Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</div><div>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com (HK) (9618 HK)</a>, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a>, <a href="https://www.smartkarma.com/entities/idreamsky-technology-holdings" target="_blank" data-smartkarma-citation="entities:5570:1" rel="noopener">iDreamsky Technology Limited (1119 HK)</a> and <a href="https://www.smartkarma.com/entities/galaxy-entertainment-group-limited" target="_blank" data-smartkarma-citation="entities:806:1" rel="noopener">Galaxy Entertainment Group (27 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a>, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>, <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a> and <a href="https://www.smartkarma.com/entities/ping-an-healthcare-and-technology-company-limited" target="_blank" data-smartkarma-citation="entities:27008:1" rel="noopener">Ping An Healthcare and Technology Company Limited (1833 HK)</a> . Shorts increased in Real Estate, Energy and Consumer Staples and decreased in Financials, Consumer Discretionary, Health Care and Communication Services.</div><div>
There was a lot of short covering in Japan during the week. Stocks that saw the most shorts covered were <a href="https://www.smartkarma.com/entities/fast-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:751:1" rel="noopener">Fast Retailing (9983 JP)</a>, <a href="https://www.smartkarma.com/entities/asahi-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10482:1" rel="noopener">Asahi Group Holdings (2502 JP)</a>, <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a> and <a href="https://www.smartkarma.com/entities/taiyo-yuden-co-ltd" target="_blank" data-smartkarma-citation="entities:9924:1" rel="noopener">Taiyo Yuden (6976 JP)</a>, while shorts increased on <a href="https://www.smartkarma.com/entities/nihon-m-a-center-inc" target="_blank" data-smartkarma-citation="entities:17616:1" rel="noopener">Nihon M&amp;A Center (2127 JP)</a>, <a href="https://www.smartkarma.com/entities/yamato-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:2:1" rel="noopener">Yamato Holdings (9064 JP)</a>, <a href="https://www.smartkarma.com/entities/canon-inc" target="_blank" data-smartkarma-citation="entities:1:1" rel="noopener">Canon Inc (7751 JP)</a> and <a href="https://www.smartkarma.com/entities/mitsubishi-ufj-financial-group" target="_blank" data-smartkarma-citation="entities:218:1" rel="noopener">Mitsubishi UFJ Financial (MUFG) (8306 JP)</a>. Sectorally, the most shorts were covered in Consumer Staples, Information Technology, Consumer Discretionary and Financials.
Stocks in Korea that saw an increase in shorts were <a href="https://www.smartkarma.com/entities/kakao-corp" target="_blank" data-smartkarma-citation="entities:15002:1" rel="noopener">Kakao Corp (035720 KS)</a> and <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a> while stocks that saw the most short covering were <a href="https://www.smartkarma.com/entities/doosan-infracore-co-ltd" target="_blank" data-smartkarma-citation="entities:3982:1" rel="noopener">Doosan Infracore (042670 KS)</a>, <a href="https://www.smartkarma.com/entities/lg-display-co-ltd" target="_blank" data-smartkarma-citation="entities:7145:1" rel="noopener">LG Display (034220 KS)</a>, <a href="https://www.smartkarma.com/entities/netmarble-corporation" target="_blank" data-smartkarma-citation="entities:22839:1" rel="noopener">Netmarble Corporation (251270 KS)</a> and <a href="https://www.smartkarma.com/entities/lg-household-health-care" target="_blank" data-smartkarma-citation="entities:6501:1" rel="noopener">LG Household &amp; Health Care (051900 KS)</a>.
</div><div>Stocks in Taiwan that saw the highest increase in shorts were <a href="https://www.smartkarma.com/entities/largan-precision-co-ltd" target="_blank" data-smartkarma-citation="entities:9126:1" rel="noopener">Largan Precision (3008 TT)</a>, <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a>, <a href="https://www.smartkarma.com/entities/genius-electronic-optical-co-ltd" target="_blank" data-smartkarma-citation="entities:9632:1" rel="noopener">Genius Electronic Optical (3406 TT)</a> and <a href="https://www.smartkarma.com/entities/hon-hai-precision-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:745:1" rel="noopener">Hon Hai Precision Industry (2317 TT)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/yageo-corporation" target="_blank" data-smartkarma-citation="entities:13212:1" rel="noopener">Yageo Corporation (2327 TT)</a>, <a href="https://www.smartkarma.com/entities/novatek-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:10904:1" rel="noopener">Novatek Microelectronics Corp (3034 TT)</a>, <a href="https://www.smartkarma.com/entities/united-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:6450:1" rel="noopener">United Microelectronics Corp (2303 TT)</a> and <a href="https://www.smartkarma.com/entities/ase-technology-holding-co-ltd" target="_blank" data-smartkarma-citation="entities:27270:1" rel="noopener">ASE Technology Holding Co Ltd (3711 TT)</a>. </div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on JD.com (HK) (9618 HK), Xiaomi Corp (1810 HK), iDreamsky Technology Limited (1119 HK) and Galaxy Entertainment Group (27 HK) while there was short covering on Alibaba Group (9988 HK), Tencent Holdings (700 HK), Ping An Insurance (H) (2318 HK) and Ping An Healthcare and Technology Company Limited (1833 HK) . Shorts increased in Real Estate, Energy and Consumer Staples and decreased in Financials, Consumer Discretionary, Health Care and Communication Services.
There was a lot of short covering in Japan during the week. Stocks that saw the most shorts covered were Fast Retailing (9983 JP), Asahi Group Holdings (2502 JP), Toshiba Corp (6502 JP) and Taiyo Yuden (6976 JP), while shorts increased on Nihon M&amp;A Center (2127 JP), Yamato Holdings (9064 JP), Canon Inc (7751 JP) and Mitsubishi UFJ Financial (MUFG) (8306 JP). Sectorally, the most shorts were covered in Consumer Staples, Information Technology, Consumer Discretionary and Financials.
Stocks in Korea that saw an increase in shorts were Kakao Corp (035720 KS) and Celltrion Inc (068270 KS) while stocks that saw the most short covering were Doosan Infracore (042670 KS), LG Display (034220 KS), Netmarble Corporation (251270 KS) and LG Household &amp; Health Care (051900 KS).
Stocks in Taiwan that saw the highest increase in shorts were Largan Precision (3008 TT), TSMC (2330 TT), Genius Electronic Optical (3406 TT) and Hon Hai Precision Industry (2317 TT) while shorts were covered on Yageo Corporation (2327 TT), Novatek Microelectronics Corp (3034 TT), United Microelectronics Corp (2303 TT) and ASE Technology Holding Co Ltd (3711 TT). 

