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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

Orient Overseas International / Event-Driven

<p>Hang Seng Indexes Company (HSIL) reviews the constituents of the Hang Seng Composite Index (HSCI) on a half yearly basis in March and September with data cut-off dates as of the end of December and June.</p><p>The December review will see the inclusion of stocks that were newly listed from 1 July to 30 September and meet the criteria for joining the index.</p><p>We expect <a href="https://www.smartkarma.com/entities/brii-biosciences" target="_blank" data-smartkarma-citation="entities:33014:1" rel="noopener">Brii Biosciences (2137 HK)</a>, <a href="https://www.smartkarma.com/entities/helen-s-international-holdings" target="_blank" data-smartkarma-citation="entities:34113:1" rel="noopener">Helen's International Holdings (9869 HK)</a>, <a href="https://www.smartkarma.com/entities/medlive-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:32985:1" rel="noopener">Medlive Technology (2192 HK)</a>, <a href="https://www.smartkarma.com/entities/keymed-biosciences-inc" target="_blank" data-smartkarma-citation="entities:33011:1" rel="noopener">Keymed Biosciences Inc (2162 HK)</a> and <a href="https://www.smartkarma.com/entities/sce-intelligent-commercial-management" target="_blank" data-smartkarma-citation="entities:33500:1" rel="noopener">SCE Intelligent Commercial Management (606 HK)</a> to be included in the index at the close of trading on 3 December.</p><p>For the regular rebalance in March 2022, we see 17 potential inclusions to the index and 4 potential deletions. There are 4 stocks that are close adds and 5 that are close deletes.</p><div><p>Although there are no assets indexed to the HSCI, the index forms the basis of stocks that are eligible for Southbound Stock Connect. Stocks that are included in the HSCI and subsequently included in the Stock Connect program get inflows from mainland investors. There is pre-positioning in the stocks in the lead up to the announcement and prior to the stocks being open for purchase by mainland investors.</p></div>

Hang Seng Indexes Company (HSIL) reviews the constituents of the Hang Seng Composite Index (HSCI) on a half yearly basis in March and September with data cut-off dates as of the end of December and June.The December review will see the inclusion of stocks that were newly listed from 1 July to 30 September and meet the criteria for joining the index.We expect Brii Biosciences (2137 HK), Helen's International Holdings (9869 HK), Medlive Technology (2192 HK), Keymed Biosciences Inc (2162 HK) and SCE Intelligent Commercial Management (606 HK) to be included in the index at the close of trading on 3 December.For the regular rebalance in March 2022, we see 17 potential inclusions to the index and 4 potential deletions. There are 4 stocks that are close adds and 5 that are close deletes.Although there are no assets indexed to the HSCI, the index forms the basis of stocks that are eligible for Southbound Stock Connect. Stocks that are included in the HSCI and subsequently included in the Stock Connect program get inflows from mainland investors. There is pre-positioning in the stocks in the lead up to the announcement and prior to the stocks being open for purchase by mainland investors.

HSCI Index Rebalance and Stock Connect: Potential Changes in December and March

<p>The Hang Seng Indexes Company Limited (HSIL) announced the results of its review of the Hang Seng Family of Indexes post market close on 26 February. The constituent changes will be effective after the close of trading on 12 March.</p><p>For the Hang Seng Composite Index (HSCI) there are 36 inclusions and 29 deletions, taking the number of index constituents up to 500.</p><p>Although there are almost no assets indexed to the HSCI, the index forms the basis of stocks that are eligible for Southbound Stock Connect. Stocks that are included in the HSCI and subsequently included in the Stock Connect program get inflows from mainland investors. Secondary Listings are not eligible for inclusion in the Stock Connect program.</p><p>Of the 36 inclusions, 4 are already a part of Stock Connect by virtue of having listed A-shares, 2 are Secondary listings and will not be included in Stock Connect, 9 will be added to Shanghai and Shenzhen Stock Connect, while 21 stocks will only be added to Shenzhen Stock Connect.</p><p>Of the 29 index deletions, 13 are not a part of Stock Connect, 7 will continue to remain a part of Stock Connect by virtue of having listed A-shares, while 9 will be deleted from the Stock Connect program.</p><p>We identify 4 stocks that could sell off ahead of their removal from the Stock Connect Buy list, while Biotech stocks could be in focus ahead of their inclusion in the Stock Connect Buy and Sell list.</p>

The Hang Seng Indexes Company Limited (HSIL) announced the results of its review of the Hang Seng Family of Indexes post market close on 26 February. The constituent changes will be effective after the close of trading on 12 March.For the Hang Seng Composite Index (HSCI) there are 36 inclusions and 29 deletions, taking the number of index constituents up to 500.Although there are almost no assets indexed to the HSCI, the index forms the basis of stocks that are eligible for Southbound Stock Connect. Stocks that are included in the HSCI and subsequently included in the Stock Connect program get inflows from mainland investors. Secondary Listings are not eligible for inclusion in the Stock Connect program.Of the 36 inclusions, 4 are already a part of Stock Connect by virtue of having listed A-shares, 2 are Secondary listings and will not be included in Stock Connect, 9 will be added to Shanghai and Shenzhen Stock Connect, while 21 stocks will only be added to Shenzhen Stock Connect.Of the 29 index deletions, 13 are not a part of Stock Connect, 7 will continue to remain a part of Stock Connect by virtue of having listed A-shares, while 9 will be deleted from the Stock Connect program.We identify 4 stocks that could sell off ahead of their removal from the Stock Connect Buy list, while Biotech stocks could be in focus ahead of their inclusion in the Stock Connect Buy and Sell list.

