Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

Hua Nan Financial Holdings Co Ltd. / Event-Driven

<ul>
<li>The index changes for the T50/100 index family and the TDIV index were confirmed after market close on Friday 6th December 2024.</li>
<li>There will be one ADD/DEL for T50, five ADDs/DELs for T100, and 8 ADDs/7 DELs for TDIV. All of these are perfectly in line with our final expectations. </li>
<li>In this insight, we take a look at Quiddity's final flow expectations for the December 2024 index rebal event and potential trade ideas based on the flow dynamics.</li>
</ul>


The index changes for the T50/100 index family and the TDIV index were confirmed after market close on Friday 6th December 2024.
There will be one ADD/DEL for T50, five ADDs/DELs for T100, and 8 ADDs/7 DELs for TDIV. All of these are perfectly in line with our final expectations. 
In this insight, we take a look at Quiddity's final flow expectations for the December 2024 index rebal event and potential trade ideas based on the flow dynamics.


Quiddity TDIV/50/100 Dec 24 Results: 100% Hit Rate; 20x+ ADV for Many Names; US$2.3bn One-Way

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

Yang Ming Marine Transport / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/yang-ming-marine-transport" target="_blank" data-smartkarma-citation="entities:8502:1" rel="noopener">Yang Ming Marine Transport (2609 TT)</a> will replace <a href="https://www.smartkarma.com/entities/airtac-international-group" target="_blank" data-smartkarma-citation="entities:20538:1" rel="noopener">Airtac International (1590 TT)</a> in the Yuanta/P-Shares Taiwan Top 50 ETF at the close of trading on 20 December.</li>
<li>
<a href="https://www.smartkarma.com/entities/yang-ming-marine-transport" target="_blank" data-smartkarma-citation="entities:8502:1" rel="noopener">Yang Ming Marine Transport (2609 TT)</a> will also be added to the Yuanta/P-shares Dividend Plus ETF in December, so there will be increased flow and impact from the passive buying.</li>
<li>There has been an increase in cumulative excess volume in <a href="https://www.smartkarma.com/entities/yang-ming-marine-transport" target="_blank" data-smartkarma-citation="entities:8502:1" rel="noopener">Yang Ming Marine Transport (2609 TT)</a> but there is a similar trend in other stocks from the sector.</li>
</ul>



Yang Ming Marine Transport (2609 TT) will replace Airtac International (1590 TT) in the Yuanta/P-Shares Taiwan Top 50 ETF at the close of trading on 20 December.

Yang Ming Marine Transport (2609 TT) will also be added to the Yuanta/P-shares Dividend Plus ETF in December, so there will be increased flow and impact from the passive buying.
There has been an increase in cumulative excess volume in Yang Ming Marine Transport (2609 TT) but there is a similar trend in other stocks from the sector.


Taiwan Top 50 ETF Rebalance: Big Buying in Yang Ming Marine (2609 TT) In Two Weeks

United Integrated Services / Event-Driven

<ul>
<li>The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).</li>
<li>Today is the base date for the final ranks for the December 2024 index rebal event.</li>
<li>In this insight, we take a look at our final expectations for ADDs/DELs and their flow implications for the TDIV index which will also have a rebalance event in December.</li>
</ul>


The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).
Today is the base date for the final ranks for the December 2024 index rebal event.
In this insight, we take a look at our final expectations for ADDs/DELs and their flow implications for the TDIV index which will also have a rebalance event in December.


Quiddity Leaderboard T50/​​​100 Dec 24:  TDIV Exp ADD/DEL In the Money; Strong Trade Performance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/yang-ming-marine-transport" target="_blank" data-smartkarma-citation="entities:8502:1" rel="noopener">Yang Ming Marine Transport (2609 TT)</a> is forecast to be added to the Yuanta/P-Shares Taiwan Top 50 ETF in December, replacing <a href="https://www.smartkarma.com/entities/airtac-international-group" target="_blank" data-smartkarma-citation="entities:20538:1" rel="noopener">Airtac International (1590 TT)</a>. </li>
<li>
<a href="https://www.smartkarma.com/entities/yang-ming-marine-transport" target="_blank" data-smartkarma-citation="entities:8502:1" rel="noopener">Yang Ming Marine Transport (2609 TT)</a> is also expected to be added to the Yuanta/P-shares Dividend Plus ETF in December, so there will be buying from multiple trackers.</li>
<li>Shorts are near their lows in <a href="https://www.smartkarma.com/entities/yang-ming-marine-transport" target="_blank" data-smartkarma-citation="entities:8502:1" rel="noopener">Yang Ming Marine Transport (2609 TT)</a> while there has been covering in <a href="https://www.smartkarma.com/entities/airtac-international-group" target="_blank" data-smartkarma-citation="entities:20538:1" rel="noopener">Airtac International (1590 TT)</a> after an increase in the last few months.</li>
</ul>



Yang Ming Marine Transport (2609 TT) is forecast to be added to the Yuanta/P-Shares Taiwan Top 50 ETF in December, replacing Airtac International (1590 TT). 

