Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

Quantitative Analysis

<p>This insight provides the output, and an overview of our, machine learning-driven, proprietary GEM screening model, which takes a three-pronged approach to find the best medium-term long ideas within the top100 largest stocks in the MSCI GEM Index. </p><p>The model is based on 1) a typical quantitative multifactor screening model, enhanced by two Artificial Intelligence Technology-based approaches using 2) a Deep Neural Network model, and 3) a Recurrent Neural Network model. </p><p>This model, which has been developed and tweaked over the past 24 months (and implemented in its current state for &gt;12 months), has a solid real-world performance track record, which I set out in the detail below. </p><p>Notable new entrants to the top decile this month include South Korean auto names, <a href="https://www.smartkarma.com/entities/kia-motors-corp" target="_blank" data-smartkarma-citation="entities:156:1" rel="noopener">Kia Motors Corp (000270 KS)</a> and <a href="https://www.smartkarma.com/entities/hyundai-motor-co" target="_blank" data-smartkarma-citation="entities:155:1" rel="noopener">Hyundai Motor Co (005380 KS)</a> as well as Brazilian state-owned energy giant, <a href="https://www.smartkarma.com/entities/petroleo-brasileiro-sa" target="_blank" data-smartkarma-citation="entities:24459:1" rel="noopener">Petroleo Brasileiro Sa (PETR3 BZ)</a>.</p><table class="table table-striped">
<colgroup>
<col>
<col>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td style="text-align: center; width: 48pt;">rank</td>
<td style="width: 169pt;">Name</td>
<td style="width: 119pt;">Sector</td>
<td style="width: 95pt;">Location</td>
<td style="text-align: center; width: 48pt;">prev.</td>
</tr>
<tr>
<td style="text-align: center;">1</td>
<td><a href="https://www.smartkarma.com/entities/cnooc-ltd" target="_blank" data-smartkarma-citation="entities:175:1" rel="noopener">CNOOC Ltd (883 HK)</a></td>
<td>Energy</td>
<td>China</td>
<td style="text-align: center;">1</td>
</tr>
<tr>
<td style="text-align: center;">2</td>
<td><a href="https://www.smartkarma.com/entities/mediatek-inc" target="_blank" data-smartkarma-citation="entities:772:1" rel="noopener">Mediatek Inc (2454 TT)</a></td>
<td>Information Technology</td>
<td>Taiwan</td>
<td style="text-align: center;">5</td>
</tr>
<tr>
<td style="text-align: center;">3</td>
<td><a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a></td>
<td>Information Technology</td>
<td>Korea (South)</td>
<td style="text-align: center;">23</td>
</tr>
<tr>
<td style="text-align: center;">4</td>
<td><a href="https://www.smartkarma.com/entities/kia-motors-corp" target="_blank" data-smartkarma-citation="entities:156:1" rel="noopener">Kia Motors Corp (000270 KS)</a></td>
<td>Consumer Discretionary</td>
<td>Korea (South)</td>
<td style="text-align: center;">60</td>
</tr>
<tr>
<td style="text-align: center;">5</td>
<td><a href="https://www.smartkarma.com/entities/bank-of-china-ltd-h" target="_blank" data-smartkarma-citation="entities:656:1" rel="noopener">Bank Of China Ltd (H) (3988 HK)</a></td>
<td>Financials</td>
<td>China</td>
<td style="text-align: center;">25</td>
</tr>
<tr>
<td style="text-align: center;">6</td>
<td><a href="https://www.smartkarma.com/entities/ptt-pcl" target="_blank" data-smartkarma-citation="entities:197:1" rel="noopener">PTT PCL (PTT TB)</a></td>
<td>Energy</td>
<td>Thailand</td>
<td style="text-align: center;">4</td>
</tr>
<tr>
<td style="text-align: center;">7</td>
<td><a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a></td>
<td>Information Technology</td>
<td>Korea (South)</td>
<td style="text-align: center;">9</td>
</tr>
<tr>
<td style="text-align: center;">8</td>
<td><a href="https://www.smartkarma.com/entities/hyundai-motor-co" target="_blank" data-smartkarma-citation="entities:155:1" rel="noopener">Hyundai Motor Co (005380 KS)</a></td>
<td>Consumer Discretionary</td>
<td>Korea (South)</td>
<td style="text-align: center;">80</td>
</tr>
<tr>
<td style="text-align: center;">9</td>
<td><a href="https://www.smartkarma.com/entities/china-mobile-ltd" target="_blank" data-smartkarma-citation="entities:27:1" rel="noopener">China Mobile (941 HK)</a></td>
<td>Communication</td>
<td>China</td>
<td style="text-align: center;">29</td>
</tr>
<tr>
<td style="text-align: center;">10</td>
<td><a href="https://www.smartkarma.com/entities/petroleo-brasileiro-sa" target="_blank" data-smartkarma-citation="entities:24459:1" rel="noopener">Petroleo Brasileiro Sa (PETR3 BZ)</a></td>
<td>Energy</td>
<td>Brazil</td>
<td style="text-align: center;">59</td>
</tr>
<tr><td colspan="5" style="text-align: left;"><em>Source: FactSet financial data and analytics, my estimates and calculations, Tensorflow, Keras, Google Colaboratory, pandas</em></td></tr>
</tbody>
</table><p><em>As usual, please feel free to reach out for the full output table, any questions, clarifications needed or suggestions.</em></p>

