Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Highly experienced ex-Delta One trader with 17 years of experience trading arbitrage and related strategies across Asian markets.

Exempt Financial Adviser (EFA) under CrossASEAN Research Pte Ltd.

It is important to note that the information provided by Periscope Analytics is based on publicly available data and own knowledge, which has been gathered and synthesized from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions.

All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include, but are not limited to, company announcements, exchange filings, ETF and other passive investment vehicle holdings, and free float and volume data from third-party data providers. Periscope Analytics does not guarantee the accuracy and completeness of the forecasts, estimates and/or other information.

Pan-Asia Index Rebalances/ Events/ Delta One

HK - Consultation on Corporate WVR Listings

Ping An A/H Premium - The Pendulum Swings to the Other Extreme

HSCEI - Implications of Proposed Changes: WVR, Secondary Listings, Red/P-Chip Selection Criteria

HSI - Potential Impact of WVR Share Inclusion & Finance Sector Capping

HSCEI Dividends - Index Review Could Lower Fair Value

Event-Driven

Hang Seng Indexes Limited (HSIL) released a <a href="https://www.hsi.com.hk/static/uploads/contents/en/news/consultations/20200113T121200.pdf" target="_blank" rel="noopener">consultation paper</a> during the lunch break yesterday on proposed changes to the Hang Seng Index (HSI) and the Hang Seng China Enterprises Index (HSCEI).There are three main proposals for the HSI: 1. Eligibility of Weighted Voting Rights (WVR) securities in the HSI 2. Eligibility of secondary-listing companies in the HSI 3. Capping of the weight of the Finance sector in the HSIWe have taken a look at proposals 1 and 3 in our Insight <a href="https://www.smartkarma.com/insights/hsi-potential-impact-of-wvr-share-inclusion-finance-sector-capping" target="_blank" rel="noopener" data-smartkarma-citation="insights:34986">HSI - Potential Impact of WVR Share Inclusion &amp; Finance Sector Capping</a> and will extend the analysis in this Insight by adding secondary listings into the mix.Across the proposed changes to the HSI and HSCEI, <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" rel="noopener" data-smartkarma-citation="entities:28434:1">Alibaba Group (9988 HK)</a> could see inflows of HK$24.5bn, <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" rel="noopener" data-smartkarma-citation="entities:26970:1">Meituan Dianping (3690 HK)</a> could see inflows of HK$14.2bn and <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" rel="noopener" data-smartkarma-citation="entities:24409:1">Xiaomi Corp (1810 HK)</a> could see inflows of HK$5bn.

Hang Seng Indexes Limited (HSIL) released a consultation paper during the lunch break yesterday on proposed changes to the Hang Seng Index (HSI) and the Hang Seng China Enterprises Index (HSCEI).There are three main proposals for the HSI: 1. Eligibility of Weighted Voting Rights (WVR) securities in the HSI 2. Eligibility of secondary-listing companies in the HSI 3. Capping of the weight of the Finance sector in the HSIWe have taken a look at proposals 1 and 3 in our Insight HSI - Potential Impact of WVR Share Inclusion &amp; Finance Sector Capping and will extend the analysis in this Insight by adding secondary listings into the mix.Across the proposed changes to the HSI and HSCEI, Alibaba Group (9988 HK) could see inflows of HK$24.5bn, Meituan Dianping (3690 HK) could see inflows of HK$14.2bn and Xiaomi Corp (1810 HK) could see inflows of HK$5bn.

HSI - Implications of Proposed Changes: WVR, Secondary Listings, Finance Sector Capping