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>Last week we had the implementation of the first two tranches of the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> rebalance with the third tranche to be implemented at the close on Monday.</li>
<li>Thursday saw the NIFTY indices implementation while Friday marked the end of the review period for the December rebalance of the Hang Seng family of indices.</li>
<li>There were large inflows to China, Taiwan, Korea and Hong Kong ETFs during the week while there were some outflows from Japan.</li>
</ul>


Last week we had the implementation of the first two tranches of the Nikkei 225 (NKY INDEX) rebalance with the third tranche to be implemented at the close on Monday.
Thursday saw the NIFTY indices implementation while Friday marked the end of the review period for the December rebalance of the Hang Seng family of indices.
There were large inflows to China, Taiwan, Korea and Hong Kong ETFs during the week while there were some outflows from Japan.


Index Rebalance & ETF Flow Recap: S&P/ASX, China A50, SET50, Bilibili, Leapmotor, Onewo, CALB

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

FTSE China A50 Index / Technical Analysis

<ul>
<li>A50 faces key trendline sell/pivot resistance that will cap the rise with HSI nudging back to sell territory with fresh chart lows expected.</li>
<li>A50 trendline resistance is the bull/bear inflection point. We look for a sell or rejection near 13,700 if not just under this level for  a test on the 12,400.</li>
<li>HSI 21k sell barrier while watching for HK tech rise to run out of steam near 4,500 resistance.</li>
</ul>


A50 faces key trendline sell/pivot resistance that will cap the rise with HSI nudging back to sell territory with fresh chart lows expected.
A50 trendline resistance is the bull/bear inflection point. We look for a sell or rejection near 13,700 if not just under this level for  a test on the 12,400.
HSI 21k sell barrier while watching for HK tech rise to run out of steam near 4,500 resistance.


<ul>
<li>HSI has been a top short in Asia and nearing our 22,200 tactical target to reduce short exposure. A50 represents the perform long to build as the bull wedge matures.</li>
<li>HSI RSI nearing oversold level where a rally is expected. Intermediate cycle remains down to sell a rally attempt in March.</li>
<li>A50 15k and 15,350 barriers to clear. Failing would require re setting near lower wedge support.</li>
</ul>


HSI has been a top short in Asia and nearing our 22,200 tactical target to reduce short exposure. A50 represents the perform long to build as the bull wedge matures.
HSI RSI nearing oversold level where a rally is expected. Intermediate cycle remains down to sell a rally attempt in March.
A50 15k and 15,350 barriers to clear. Failing would require re setting near lower wedge support.


HSI Meeting Bear Target - A50 Bull Wedge Maturing

<ul>
<li>We have touted a short strategy at the A50 16,500 pivotal barrier and monitoring market reaction to easing prospects in early 2022. Today's rejection underscores growth vs stimulus struggle.</li>
<li>RSI is in the topping/sell zone with some final touches needed. Today's rejection needs to be reversed.</li>
<li>Fresh range from 15,900 support to 17,000 resistance in December. Next 1-2 sessions under scrutiny at the key 16,500/700 macro pivot barrier.</li>
</ul>


We have touted a short strategy at the A50 16,500 pivotal barrier and monitoring market reaction to easing prospects in early 2022. Today's rejection underscores growth vs stimulus struggle.
RSI is in the topping/sell zone with some final touches needed. Today's rejection needs to be reversed.
Fresh range from 15,900 support to 17,000 resistance in December. Next 1-2 sessions under scrutiny at the key 16,500/700 macro pivot barrier.


Is China Easing Enough? A50 16,500 Inflection Barrier

China Yangtze Power Co, Ltd. / Event-Driven

<ul>
<li>There are 5 changes to 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 (SSE50 INDEX)</a> as a part of the December rebalance. One-way turnover is 6% and the one-way trade is CNY 3.3bn.</li>
<li>There is same way flow on <a href="https://www.smartkarma.com/entities/zhangzhou-pientzehuang-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:15709:1" rel="noopener">Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (600436 CH)</a>, <a href="https://www.smartkarma.com/entities/china-telecom-corp-ltd" target="_blank" data-smartkarma-citation="entities:34045:1" rel="noopener">China Telecom (601728 CH)</a> and <a href="https://www.smartkarma.com/entities/sanan-optoelectronics-co-ltd" target="_blank" data-smartkarma-citation="entities:4436:1" rel="noopener">Sanan Optoelectronics Co (600703 CH)</a> around the time of the SSE50 inclusion.</li>
<li>With active futures contracts traded on the CFFEX, there will be cash and carry positions and the rebalancing could add to the impact on the inclusions and exclusions.</li>
</ul>


There are 5 changes to the SSE50 Index (SSE50 INDEX) as a part of the December rebalance. One-way turnover is 6% and the one-way trade is CNY 3.3bn.
There is same way flow on Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (600436 CH), China Telecom (601728 CH) and Sanan Optoelectronics Co (600703 CH) around the time of the SSE50 inclusion.
With active futures contracts traded on the CFFEX, there will be cash and carry positions and the rebalancing could add to the impact on the inclusions and exclusions.


SSE50 Index Rebalance: 5 Changes and Same Way Index Flow

China

The FTSE China A50 Index includes the largest 50 A Share Chinese companies by total market cap. 

FTSE China A50 Index (XIN9I INDEX)

Index Rebalance & ETF Flow Recap: S&P/ASX, China A50, SET50, Bilibili, Leapmotor, Onewo, CALB

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

China A and HSI Re Short Levels

A50 faces key trendline sell/pivot resistance that will cap the rise with HSI nudging back to sell territory with fresh chart lows expected.

Thomas Schroeder

HSI Meeting Bear Target - A50 Bull Wedge Maturing

HSI has been a top short in Asia and nearing our 22,200 tactical target to reduce short exposure. A50 represents the perform long to build as the...

Thomas Schroeder

Is China Easing Enough? A50 16,500 Inflection Barrier

We have touted a short strategy at the A50 16,500 pivotal barrier and monitoring market reaction to easing prospects in early 2022. Today's...

Thomas Schroeder

SSE50 Index Rebalance: 5 Changes and Same Way Index Flow

There are 5 changes to the SSE50 Index at the Dec rebalance and there are stocks that have over 1.5 days of ADV to trade. With CFFEX traded futures...

Brian Freitas