Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

Hyundai Engineering   / Equity Capital Markets

<div class="content-highlight">
<p><strong><a href="https://m.stock.naver.com/index.html#/news/ranknews/view/011/0003896445" target="_blank" rel="noopener">Hyundai Engineering Co</a> is starting its IPO process, which was noted by several local Korean media accounts today. The local media also has mentioned that the value of Hyundai Engineering Co (HEC) could be about 10 trillion won ($8.9 billion).</strong></p>
<p><a href="https://www.smartkarma.com/entities/hyundai-engineering-co-ltd" target="_blank" data-smartkarma-citation="entities:33008:1" rel="noopener">Hyundai Engineering Co Ltd (HEC KS)</a> is expected to complete its IPO by the end of 2021. It was reported on 13 April by the local media that Hyundai Engineering Co sent request for proposals (RFP) for IPO to the major domestic investment banks (including Mirae Asset Securities, Korea Investment &amp; Securities, NH Investment &amp; Securities, and other foreign banks) on 9 April. </p>
<p>A successful IPO of Hyundai Engineering Co could accelerate the restructuring of the entire Hyundai Motor Group. For example, given that the Hyundai Motor Group Chairman Chung Eui-Sun is the second largest shareholder of Hyundai Engineering Co, the IPO proceeds from this company could be used to further increase the ownership of <a href="https://www.smartkarma.com/entities/hyundai-mobis-co-ltd" target="_blank" data-smartkarma-citation="entities:6089:1" rel="noopener">Hyundai Mobis (012330 KS)</a> in the future.</p>
<p><em>Note: Hyundai Engineering Co (HEC) is a different company than <a href="https://www.smartkarma.com/entities/hyundai-engineering-const" target="_blank" data-smartkarma-citation="entities:4292:1" rel="noopener">Hyundai Engineering &amp; Const (000720 KS) (Hyundai E&amp;C)</a>. In this insight, the former company is mentioned as either HEC or Hyundai Engineering Co.</em> </p>
</div>


Hyundai Engineering Co is starting its IPO process, which was noted by several local Korean media accounts today. The local media also has mentioned that the value of Hyundai Engineering Co (HEC) could be about 10 trillion won ($8.9 billion).
Hyundai Engineering Co Ltd (HEC KS) is expected to complete its IPO by the end of 2021. It was reported on 13 April by the local media that Hyundai Engineering Co sent request for proposals (RFP) for IPO to the major domestic investment banks (including Mirae Asset Securities, Korea Investment &amp; Securities, NH Investment &amp; Securities, and other foreign banks) on 9 April. 
A successful IPO of Hyundai Engineering Co could accelerate the restructuring of the entire Hyundai Motor Group. For example, given that the Hyundai Motor Group Chairman Chung Eui-Sun is the second largest shareholder of Hyundai Engineering Co, the IPO proceeds from this company could be used to further increase the ownership of Hyundai Mobis (012330 KS) in the future.
Note: Hyundai Engineering Co (HEC) is a different company than Hyundai Engineering &amp; Const (000720 KS) (Hyundai E&amp;C). In this insight, the former company is mentioned as either HEC or Hyundai Engineering Co. 


Hyundai Engineering IPO Process Begins - A Key Catalyst for the Hyundai Motor Group Restructuring?

Cross Asset Strategy

<div class="content-highlight">
<p>On 9 April, the <a href="https://www.reuters.com/article/southkorea-nps/update-1-s-koreas-pension-fund-adjusts-rules-to-raise-domestic-equity-allocation-idUSL1N2M20EN" target="_blank" rel="noopener">NPS</a> announced that it will change rules to increase the allocation of Korean stocks, which would be the first time in a decade. This adjustment could be implemented starting next week. This change comes after a lot of pressure by the retail investors.</p>
<p>NPS increased the strategic asset allocation (SAA) limit for domestic equities from the current 2% to 3%, increasing the percentage of Korean stocks it can hold from the current band of 14.8% -18.8% (+/- 2% with 16.8% as base) to 13.8% -19.8% (+/- 3% with 16.8% as base). NPS's target of the domestic equity allocation is 16.8% (of total fund amount). <strong>As a result of this change, the sale of domestic stocks by the NPS is expected to slow down.</strong></p>
</div>


On 9 April, the NPS announced that it will change rules to increase the allocation of Korean stocks, which would be the first time in a decade. This adjustment could be implemented starting next week. This change comes after a lot of pressure by the retail investors.
NPS increased the strategic asset allocation (SAA) limit for domestic equities from the current 2% to 3%, increasing the percentage of Korean stocks it can hold from the current band of 14.8% -18.8% (+/- 2% with 16.8% as base) to 13.8% -19.8% (+/- 3% with 16.8% as base). NPS's target of the domestic equity allocation is 16.8% (of total fund amount). As a result of this change, the sale of domestic stocks by the NPS is expected to slow down.