Yang Ming Marine Transport (2609 TT) is also expected to be added to the Yuanta/P-shares Dividend Plus ETF in December, so there will be buying from multiple trackers.
Shorts are near their lows in Yang Ming Marine Transport (2609 TT) while there has been covering in Airtac International (1590 TT) after an increase in the last few months.


Taiwan Top 50 ETF Rebalance Preview: Double Inclusion for Yang Ming Marine (2609 TT)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wan-hai-lines-ltd" target="_blank" data-smartkarma-citation="entities:14262:1" rel="noopener">Wan Hai Lines (2615 TT)</a> and <a href="https://www.smartkarma.com/entities/yang-ming-marine-transport" target="_blank" data-smartkarma-citation="entities:8502:1" rel="noopener">Yang Ming Marine Transport (2609 TT)</a> are currently in contention to be added to the Yuanta/P-Shares Taiwan Top 50 ETF in December.</li>
<li>Passive trackers will need to trade around 0.5x ADV in the inclusions while impact on the forecast deletes is between 0.36-2.2x ADV.</li>
<li>Short interest has decreased and is near the lows for the forecast adds while short interest has been increasing in the forecast deletions.</li>
</ul>



Wan Hai Lines (2615 TT) and Yang Ming Marine Transport (2609 TT) are currently in contention to be added to the Yuanta/P-Shares Taiwan Top 50 ETF in December.
Passive trackers will need to trade around 0.5x ADV in the inclusions while impact on the forecast deletes is between 0.36-2.2x ADV.
Short interest has decreased and is near the lows for the forecast adds while short interest has been increasing in the forecast deletions.


Taiwan Top 50 ETF Rebalance Preview: Shippers Sailing Back Into Indices

Taiwan

AirTac International Group manufactures pneumatic components.  The Company provides different kinds of pneumatic equipment such as pneumatic control components, actuators, F.R.L. combinations, accessories and etc. AirTac International also offers after-sales support on all its products, including installation, application and maintenance of products.

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Airtac International (1590 TT)

Quiddity TDIV/50/100 Dec 24 Results: 100% Hit Rate; 20x+ ADV for Many Names; US$2.3bn One-Way

The TDIV Inclusions/Exclusions will be equally-distributed over five trading days from 20th December 2024 to 26th December 2024. It is a good time...

Janaghan Jeyakumar, CFA

Taiwan Top 50 ETF Rebalance: Big Buying in Yang Ming Marine (2609 TT) In Two Weeks

Yang Ming Marine replaces Airtac in the Top50 ETF in December. Yang Ming Marine also has a bigger inclusion in December. Excess volume is higher in...

Brian Freitas

Quiddity Leaderboard T50/100 Dec 24: TDIV Exp ADD/DEL In the Money; Strong Trade Performance

United Integrated Services (2404 TT) has outperformed Formosa Sumco (3532 TT) by 39% since 22nd October 2024. Now it might be time to unwind this...

Janaghan Jeyakumar, CFA

Taiwan Top 50 ETF Rebalance Preview: Double Inclusion for Yang Ming Marine (2609 TT)

Yang Ming Marine could replace Airtac in December. Yang Ming Marine could also be added to the Yuanta/P-shares Dividend Plus ETF so there will be...

Brian Freitas

Taiwan Top 50 ETF Rebalance Preview: Shippers Sailing Back Into Indices

Wan Hai Lines and Yang Ming Marine could replace Alchip and Airtac. Short interest has moved lower for the adds and higher for the deletes. EPS...

Brian Freitas

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Quiddity TDIV/50/100 Dec 24 Results: 100% Hit Rate; 20x+ ADV for Many Names; US$2.3bn One-Way

The TDIV Inclusions/Exclusions will be equally-distributed over five trading days from 20th December 2024 to 26th December 2024. It is a good time...

Janaghan Jeyakumar, CFA

Taiwan Top 50 ETF Rebalance: Big Buying in Yang Ming Marine (2609 TT) In Two Weeks

Yang Ming Marine replaces Airtac in the Top50 ETF in December. Yang Ming Marine also has a bigger inclusion in December. Excess volume is higher in...

Brian Freitas

Quiddity Leaderboard T50/​​​100 Dec 24: TDIV Exp ADD/DEL In the Money; Strong Trade Performance

United Integrated Services (2404 TT) has outperformed Formosa Sumco (3532 TT) by 39% since 22nd October 2024. Now it might be time to unwind this...

Janaghan Jeyakumar, CFA

Taiwan Top 50 ETF Rebalance Preview: Double Inclusion for Yang Ming Marine (2609 TT)

Yang Ming Marine could replace Airtac in December. Yang Ming Marine could also be added to the Yuanta/P-shares Dividend Plus ETF so there will be...

Brian Freitas

Taiwan Top 50 ETF Rebalance Preview: Shippers Sailing Back Into Indices

Wan Hai Lines and Yang Ming Marine could replace Alchip and Airtac. Short interest has moved lower for the adds and higher for the deletes. EPS...

Brian Freitas

Quiddity Leaderboard T50/100 Dec 24: TDIV Exp ADD/DEL In the Money; Strong Trade Performance