This insight provides the output, and an overview of our, machine learning-driven, proprietary GEM screening model, which takes a three-pronged approach to find the best medium-term long ideas within the top100 largest stocks in the MSCI GEM Index. The model is based on 1) a typical quantitative multifactor screening model, enhanced by two Artificial Intelligence Technology-based approaches using 2) a Deep Neural Network model, and 3) a Recurrent Neural Network model. This model, which has been developed and tweaked over the past 24 months (and implemented in its current state for &gt;12 months), has a solid real-world performance track record, which I set out in the detail below. Notable new entrants to the top decile this month include South Korean auto names, Kia Motors Corp (000270 KS) and Hyundai Motor Co (005380 KS) as well as Brazilian state-owned energy giant, Petroleo Brasileiro Sa (PETR3 BZ).









rank
Name
Sector
Location
prev.


1
CNOOC Ltd (883 HK)
Energy
China
1


2
Mediatek Inc (2454 TT)
Information Technology
Taiwan
5


3
SK Hynix (000660 KS)
Information Technology
Korea (South)
23


4
Kia Motors Corp (000270 KS)
Consumer Discretionary
Korea (South)
60


5
Bank Of China Ltd (H) (3988 HK)
Financials
China
25


6
PTT PCL (PTT TB)
Energy
Thailand
4


7
Samsung Electronics (005930 KS)
Information Technology
Korea (South)
9


8
Hyundai Motor Co (005380 KS)
Consumer Discretionary
Korea (South)
80


9
China Mobile (941 HK)
Communication
China
29


10
Petroleo Brasileiro Sa (PETR3 BZ)
Energy
Brazil
59

Source: FactSet financial data and analytics, my estimates and calculations, Tensorflow, Keras, Google Colaboratory, pandas

As usual, please feel free to reach out for the full output table, any questions, clarifications needed or suggestions.