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

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<p>What's going on at Hyundai Mobis (and Glovis)?</p><p>Once again, the same old rumor emerged in the local market yesterday.</p><div class="content-highlight"><h2><strong>Chung Eui-sun will sell 10% of his Glovis stake in block deals. Then, he will use the proceeds to buy Mobis shares.</strong></h2></div><p><strong>Why do we keep hearing this rumor?</strong></p><p>For this, we need to know the Korea FTC's intra-group transaction restrictions.</p><p>If the owner family's shareholding in a chaebol affiliate exceeds the threshold, the affiliate will become subject to the intra-group transaction restrictions.</p><p>A company under the intra-group transaction restrictions isn't allowed to exceed intra-group deals for more than ₩20B (or 12% of total sales).</p><p><strong>Currently, Hyundai Glovis is the problem within the Hyundai Motor Group. The intra-group deals account for 69.8% (₩9.8T) of the total revenue last year (₩14.5T).</strong></p><p>The shareholding threshold is 30% for listed companies and 20% for unlisted companies.</p><p>Glovis has been able to escape the restrictions as the Chung family (Chung Mong-koo and Chung Eui-sun combined) have slightly less than 30%.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Hyundai Glovis"}'>Hyundai Glovis</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Shares"}' data-sheets-numberformat='{"1":4,"2":"[$₩-412]#,##0"}'>Shares</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"%"}'>%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Value (₩B)"}'>Value (₩B)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Chung Eui-sun"}'>Chung Eui-sun</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":8732290}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>8,732,290</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2329}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>23.29%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1563.34125}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=R[0]C[-1]*R10C5">1,563.3</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Den Norske Amerikalinje AS"}'>Den Norske Amerikalinje AS</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4125000}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>4,125,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.11}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>11.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":738.375}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=R[0]C[-1]*R10C5">738.4</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Chung Mong-koo"}'>Chung Mong-koo</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2517701}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>2,517,701</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0671}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>6.71%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":450.40875000000005}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=R[0]C[-1]*R10C5">450.4</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Hyundai Motor"}'>Hyundai Motor</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1830939}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>1,830,939</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0488}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>4.88%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":327.57}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=R[0]C[-1]*R10C5">327.6</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"HM CMK Foundation"}'>HM CMK Foundation</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1671018}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>1,671,018</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0446}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>4.46%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":299.3775}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=R[0]C[-1]*R10C5">299.4</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Chung Eui-sun+Chung Mong-koo"}'><strong>Chung Eui-sun+Chung Mong-koo</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":11249991}' data-sheets-numberformat='{"1":2,"2":"#,##0"}' data-sheets-formula="=R[-3]C[0]+R[-5]C[0]"><strong>11,249,991</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2999}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'><strong>29.99%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2013.07875}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=R[0]C[-1]*R10C5"><strong>2,013.1</strong></td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: FnGuide"}'>Source: FnGuide</td></tr>
</tbody>
</table><p>But starting next year, the threshold for listed companies will also become 20%.</p><p>This is exactly why we keep hearing this rumor because Chung Eui-sun has to reduce his stake by 10%p so that the family-owned combined stake falls below 20%.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/199/625/original/image?1617927547" class="editor-image img-responsive" data-smartkarma-image-id="199625"></figure>

What's going on at Hyundai Mobis (and Glovis)?Once again, the same old rumor emerged in the local market yesterday.Chung Eui-sun will sell 10% of his Glovis stake in block deals. Then, he will use the proceeds to buy Mobis shares.Why do we keep hearing this rumor?For this, we need to know the Korea FTC's intra-group transaction restrictions.If the owner family's shareholding in a chaebol affiliate exceeds the threshold, the affiliate will become subject to the intra-group transaction restrictions.A company under the intra-group transaction restrictions isn't allowed to exceed intra-group deals for more than ₩20B (or 12% of total sales).Currently, Hyundai Glovis is the problem within the Hyundai Motor Group. The intra-group deals account for 69.8% (₩9.8T) of the total revenue last year (₩14.5T).The shareholding threshold is 30% for listed companies and 20% for unlisted companies.Glovis has been able to escape the restrictions as the Chung family (Chung Mong-koo and Chung Eui-sun combined) have slightly less than 30%.