Asia Short Interest Weekly: JD, Xiaomi, Nihon M&A, Asahi, Toshiba, Kakao, Netmarble, Largan, Novatek

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Equity Capital Markets

Doosan Fuel Cell   / Equity Capital Markets

Doosan Fuelcell also announced a new rights issuance of its own.
It offers 10M shares at an indicative price of ₩34,200, which puts the total value at ₩342bil.
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/358/original/22.png?1599412597" class="editor-image img-responsive" data-smartkarma-image-id="157358"></figure>
As a result, we have a capital increase rate of 13.92% with a 12.22% dilution.
The stockholder allocation is 93.73%, thereby giving a per share allocation of 0.130471.
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/350/original/12.png?1599411438" class="editor-image img-responsive" data-smartkarma-image-id="157350"></figure>
The first round pricing is a bit earlier than Heavy. It is October 9, followed by the ex-rights on October 13.
The subscription rights will be trading on November 20~26, followed by the final pricing on December 2.
The subscription falls on December 7, and the payment on December 15.
The new shares will get listed on December 29.
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/351/original/13.png?1599411455" class="editor-image img-responsive" data-smartkarma-image-id="157351"></figure>
This one also carries a usual 20% discount.
Everything else is pretty much in line with the local standard.
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/352/original/15.png?1599411466" class="editor-image img-responsive" data-smartkarma-image-id="157352"></figure>

Doosan Fuelcell also announced a new rights issuance of its own.
It offers 10M shares at an indicative price of ₩34,200, which puts the total value at ₩342bil.