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>Hyundai mobis continues to be in a harsh diversion relative to its siblings, Kia Corp and Hyundai Motor. It is at a -2.25σ on a 20-day moving average vs. Kia Corp. The 20-day sigma relative to Hyundai Motor is -1.55 now. </p><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td style="width: 147.682px;" data-sheets-value='{"1":2,"2":"Comp 1 (Long)"}'>Comp 1 (Long)</td>
<td style="width: 115.56px;" data-sheets-value='{"1":2,"2":"Comp 2 (Short)"}'>Comp 2 (Short)</td>
<td style="text-align: right; width: 117.552px;" data-sheets-value='{"1":2,"2":"Sigma on a 20-day moving average"}'>Sigma on a 20-day moving average</td>
<td style="text-align: right; width: 127.604px;" data-sheets-value='{"1":2,"2":"180-day correlation coefficient"}'>180-day correlation coefficient</td>
<td style="text-align: right; width: 133.659px;" data-sheets-value='{"1":2,"2":"Cointegration coefficient (180-day price Δ beta)"}'>Cointegration coefficient (180-day price Δ beta)</td>
</tr>
<tr>
<td style="width: 147.682px;" data-sheets-value='{"1":2,"2":"HYUNDAI MOBIS CO., LTD."}' data-sheets-formula="=Data!R[-1]C[1]"><strong>HYUNDAI MOBIS CO., LTD.</strong></td>
<td style="width: 115.56px;" data-sheets-value='{"1":2,"2":"Kia Corp"}' data-sheets-formula="=Data!R[-1]C[1]"><strong>Kia Corp</strong></td>
<td style="text-align: right; width: 117.552px;" data-sheets-value='{"1":3,"3":-2.2518639492767143}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=R[8]C[-1]"><strong>-2.25</strong></td>
<td style="text-align: right; width: 127.604px;" data-sheets-value='{"1":3,"3":0.7480010585761807}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula='=correl(index(googlefinance(R[0]C[2], "price",today()-200, today()), 0,2), index(googlefinance(R[0]C[3], "price",today()-200, today()), 0,2))'>0.75</td>
<td style="text-align: right; width: 133.659px;" data-sheets-value='{"1":3,"3":0.5563729124603229}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=Beta!R[2]C[-3]">0.56</td>
</tr>
<tr>
<td style="width: 147.682px;" data-sheets-value='{"1":2,"2":"HYUNDAI MOBIS CO., LTD."}' data-sheets-formula="=Data!R[-2]C[3]"><strong>HYUNDAI MOBIS CO., LTD.</strong></td>
<td style="width: 115.56px;" data-sheets-value='{"1":2,"2":"Hyundai Motor Co"}' data-sheets-formula="=Data!R[-2]C[3]"><strong>Hyundai Motor Co</strong></td>
<td style="text-align: right; width: 117.552px;" data-sheets-value='{"1":3,"3":-1.5544482164241549}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=R[8]C[-1]"><strong>-1.55</strong></td>
<td style="text-align: right; width: 127.604px;" data-sheets-value='{"1":3,"3":0.929675478057548}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula='=correl(index(googlefinance(R[0]C[2], "price",today()-200, today()), 0,2), index(googlefinance(R[0]C[3], "price",today()-200, today()), 0,2))'>0.93</td>
<td style="text-align: right; width: 133.659px;" data-sheets-value='{"1":3,"3":0.7886057127133221}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=Beta!R[1]C[-1]">0.79</td>
</tr>
<tr><td colspan="5" style="width: 726.016px;">Source: KRX</td></tr>
</tbody>
</table><p>The current price ratio is 19.25% and 9.09% below the 180-day mean vs. Kia Corp and Hyundai Motor, respectively. Mobis is currently at a 180-day low to both Kia and Hyundai Motor.</p><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td style="width: 149.466px;" data-sheets-value='{"1":2,"2":"Comp 1 (Long)"}'>Comp 1 (Long)</td>
<td style="width: 120.391px;" data-sheets-value='{"1":2,"2":"Comp 2 (Short)"}'>Comp 2 (Short)</td>
<td style="text-align: right; width: 118.372px;" data-sheets-value='{"1":2,"2":"Price ratio %Δ to 180-day mean"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]'>Price ratio %Δ to 180-day mean</td>
<td style="text-align: right; width: 128.398px;" data-sheets-value='{"1":2,"2":"Price ratio %Δ to 180-day high"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]'>Price ratio %Δ to 180-day high</td>
<td style="text-align: right; width: 125.43px;" data-sheets-value='{"1":2,"2":"Price ratio %Δ to 180-day low"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]'>Price ratio %Δ to 180-day low</td>
</tr>
<tr>
<td style="width: 149.466px;" data-sheets-value='{"1":2,"2":"HYUNDAI MOBIS CO., LTD."}' data-sheets-formula="=R[-16]C[0]"><strong>HYUNDAI MOBIS CO., LTD.</strong></td>
<td style="width: 120.391px;" data-sheets-value='{"1":2,"2":"Kia Corp"}' data-sheets-formula="=R[-16]C[0]"><strong>Kia Corp</strong></td>
<td style="text-align: right; width: 118.372px;" data-sheets-value='{"1":3,"3":-0.19253623208265946}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[0]C6-R[0]C[4])/R[0]C[4]"><strong>-19.25%</strong></td>
<td style="text-align: right; width: 128.398px;" data-sheets-value='{"1":3,"3":-0.3974244135311329}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[0]C6-R[0]C[4])/R[0]C[4]">-39.74%</td>
<td style="text-align: right; width: 125.43px;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[0]C6-R[0]C[4])/R[0]C[4]">0.00%</td>
</tr>
<tr>
<td style="width: 149.466px;" data-sheets-value='{"1":2,"2":"HYUNDAI MOBIS CO., LTD."}' data-sheets-formula="=R[-16]C[0]"><strong>HYUNDAI MOBIS CO., LTD.</strong></td>
<td style="width: 120.391px;" data-sheets-value='{"1":2,"2":"Hyundai Motor Co"}' data-sheets-formula="=R[-16]C[0]"><strong>Hyundai Motor Co</strong></td>
<td style="text-align: right; width: 118.372px;" data-sheets-value='{"1":3,"3":-0.09085981735173156}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[0]C6-R[0]C[4])/R[0]C[4]"><strong>-9.09%</strong></td>
<td style="text-align: right; width: 128.398px;" data-sheets-value='{"1":3,"3":-0.18788573693448832}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[0]C6-R[0]C[4])/R[0]C[4]">-18.79%</td>
<td style="text-align: right; width: 125.43px;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[0]C6-R[0]C[4])/R[0]C[4]">0.00%</td>
</tr>
<tr><td colspan="5" style="width: 726.016px;">Source: KRX</td></tr>
</tbody>
</table><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/209/837/original/HYUNDAI+MOBIS+CO.%2C+LTD.+vs.+Kia+Corp.png?1622273377" class="editor-image img-responsive" data-smartkarma-image-id="209837"></figure></section><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/209/838/original/HYUNDAI+MOBIS+CO.%2C+LTD.+vs.+Hyundai+Motor+Co.png?1622273387" class="editor-image img-responsive" data-smartkarma-image-id="209838"></figure></section>