Hyundai Glovis
Shares
%
Value (₩B)


Chung Eui-sun
8,732,290
23.29%
1,563.3


Den Norske Amerikalinje AS
4,125,000
11.00%
738.4


Chung Mong-koo
2,517,701
6.71%
450.4


Hyundai Motor
1,830,939
4.88%
327.6


HM CMK Foundation
1,671,018
4.46%
299.4


Chung Eui-sun+Chung Mong-koo
11,249,991
29.99%
2,013.1

Source: FnGuide

But starting next year, the threshold for listed companies will also become 20%.This is exactly why we keep hearing this rumor because Chung Eui-sun has to reduce his stake by 10%p so that the family-owned combined stake falls below 20%.

Glovis Block Deals by Chung & Buy Mobis Shares: Unlikely to Happen

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<p>Nexteer's recent innovation has proven its focus in the EV industry following the first factory in China in 2019 as a sign to participate in the rise of the Chinese EV market. Nexteer’s Halfshaft technologies solve EV challenges by enhancing durability and efficiency while optimizing noise, vibration, and harshness (NVH) performance and low mass. While focusing on the Chinese market's participation, investors should not neglect the fact that <a href="https://www.smartkarma.com/entities/ford-motor-co" target="_blank" data-smartkarma-citation="entities:19225:1" rel="noopener">Ford Motor Co (F US)</a> and <a href="https://www.smartkarma.com/entities/general-motors-co" target="_blank" data-smartkarma-citation="entities:18811:1" rel="noopener">General Motors Co (GM US)</a> , with whom Nexter has a business relationship, also do not want to be left behind in the EV space.</p>
<p>Compared to the electric power steering players include Robert Bosch with a subsidiary in India <a href="https://www.smartkarma.com/entities/bosch-ltd" target="_blank" data-smartkarma-citation="entities:6143:1" rel="noopener">Bosch Ltd (BOS IN)</a> (Germany), <a href="https://www.smartkarma.com/entities/jtekt-corp" target="_blank" data-smartkarma-citation="entities:12197:1" rel="noopener">JTEKT Corp (6473 JP)</a> (Japan), ZF (Germany), <a href="https://www.smartkarma.com/entities/nsk-ltd" target="_blank" data-smartkarma-citation="entities:6309:1" rel="noopener">NSK Ltd (6471 JP)</a> (Japan), Delphi (UK), GKN (UK), Federal-Mogul (US), <a href="https://www.smartkarma.com/entities/hyundai-mobis-co-ltd" target="_blank" data-smartkarma-citation="entities:6089:1" rel="noopener">Hyundai Mobis (012330 KS)</a>  (South Korea) and Showa Corporation (Japan), Nexter may look expensive but it is one of the few that is still in the profit, with low enough debt in the balance sheet, while its PBR and EV/EBITDA levels are not astronomical thus it does not look too expensive compared to other sectors either. </p>
<table class="table table-striped">
<colgroup> <col> <col> <col span="5"> </colgroup>
<tbody>
<tr>
<td style="width: 223px;">Company Name</td>
<td style="text-align: right; width: 69px;">Mkt Cap (USD mm)</td>
<td style="text-align: right; width: 61px;">ROE (%)</td>
<td style="text-align: right; width: 61px;">D/E (%)</td>
<td style="text-align: right; width: 60px;">PER (x)</td>
<td style="text-align: right; width: 60px;">PBR (x)</td>
<td style="text-align: right; width: 64px;">EV/EBITDA (x)</td>
</tr>
<tr>
<td style="width: 223px;">
<a href="https://www.smartkarma.com/entities/jtekt-corp" target="_blank" data-smartkarma-citation="entities:12197:1" rel="noopener">JTEKT Corp (6473 JP)</a> </td>
<td style="text-align: right; width: 69px;">          3,773</td>
<td style="text-align: right; width: 61px;">-4.7</td>
<td style="text-align: right; width: 61px;">         42.7</td>
<td style="text-align: right; width: 60px;"> NM </td>
<td style="text-align: right; width: 60px;">           0.8</td>
<td style="text-align: right; width: 64px;">           9.9</td>
</tr>
<tr>
<td style="width: 223px;">
<a href="https://www.smartkarma.com/entities/nsk-ltd" target="_blank" data-smartkarma-citation="entities:6309:1" rel="noopener">NSK Ltd (6471 JP)</a> </td>
<td style="text-align: right; width: 69px;">          5,469</td>
<td style="text-align: right; width: 61px;">-1.2</td>
<td style="text-align: right; width: 61px;">         42.0</td>
