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

Quantitative Analysis

<ul>
<li>Short notional in Hong Kong is HK$439bn and has been falling over the last 18 months due to a drop in the market.</li>
<li>In terms of short notional to issue market cap, the Information Technology, Materials, Health Care and Consumer Discretionary sectors are up there, with Communication Services, Real Estate the least shorted.</li>
<li>Over the year, the largest shorts in terms of notional have been built on Xiaomi Corp, Meituan, JD.com, AIA Group Ltd, Postal Savings Bank of China, Orient Overseas, Techtronic Industries.</li>
</ul>


Short notional in Hong Kong is HK$439bn and has been falling over the last 18 months due to a drop in the market.
In terms of short notional to issue market cap, the Information Technology, Materials, Health Care and Consumer Discretionary sectors are up there, with Communication Services, Real Estate the least shorted.
Over the year, the largest shorts in terms of notional have been built on Xiaomi Corp, Meituan, JD.com, AIA Group Ltd, Postal Savings Bank of China, Orient Overseas, Techtronic Industries.


Hong Kong: Where Have Shorts Been Building Up?

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

WM Motor Technology Co Ltd / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wm-motor-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29225:1" rel="noopener">WM Motor Technology Co Ltd (WMT CH)</a> (WMM) is looking to raise about US$1bn in its upcoming Hong Kong IPO.</li>
<li>WM Motor is a smart EV player in China. As of the latest practicable date, it had a total of four main EV models. </li>
<li>In this note, we talk about the not-so-positive aspects of the deal.</li>
</ul>



WM Motor Technology Co Ltd (WMT CH) (WMM) is looking to raise about US$1bn in its upcoming Hong Kong IPO.
WM Motor is a smart EV player in China. As of the latest practicable date, it had a total of four main EV models. 
In this note, we talk about the not-so-positive aspects of the deal.


WM Motor Holding IPO - The Negatives - Has Ample Issues to Contend With

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul><li>In Depth: Abuse victims’ convictions for bigamy highlight hurdles to divorce in China</li><li>Huawei founder Ren declares a battle for survival</li><li>Singapore’s leader urges China, U.S. to avoid mishaps as regional tensions escalate</li></ul>

In Depth: Abuse victims’ convictions for bigamy highlight hurdles to divorce in ChinaHuawei founder Ren declares a battle for survivalSingapore’s leader urges China, U.S. to avoid mishaps as regional tensions escalate

CX Daily: Abuse Victims’ Convictions for Bigamy Highlight Hurdles to Divorce in China

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

Equity Bottom-Up

<ul>
<li>Revenue grew by 20% YoY in 2Q22 with supply chain revenue up by 11% YoY and other revenue up by 42% YoY.</li>
<li>The company was not impacted by lockdown, because the main business is to provide solution to delivery companies.</li>
<li>We still believe the stock will has an upside of 39% after the surge on the day next to the result day.</li>
</ul>


Revenue grew by 20% YoY in 2Q22 with supply chain revenue up by 11% YoY and other revenue up by 42% YoY.
The company was not impacted by lockdown, because the main business is to provide solution to delivery companies.
We still believe the stock will has an upside of 39% after the surge on the day next to the result day.


JD Logistics (2618 HK): Surged After 2Q22 Result, Still an Upside of 39%

<ul>
<li>The revenue growth rate fell to 5% in 2Q22 due to the lockdown in Shanghai and Yangtze delta.</li>
<li>However, freezers became popular in June and July because of the experience during the lockdown.</li>
<li>We believe the stock has an upside of 21% based on EBITDA, but the upside can be significant if based on sales-related ratios.</li>
</ul>


The revenue growth rate fell to 5% in 2Q22 due to the lockdown in Shanghai and Yangtze delta.
However, freezers became popular in June and July because of the experience during the lockdown.
We believe the stock has an upside of 21% based on EBITDA, but the upside can be significant if based on sales-related ratios.


JD.com (9618 HK): 2Q22, Growth Tumbled, But Lockdown Eased, 20% Upside or More

China

JD.com Inc is an online direct sales company in China.  The Company offers a wide selection of products through its website and mobile applications.  JD.com sells appliances, computers, digital products, communication products, garments, books, and household items to consumers and vendors.

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JD.com Inc (ADR) (JD US)

Hong Kong: Where Have Shorts Been Building Up?

Short notional in HK has decreased as a result of falling prices. Shorts have been increasing on a lot of stocks over the year. A rally could see...

Brian Freitas

WM Motor Holding IPO - The Negatives - Has Ample Issues to Contend With

WM Motor Technology Co Ltd (WMT CH) is looking to raise about US$1bn in its upcoming Hong Kong IPO. In this note, we talk about the not-so-positive...

Sumeet Singh

CX Daily: Abuse Victims’ Convictions for Bigamy Highlight Hurdles to Divorce in China

In Depth: Abuse victims’ convictions for bigamy highlight hurdles to divorce in China. Huawei founder Ren declares a battle for survival

Caixin Global

JD Logistics (2618 HK): Surged After 2Q22 Result, Still an Upside of 39%

Revenue grew by 20% YoY in 2Q22. The company was not impacted by lockdown, because the main business is to provide solution to delivery companies....

Ming Lu

JD.com (9618 HK): 2Q22, Growth Tumbled, But Lockdown Eased, 20% Upside or More

The revenue growth rate fell to 5% in 2Q22 due to the lockdown in Shanghai and Yangtze delta. However, freezers became popular in June and July...

Ming Lu

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52-week Range

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