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

Zhejiang Leapmotor Technologie / Event-Driven

<ul>
<li>We see three new listings as potential inclusions to the HSCI in December. One is already in Stock Connect, one will be added to Stock Connect while one will not.</li>
<li>Given the large market moves, there will be many changes to the HSCI in March 2023. Quite a few stocks could remain in the HSCI but drop out of Connect.</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 three new listings as potential inclusions to the HSCI in December. One is already in Stock Connect, one will be added to Stock Connect while one will not.
Given the large market moves, there will be many changes to the HSCI in March 2023. Quite a few stocks could remain in the HSCI but drop out of Connect.
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: Potential Changes in December & March (There's a Lot!)

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<a href="https://www.smartkarma.com/entities/12901" target="_blank" data-smartkarma-citation="entities:12901:1">Cityneon Holdings (CITN SP)</a> <a href="http://infopub.sgx.com/FileOpen/West%20Knighton%20Offer%20Announcement.ashx?App=Announcement&amp;FileID=531380" target="_blank">announced</a> West Knighton Limited has purchased 168,692,268 shares of Cityneon from Lucrum 1 Investment Limited (Lucrum), representing approximately 68.95% of shares out, at S$1.30/share or a total consideration of S$219.3mn.
As a result of this acquisition, the West Knighton is required to make a mandatory unconditional cash Offer for all the Shares, other than those already owned.  The mandatory Offer price is also S$1.30 (a 3.2% premium to last close) and is unconditional in all respects. 
West Knighton has stated it does not intend to increase the Offer price. Dividends declared or paid after this announcement will be netted off the Offer price.  West Knighton also intends to delist the company and will exercise its right to compulsory acquisition if afforded.
This is by no means not a knock-out price and is ~10% below the consensus target price of S$1.40+. The mandatory Offer is triggered via the major shareholder existing (having entered a year ago), and is largely an opportunistic Offer to secure a larger stake in the company.
I would not tender into the Offer and recommend buying at or just below the $1.30 Offer Price, which provides a temporary floor. Cityneon is likely to surprise to the upside in earnings after securing its 4th intellectual property (IP) right in May (an exclusive worldwide touring exhibition license agreement with Lions Gate Exhibition for The Hunger Games: The Exhibition), together with an agreement with Universal Pictures to build the second set for Jurassic World – The Exhibition.

Cityneon Holdings (CITN SP) announced West Knighton Limited has purchased 168,692,268 shares of Cityneon from Lucrum 1 Investment Limited (Lucrum), representing approximately 68.95% of shares out, at S$1.30/share or a total consideration of S$219.3mn.
As a result of this acquisition, the West Knighton is required to make a mandatory unconditional cash Offer for all the Shares, other than those already owned.  The mandatory Offer price is also S$1.30 (a 3.2% premium to last close) and is unconditional in all respects. 
West Knighton has stated it does not intend to increase the Offer price. Dividends declared or paid after this announcement will be netted off the Offer price.  West Knighton also intends to delist the company and will exercise its right to compulsory acquisition if afforded.
This is by no means not a knock-out price and is ~10% below the consensus target price of S$1.40+. The mandatory Offer is triggered via the major shareholder existing (having entered a year ago), and is largely an opportunistic Offer to secure a larger stake in the company.
I would not tender into the Offer and recommend buying at or just below the $1.30 Offer Price, which provides a temporary floor. Cityneon is likely to surprise to the upside in earnings after securing its 4th intellectual property (IP) right in May (an exclusive worldwide touring exhibition license agreement with Lions Gate Exhibition for The Hunger Games: The Exhibition), together with an agreement with Universal Pictures to build the second set for Jurassic World – The Exhibition. 

Hong Kong

BOE Varitronix Limited designs, manufactures, and sells small-to-medium sized LCDs (liquid crystal displays) and related products. The Company offers displays for dashboards, clock, rear seat, power meter, washing machines, ovens, blood glucose meters, dental instruments, and label printers. BOE Vanitronix markets its products worldwide.

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BOE Varitronix (710 HK)

HSCI Index Rebalance and Stock Connect: Potential Changes in December & March (There's a Lot!)

There could be 3 adds in December while there will be MANY more changes in March. The adds should outnumber the deletes, but there will be many...

Brian Freitas

Cityneon - Buy For The Back-End

Cityneon Holdings (CITN SP) announced West Knighton Limited has purchased 168,692,268 shares of Cityneon from Lucrum 1 Investment Limited (Lucrum),...

David Blennerhassett

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