<td style="text-align: right; width: 60px;"> NM </td>
<td style="text-align: right; width: 60px;">           1.1</td>
<td style="text-align: right; width: 64px;">         15.1</td>
</tr>
<tr>
<td style="width: 223px;">
<a href="https://www.smartkarma.com/entities/hyundai-mobis-co-ltd" target="_blank" data-smartkarma-citation="entities:6089:1" rel="noopener">Hyundai Mobis (012330 KS)</a> </td>
<td style="text-align: right; width: 69px;">       24,633</td>
<td style="text-align: right; width: 61px;">           4.6</td>
<td style="text-align: right; width: 61px;">           4.0</td>
<td style="text-align: right; width: 60px;">         18.5</td>
<td style="text-align: right; width: 60px;">           0.8</td>
<td style="text-align: right; width: 64px;">           6.5</td>
</tr>
<tr>
<td style="width: 223px;">
<a href="https://www.smartkarma.com/entities/bosch-ltd" target="_blank" data-smartkarma-citation="entities:6143:1" rel="noopener">Bosch Ltd (BOS IN)</a> </td>
<td style="text-align: right; width: 69px;">          6,041</td>
<td style="text-align: right; width: 61px;">             -  </td>
<td style="text-align: right; width: 61px;">             -  </td>
<td style="text-align: right; width: 60px;"> NM </td>
<td style="text-align: right; width: 60px;">           5.0</td>
<td style="text-align: right; width: 64px;">         45.2</td>
</tr>
<tr>
<td style="width: 223px;">
<a href="https://www.smartkarma.com/entities/kyb-corp" target="_blank" data-smartkarma-citation="entities:16609:1" rel="noopener">Kyb Corp (7242 JP)</a> </td>
<td style="text-align: right; width: 69px;">             731</td>
<td style="text-align: right; width: 61px;">-44.3</td>
<td style="text-align: right; width: 61px;">         66.4</td>
<td style="text-align: right; width: 60px;"> NM </td>
<td style="text-align: right; width: 60px;">           1.0</td>
<td style="text-align: right; width: 64px;">         16.2</td>
</tr>
<tr>
<td style="width: 223px;">Average</td>
<td style="text-align: right; width: 69px;"></td>
<td style="text-align: right; width: 61px;">-9.1</td>
<td style="text-align: right; width: 61px;">         31.0</td>
<td style="text-align: right; width: 60px;">         18.5</td>
<td style="text-align: right; width: 60px;">           1.7</td>
<td style="text-align: right; width: 64px;">         18.6</td>
</tr>
<tr>
<td style="width: 223px;">
<a href="https://www.smartkarma.com/entities/nexteer-automotive-group-ltd" target="_blank" data-smartkarma-citation="entities:15483:1" rel="noopener">Nexteer Automotive (1316 HK)</a> </td>
<td style="text-align: right; width: 69px;">          3,669</td>
<td style="text-align: right; width: 61px;">           6.0</td>
<td style="text-align: right; width: 61px;">         16.8</td>
<td style="text-align: right; width: 60px;">         37.6</td>
<td style="text-align: right; width: 60px;">           2.1</td>
<td style="text-align: right; width: 64px;">         13.5</td>
</tr>
</tbody>
</table>
<div class="content-remarks">
<p>source: Capital IQ</p>
</div>

Nexteer's recent innovation has proven its focus in the EV industry following the first factory in China in 2019 as a sign to participate in the rise of the Chinese EV market. Nexteer’s Halfshaft technologies solve EV challenges by enhancing durability and efficiency while optimizing noise, vibration, and harshness (NVH) performance and low mass. While focusing on the Chinese market's participation, investors should not neglect the fact that Ford Motor Co (F US) and General Motors Co (GM US) , with whom Nexter has a business relationship, also do not want to be left behind in the EV space.
Compared to the electric power steering players include Robert Bosch with a subsidiary in India Bosch Ltd (BOS IN) (Germany), JTEKT Corp (6473 JP) (Japan), ZF (Germany), NSK Ltd (6471 JP) (Japan), Delphi (UK), GKN (UK), Federal-Mogul (US), Hyundai Mobis (012330 KS)  (South Korea) and Showa Corporation (Japan), Nexter may look expensive but it is one of the few that is still in the profit, with low enough debt in the balance sheet, while its PBR and EV/EBITDA levels are not astronomical thus it does not look too expensive compared to other sectors either. 