As a result, we have a capital increase rate of 13.92% with a 12.22% dilution.
The stockholder allocation is 93.73%, thereby giving a per share allocation of 0.130471.

The first round pricing is a bit earlier than Heavy. It is October 9, followed by the ex-rights on October 13.
The subscription rights will be trading on November 20~26, followed by the final pricing on December 2.
The subscription falls on December 7, and the payment on December 15.
The new shares will get listed on December 29.

This one also carries a usual 20% discount.
Everything else is pretty much in line with the local standard.


Doosan Fuelcell Rights Offer: Terms & Situation

Doosan Enerbility / Equity Capital Markets

Doosan Heavy finally announced a well-anticipated (publicly mentioned in June) but still massive rights offer.
The offering volume is 121.5M shares, which is a 48% capital increase rate. 20% will go to the ESOP. So, per share allocation for the stockholders is 0.38398.
At the indicative price of ₩10,700, the total value is ₩1.3tril.
<figure class="editor-figure mceNonEditable">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/359/original/21.png?1599412716" class="editor-image img-responsive" data-smartkarma-image-id="157359"></figure>
</figure>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/344/original/2.png?1599411337" class="editor-image img-responsive" data-smartkarma-image-id="157344"></figure>
October 12 will be introductory pricing, with the ex-rights falling on October 14.
Then, we will trade subscription rights on November 18~24. The final pricing will be November 30, followed by subscription on December 3 and payment on December 11.
Listing will be December 24.
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/345/original/3.png?1599411350" class="editor-image img-responsive" data-smartkarma-image-id="157345"></figure>
We have a usual 20% discount for the pricing.
Just, this is a massive offering (47.99% capital increase), so the level of overall discount is higher, suggesting that potential room for short-term trading can be larger.
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/346/original/5.png?1599411379" class="editor-image img-responsive" data-smartkarma-image-id="157346"></figure>

Doosan Heavy finally announced a well-anticipated (publicly mentioned in June) but still massive rights offer.
The offering volume is 121.5M shares, which is a 48% capital increase rate. 20% will go to the ESOP. So, per share allocation for the stockholders is 0.38398.
At the indicative price of ₩10,700, the total value is ₩1.3tril.




October 12 will be introductory pricing, with the ex-rights falling on October 14.
Then, we will trade subscription rights on November 18~24. The final pricing will be November 30, followed by subscription on December 3 and payment on December 11.
Listing will be December 24.

We have a usual 20% discount for the pricing.
Just, this is a massive offering (47.99% capital increase), so the level of overall discount is higher, suggesting that potential room for short-term trading can be larger.


Doosan Heavy Industries Rights Offer: Terms & Situation

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>With the entire Doosan Group in deep financial troubles, there have been a lot of speculations about the exact details of the Doosan Group restructuring process. The Doosan Group revealed more details about this process, especially as it relates to the split-off and sale of <a href="https://www.smartkarma.com/entities/doosan-infracore-co-ltd" target="_blank" data-smartkarma-citation="entities:3982:1" rel="noopener">Doosan Infracore (042670 KS), </a>which has a deadline of the end of 2021 for the sale of the company. </li>
<li>
<a href="https://paxnetnews.com/articles/61314" target="_blank" rel="noopener">Doosan Infracore</a> will be split up into two companies including an operating company and an investment company. Doosan Infracore's investment company will be merged with <a href="https://www.smartkarma.com/entities/doosan-heavy-industries-construction" target="_blank" data-smartkarma-citation="entities:7389:1" rel="noopener">Doosan Heavy Industries &amp; Construction (034020 KS)</a> and the operating company of Doosan Infracore will be sold. This sales process of splitting up Doosan Infracore and trying to sell the operating company has been approved by the Doosan Group creditors. </li>
<li>In early June, Doosan Infracore announced several new sales contracts for its large excavators in China, suggesting a recovery in the construction equipment market in China. Improving new orders for the construction equipment from China is also having a major impact on positively impacting Doosan Infrastructure's business. </li>
</ul>


With the entire Doosan Group in deep financial troubles, there have been a lot of speculations about the exact details of the Doosan Group restructuring process. The Doosan Group revealed more details about this process, especially as it relates to the split-off and sale of Doosan Infracore (042670 KS), which has a deadline of the end of 2021 for the sale of the company. 

