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

<ul>
<li>The ChiNext Index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.</li>
<li>The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.</li>
<li>We see seven change for the ChiNext index and five changes for the ChiNext 50 index.</li>
</ul>


The ChiNext Index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
We see seven change for the ChiNext index and five changes for the ChiNext 50 index.


Quiddity Leaderboard ChiNext & ChiNext 50 Dec 24: Expected ADDs Could Outperform Expected DELs

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>Due to the decline in China's marriage/fertility rates, pets will play an important role in childless/dink families. Single economy is another driving force for the increase in pet penetration rate.</li>
<li>Pet food, as a high-frequency and rigid-demand area, is the largest market.As increasing China’s pet owners are attracted by domestic brands, import substitution space in staple food subsector is significant.</li>
<li>As an important incremental market with high certainty, the investment opportunities in China’s pet food market cannot be missed. We analyzed three companies worth investors’ attention. </li>
</ul>


Due to the decline in China's marriage/fertility rates, pets will play an important role in childless/dink families. Single economy is another driving force for the increase in pet penetration rate.
Pet food, as a high-frequency and rigid-demand area, is the largest market.As increasing China’s pet owners are attracted by domestic brands, import substitution space in staple food subsector is significant.
As an important incremental market with high certainty, the investment opportunities in China’s pet food market cannot be missed. We analyzed three companies worth investors’ attention. 


China’s Pet Food Market – Attractive Investment Opportunities Would Bring Handsome Returns

<ul>
<li>The ChiNext Index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.</li>
<li>The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.</li>
<li>In this insight, we have presented our final expectations for ADDs and DELs for the upcoming index rebal event in December 2024.</li>
</ul>


The ChiNext Index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
In this insight, we have presented our final expectations for ADDs and DELs for the upcoming index rebal event in December 2024.


Quiddity Leaderboard ChiNext Dec 24: Several Last-Minute Surprises; New Trade Idea

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

<ul>
<li>With the review period complete, we forecast 8 changes for the <a href="https://www.smartkarma.com/entities/chinext-index" target="_blank" data-smartkarma-citation="entities:25483:1" rel="noopener">ChiNext Index (SZ399006 INDEX)</a> and 5 changes for the ChiNext 50 Index in December.</li>
<li>The largest flows will be on stocks that are adds or deletes for both indices - and there are a few of those. Plus some overlaps with the <a href="https://www.smartkarma.com/entities/csi-smallcap-500-index-shang" target="_blank" data-smartkarma-citation="entities:35347:1" rel="noopener">CSI500 Index</a>.</li>
<li>With multiple index inclusions in December, <a href="https://www.smartkarma.com/entities/jiangsu-hoperun-software-co-ltd" target="_blank" data-smartkarma-citation="entities:3466:1" rel="noopener">Jiangsu Hoperun Software (300339 CH)</a> has a lot of stock to buy from passive trackers. There could be more buying in February and March.</li>
</ul>


With the review period complete, we forecast 8 changes for the ChiNext Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index in December.
The largest flows will be on stocks that are adds or deletes for both indices - and there are a few of those. Plus some overlaps with the CSI500 Index.
With multiple index inclusions in December, Jiangsu Hoperun Software (300339 CH) has a lot of stock to buy from passive trackers. There could be more buying in February and March.


ChiNext/​​​ChiNext50 Index Rebalance Preview: Jiangsu Hoperun's Multiple Index Inclusions & Big Risk

<ul>
<li>The ChiNext Index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.</li>
<li>The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.</li>
<li>In this insight, we have presented our updated rankings for Potential ADDs and DELs for the upcoming index rebal event in December 2024.</li>
</ul>


The ChiNext Index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
In this insight, we have presented our updated rankings for Potential ADDs and DELs for the upcoming index rebal event in December 2024.


Quiddity Leaderboard ChiNext Dec 24: US$400mn Expected Inflow for Jiangsu Hoperun

China

Gambol Pet Group Co., Ltd. manufactures and distributes pet food products. The Company produces vitality pork, barf natural food, goat's milk bun, freeze dried goat milk bars, goat's milk bolognese cat strips, fregat high meat grain, dog and cat food, and other related products. Gambol Pet Group markets its products worldwide.

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Gambol Pet Group (301498 CH)

Quiddity Leaderboard ChiNext & ChiNext 50 Dec 24: Expected ADDs Could Outperform Expected DELs

We estimate one-way turnover to be US$343mn for the ChiNext index rebalance and US$130mn for the ChiNext 50 index rebalance in December 2024.

Janaghan Jeyakumar, CFA

China’s Pet Food Market – Attractive Investment Opportunities Would Bring Handsome Returns

China's pet food market will be an important incremental market in the future. The import substitution logic for staple food business is very...

Xinyao (Criss) Wang

Quiddity Leaderboard ChiNext Dec 24: Several Last-Minute Surprises; New Trade Idea

We estimate one-way flows of US$578mn for the ChiNext index rebalance and US$171mn for the ChiNext 50 rebalance in December 2024.

Janaghan Jeyakumar, CFA

ChiNext/ChiNext50 Index Rebalance Preview: Jiangsu Hoperun's Multiple Index Inclusions & Big Risk

Review period ends today. We see 8 Chinext, 5 Chinext50 changes. Jiangsu Hoperun will have US$430m to buy, plus flows from CSI trackers, plus...

Brian Freitas

Quiddity Leaderboard ChiNext Dec 24: US$400mn Expected Inflow for Jiangsu Hoperun

We estimate US$539mn and US$179mn one-way flows for ChiNext and ChiNext 50. Out of this, Jiangsu Hoperun (300339 CH) alone could see a massive...

Janaghan Jeyakumar, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Quiddity Leaderboard ChiNext & ChiNext 50 Dec 24: Expected ADDs Could Outperform Expected DELs

We estimate one-way turnover to be US$343mn for the ChiNext index rebalance and US$130mn for the ChiNext 50 index rebalance in December 2024.

Janaghan Jeyakumar, CFA

China’s Pet Food Market – Attractive Investment Opportunities Would Bring Handsome Returns

China's pet food market will be an important incremental market in the future. The import substitution logic for staple food business is very...

Xinyao (Criss) Wang

Quiddity Leaderboard ChiNext Dec 24: Several Last-Minute Surprises; New Trade Idea

We estimate one-way flows of US$578mn for the ChiNext index rebalance and US$171mn for the ChiNext 50 rebalance in December 2024.

Janaghan Jeyakumar, CFA

ChiNext/​​​ChiNext50 Index Rebalance Preview: Jiangsu Hoperun's Multiple Index Inclusions & Big Risk

Review period ends today. We see 8 Chinext, 5 Chinext50 changes. Jiangsu Hoperun will have US$430m to buy, plus flows from CSI trackers, plus...

Brian Freitas

Quiddity Leaderboard ChiNext Dec 24: US$400mn Expected Inflow for Jiangsu Hoperun

We estimate US$539mn and US$179mn one-way flows for ChiNext and ChiNext 50. Out of this, Jiangsu Hoperun (300339 CH) alone could see a massive...

Janaghan Jeyakumar, CFA

ChiNext/ChiNext50 Index Rebalance Preview: Jiangsu Hoperun's Multiple Index Inclusions & Big Risk