Hyundai mobis continues to be in a harsh diversion relative to its siblings, Kia Corp and Hyundai Motor. It is at a -2.25σ on a 20-day moving average vs. Kia Corp. The 20-day sigma relative to Hyundai Motor is -1.55 now. 









Comp 1 (Long)
Comp 2 (Short)
Sigma on a 20-day moving average
180-day correlation coefficient
Cointegration coefficient (180-day price Δ beta)


HYUNDAI MOBIS CO., LTD.
Kia Corp
-2.25
0.75
0.56


HYUNDAI MOBIS CO., LTD.
Hyundai Motor Co
-1.55
0.93
0.79

Source: KRX

The current price ratio is 19.25% and 9.09% below the 180-day mean vs. Kia Corp and Hyundai Motor, respectively. Mobis is currently at a 180-day low to both Kia and Hyundai Motor.









Comp 1 (Long)
Comp 2 (Short)
Price ratio %Δ to 180-day mean
Price ratio %Δ to 180-day high
Price ratio %Δ to 180-day low


HYUNDAI MOBIS CO., LTD.
Kia Corp
-19.25%
-39.74%
0.00%


HYUNDAI MOBIS CO., LTD.
Hyundai Motor Co
-9.09%
-18.79%
0.00%

Source: KRX



Korea Sector Pair: Hyundai Mobis Vs. Kia and Hyundai Motor

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<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/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>, <a href="https://www.smartkarma.com/entities/ind-comm-bk-of-china-h" target="_blank" data-smartkarma-citation="entities:1119:1" rel="noopener">ICBC (H) (1398 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>, <a href="https://www.smartkarma.com/entities/shenzhou-intl-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10415:1" rel="noopener">Shenzhou Intl Group Holdings (2313 HK)</a> and <a href="https://www.smartkarma.com/entities/aia-group-ltd" target="_blank" data-smartkarma-citation="entities:14895:1" rel="noopener">AIA Group Ltd (1299 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/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>, <a href="https://www.smartkarma.com/entities/alibaba-health-information-technology-ltd" target="_blank" data-smartkarma-citation="entities:453:1" rel="noopener">Alibaba Health Information Technology (241 HK)</a>, <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com Inc. (9618 HK)</a> and <a href="https://www.smartkarma.com/entities/china-international-capital-corporation-ltd" target="_blank" data-smartkarma-citation="entities:1071:1" rel="noopener">China International Capital Corporation (3908 HK)</a>. Shorts increased in the Communication Services, Information Technology and Financials sectors, while decreasing in Health Care, Real Estate and Consumer Discretionary.</p></div><div><p>In Japan, stocks increased on <a href="https://www.smartkarma.com/entities/oriental-land-co-ltd" target="_blank" data-smartkarma-citation="entities:13517:1" rel="noopener">Oriental Land (4661 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>, <a href="https://www.smartkarma.com/entities/nagoya-railroad-co-ltd" target="_blank" data-smartkarma-citation="entities:8652:1" rel="noopener">Nagoya Railroad (9048 JP)</a>, <a href="https://www.smartkarma.com/entities/renesas-electronics-corp" target="_blank" data-smartkarma-citation="entities:15933:1" rel="noopener">Renesas Electronics (6723 JP)</a> and <a href="https://www.smartkarma.com/entities/kyushu-railway-company" target="_blank" data-smartkarma-citation="entities:23609:1" rel="noopener">Kyushu Railway Company (9142 JP)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/monex-group-inc" target="_blank" data-smartkarma-citation="entities:14211:1" rel="noopener">Monex Group Inc (8698 JP)</a>, <a href="https://www.smartkarma.com/entities/tokyo-electric-power-co-inc" target="_blank" data-smartkarma-citation="entities:15457:1" rel="noopener">Tokyo Electric Power Co (9501 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>, <a href="https://www.smartkarma.com/entities/thk-co-ltd" target="_blank" data-smartkarma-citation="entities:19572:1" rel="noopener">Thk Co Ltd (6481 JP)</a> and <a href="https://www.smartkarma.com/entities/sbi-holdings-inc" target="_blank" data-smartkarma-citation="entities:10928:1" rel="noopener">SBI Holdings (8473 JP)</a>. Shorts increased in almost all sectors led by Information Technology, Consumer Discretionary and Industrials.</p></div><div>
