Korea / Special Situations, Clepsydra Capital

Sanghyun Park

I investigate special situations in Korea.

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Index Rebalance

Korea Stock Exchange KOSPI 200 / Index Rebalance

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

<ul>
<li>KRX says the new KRICS framework should stay fairly close to GICS, so using GICS as the base case is the best way to forecast sector mapping at this point.</li>
<li>KRX simulations show the KRICS switch should not materially change the size of December KOSPI 200 adds and deletes, with existing market cap buffer rules absorbing most sector driven changes.</li>
<li>Nonetheless, sector uncertainty makes cutoff calls harder, likely delaying KOSPI 200 pre positioning and flow signals until late October, when the new mapping is released.</li>
</ul>


KRX says the new KRICS framework should stay fairly close to GICS, so using GICS as the base case is the best way to forecast sector mapping at this point.
KRX simulations show the KRICS switch should not materially change the size of December KOSPI 200 adds and deletes, with existing market cap buffer rules absorbing most sector driven changes.
Nonetheless, sector uncertainty makes cutoff calls harder, likely delaying KOSPI 200 pre positioning and flow signals until late October, when the new mapping is released.


Sharing What I Heard Directly from a KRX Index Official Today on Sector Change for KOSPI 200 Rebal