In today’s briefing:
- HSTECH Index Rebalance: Leapmotor (9863 HK) To Replace ASMPT (522 HK) As Trade Hits US$3.5bn
- [Quiddity Index] SP500/600 Dec25 Rebal: Two ADDs Two DELs and 3 Intra-Review Changes Likely Soon
- HSCEI Index Rebalance: 3 Changes; Yum China In; Double Add for Innovent Bio
- Unexpected ETF-Driven Flow Event Lights up the KOSPI 200 IT Sleeve
- Hang Seng Index (HSI) Rebalance: Innovent Biologics Turns a Profit, Gets Added
- Qube (QUB AU): Macquarie’s Lobs NBIO
- SENSEX Index Rebalance: InterGlobe Aviation to Replace Tata Motors PV
- Monash IVF (MVF AU): Genesis Capital to Launch a Takeover Proposal?
- [Quiddity Index] Dec25 Hang Seng Index Family Review; Flows for December 5 Rebal
- Weekly Deals Digest (23 Nov) – SBI Shinsei, Toyoda Gosei, Jinke, Digital Hldgs, Webjet, RPM
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.
[Quiddity Index] SP500/600 Dec25 Rebal: Two ADDs Two DELs and 3 Intra-Review Changes Likely Soon
- The SP 500 index tracks the 500 largest names listed in the US and it is one of the most highly-tracked indices in the world.
- In this insight, we take a look at the upcoming constituent changes in the run up to the December 2025 index rebal event.
- We expect two regular changes in December 2025. There are also multiple live M&A events which are likely to trigger intra-review index changes.
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.
Unexpected ETF-Driven Flow Event Lights up the KOSPI 200 IT Sleeve
- If the three non-IT names exit IT, passive flows hit hard: SK Square/LG Electronics ~0.4× DTV out, LG Corp ~0.8× DTV out, new IT entrants ~0.2–0.25× DTV in.
- If KRX surprises next Tuesday, kicking three names from IT, expect immediate tape reaction—market memory exists, but the scenario isn’t priced, unlike 2023 Kakaopay, so instant price impact is likely.
- If this happens, June 11 turns into a chunky basket-flow day: SK Square (~15% weight) out, next-tier caps see ~0.15–0.2× DTV inflow, except ultra-liquid names like Hanmi Semi.
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.
Qube (QUB AU): Macquarie’s Lobs NBIO
- Qube Holdings (QUB AU), a logistics and infrastructure play, has announced a A$5.20/share non-binding indicative Offer from Macquarie Asset Management, a unit of Macquarie Group (MQG AU).
- That is a 27.8% premium to last close. And ~14.4x FY25 EV/EBITDA. The proposal “follows an earlier unsolicited, non-=binding and indicative offer at lower value.” Dividends paid will be netted.
- Qube directors are supportive. The proposal is conditional on due diligence, board approvals, no MACs at Qube, plus regulatory clearance, including FIRB and ACCC signing off.
SENSEX Index Rebalance: InterGlobe Aviation to Replace Tata Motors PV
- As forecast, InterGlobe Aviation Ltd (INDIGO IN) will replace Tata Motors (TTMT IN) in the S&P BSE SENSEX Index (SENSEX INDEX) after the close on 19 December.
- Passive trackers will need to trade between 3.6-7.7x ADV in the stocks and that increases significantly to 7.1-12x delivery volume.
- There are indications that positioning has built up in both stocks over the last few weeks. However, in both cases, positioning is expected to be smaller than the passive selling.
Monash IVF (MVF AU): Genesis Capital to Launch a Takeover Proposal?
- The AFR reports that a mystery buyer, believed to be Genesis Capital, will launch a takeover proposal for Monash IVF (MVF AU) at A$0.80, a 31.1% premium to the last close.
- On Friday, the mystery buyer acquired a pre-bid stake of 6.01% of outstanding shares at A$0.80. The timing is opportunistic as the shares are down 51% YTD.
- It is unclear whether Genesis is aiming to launch a scheme or an off-market takeover offer. Nevertheless, the rumoured offer is light.
[Quiddity Index] Dec25 Hang Seng Index Family Review; Flows for December 5 Rebal
- In this insight, we present the flows to buy and sell for each of the top 6 Hang Seng Index Family indices based on estimated tracking AUM.
- The indices: Hang Seng Index (HSI), HS Tech Index (HSTECH), HS China Enterprise Index (HSCEI), HS HK Biotech (HSHKBIO), HS Internet & Infotech (HSIII), and HS Healthcare Index (HSHCI).
- By Quiddity calculations based on the 21 November close, there is one-way flow across these six indices of HK$26.14bn (approximately), to trade on 5 December at the close.
Weekly Deals Digest (23 Nov) – SBI Shinsei, Toyoda Gosei, Jinke, Digital Hldgs, Webjet, RPM
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments: SBI Shinsei Bank (8303 JP) is looking to relist by raising about US$2 billion, and Toyoda Gosei (7282 JP)‘s US$0.8 billion secondary offering.
- Event-Driven developments: Digital Holdings Inc (2389 JP), Jinke Smart Services (9666 HK), RPMGlobal Holdings Limited (RUL AU), Webjet Group (WJL AU).
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
