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

Korea Stock Exchange KOSPI 200 / Event-Driven

<ul>
<li>According to market information confirmed so far, the resumption is set for July 1st, and short selling will be restricted to the constituents of KOSPI 200 and KOSDAQ 150.</li>
<li>The surge in trading volume likely stemmed from the return of long-short positions post-short-selling ban, leading to an overall market volume increase.</li>
<li>Another critical factor is the buying pressure on value-up stocks resuming in early July. We should aim at the price impacts of intersecting long-short flows and value-up stock purchases.</li>
</ul>


According to market information confirmed so far, the resumption is set for July 1st, and short selling will be restricted to the constituents of KOSPI 200 and KOSDAQ 150.
The surge in trading volume likely stemmed from the return of long-short positions post-short-selling ban, leading to an overall market volume increase.
Another critical factor is the buying pressure on value-up stocks resuming in early July. We should aim at the price impacts of intersecting long-short flows and value-up stock purchases.


July Short Selling Resumption in Korea: Local Market Info & Trading Considerations

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

<ul>
<li>Eight months after shareholders approved the transfer from the KOSDAQ to the KOSPI market, <a href="https://www.smartkarma.com/entities/ecopro-bm-co-ltd" target="_blank" data-smartkarma-citation="entities:27873:1" rel="noopener">Ecopro BM (247540 KS)</a> has submitted the application for section transfer to the KRX.</li>
<li>Given historical precedent, the transfer could take place in February. <a href="https://www.smartkarma.com/entities/ecopro-bm-co-ltd" target="_blank" data-smartkarma-citation="entities:27873:1" rel="noopener">Ecopro BM</a>'s deletion will mean an inclusion to the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ150 Index</a> to maintain the number of index constituents at 150.</li>
<li>
<a href="https://www.smartkarma.com/entities/ecopro-bm-co-ltd" target="_blank" data-smartkarma-citation="entities:27873:1" rel="noopener">Ecopro BM (247540 KS)</a> will be deleted from the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index</a> leading to passive selling and some short covering. Then will come the inclusion to the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200 Index</a>.</li>
</ul>


Eight months after shareholders approved the transfer from the KOSDAQ to the KOSPI market, Ecopro BM (247540 KS) has submitted the application for section transfer to the KRX.
Given historical precedent, the transfer could take place in February. Ecopro BM's deletion will mean an inclusion to the KOSDAQ150 Index to maintain the number of index constituents at 150.

Ecopro BM (247540 KS) will be deleted from the KOSDAQ 150 Index leading to passive selling and some short covering. Then will come the inclusion to the KOSPI 200 Index.


Ecopro BM (247540 KS): Index Implications as KOSPI Transfer Nears

<ul>
<li>Lee Bok-hyun hopes for short selling to resume by late June. Given his influence on the Value-up policy, it's likely to happen.</li>
<li>Lee expects key tax incentives for the value-up program to be included in the July tax reform bill, showing a market-friendly stance.</li>
<li>Yesterday's New York event had a very positive atmosphere with more attendees than expected, showing genuine investor interest, likely ensuring sustained interest in Korea's Value-up program.</li>
</ul>


Lee Bok-hyun hopes for short selling to resume by late June. Given his influence on the Value-up policy, it's likely to happen.
Lee expects key tax incentives for the value-up program to be included in the July tax reform bill, showing a market-friendly stance.
Yesterday's New York event had a very positive atmosphere with more attendees than expected, showing genuine investor interest, likely ensuring sustained interest in Korea's Value-up program.


FSS Head's Aggressive Remarks for Value-Up at NY Event, Incl. Short Selling Resumption Late June

<ul>
<li>The new rule mandates that retail pool fees be tied to the fees paid by institutional borrowers, and this information must be publicly disclosed.</li>
<li>This rule ensures faster, more accurate market release of stock-specific borrow fees, which are now tied to actual fees received, replacing the arbitrarily set rates by brokerages.</li>
<li>With short-selling resuming next April, this rule could drive new flow trading strategies and significantly influence target screening in the short-selling market.</li>
</ul>


The new rule mandates that retail pool fees be tied to the fees paid by institutional borrowers, and this information must be publicly disclosed.
This rule ensures faster, more accurate market release of stock-specific borrow fees, which are now tied to actual fees received, replacing the arbitrarily set rates by brokerages.
With short-selling resuming next April, this rule could drive new flow trading strategies and significantly influence target screening in the short-selling market.


