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

<ul>
<li>There are no constituent changes for the MVIS Global Rare Earth/Strategic Metals Index at the March rebalance. There are free float and capping changes though.</li>
<li>One way turnover is estimated at 3.1% and will result in a one-way trade of US$19m. Flows are relatively small with no impact over 1x ADV on any stock.</li>
<li>The June rebalance should have constituent changes with an increase in the number of stocks in the index universe.</li>
</ul>


There are no constituent changes for the MVIS Global Rare Earth/Strategic Metals Index at the March rebalance. There are free float and capping changes though.
One way turnover is estimated at 3.1% and will result in a one-way trade of US$19m. Flows are relatively small with no impact over 1x ADV on any stock.
The June rebalance should have constituent changes with an increase in the number of stocks in the index universe.


MVIS Global Rare Earth/​​​Strategic Metals Index Rebalance: Float & Capping Changes on Friday

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Thematic (Sector/Industry)

<ul><li>Shares of Chinese rare earth suppliers plunged Thursday after Tesla Inc. said it will reduce its use of the minerals in future electric vehicles to control costs.</li><li>The leading electric-car maker is designing next-generation powertrain that will use a permanent magnet motor that doesn’t rely on rare earth materials, Colin Campbell, Tesla vice president for powertrain engineering, said at an investor meeting.</li><li>The change reflects Tesla’s efforts to control material costs and reduce its involvement in the health and<a href="https://www.caixinglobal.com/2022-04-29/in-depth-chinas-rare-earth-hub-wrestles-a-stubborn-problem-cleaning-up-101878773.html" target="_blank" rel="noopener"> environmental risks </a>of mining the minerals, Campbell said.</li></ul>

Shares of Chinese rare earth suppliers plunged Thursday after Tesla Inc. said it will reduce its use of the minerals in future electric vehicles to control costs.The leading electric-car maker is designing next-generation powertrain that will use a permanent magnet motor that doesn’t rely on rare earth materials, Colin Campbell, Tesla vice president for powertrain engineering, said at an investor meeting.The change reflects Tesla’s efforts to control material costs and reduce its involvement in the health and environmental risks of mining the minerals, Campbell said.

Rare Earth Stocks Plunge as Tesla Seeks Alternatives

Equity Bottom-Up

Inner Mongolia Baotou Steel Union / Equity Bottom-Up

<ul><li>Inner Mongolia Baotou Steel Union Co. Ltd., the world’s largest rare earth mining company, is still pressing for a significant price increase from its only customer even though the buyer’s shareholders rejected two previous proposals.</li><li>Higher prices for Baotou Steel Union’s output of the key materials for green technologies could lead to a broader price increase for the minerals.</li><li>China has the world’s largest deposits of the 17 closely related rare earth metals.</li></ul>

Inner Mongolia Baotou Steel Union Co. Ltd., the world’s largest rare earth mining company, is still pressing for a significant price increase from its only customer even though the buyer’s shareholders rejected two previous proposals.Higher prices for Baotou Steel Union’s output of the key materials for green technologies could lead to a broader price increase for the minerals.China has the world’s largest deposits of the 17 closely related rare earth metals.

China’s Top Rare Earth Mining Company and Top Refiner Fight Over Prices

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 analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of November 11th.</li>
<li>We estimate the weekly inflows to be US$845.8 million, led by materials, financials, consumer discretionary sectors, and offset by information technology, utilities.</li>
<li>We highlight flows for Midea, Zijin Mining, Naura Tech, TCL Zhonghuan, Yangtze Power, Goertek.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of November 11th.
We estimate the weekly inflows to be US$845.8 million, led by materials, financials, consumer discretionary sectors, and offset by information technology, utilities.
We highlight flows for Midea, Zijin Mining, Naura Tech, TCL Zhonghuan, Yangtze Power, Goertek.


