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

Hang Seng China Enterprises Index / Event-Driven

<ul>
<li>The HSCEI 2023 dividend futures have dropped over the last week as results have trickled in and some of the larger dividend payers have cut their final dividends.</li>
<li>Over 50% of the DIPS are confirmed now and that number will increase significantly over the next couple of days as the remaining companies announce their final dividends.</li>
<li>From our estimates, just over 80% of the DIPS will be confirmed by tomorrow though over 66% of the total DIPS will have CNYHKD risk attached to it.</li>
</ul>


The HSCEI 2023 dividend futures have dropped over the last week as results have trickled in and some of the larger dividend payers have cut their final dividends.
Over 50% of the DIPS are confirmed now and that number will increase significantly over the next couple of days as the remaining companies announce their final dividends.
From our estimates, just over 80% of the DIPS will be confirmed by tomorrow though over 66% of the total DIPS will have CNYHKD risk attached to it.


HSCEI Dividend Futures: Nearing the Pointy End of Results Season

Technical Analysis / Chartered Market Technician, The Markets Academy

David Coloretti, CMT

Technical Analysis / Chartered Market Technician

The Markets Academy

TMA implements 2 strategies. 1) Tactical ... Trend Sustainability Score (TSS) allows TMA to identify exhaustion / reversal points in interim trends by utilising our proprietary analysis of ST momentum indicators. 2) Medium Term ... our 3 Pillars approach to technical analysis allows TMA to determine high probability medium term outcomes in markets.

Technical Analysis

Alibaba Group Holding  / Technical Analysis

<ul>
<li>At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.</li>
<li>Alibaba Group Holding Ltd broke its 2020/2022 downtrend in December 2022 after producing bullish LT price and momentum triggers at the Q4 2022 low.</li>
<li>The subsequent "higher low" in March 2023 confirms an evolving uptrend structure. The uptrend initially targets the 2023 high at 118.50 (+24%) in Q2 2023. </li>
</ul>


At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
Alibaba Group Holding Ltd broke its 2020/2022 downtrend in December 2022 after producing bullish LT price and momentum triggers at the Q4 2022 low.
The subsequent "higher low" in March 2023 confirms an evolving uptrend structure. The uptrend initially targets the 2023 high at 118.50 (+24%) in Q2 2023. 


Alibaba Group Holding Ltd (9988 HK) - Charts Imply Another 20-25% Upswing

<ul>
<li>At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.</li>
<li>Last week complemented November 2022's  bullish LT confirmation with a bullish MT confirmation, re-instating the MT uptrend after a period of correction in Feb/Mar.</li>
<li>Tencent Holdings Ltd (700 HK) has likely entered the 2nd leg of a material MT uptrend. Q2 2023 target towards 451.95 (+25%).</li>
</ul>


At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
Last week complemented November 2022's  bullish LT confirmation with a bullish MT confirmation, re-instating the MT uptrend after a period of correction in Feb/Mar.
Tencent Holdings Ltd (700 HK) has likely entered the 2nd leg of a material MT uptrend. Q2 2023 target towards 451.95 (+25%).


Tencent Holdings Ltd (700 HK) - Bullish Multi-Month Outlook - Target 450+ (+20-25%)

<ul>
<li>Following the settlement of <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> shares from <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>'s in-specie dividend, nearly all the shares are now in CCASS. </li>
<li>
<a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> has underperformed <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> by nearly 50% and <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> by 27% since the announcement of the in-specie dividend.</li>
<li>Short interest is higher over the last couple of months but is far lower than the selling that could come through, especially on the <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus (PRX NA)</a> holding.</li>
</ul>


Following the settlement of Meituan (3690 HK) shares from Tencent (700 HK)'s in-specie dividend, nearly all the shares are now in CCASS. 

Meituan (3690 HK) has underperformed Tencent (700 HK) by nearly 50% and Alibaba Group (9988 HK) by 27% since the announcement of the in-specie dividend.
Short interest is higher over the last couple of months but is far lower than the selling that could come through, especially on the Prosus (PRX NA) holding.


Meituan (3690 HK): All Stock in CCASS Now; Tracking the Selling

Xinjiang Goldwind Science & Technology / Technical Analysis

<ul>
<li>At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.</li>
<li>On 14 February 2023 we published a bearish recommendation in  Xinjiang Goldwind Science &amp; Technology (2208 HK), targeting a 9.1% multi-week decline in Q1 2023.</li>
<li>2208 HK declined from 7.62 on 14 February to 6.94 on 10 March (19 trading days), a decline of 9.1%. </li>
</ul>


At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
On 14 February 2023 we published a bearish recommendation in  Xinjiang Goldwind Science &amp; Technology (2208 HK), targeting a 9.1% multi-week decline in Q1 2023.
2208 HK declined from 7.62 on 14 February to 6.94 on 10 March (19 trading days), a decline of 9.1%. 


Xinjiang Goldwind Science & Technology (2208 HK) - 9.1% Profit Target Achieved in 3-4 Weeks

China

The Hang Seng China Enterprises Index is a free-float capitalization-weighted index comprised of H-Shares listed on the Hong Kong Stock Exchange and included in the Hang Seng Mainland Composite Index. The base value of this index is 2000 as of Jan 3, 2000. This index replaced the old HSCE index on Oct. 3, 2001.

Hang Seng China Enterprises Index (HSCEI INDEX)

Hang Seng China Enterprises Index (HSCEI INDEX)

HSCEI Dividend Futures: Nearing the Pointy End of Results Season

Over half of 2023 DIPS are now confirmed & will rise to 80% by close tomorrow. There is FX risk attached to most dividends. The 2023/24 steepener...

Brian Freitas

Alibaba Group Holding Ltd (9988 HK) - Charts Imply Another 20-25% Upswing

30+ years as a technical analyst and a razor sharp focus on momentum confirmation delivered TMA a 75% unleveraged return on our 7 Smartkarma...

David Coloretti, CMT

Tencent Holdings Ltd (700 HK) - Bullish Multi-Month Outlook - Target 450+ (+20-25%)

30+ years as a technical analyst and a razor sharp focus on momentum confirmation delivered TMA a 75% unleveraged return on our 7 Smartkarma...

David Coloretti, CMT

Meituan (3690 HK): All Stock in CCASS Now; Tracking the Selling

All Meituan stock from Tencent's distribution is in CCASS. Prosus has likely started to sell stock; shorts are small compared to the Prosus...

Brian Freitas

Xinjiang Goldwind Science & Technology (2208 HK) - 9.1% Profit Target Achieved in 3-4 Weeks

30+ years as a technical analyst and a razor sharp focus on momentum confirmation delivered TMA a 75% unleveraged return on our 7 Smartkarma...

David Coloretti, CMT