Korea's New Retail Pool Borrow Fee Calculation & Disclosure Rules: Impacts on Flow Trading

Quantitative Researcher, MRM Research

Nico Rosti

Quantitative Researcher

MRM Research

Quantitative Research

<ul>
<li>After a large sell-off, similar to other major global markets, the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200 INDEX</a> last week rebounded and closed strongly up. In this insight we want to evaluate what's next.</li>
<li>According to our pattern models, at the moment the index is not overbought yet, so in theory the index could rise higher, this week.</li>
<li>Pay attention when the index reaches the <strong>385 price area</strong>, from there the index could start to encounter some <strong>resistance</strong>.</li>
</ul>


After a large sell-off, similar to other major global markets, the KOSPI 200 INDEX last week rebounded and closed strongly up. In this insight we want to evaluate what's next.
According to our pattern models, at the moment the index is not overbought yet, so in theory the index could rise higher, this week.
Pay attention when the index reaches the 385 price area, from there the index could start to encounter some resistance.


EQD | KOSPI 200 Rising With Room to Go Higher (This Week Only)

South Korea

The KOSPI 200 Index is a capitalization-weighted index of 200 Korean stocks which make up 93% of the total market value of the Korea Stock Exchange. The index was developed with a base value of 100 as of January 3, 1990.

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

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

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

July Short Selling Resumption in Korea: Local Market Info & Trading Considerations

This post provides information circulating in Korea's local market about the resumption of short selling in July and its potential trading...

Sanghyun Park

Ecopro BM (247540 KS): Index Implications as KOSPI Transfer Nears

EcoproBM's section transfer application is with the KRX; approval could come in Jan/Feb. LS Marine could be added to the KOSDAQ150 Index while...

Brian Freitas

FSS Head's Aggressive Remarks for Value-Up at NY Event, Incl. Short Selling Resumption Late June

This post delivers Korea FSS Head (Lee Bok-hyun)'s very aggressive remarks for the Value-up program at yesterday's investors meeting in New York....

Sanghyun Park

Korea's New Retail Pool Borrow Fee Calculation & Disclosure Rules: Impacts on Flow Trading

This post outlines the Korean Financial Supervisory Service's newly released rules on calculating and disclosing retail pool borrow fees and...

Sanghyun Park

EQD | KOSPI 200 Rising With Room to Go Higher (This Week Only)

The KOSPI 200 INDEX rebounded after the latest global sell-off, it could rise higher this week but watch for resistance at 385-390 price area.

Nico Rosti

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

July Short Selling Resumption in Korea: Local Market Info & Trading Considerations

This post provides information circulating in Korea's local market about the resumption of short selling in July and its potential trading...

Sanghyun Park

Ecopro BM (247540 KS): Index Implications as KOSPI Transfer Nears

EcoproBM's section transfer application is with the KRX; approval could come in Jan/Feb. LS Marine could be added to the KOSDAQ150 Index while...

Brian Freitas

FSS Head's Aggressive Remarks for Value-Up at NY Event, Incl. Short Selling Resumption Late June

This post delivers Korea FSS Head (Lee Bok-hyun)'s very aggressive remarks for the Value-up program at yesterday's investors meeting in New York....

Sanghyun Park

Korea's New Retail Pool Borrow Fee Calculation & Disclosure Rules: Impacts on Flow Trading

This post outlines the Korean Financial Supervisory Service's newly released rules on calculating and disclosing retail pool borrow fees and...

Sanghyun Park

EQD | KOSPI 200 Rising With Room to Go Higher (This Week Only)

​The KOSPI 200 INDEX rebounded after the latest global sell-off, it could rise higher this week but watch for resistance at 385-390 price area.

Nico Rosti

The KOSPI 200 INDEX rebounded after the latest global sell-off, it could rise higher this week but watch for resistance at 385-390 price area.