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

Meitu (1357 HK): Out of the Frame as Global Index Deletion Looms

COSCO Shipping Energy (1138 HK): Global Index Inclusion & The A/H Premium

Wharf Holdings (4 HK): Improved Liquidity & Passive Buying

Kingboard Laminates (1888 HK): New High; Global Index Inclusion; RV Trade

Global Index: Potential Changes in February for Asia Pac

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>The slide in the stock price over the last few months could see <a href="https://www.smartkarma.com/entities/wharf-holdings-ltd" target="_blank" data-smartkarma-citation="entities:51:1" rel="noopener">Wharf Holdings (4 HK)</a> deleted from a global index at the May rebalance.</li>
<li>The impact of the index deletion will be large in terms of ADV. Shorts have been increasing but positioning appears to be far smaller than the estimated passive selling.</li>
<li>The stock could drop further over the next week or two, but value buyers could then emerge as the stock trades cheaper than a lot of its peers.</li>
</ul>


The slide in the stock price over the last few months could see Wharf Holdings (4 HK) deleted from a global index at the May rebalance.
The impact of the index deletion will be large in terms of ADV. Shorts have been increasing but positioning appears to be far smaller than the estimated passive selling.
The stock could drop further over the next week or two, but value buyers could then emerge as the stock trades cheaper than a lot of its peers.


Wharf Holdings (4 HK): Increased Shorts; Small Positioning for The (Potential) Global Index Deletion