<p>In Korea, shorts increased on <a href="https://www.smartkarma.com/entities/hyundai-motor-co" target="_blank" data-smartkarma-citation="entities:155:1" rel="noopener">Hyundai Motor Co (005380 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/lg-display-co-ltd" target="_blank" data-smartkarma-citation="entities:7145:1" rel="noopener">LG Display (034220 KS)</a> and <a href="https://www.smartkarma.com/entities/sk-innovation-co-ltd" target="_blank" data-smartkarma-citation="entities:1268:1" rel="noopener">SK Innovation (096770 KS)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/hmm-co-ltd" target="_blank" data-smartkarma-citation="entities:13494:1" rel="noopener">HMM Co., Ltd. (011200 KS)</a>, <a href="https://www.smartkarma.com/entities/korea-electric-power-corp" target="_blank" data-smartkarma-citation="entities:16:1" rel="noopener">Korea Electric Power (015760 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/posco" target="_blank" data-smartkarma-citation="entities:208:1" rel="noopener">Posco (005490 KS)</a>.</p>
<p>In Taiwan, shorts increased on <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/innolux-corp" target="_blank" data-smartkarma-citation="entities:4509:1" rel="noopener">Innolux Corp (3481 TT)</a>, <a href="https://www.smartkarma.com/entities/wan-hai-lines-ltd" target="_blank" data-smartkarma-citation="entities:14262:1" rel="noopener">Wan Hai Lines (2615 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>, <a href="https://www.smartkarma.com/entities/taiwan-cement" target="_blank" data-smartkarma-citation="entities:19736:1" rel="noopener">Taiwan Cement (1101 TT)</a> while shorts covered on <a href="https://www.smartkarma.com/entities/pegatron-corp" target="_blank" data-smartkarma-citation="entities:12852:1" rel="noopener">Pegatron Corp (4938 TT)</a>, <a href="https://www.smartkarma.com/entities/walsin-technology-corp" target="_blank" data-smartkarma-citation="entities:11084:1" rel="noopener">Walsin Technology (2492 TT)</a>, <a href="https://www.smartkarma.com/entities/foxconn-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:11950:1" rel="noopener">Foxconn Technology (2354 TT)</a>, <a href="https://www.smartkarma.com/entities/global-unichip-corp" target="_blank" data-smartkarma-citation="entities:10305:1" rel="noopener">Global Unichip (3443 TT)</a> and <a href="https://www.smartkarma.com/entities/zhen-ding-technology-holding-ltd" target="_blank" data-smartkarma-citation="entities:16830:1" rel="noopener">Zhen Ding Technology Holding (4958 TT)</a>. Short notional in Taiwan is rising fast and outpacing the rise in the market.</p>
</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 Tencent (700 HK), ICBC (H) (1398 HK), Sunny Optical (2382 HK), Shenzhou Intl Group Holdings (2313 HK) and AIA Group Ltd (1299 HK) while there was short covering on Alibaba Group (9988 HK), Ping An Insurance (H) (2318 HK), Alibaba Health Information Technology (241 HK), JD.com Inc. (9618 HK) and China International Capital Corporation (3908 HK). Shorts increased in the Communication Services, Information Technology and Financials sectors, while decreasing in Health Care, Real Estate and Consumer Discretionary.In Japan, stocks increased on Oriental Land (4661 JP), Canon Inc (7751 JP), Nagoya Railroad (9048 JP), Renesas Electronics (6723 JP) and Kyushu Railway Company (9142 JP) while there was short covering on Monex Group Inc (8698 JP), Tokyo Electric Power Co (9501 JP), Sharp Corp (6753 JP), Thk Co Ltd (6481 JP) and SBI Holdings (8473 JP). Shorts increased in almost all sectors led by Information Technology, Consumer Discretionary and Industrials.
In Korea, shorts increased on Hyundai Motor Co (005380 KS), Samsung Biologics Co., (207940 KS), LG Display (034220 KS) and SK Innovation (096770 KS) while shorts were covered on HMM Co., Ltd. (011200 KS), Korea Electric Power (015760 KS), Celltrion Inc (068270 KS) and Posco (005490 KS).
In Taiwan, shorts increased on TSMC (2330 TT), Innolux Corp (3481 TT), Wan Hai Lines (2615 TT), United Microelectronics Corp (2303 TT), Taiwan Cement (1101 TT) while shorts covered on Pegatron Corp (4938 TT), Walsin Technology (2492 TT), Foxconn Technology (2354 TT), Global Unichip (3443 TT) and Zhen Ding Technology Holding (4958 TT). Short notional in Taiwan is rising fast and outpacing the rise in the market.


