: 3 Changes; Yum China In; Double Add for Innovent Bio
- Hang Seng Index (HSI) Rebalance: Innovent Biologics Turns a Profit, Gets Added
- KOSPI Size Indices: Lots of Change as Averaging Starts
- Curator’s Cut: Powering Down CATL, Iron Ore Plays & Japan Consumer Consolidation
- Hong Kong: IPO SPOTLIGHT – OVERVIEW 2025
- The Beat Ideas: Dynamatic Technologies – An Indian Tier-1 Supplier’s Flight Path in Global Aerospace
- CSI 300 (SHSZ300) Tactical Outlook After Nov. 28 Rebalance Announcement
AMFI Stock Reclassification Preview (Dec 2025): New Listings Shaking Up the Rankings
- We forecast 7 stocks moving from MidCap to LargeCap, 10 stocks moving from LargeCap to MidCap, 3 stocks from SmallCap to MidCap, and 11 stocks from MidCap to SmallCap.
- From the new listings, 13 stocks are expected to be added to Large Cap, 5 stocks are expected to be added to Mid Cap, and multiple stocks to Small Cap.
- With the review period nearing completion, there could still be more outperformance given the momentum, but we would look to take profit on the stocks as the divergence gets wider.
HSTECH Index Rebalance: Leapmotor (9863 HK) To Replace ASMPT (522 HK) As Trade Hits US$3.5bn
- As expected, Zhejiang Leapmotor Technologie (9863 HK) will replace ASM Pacific Technology (522 HK) in the Hang Seng TECH Index (HSTECH INDEX) at the December rebalance.
- Estimated one-way turnover is 4.7% and that results in a round-trip trade of HK$27.5bn (US$3.5bn). There is between 8.7-9.8 days of ADV to trade in the two stocks.
- Capping and float changes results in chunky flows to some other stocks and there could be big price moves over the next week.
Yuanta/P-Shares Taiwan Div+ ETF Rebalance Preview: 3 Changes; US$4bn Trade
- With the review period now complete, there could be 3 constituent changes for the Yuanta/P-Shares Taiwan Dividend Plus ETF in December.
- Constituent changes along with capping changes will lead to a one-way turnover of 12.7% and in a round-trip trade of TWD 125bn (US$4bn).
- There are multiple stocks that have same-way or opposite flow from trackers of other Taiwan indices and present some interesting trading opportunities.
HSCEI Index Rebalance: 3 Changes; Yum China In; Double Add for Innovent Bio
- China Hongqiao, Innovent Biologics and Yum China replace ENN Energy, Haidilao International and New Oriental Education in the Hang Seng China Enterprises Index (HSCEI INDEX) in December. All changes are in line.
- Estimated one-way turnover at the rebalance is 4.6% resulting in a round-trip trade of HK$6.3bn (US$811m). The final capping will use the close of trading on 2 December.
- Innovent Biologics is also an add to the Hang Seng Index (HSI INDEX). The passive buying will absorb some stock from the recent placement in China Hongqiao.
Hang Seng Index (HSI) Rebalance: Innovent Biologics Turns a Profit, Gets Added
- Following two periods of profitability, Innovent Biologics Inc (1801 HK) will be added to the Hang Seng Index (HSI INDEX) at the close on 5 December.
- Innovent Biologics Inc (1801 HK) is also an add to the Hang Seng China Enterprises Index (HSCEI INDEX) in December, so this inclusion increases the flow and impact.
- Estimated one-way turnover is 2.3% and the estimated round-trip trade is HK$9.2bn (US$1.2bn). Big capping outflows for Alibaba (9988 HK) at the December rebalance.
KOSPI Size Indices: Lots of Change as Averaging Starts
- The review period for the March rebalance of the KOSPI Size Indices will commence on 1 December and will end on 28 February.
- Nearing the start of the averaging period, we forecast 34 migrating stocks. Among new listings, 1 stock could be added to LargeCap, 2 to MidCap and 2 to SmallCap.
- The upward migrations have outperformed the downward migrations by a lot over the last 3 months. The gap in returns versus the KOSPI2 INDEX is a lot smaller.
Curator’s Cut: Powering Down CATL, Iron Ore Plays & Japan Consumer Consolidation
- Welcome to Curator’s Cut — a fortnightly roundup of standout themes from the 1,500+ insights published on Smartkarma.
- In this cut, we review CATL’s H-share lock-up expiry, iron ore equity opportunities in the face of Simandou’s expected supply, and the accelerating consolidation in Japan’s consumer sector.
- Want to dig deeper? Comment or message with the themes you’d like to see highlighted next.
Hong Kong: IPO SPOTLIGHT – OVERVIEW 2025
- Hong Kong is the top global destination for IPOs in 2025, with over HK $280 billion raised so far. Large scale A+H dual listings have surged this year.
- Technology and healthcare sectors have dominated IPOs with the materials sector also floating several large listings. With nearly 300 listings in the pipeline, 2026 should be another banner year.
- Zijin Gold (2259 HK) , Chery Automobile (9973 HK) and Mixue Group (2097 HK) were the largest IPOs of the year while PegBio (2565 HK) has had the best return.
The Beat Ideas: Dynamatic Technologies – An Indian Tier-1 Supplier’s Flight Path in Global Aerospace
- The structural shift in Dynamatic Technologies’ revenue mix is accelerating, with the high-margin Aerospace segment now contributing 82% of consolidated EBITDA in FY25, underpinned by major new contract industrialization.
- The premium valuation is justified by its annuity-like, high-barrier sole-supplier status for the Airbus A320 family and significant new program wins (Airbus A220 doors), providing a multi-decade visibility.
- DTL’s core value is increasingly diverging from its legacy segments; success hinges on efficient capital deployment in India and mitigating the persistent drag from its European Metallurgy business.
CSI 300 (SHSZ300) Tactical Outlook After Nov. 28 Rebalance Announcement
- On November 28th China Securities Index Co (CSI) announced the changes to the CSI 300 Index (SHSZ300 INDEX): 11 companies added and 11 deleted.
- The complete list of additions and deletions is available here (or see the attachment at the end of this insight for your convenience).
- We analyze our probabilistic models to forecast short-term market directions for the CSI 300 Index, as passive flows between here and December 12 may affect the index volatility and trend.
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