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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

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

Event-Driven

Brilliance China Automotive / Event-Driven

<ul>
<li>We see 44 potential adds (including plenty of new listings) and 19 potential deletes (on market cap, liquidity and suspension) for the Hang Seng Composite Index in March.</li>
<li>We expect 37 stocks to be added to Southbound Stock Connect following the rebalance while 37 stocks could be deleted from the trading link and become Sell-only. </li>
<li>There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.</li>
</ul>


We see 44 potential adds (including plenty of new listings) and 19 potential deletes (on market cap, liquidity and suspension) for the Hang Seng Composite Index in March.
We expect 37 stocks to be added to Southbound Stock Connect following the rebalance while 37 stocks could be deleted from the trading link and become Sell-only. 
There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.


HSCI Index Rebalance Preview and Stock Connect: A Lot of Change

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 115.3% as of Dec 9th.</li>
<li>The average A-H premium changed by -2.6ppt weeok on week, led by health care, real estate, materials and offset by consumer discretionary, information technology.</li>
<li>We highlight weekly changes in A-H premium for Weichai Power, Shanghai Fudan, Guolian Securities, Joinn Lab, Great Wall Motor, Tsingtao Brewery.</li>
</ul>


We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 115.3% as of Dec 9th.
The average A-H premium changed by -2.6ppt weeok on week, led by health care, real estate, materials and offset by consumer discretionary, information technology.
We highlight weekly changes in A-H premium for Weichai Power, Shanghai Fudan, Guolian Securities, Joinn Lab, Great Wall Motor, Tsingtao Brewery.


A-H Premium Weekly (Dec 9th): Weichai Power, Shanghai Fudan, Guolian, Joinn Lab, GWC, Tsingtao

<ul>
<li>We see 3 potential adds for the HSCI in December. We also see 26 potential adds and 16 potential deletes for the index in March.</li>
<li>Following the March rebalance, we see 22 potential inclusions to Stock Connect while we expect 37 stocks to be removed from the link.</li>
<li>Some of the potential deletions/ Stock Connect drops have large Southbound holdings and some of these positions could be pared back over the next few months.</li>
</ul>


We see 3 potential adds for the HSCI in December. We also see 26 potential adds and 16 potential deletes for the index in March.
Following the March rebalance, we see 22 potential inclusions to Stock Connect while we expect 37 stocks to be removed from the link.
Some of the potential deletions/ Stock Connect drops have large Southbound holdings and some of these positions could be pared back over the next few months.


HSCI Index Rebalance and Stock Connect: Changes at the Margins

<ul>
<li>We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 125.5% as of Sep 30th.</li>
<li>The average A-H premium changed by 6.5ppt weeok on week, led by consumer staples, industrials, communication services.</li>
<li>We highlight weekly changes in A-H premium for Ping An, Bankcomm, Angang Steel, Remegen, Qingdao Port, China Tourism, Asymchem Lab, Flat Glass.</li>
</ul>


We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 125.5% as of Sep 30th.
The average A-H premium changed by 6.5ppt weeok on week, led by consumer staples, industrials, communication services.
We highlight weekly changes in A-H premium for Ping An, Bankcomm, Angang Steel, Remegen, Qingdao Port, China Tourism, Asymchem Lab, Flat Glass.


A-H Premium Weekly (Sep 30th): China Tourism at New Low Since Listing

<ul>
<li>We analyse the changes of A/H premium on 141 stocks over the last week. The average A/H premium changed by -1.7ppt over the past one week.</li>
<li>A-H Premium decline was led by consumer discretionary, consumer staples, and real estates, offset by the A-H premium increase of health care sector.</li>
<li>We highlight changes in A-H premium for Angang Steel, Chongqing Ireon, China Merchants Securities, COSCO Ship Eng, Joinn Lab, Zoomlion, Shandong Xinhua, Zheshang Bank, Sinopec Shanghai Petrochem.</li>
</ul>


We analyse the changes of A/H premium on 141 stocks over the last week. The average A/H premium changed by -1.7ppt over the past one week.
A-H Premium decline was led by consumer discretionary, consumer staples, and real estates, offset by the A-H premium increase of health care sector.
We highlight changes in A-H premium for Angang Steel, Chongqing Ireon, China Merchants Securities, COSCO Ship Eng, Joinn Lab, Zoomlion, Shandong Xinhua, Zheshang Bank, Sinopec Shanghai Petrochem.


A-H Premium Weekly: Joinn Lab, Zoomlion, Shandong Xinhua, Zheshang Bank, Sinopec Shanghai Petrochem

China

Fufeng Group Limited manufactures corn-based bio-chemical products utilizing fermentation technology. The Company's products include glutamic acid and xanthan gum.

China BlueChemical Ltd. operates as a developer and manufacturer of mineral fertilizers and chemicals. The Company produces urea, phosphate and compound fertilizers, and methanol, using proprietary research. China BlueChemical is a state-owned enterprise.

Nanning Chemical Industry Co., Ltd. develops, manufactures, and markets organic and inorganic industrial chemicals.  The Company's products include chlorine and alkali products, pesticides, and disinfectants.

Nanning Chemical Industry Co., (600301 CH)

Zhejiang Transfar Co., Ltd. manufactures and markets a variety of organic fluorine and organic silicone such as water and oil repellent, pre-treating agents, dyeing auxiliaries, finishing treating auxiliaries, conning oil, and optical brightening agent.