HSCI Index Rebalance & Stock Connect: Inclusions & Exclusions

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Mulsanne Group Holding Ltd / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/28049" target="_blank" data-smartkarma-citation="entities:28049:1">Mulsanne Group Holding Ltd (1817 HK)</a> seeks to raise net IPO proceeds of HK$973.0 million ($124 million), at the mid-point of the IPO price range. Cornerstone investors, Wanda Group and Sasseur, intend to purchase around 19% of the offer shares at the mid-point of the IPO price range.</p><div class="content-highlight"><p>In  <a href="https://www.smartkarma.com/insights/mulsanne-group-gxg-ipo-preview-the-wrong-trousers" target="_blank" data-smartkarma-citation="insights:29488">Mulsanne Group (GXG) IPO Preview: The Wrong Trousers</a> and <a href="https://www.smartkarma.com/insights/mulsanne-group-gxg-ipo-a-poor-start-to-2019" target="_blank" data-smartkarma-citation="insights:29794">Mulsanne Group (GXG) IPO: A Poor Start to 2019</a>, we cautioned that that Mulsanne’s fundamentals are less than inspiring.  We believe that the proposed IPO price range is unattractive and would not participate in the proposed IPO price range. </p></div>

Mulsanne Group Holding Ltd (1817 HK) seeks to raise net IPO proceeds of HK$973.0 million ($124 million), at the mid-point of the IPO price range. Cornerstone investors, Wanda Group and Sasseur, intend to purchase around 19% of the offer shares at the mid-point of the IPO price range.In  Mulsanne Group (GXG) IPO Preview: The Wrong Trousers and Mulsanne Group (GXG) IPO: A Poor Start to 2019, we cautioned that that Mulsanne’s fundamentals are less than inspiring.  We believe that the proposed IPO price range is unattractive and would not participate in the proposed IPO price range. 

Mulsanne Group (GXG) IPO: Unattractive Valuation

<p><a href="https://www.smartkarma.com/entities/28049" target="_blank" data-smartkarma-citation="entities:28049:1">Mulsanne Group Holding Ltd (1817 HK)</a> is a leading fashion menswear company based in China. Mulsanne’s brand portfolio comprises of two main categories – GXG series (GXG, gxg.jeans, gxg.kids) and sportswear (Yatlas, 2XU). </p><div class="content-highlight"><p>Mulsanne will open its books tomorrow for a Hong Kong IPO to raise $100-150 million, according to press reports. In <a href="https://www.smartkarma.com/insights/mulsanne-group-gxg-ipo-preview-the-wrong-trousers" target="_blank">our IPO initiation note</a>, we stated that Mulsanne’s fundamentals are less than inspiring. The updated PHIP, which discloses brief financial data for 2M19, reinforces our view.</p></div>

Mulsanne Group Holding Ltd (1817 HK) is a leading fashion menswear company based in China. Mulsanne’s brand portfolio comprises of two main categories – GXG series (GXG, gxg.jeans, gxg.kids) and sportswear (Yatlas, 2XU). Mulsanne will open its books tomorrow for a Hong Kong IPO to raise $100-150 million, according to press reports. In our IPO initiation note, we stated that Mulsanne’s fundamentals are less than inspiring. The updated PHIP, which discloses brief financial data for 2M19, reinforces our view.

Mulsanne Group (GXG) IPO: A Poor Start to 2019

<p><a href="https://www.smartkarma.com/entities/28049" target="_blank" data-smartkarma-citation="entities:28049:1">Mulsanne Group Holding Ltd (1817 HK)</a> is a leading fashion menswear company based in China. Mulsanne’s brand portfolio comprises of two main categories – GXG series (GXG, gxg.jeans, gxg.kids) and sportswear (Yatlas, 2XU).</p><div class="content-highlight"><p>Mulsanne has started pre-marketing for a Hong Kong IPO to raise $200 million, according to press reports. Overall, we believe that Mulsanne’s fundamentals are less than inspiring.</p></div>

Mulsanne Group Holding Ltd (1817 HK) is a leading fashion menswear company based in China. Mulsanne’s brand portfolio comprises of two main categories – GXG series (GXG, gxg.jeans, gxg.kids) and sportswear (Yatlas, 2XU).Mulsanne has started pre-marketing for a Hong Kong IPO to raise $200 million, according to press reports. Overall, we believe that Mulsanne’s fundamentals are less than inspiring.

Mulsanne Group (GXG) IPO Preview: The Wrong Trousers

China

JNBY Design Limited designs, promotes, and sells textile products. The Company offers apparels, footwear, and other accessories for women and children. JNBY Design markets its products globally.

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JNBY Design Ltd (3306 HK)

HSCI Index Rebalance and Stock Connect: Potential Changes in December and March

There could be 5 adds to the HSCI in December. In March, there could be 17 adds and 4 deletes. There will be pre-positioning on the inclusions...

Brian Freitas

HSCI Index Rebalance & Stock Connect: Inclusions & Exclusions

There are 36 inclusions/ 29 exclusions for the Hang Seng Composite Index. 9 stocks will be deleted from the Stock Connect Buy list & there are a...

Brian Freitas

Mulsanne Group (GXG) IPO: Unattractive Valuation

Mulsanne Group Holding Ltd (1817 HK) seeks to raise net IPO proceeds of HK$973.0 million ($124 million), at the mid-point of the IPO price...

Arun George

Mulsanne Group (GXG) IPO: A Poor Start to 2019

Mulsanne Group Holding Ltd (1817 HK) is a leading fashion menswear company based in China. Mulsanne’s brand portfolio comprises of two main...

Arun George

Mulsanne Group (GXG) IPO Preview: The Wrong Trousers

Mulsanne Group Holding Ltd (1817 HK) is a leading fashion menswear company based in China. Mulsanne’s brand portfolio comprises of two main...

Arun George

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