    


Company Name
Mkt Cap (USD mm)
ROE (%)
D/E (%)
PER (x)
PBR (x)
EV/EBITDA (x)



JTEKT Corp (6473 JP) 
          3,773
-4.7
         42.7
 NM 
           0.8
           9.9



NSK Ltd (6471 JP) 
          5,469
-1.2
         42.0
 NM 
           1.1
         15.1



Hyundai Mobis (012330 KS) 
       24,633
           4.6
           4.0
         18.5
           0.8
           6.5



Bosch Ltd (BOS IN) 
          6,041
             -  
             -  
 NM 
           5.0
         45.2



Kyb Corp (7242 JP) 
             731
-44.3
         66.4
 NM 
           1.0
         16.2


Average

-9.1
         31.0
         18.5
           1.7
         18.6



Nexteer Automotive (1316 HK) 
          3,669
           6.0
         16.8
         37.6
           2.1
         13.5




source: Capital IQ


Nexteer (1316): Recent Innovation and Focus on EV

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div><p>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.</p></div><div><p>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a>, <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 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/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> and <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/smoore-international" target="_blank" data-smartkarma-citation="entities:28241:1" rel="noopener">Smoore International (6969 HK)</a>, <a href="https://www.smartkarma.com/entities/gcl-poly-energy-holdings-limited" target="_blank" data-smartkarma-citation="entities:3708:1" rel="noopener">Gcl Poly Energy Holdings Limited (3800 HK)</a>, <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a>, <a href="https://www.smartkarma.com/entities/sunny-optical-tech" target="_blank" data-smartkarma-citation="entities:13363:1" rel="noopener">Sunny Optical (2382 HK)</a> and <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a>. Shorts increased on Consumer Discretionary, Communication Services, Financials, Consumer Staples and Industrials, while decreasing on Information Technology, Real Estate and Health Care.</p></div><div><p>In Japan, stocks that saw the most shorts were <a href="https://www.smartkarma.com/entities/olympus-corp" target="_blank" data-smartkarma-citation="entities:356:1" rel="noopener">Olympus Corp (7733 JP)</a>, <a href="https://www.smartkarma.com/entities/dai-ichi-life-insurance" target="_blank" data-smartkarma-citation="entities:1109:1" rel="noopener">Dai Ichi Life Insurance (8750 JP)</a>, <a href="https://www.smartkarma.com/entities/nomura-holdings-inc" target="_blank" data-smartkarma-citation="entities:742:1" rel="noopener">Nomura Holdings (8604 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> while shorts decreased on <a href="https://www.smartkarma.com/entities/anritsu-corp" target="_blank" data-smartkarma-citation="entities:3700:1" rel="noopener">Anritsu Corp (6754 JP)</a>, <a href="https://www.smartkarma.com/entities/lasertec-corp" target="_blank" data-smartkarma-citation="entities:4126:1" rel="noopener">Lasertec Corp (6920 JP)</a>, <a href="https://www.smartkarma.com/entities/sharp-corp" target="_blank" data-smartkarma-citation="entities:391:1" rel="noopener">Sharp Corp (6753 JP)</a> and <a href="https://www.smartkarma.com/entities/square-enix-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15003:1" rel="noopener">Square Enix Holdings (9684 JP)</a>. Sectorally, shorts increased on Financials, Industrials and Health Care, while decreasing on Information Technology and Consumer Discretionary.</p></div><div><p>In Korea, there were short positions put on in <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/gs-engineering-construct" target="_blank" data-smartkarma-citation="entities:15916:1" rel="noopener">GS Engineering &amp; Construction (006360 KS)</a>, <a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem Ltd (051910 KS)</a> and <a href="https://www.smartkarma.com/entities/hyundai-mobis-co-ltd" target="_blank" data-smartkarma-citation="entities:6089:1" rel="noopener">Hyundai Mobis (012330 KS)</a> while shorts were covered in <a href="https://www.smartkarma.com/entities/netmarble-corporation" target="_blank" data-smartkarma-citation="entities:22839:1" rel="noopener">Netmarble Corporation (251270 KS)</a>, <a href="https://www.smartkarma.com/entities/samsung-biologics-co-ltd" target="_blank" data-smartkarma-citation="entities:22932:1" rel="noopener">Samsung Biologics Co., (207940 KS)</a>, <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a> and <a href="https://www.smartkarma.com/entities/kakao-corp" target="_blank" data-smartkarma-citation="entities:15002:1" rel="noopener">Kakao Corp (035720 KS)</a>. </p></div><div>