Doosan Infracore will be split up into two companies including an operating company and an investment company. Doosan Infracore's investment company will be merged with Doosan Heavy Industries &amp; Construction (034020 KS) and the operating company of Doosan Infracore will be sold. This sales process of splitting up Doosan Infracore and trying to sell the operating company has been approved by the Doosan Group creditors. 
In early June, Doosan Infracore announced several new sales contracts for its large excavators in China, suggesting a recovery in the construction equipment market in China. Improving new orders for the construction equipment from China is also having a major impact on positively impacting Doosan Infrastructure's business. 


Creditors and the Market Like the New Doosan Infracore Split-Off and M&A Plan

<blockquote>The only man who sticks closer to you in adversity than a friend is a creditor. -Unknown</blockquote><div class="content-highlight">
Among all the major conglomerates in Korea, the Doosan Group is probably the most negatively impacted by the Democratic Party of Korea (DPK) (social, liberal party) winning the National Assembly Election in Korea on 15 April and maintaining its power. 
The main reason is that the DPK party has consistently been anti-nuclear and pro-renewable energy. This will likely to have a continued negative impact on <a href="https://www.smartkarma.com/entities/doosan-heavy-industries" target="_blank" data-smartkarma-citation="entities:7389:1" rel="noopener">Doosan Heavy Industries (034020 KS) (DHI), </a>the largest provider of nuclear power equipment and construction services in Korea. 
</div>

The only man who sticks closer to you in adversity than a friend is a creditor. -Unknown
Among all the major conglomerates in Korea, the Doosan Group is probably the most negatively impacted by the Democratic Party of Korea (DPK) (social, liberal party) winning the National Assembly Election in Korea on 15 April and maintaining its power. 
The main reason is that the DPK party has consistently been anti-nuclear and pro-renewable energy. This will likely to have a continued negative impact on Doosan Heavy Industries (034020 KS) (DHI), the largest provider of nuclear power equipment and construction services in Korea. 


Doosan Group Companies In Jeopardy Post the National Assembly Election?

South Korea

Hyundai Doosan Infracore Co., Ltd. produces construction machinery. The Company manufactures construction equipment, industrial vehicles, diesel engines, power generators, machine tools, factory automation system, and other products, such as armored vehicles for the defense industry. Hyundai Doosan Infracore markets its products worldwide.

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HD Hyundai Infracore (042670 KS)

Asia Short Interest Weekly: JD, Xiaomi, Nihon M&A, Asahi, Toshiba, Kakao, Netmarble, Largan, Novatek

Highlighting changes in short interest across stocks in HK, Japan, Korea and Taiwan to pinpoint stocks/sectors that are being shorted or covered...

Brian Freitas

Doosan Fuelcell Rights Offer: Terms & Situation

Doosan Fuelcell also announced a new rights issuance of its own. It offers 10M shares at an indicative price of ₩34,200, which puts the total value...

Sanghyun Park

Doosan Heavy Industries Rights Offer: Terms & Situation

Doosan Heavy finally announced a well-anticipated (publicly mentioned in June) but still massive rights offer. The offering volume is 121.5M...

Sanghyun Park

Creditors and the Market Like the New Doosan Infracore Split-Off and M&A Plan

With the entire Doosan Group in deep financial troubles, there have been a lot of speculations about the exact details of the Doosan Group...

Douglas Kim

Doosan Group Companies In Jeopardy Post the National Assembly Election?

The only man who sticks closer to you in adversity than a friend is a creditor.-Unknown Among all the major conglomerates in Korea, the Doosan...

Douglas Kim

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