In today’s briefing:
- Zijin Mining (2899 HK): Fully Valued Ahead Of (Expected) Gold Unit Spin-Off
- Gold Miners ETF (GDX US): Capping Pushes Trade to Over US$10bn
- HSI, HSCEI, HSTECH, HSIII Index Rebalance: US$7.4bn of Flows Post Capping (Sep 2025)
- Who Owns Nidec (6594 JP) And How Much Could Be For Sale?
- [Quiddity Index] S&P500/600 Sep25 Rebal: Final Predictions
- Metaplanet Placement: A Look at Other Treasury Play Issuances and Performance
- Hesai Secondary HK Offering – Stock Has Been Recovering, a Look at Possible Trading Setup
- DigiCo Infrastructure REIT (DGT AU) And HealthCo REIT (HCW AU): Passive Flows
- Kangji Medical (9997 HK): Speedy Turnaround On Pre-Cons
- Ohayo Japan | Fresh Peak on Weak Jobs Data
Zijin Mining (2899 HK): Fully Valued Ahead Of (Expected) Gold Unit Spin-Off
- Back on the 30th April 2025, Zijin Mining (2899 HK) said it planned to spin off its overseas gold mine assets on the Hong Kong exchange.
- The newly created unit, Zijin Gold International, owns/operates mines in South America, Central Asia, Africa and Oceania, including the Buritica project in Colombia, the nation’s largest gold mine.
- A Circular is now out concerning the spin-off, which is not subject to shareholder approval. Pegged to peers, Zijin appears fully valued.
Gold Miners ETF (GDX US): Capping Pushes Trade to Over US$10bn
- The VanEck Gold Miners ETF/USA (GDX US) will change benchmark from the NYSE Arca Gold Miners Index to the MarketVector Global Gold Miners Index at the close on 19 September.
- The differences in the constituents between the two indices should result in 8 adds and 25 deletes. Estimated one-way turnover is 22.9% resulting in a round-trip trade of US$10.2bn.
- The forecast adds have underperformed the forecast deletes since the last Insight that highlighted the big valuation gap that had opened up since the announcement of the benchmark switch.
HSI, HSCEI, HSTECH, HSIII Index Rebalance: US$7.4bn of Flows Post Capping (Sep 2025)
- The September rebalance of the Hang Seng family of indices will use today’s closing prices to cap the index constituent weights.
- The net round-trip trade across all stocks across the five indices is estimated at HK$57.55bn (US$7.4bn). There is size to trade in a lot of stocks.
- Alibaba (9988 HK) has flipped from a net buy to a net sell following its huge rally yesterday.
Who Owns Nidec (6594 JP) And How Much Could Be For Sale?
- Nidec Corp (6594 JP) announced in June they were extending the release of their yuho for three months because of an internal investigation into NIDEC FIR INTERNATIONAL (Italy).
- Yesterday, the company announced it would establish a Third-Party Investigative Committee based on suspected improper accounting at the sub of a Chinese sub 1yr ago and parent management knowledge.
- There’s been a lot of work done. Now the committee digs in. The announcement smacks of IMS issues. Today the marketcap fell 22% or nearly ¥800bn on ¥200mm of accounting.
[Quiddity Index] S&P500/600 Sep25 Rebal: Final Predictions
- The S&P 500 index tracks the 500 largest names listed in the US and it is one of the most highly-tracked indices in the world.
- The rankings used for the September 2025 index rebal event will be based on yesterday’s (3rd September 2025) opening prices. The announcement will be made after the close on Friday.
- In this insight, we take a look at our final expectations for ADDs/DELs (along with a tracker of all live spinoff/M&A events which affect the index the next two quarters).
Metaplanet Placement: A Look at Other Treasury Play Issuances and Performance
- Metaplanet (3350 JP) is looking to raise around US$1bn from a primary placement.
- The deal is a relatively small one, representing 4.8 days of the stock’s three month ADV, despite being 22.8% of total shares outstanding.
- In this note, we look at Metaplanet and its peers.
Hesai Secondary HK Offering – Stock Has Been Recovering, a Look at Possible Trading Setup
- Hesai Group (HSAI US) plans to raise around US$200-300m in its secondary listing in Hong Kong.
- The company won HK listing approval and filed its PHIP on 31st August 2025. It will look to launch its secondary offering soon.
- In this note, we’ll take a look at the deal and talk about the impact of the raising.
DigiCo Infrastructure REIT (DGT AU) And HealthCo REIT (HCW AU): Passive Flows
- DigiCo Infrastructure REIT (DGT AU) will be added to a global sector index at the close on 19 September while HealthCo REIT (HCW AU) will be deleted.
- Estimated passive buying in DigiCo Infrastructure REIT (DGT AU) is US$32m while the passive selling in HealthCo REIT (HCW AU) is estimated to be US$7m.
- Shorts have increased in both stocks. There could be short covering in DigiCo Infrastructure REIT followed by new shorts, while shorts could look to cover HealthCo REIT as passives sell.
Kangji Medical (9997 HK): Speedy Turnaround On Pre-Cons
- Kangji Medical Instrument (9997 HK) announced last night all pre-cons have been squared away. That must be some kind of record to secure SAMR approval for a Hong Kong-listed privatisation.
- Back on the 12th August, Kangji Medical announced a less-than-ideal Offer, by way of a Scheme, from a consortium led by TPG and Qatar Investment Authority, together with the founders.
- What next? The Scheme Doc dispatch remains the 31st October, unless announced otherwise, as the Cayman Court is still on its six week “vacation”.
Ohayo Japan | Fresh Peak on Weak Jobs Data
- The S&P 500 closed at a fresh record high, gaining 0.8% after an afternoon rally helped investors shake off disappointing private employment data
- Treasury yields dropped following the ADP report, easing pressure on markets after the 30-year yield briefly topped 5% Wednesday
- Nidec shares plummeted 22% to 2,420 yen, hitting the lower limit of the price range, after the company announced a possible case of improper accounting treatment at Chinese subsidiary
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