Northbound Flows (Nov 11th): Midea, Zijin Mining, Naura Tech

Shanghai Pudong Development Bank Co. / Event-Driven

<ul>
<li>There are 5 changes for the <a href="https://www.smartkarma.com/entities/shanghai-stock-exchange-sse-50-a-share-index" target="_blank" data-smartkarma-citation="entities:31073:1" rel="noopener">SSE50 Index</a> that will be implemented at the close on 9 June. The impact is pretty chunky on a few deletions.</li>
<li>Apart from the passive assets tracking the index, there are some liquid index futures and the impact on the stocks will be larger than just the headline numbers.</li>
<li>The adds underperformed the deletes in March and April but have come roaring back in May. Playing the trade via long/short pairs could provide better risk adjusted returns.</li>
</ul>


There are 5 changes for the SSE50 Index that will be implemented at the close on 9 June. The impact is pretty chunky on a few deletions.
Apart from the passive assets tracking the index, there are some liquid index futures and the impact on the stocks will be larger than just the headline numbers.
The adds underperformed the deletes in March and April but have come roaring back in May. Playing the trade via long/short pairs could provide better risk adjusted returns.


SSE50 Index Rebalance: Some Large Impact Changes

China

China Northern Rare Earth Group High-Tech Co. Ltd. is the consolidation of mining, smelting, separation and utilization companies in the northern region of Inner Mongolia.

China Northern Rare Earth Group High-Tech (600111 CH)

China Northern Rare Earth Group High-Tech

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

China Northern Rare Earth Group High-Tech (600111 CH)

MVIS Global Rare Earth/Strategic Metals Index Rebalance: Float & Capping Changes on Friday

There are no constituent changes in March, only float/capping changes. One-way turnover is estimated at 3.1% resulting in a one-way trade of...

Brian Freitas

Rare Earth Stocks Plunge as Tesla Seeks Alternatives

Shares of Chinese rare earth suppliers plunged Thursday after Tesla Inc. said it will reduce its use of the minerals in future electric vehicles...

Caixin Global

China’s Top Rare Earth Mining Company and Top Refiner Fight Over Prices

Inner Mongolia Baotou Steel Union Co. Ltd., the world’s largest rare earth mining company, is still pressing for a significant price increase from...

Caixin Global

Northbound Flows (Nov 11th): Midea, Zijin Mining, Naura Tech

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Midea, Zijin Mining, Naura Tech, TCL Zhonghuan,...

Ke Yan, CFA, FRM

SSE50 Index Rebalance: Some Large Impact Changes

There are 5 changes to the SSE50 Index in June that will have one-way turnover estimated at 3.95% and will result in a one-way trade of CNY 3,187m....

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

MVIS Global Rare Earth/​​​Strategic Metals Index Rebalance: Float & Capping Changes on Friday

There are no constituent changes in March, only float/capping changes. One-way turnover is estimated at 3.1% resulting in a one-way trade of...

Brian Freitas

Rare Earth Stocks Plunge as Tesla Seeks Alternatives

Shares of Chinese rare earth suppliers plunged Thursday after Tesla Inc. said it will reduce its use of the minerals in future electric vehicles...

Caixin Global

China’s Top Rare Earth Mining Company and Top Refiner Fight Over Prices

Inner Mongolia Baotou Steel Union Co. Ltd., the world’s largest rare earth mining company, is still pressing for a significant price increase from...

Caixin Global

Northbound Flows (Nov 11th): Midea, Zijin Mining, Naura Tech

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Midea, Zijin Mining, Naura Tech, TCL Zhonghuan,...

Ke Yan, CFA, FRM

SSE50 Index Rebalance: Some Large Impact Changes

There are 5 changes to the SSE50 Index in June that will have one-way turnover estimated at 3.95% and will result in a one-way trade of CNY 3,187m....

Brian Freitas

MVIS Global Rare Earth/Strategic Metals Index Rebalance: Float & Capping Changes on Friday