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

Foxconn Industrial Internet / Event-Driven

<ul>
<li>Two thirds of the way through the review period, we see 10 potential adds/8 potential deletes in December. However, there can be a maximum of 5 changes at a review.</li>
<li>We estimate a one-way turnover of 5.8% at the December rebalance leading to a one-way trade of CNY 4.67bn. Index arb balances could increase the impact on the stocks.</li>
<li>The potential adds have outperformed the potential deletes over the last six months and there has been renewed outperformance over the last month.</li>
</ul>


Two thirds of the way through the review period, we see 10 potential adds/8 potential deletes in December. However, there can be a maximum of 5 changes at a review.
We estimate a one-way turnover of 5.8% at the December rebalance leading to a one-way trade of CNY 4.67bn. Index arb balances could increase the impact on the stocks.
The potential adds have outperformed the potential deletes over the last six months and there has been renewed outperformance over the last month.


SSE50 Index Rebalance Preview: Potential Adds Powering Higher

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 143 stocks over the last week. The average A-H premium was 119.0% as of Jun 23rd.</li>
<li>The average A-H premium changed by 4.9ppt week on week, led by information technology, health care, industrials and offset by communication services, financials.</li>
<li>We highlight weekly changes in A-H premium for BYD, CMOC, China Southern, Cansino Biologics, Xinjiang Gold.</li>
</ul>


We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 119.0% as of Jun 23rd.
The average A-H premium changed by 4.9ppt week on week, led by information technology, health care, industrials and offset by communication services, financials.
We highlight weekly changes in A-H premium for BYD, CMOC, China Southern, Cansino Biologics, Xinjiang Gold.


A-H Premium Weekly (Jun 23rd): BYD, CMOC, China Southern, Cansino Biologics, Xinjiang Gold

<ul>
<li>We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 113.9% as of Jun 9th.</li>
<li>The average A-H premium changed by -1.9ppt week on week, led by consumer discretionary, materials, industrials and offset by consumer staples, information technology, communication services.</li>
<li>We highlight weekly changes in A-H premium for BYD Co Ltd and China Construction Bank.</li>
</ul>


We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 113.9% as of Jun 9th.
The average A-H premium changed by -1.9ppt week on week, led by consumer discretionary, materials, industrials and offset by consumer staples, information technology, communication services.
We highlight weekly changes in A-H premium for BYD Co Ltd and China Construction Bank.


<ul>
<li>We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 113.9% as of Jun 9th.</li>
<li>The average A-H premium changed by -1.9ppt week on week, led by consumer discretionary, materials, industrials and offset by consumer staples, information technology, communication services.</li>
<li>We highlight weekly changes in A-H premium for CCB, China Longyuan and BYD.</li>
</ul>


We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 113.9% as of Jun 9th.
The average A-H premium changed by -1.9ppt week on week, led by consumer discretionary, materials, industrials and offset by consumer staples, information technology, communication services.
We highlight weekly changes in A-H premium for CCB, China Longyuan and BYD.


A-H Premium Weekly (Jun 9th): CCB, China Longyuan, BYD

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>China SOE construction names have outperformed the index YTD on the back of the “Valuation system with China characteristics” (中特估).</li><li>While the sector retreated in May due to weak market, we think the story has yet to come to an end as the sector (H-share) is trading at only 4.5x 2023E P/E (Bloomberg consensus).</li><li>We see multiple drivers ahead: (1) Continuous market share gain of the state-owned construction companies; (2) Belt-and-Road opportunities following the enhanced China-Middle East relations; (3) Better incentives to achieve higher profitability following the revised KPI matrix for SOEs.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

China SOE construction names have outperformed the index YTD on the back of the “Valuation system with China characteristics” (中特估).While the sector retreated in May due to weak market, we think the story has yet to come to an end as the sector (H-share) is trading at only 4.5x 2023E P/E (Bloomberg consensus).We see multiple drivers ahead: (1) Continuous market share gain of the state-owned construction companies; (2) Belt-and-Road opportunities following the enhanced China-Middle East relations; (3) Better incentives to achieve higher profitability following the revised KPI matrix for SOEs.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Construction Sector – Multiple drivers to achieve Valuation with China characteristics

China

China Communications Construction Company Limited offers transportation infrastructure construction services. The Company constructs ports, waterways, highways, bridges, and other infrastructures. China Communications Construction also operates real estate development.

China Communications Construct (601800 CH)

Price Gauge
52-week Range	0.00 - 0.00
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China Communications Construct (601800 CH)

SSE50 Index Rebalance Preview: Potential Adds Powering Higher

Two thirds of the way through the review period, we see 10 potential adds/8 potential deletes in December. Turnover is over 5% and the potential...

Brian Freitas

A-H Premium Weekly (Jun 23rd): BYD, CMOC, China Southern, Cansino Biologics, Xinjiang Gold

We analyzed A-H premium changes in the past week and highlight A-H premium changes for BYD, CMOC, China Southern, Cansino Biologics, Xinjiang Gold.

Ke Yan, CFA, FRM

A-H Premium Weekly (Jun 9th): BYD, CCB

We analyzed A-H premium changes in the past week and highlight A-H premium changes for BYD Co Ltd, and China Construction Bank.

Ke Yan, CFA, FRM

A-H Premium Weekly (Jun 9th): CCB, China Longyuan, BYD

We analyzed A-H premium changes in the past week and highlight A-H premium changes for CCB, China Longyuan, BYD Co Ltd.

Ke Yan, CFA, FRM

China Construction Sector – Multiple drivers to achieve Valuation with China characteristics

China SOE construction names have outperformed the index YTD on the back of the “Valuation system with China characteristics” (中特估).

CMB International

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)