<p>Stocks in Taiwan that saw the highest increase in shorts were <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>, <a href="https://www.smartkarma.com/entities/innolux-corp" target="_blank" data-smartkarma-citation="entities:4509:1" rel="noopener">Innolux Corp (3481 TT)</a>, <a href="https://www.smartkarma.com/entities/e-sun-financial-holding-co" target="_blank" data-smartkarma-citation="entities:719:1" rel="noopener">E.Sun Financial Holding Co (2884 TT)</a> and <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> while shorts were covered on <a href="https://www.smartkarma.com/entities/evergreen-marine-corp-ltd" target="_blank" data-smartkarma-citation="entities:15428:1" rel="noopener">Evergreen Marine Corp (2603 TT)</a>, <a href="https://www.smartkarma.com/entities/acer-inc" target="_blank" data-smartkarma-citation="entities:15726:1" rel="noopener">Acer Inc (2353 TT)</a>, <a href="https://www.smartkarma.com/entities/pegatron-corp" target="_blank" data-smartkarma-citation="entities:12852:1" rel="noopener">Pegatron Corp (4938 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>.</p>
<p>Following the <a href="https://www.smartkarma.com/entities/gamestop-corp-class-a" target="_blank" data-smartkarma-citation="entities:13790:1" rel="noopener">GameStop Corp Class A (GME US)</a> saga, we have added tables in each market with the largest stocks in terms of days of ADV to cover.</p>
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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 BYD (1211 HK), Meituan (3690 HK), Tencent Holdings (700 HK), Alibaba Group (9988 HK) and HKEX (388 HK) while there was short covering on Smoore International (6969 HK), Gcl Poly Energy Holdings Limited (3800 HK), Innovent Biologics Inc (1801 HK), Sunny Optical (2382 HK) and Xiaomi Corp (1810 HK). Shorts increased on Consumer Discretionary, Communication Services, Financials, Consumer Staples and Industrials, while decreasing on Information Technology, Real Estate and Health Care.In Japan, stocks that saw the most shorts were Olympus Corp (7733 JP), Dai Ichi Life Insurance (8750 JP), Nomura Holdings (8604 JP) and Mitsubishi UFJ Financial (MUFG) (8306 JP) while shorts decreased on Anritsu Corp (6754 JP), Lasertec Corp (6920 JP), Sharp Corp (6753 JP) and Square Enix Holdings (9684 JP). Sectorally, shorts increased on Financials, Industrials and Health Care, while decreasing on Information Technology and Consumer Discretionary.In Korea, there were short positions put on in LG Display (034220 KS), GS Engineering &amp; Construction (006360 KS), LG Chem Ltd (051910 KS) and Hyundai Mobis (012330 KS) while shorts were covered in Netmarble Corporation (251270 KS), Samsung Biologics Co., (207940 KS), Celltrion Inc (068270 KS) and Kakao Corp (035720 KS). 
Stocks in Taiwan that saw the highest increase in shorts were United Microelectronics Corp (2303 TT), Innolux Corp (3481 TT), E.Sun Financial Holding Co (2884 TT) and TSMC (2330 TT) while shorts were covered on Evergreen Marine Corp (2603 TT), Acer Inc (2353 TT), Pegatron Corp (4938 TT) and ASE Technology Holding Co Ltd (3711 TT).
Following the GameStop Corp Class A (GME US) saga, we have added tables in each market with the largest stocks in terms of days of ADV to cover.


Asia Short Interest: BYD, Smoore, GCL Poly, Olympus, Nomura, Anritsu, Netmarble, UMC, Innolux, Acer

South Korea

Hyundai Mobis Co., Ltd. manufactures and markets automotive parts and equipment, such as  automotive service components, modules, and systems. The Company also contractsenvironmental projects, including sewage treatment plant and industrial waste water treatment plant construction.

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Hyundai Mobis (012330 KS)

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