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

<ul>
<li>As of 24 July, there could be one set of changes for the <a href="https://www.smartkarma.com/entities/ishares-china-large-cap-etf" target="_blank" data-smartkarma-citation="entities:766:1" rel="noopener">iShares China Large-Cap (FXI) (FXI US)</a> in September.</li>
<li>There should be less than 1x ADV to buy on <a href="https://www.smartkarma.com/entities/zte-corp-h" target="_blank" data-smartkarma-citation="entities:6922:1" rel="noopener">ZTE Corp H (763 HK)</a> while there will be nearly 2x ADV to sell on <a href="https://www.smartkarma.com/entities/anhui-conch-cement-co-ltd" target="_blank" data-smartkarma-citation="entities:159:1" rel="noopener">Anhui Conch Cement (914 HK)</a>. </li>
<li>Short interest has been inching higher on <a href="https://www.smartkarma.com/entities/zte-corp-h" target="_blank" data-smartkarma-citation="entities:6922:1" rel="noopener">ZTE Corp H (763 HK)</a> while it is barely moving on <a href="https://www.smartkarma.com/entities/anhui-conch-cement-co-ltd" target="_blank" data-smartkarma-citation="entities:159:1" rel="noopener">Anhui Conch Cement (914 HK)</a> as the stock trades near its lows.</li>
</ul>


As of 24 July, there could be one set of changes for the iShares China Large-Cap (FXI) (FXI US) in September.
There should be less than 1x ADV to buy on ZTE Corp H (763 HK) while there will be nearly 2x ADV to sell on Anhui Conch Cement (914 HK). 
Short interest has been inching higher on ZTE Corp H (763 HK) while it is barely moving on Anhui Conch Cement (914 HK) as the stock trades near its lows.


FXI Rebalance Preview: One Potential Change in September

<ul>
<li>As of 8 May, we see three potential changes to the <a href="https://www.smartkarma.com/entities/ishares-china-large-cap-etf" target="_blank" data-smartkarma-citation="entities:766:1" rel="noopener">iShares China Large-Cap (FXI) (FXI US)</a> at the June rebalance. This is mainly driven by the inclusions.</li>
<li>There is over 1 day of ADV to trade on all stocks with the largest impact on <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a> at nearly 4 days of ADV.</li>
<li>Short interest has been increasing on the potential adds as they have run up a lot in the last few months.</li>
</ul>


As of 8 May, we see three potential changes to the iShares China Large-Cap (FXI) (FXI US) at the June rebalance. This is mainly driven by the inclusions.
There is over 1 day of ADV to trade on all stocks with the largest impact on BeiGene Ltd (6160 HK) at nearly 4 days of ADV.
Short interest has been increasing on the potential adds as they have run up a lot in the last few months.


FXI Rebalance Preview: Three Potential Changes in June

Senior Equity Derivatives Trader

Simon Harris

iShares China Large-Cap (FXI) / Event-Driven

<ul>
<li>On 30th November we proposed a restructure of a bullish FXI US trade</li>
<li>Since then FXI US has rallied 12% and implied vols have decreased significantly</li>
<li>We evaluate the call ladder that we highlighted and consider what to do next</li>
</ul>


On 30th November we proposed a restructure of a bullish FXI US trade
Since then FXI US has rallied 12% and implied vols have decreased significantly
We evaluate the call ladder that we highlighted and consider what to do next


EQD | FXI (FXI US): - Could Chinese Equities Lead the Way Higher? Use Options for Delta-Follow Up

<ul>
<li>Chinese equity vol has been high over the last few months with extreme market moves on a number of headlines but is starting to calm down</li>
<li>US equity volatility continues to screen cheap despite calls for a challenging year and likely recession</li>
<li>We consider 2 relative vol trades to play a narrowing of the spread</li>
</ul>


Chinese equity vol has been high over the last few months with extreme market moves on a number of headlines but is starting to calm down
US equity volatility continues to screen cheap despite calls for a challenging year and likely recession
We consider 2 relative vol trades to play a narrowing of the spread


EQD | HSI Index Vs SPX Index: Sell Chinese Equity Vol to Buy US Equity Vol

High Quality Stock Setups, Weekly Stock Bull Finder

Weekly Stock Bull Finder

High Quality Stock Setups

Finding high potential stock setups on quality companies

Equity Bottom-Up

Melco Resorts & Entertainment / Equity Bottom-Up

<ul><li>As investors we are faced with a deluge of noisy breaking news, business media talking heads, and what has felt like non-stop Fed speakers offering their differing views on the economy and the path of rate hikes going in 2023. </li><li>This week was no different. Fed Chair Jay Powell was front and center suggesting that interest rate hikes will likely be stepped down to 50bps in the upcoming December Fed meeting in a few weeks. </li><li>This was already discounted and expected by the market and effectively didn’t offer much of anything Wall St. didn’t already know.</li></ul>

As investors we are faced with a deluge of noisy breaking news, business media talking heads, and what has felt like non-stop Fed speakers offering their differing views on the economy and the path of rate hikes going in 2023. This week was no different. Fed Chair Jay Powell was front and center suggesting that interest rate hikes will likely be stepped down to 50bps in the upcoming December Fed meeting in a few weeks. This was already discounted and expected by the market and effectively didn’t offer much of anything Wall St. didn’t already know.

China

iShares China Large-Cap ETF is an exchange-traded fund incorporated in the USA. The ETF tracks the FTSE China 50 Index, investing in large cap stocks. Its investments are focused in the financial, oil and gas, technology and communications sectors. The ETF uses a representative sampling indexing strategy, investing at least 90% of its assets in the securities of the underlying index.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

iShares China Large-Cap (FXI) (FXI US)

FXI Rebalance Preview: One Potential Change in September

There could be one change for the FXI in September. The impact will be higher on the delete and there are plenty of shorts on both stocks. The AH...

Brian Freitas

FXI Rebalance Preview: Three Potential Changes in June

There could be 3 changes for the FXI in June. Some stocks are close to the add/delete zone, so relative perf needs to be watch. Passive trackers...

Brian Freitas

EQD | FXI (FXI US): - Could Chinese Equities Lead the Way Higher? Use Options for Delta-Follow Up

A revisit of the FXI US Call Ladder that we mentioned in November. We look at the spot and implied vol move since then and consider what trade...

Simon Harris

EQD | HSI Index Vs SPX Index: Sell Chinese Equity Vol to Buy US Equity Vol

We consider the volatility outlook for Chinese equities versus those in the US. We identify two relative value volatility spreads to monetise our...

Simon Harris

Weekly Stock Bullfinder - Week of 12/5

As investors we are faced with a deluge of noisy breaking news, business media talking heads, and what has felt like non-stop Fed speakers offering...

Weekly Stock Bull Finder

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)