Anhui Jinhe Industrial Co.,Ltd. manufactures chemical products. The Company produces additives, methyl maltol, ethyl maltol, liquid ammonia, ammonium bicarbonate, melamine, formaldehyde, nitric acids, and other products. Anhui Jinhe Industrial also operates import and export businesses.

Inner Mongolia Lantai Industrial Co., Ltd. manufactures and markets salt for both consumer and industrial uses.  The Company also produces metal sodium, liquid chlorine, ADC blowing agent, carotene, and other related chemicals.

Inner Mongolia Lantai Industrial (600328 CH)

Zhejiang Xinan Chemical Industrial Group Co., Ltd. produces and sells pesticides and other chemical materials, including herbicides and organophosphorus insecticides, organosilicon materials, and other chemicals. Through its subsidiaries, the Company also sells coal, generates electric power, and manufactures crystal products.

Cofco Biochemical Company, Ltd. develops and manufactures citric acid, citrate products, related byproducts, and cooking oil.

Shanghai PRET Composites Co.,Ltd. develops, manufactures and sales modified plastics and composites material auto-parts.

Tangshan Sanyou Chemical Industries Co., Ltd. manufactures and markets basic chemical products, including soda ash, food additives, and other related products.  The Company also operates in import/export trading.

Tangshan Sanyou Chemical Industries Co (600409 CH)

Scientex Berhad is an investment holding company.  The Company, through its subsidiaries manufactures polyvinyl chloride (PVC), polyurethane leather sheetings, packaging materials, bricks, and automotive parts.  Scientex also operates in property investment, development, and leasing, as well as deals in securities.

Teijin Ltd manufactures polyester and other fibers including nylon, acetate, aramid, and polyvinyl chloride for apparel and industrial materials.  Teijin also makes polyester films used in advanced magnetic media and electronics equipment through a joint venture with Dupont.  The Company also produces pharmaceuticals, medical products, and information system equipment.

Kronos Worldwide, Inc. produces titanium dioxide pigments.  The Company's products are used to whiten, brighten, and add opacity to thousands of commonly used products, such as paints, plastics, inks, and cosmetics.

LINTEC Corporation manufactures and markets adhesive products and paper.  The Company's pressure-sensitive adhesives are used in a wide range of applications such as labeling, sealing, and packaging, as well as marking and window filming in the architecture and automotive industries.  Lintec also produces packaging, labeling, and printing machines.

E.I.D. - Parry (India) Limited is a diversified manufacturer of fertilizers, pesticides, sugar, ceramics, electronics and seeds.  The Company is also diversifying into the manufacture of organic fertilizers, bio-pesticides, acetic acid, wall tiles and horticultural activities.

NIPPON KAYAKU CO., LTD. is a diversified chemical producer.  The Company manufactures pharmaceuticals, dyestuffs, agrochemicals, explosives and synthetic resins.  The Company also produces airbag inflators.

Batu Kawan Berhad is an investment holding company. Through its subsidiaries, the Company manufactures chemicals and methyl chloride. Batu Kawan also provides general transport and haulage services, leases storage warehouse, and provides money lending services.

TOKAI CARBON CO., LTD. produces carbon-based industrial products such as carbon black for various rubber products.  The Company also manufactures high-pressured gases and industrial electric furnaces.

FUJIMI INCORPORATED manufactures silicon wafer polishing materials.  The Company also produces mirror surface finishing materials and other related products.

Alkyl Amines Chemicals Limited manufactures and supplies amines and amine-based chemicals to the pharmaceutical, agrochemical, rubber chemical, and water treatment industries. The Company's products include aliphatic amines, amine derivatives, and fine chemicals. The Company also has a bioprocess technology division which conducts research in the field of industrial biotechnology.

Sinopec Shanghai Petrochemical Company Limited processes crude oil into a broad range of synthetic fibers, resins and plastics, intermediate petrochemical products and petroleum products.

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Sinopec Shanghai Petrochemical (338 HK)

HSCI Index Rebalance Preview and Stock Connect: A Lot of Change

We forecast 44 adds/19 deletes for the HSCI in March leading to 37 adds/deletes for Southbound Stock Connect. There could be more Connect changes...

Brian Freitas

A-H Premium Weekly (Dec 9th): Weichai Power, Shanghai Fudan, Guolian, Joinn Lab, GWC, Tsingtao

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Weichai Power, Shanghai Fudan, Guolian Securities, Joinn...

Ke Yan, CFA, FRM

HSCI Index Rebalance and Stock Connect: Changes at the Margins

We see 3 inclusions for the index in Dec, and then 26 adds/16 deletions in March. Following the March rebal, we see 22 adds/37 deletions for Stock...

Brian Freitas

A-H Premium Weekly (Sep 30th): China Tourism at New Low Since Listing

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Ping An, Bankcomm, Angang Steel, Remegen, Qingdao Port,...

Ke Yan, CFA, FRM

A-H Premium Weekly: Joinn Lab, Zoomlion, Shandong Xinhua, Zheshang Bank, Sinopec Shanghai Petrochem

A-H premium declined by 1.7ppt last week. We highlight changes in A-H premium for Joinn Lab, Zoomlion, Shandong Xinhua, Zheshang Bank, Sinopec...

Ke Yan, CFA, FRM

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)