Asia Shorts: Tencent, AIA, JD, CICC, Canon, Renesas, Monex, HMC, LGD, HMM, KEPCO, Innolux, Wan Hai

<p>Short selling has finally resumed in Korea and it has been a busy couple of days on that front with foreign investors piling into stocks that have run up more than their peers over the last year and are potentially overvalued.</p><p>Long/short pairs could be implemented in Korea during the short sell ban if you had long inventory or if there were listed single stock futures on the short leg.</p><p>With short selling permitted on constituents of the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a>, we take a look at long/short pairs where both stocks are members of the index. These pairs belong to the same GICS sub-industry, are correlated and exhibit mean-reversion. We also use short sale data from the last couple of trading sessions to see which stocks are being targeted by short sellers.</p>

Short selling has finally resumed in Korea and it has been a busy couple of days on that front with foreign investors piling into stocks that have run up more than their peers over the last year and are potentially overvalued.Long/short pairs could be implemented in Korea during the short sell ban if you had long inventory or if there were listed single stock futures on the short leg.With short selling permitted on constituents of the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX), we take a look at long/short pairs where both stocks are members of the index. These pairs belong to the same GICS sub-industry, are correlated and exhibit mean-reversion. We also use short sale data from the last couple of trading sessions to see which stocks are being targeted by short sellers.

Korea Pair Trades: High Risk/Reward Names with Short Sell Screen

Founder/CEO of ROK Advisory, ROK Advisory LLC

Ken S. Kim

Founder/CEO of ROK Advisory

ROK Advisory LLC

ROK is an independent research advisory firm. We guide you to minimize the information gap between foreign and local investors in Northeast Asia with a focus in Korea, Taiwan and Japan.

Independent Research Advisory Firm

<p>The talk of M&amp;A interest by Samsung Electronics has been making the rounds again and the question is how does <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> grow with the current leader locked up in jail? <a href="https://www.smartkarma.com/entities/samsung-sdi-co-ltd" target="_blank" data-smartkarma-citation="entities:503:1" rel="noopener">Samsung SDI (006400 KS)</a> seems to be central to where the Group goes.</p>

The talk of M&amp;A interest by Samsung Electronics has been making the rounds again and the question is how does Samsung Electronics (005930 KS) grow with the current leader locked up in jail? Samsung SDI (006400 KS) seems to be central to where the Group goes.

South Korea

Hyundai Motor Company manufactures, sells, and exports passenger cars, trucks, and commercial vehicles. The Company also sells various auto parts and operates auto repair service centers throughout South Korea. Hyundai Motor provides financial services through its subsidiaries.

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Hyundai Motor (005387 KS)

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