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

Quantitative Analysis

<ul>
<li>We look at short interest across Hong Kong, Japan, Korea and Taiwan in April to identify stocks/sectors that have seen the largest changes in each market.</li>
<li>Korea and Taiwan are showing a clear divergence with short notional increasing as the market moves lower, indicative of new shorts being initiated.</li>
<li>
<a href="https://www.smartkarma.com/entities/china-merchants-bank-co-ltd-3388a037-4214-4997-b45d-520518cfdb57" target="_blank" data-smartkarma-citation="entities:10987:1" rel="noopener">China Merchants Bank H (3968 HK)</a> has seen the largest short covering as the stock has tumbled in the last couple of weeks.</li>
</ul>


We look at short interest across Hong Kong, Japan, Korea and Taiwan in April to identify stocks/sectors that have seen the largest changes in each market.
Korea and Taiwan are showing a clear divergence with short notional increasing as the market moves lower, indicative of new shorts being initiated.

China Merchants Bank H (3968 HK) has seen the largest short covering as the stock has tumbled in the last couple of weeks.


Asia Short Interest: Large Moves in April

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.

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Apr 22nd. </li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short increases in Shenzhou Intl, CK Hutchison, and short covers in China Merchants Bank.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Apr 22nd. 
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short increases in Shenzhou Intl, CK Hutchison, and short covers in China Merchants Bank.


HK Short Interest: Shenzhou Intl, CKH, CMB

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Equity Bottom-Up

Galaxy Entertainment Group / Equity Bottom-Up

<ul>
<li>Sentiment towards Galaxy Entertainment among Greater China managers has taken a turn for the better</li>
<li>Managers move from underweight to overweight, bucking a 4-year decline in allocations among active managers.</li>
<li>Allocation increases driven by new positions from Fubon China Growth (+3.32%), Eaton Vance Greater China Growth (+2.24%) and Eastspring Investments Greater China (+1.56%) since 09/30/2021.</li>
</ul>


Sentiment towards Galaxy Entertainment among Greater China managers has taken a turn for the better
Managers move from underweight to overweight, bucking a 4-year decline in allocations among active managers.
Allocation increases driven by new positions from Fubon China Growth (+3.32%), Eaton Vance Greater China Growth (+2.24%) and Eastspring Investments Greater China (+1.56%) since 09/30/2021.


Galaxy Entertainment:  Change in Sentiment Among Greater China Managers

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Apr 14th.  The release of report is delayed due to Hong Kong trading holiday.</li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short increases in Galaxy Entertainment, JD as well as short covers in Alibaba, Baidu.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Apr 14th.  The release of report is delayed due to Hong Kong trading holiday.
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short increases in Galaxy Entertainment, JD as well as short covers in Alibaba, Baidu.


HK Short Interest: Galaxy Entertainment, JD.com, Alibaba, Baidu

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Melco International Development / Event-Driven

<ul>
<li>Both <strong><a href="https://www.smartkarma.com/entities/melco-international-development-ltd" target="_blank" data-smartkarma-citation="entities:809:1" rel="noopener">Melco International Development (200 HK)</a></strong> and <strong><a href="https://www.smartkarma.com/entities/melco-crown-entertainme-adr" target="_blank" data-smartkarma-citation="entities:810:1" rel="noopener">Melco Resorts &amp; Entertainment (MLCO US)</a></strong> have underperformed peers. But Melco is unjustifiably "outperforming" MLCO.</li>
<li>Preceding my comments on Melco, are the current setup/unwind tables for Asia-Pacific Holdcos. </li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


Both Melco International Development (200 HK) and Melco Resorts &amp; Entertainment (MLCO US) have underperformed peers. But Melco is unjustifiably "outperforming" MLCO.
Preceding my comments on Melco, are the current setup/unwind tables for Asia-Pacific Holdcos. 
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: Melco Trading Rich As Lawrence Adds To His Position

Hong Kong

Galaxy Entertainment Group Limited, through its subsidiary, operates casino, hotel and other entertainment facilities in Macau. The company also manufactures sells and distributes construction materials.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Galaxy Entertainment Group (27 HK)

Asia Short Interest: Large Moves in April

Short notional in Korea and Taiwan has been increasing as the market has been moving lower. Shorts on China Merchant Bank have been covered in...

Brian Freitas

HK Short Interest: Shenzhou Intl, CKH, CMB

We highlight week on week short increases in Shenzhou Intl, CK Hutchison, and short covers in China Merchants Bank based on the latest HK SFC short...

Ke Yan, CFA, FRM

Galaxy Entertainment: Change in Sentiment Among Greater China Managers

Sentiment towards Galaxy Entertainment among Greater China managers has taken a turn for the better as managers move from underweight to overweight.

Steven Holden

HK Short Interest: Galaxy Entertainment, JD.com, Alibaba, Baidu

We highlight week on week short increases in Galaxy Entertainment, JD as well as short covers in Alibaba, Baidu based on the latest HK SFC short...

Ke Yan, CFA, FRM

StubWorld: Melco Trading Rich As Lawrence Adds To His Position

I'd be inclined to reverse the stub here - Short Melco International and Long Melco Resorts. The current level appears unsustainable.

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)