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>The review period for the <a href="https://www.smartkarma.com/entities/nifty-index" target="_blank" data-smartkarma-citation="entities:23617:1" rel="noopener">NIFTY</a> family of indices, <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225</a>, <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">STAR50</a>, the KRX New Deal Index and a global index ends on 31 January.</li>
<li>The January rebalance of the IDX30 and LQ45 indices will be implemented at the close of trading on 31 January.</li>
<li>There have been huge inflows into the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-inde" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI 300 Index</a> ETFs for another week. This will increase the impact on the index changes at the next rebalance.</li>
</ul>


The review period for the NIFTY family of indices, Nikkei 225, STAR50, the KRX New Deal Index and a global index ends on 31 January.
The January rebalance of the IDX30 and LQ45 indices will be implemented at the close of trading on 31 January.
There have been huge inflows into the CSI 300 Index ETFs for another week. This will increase the impact on the index changes at the next rebalance.


Index Rebalance & ETF Flow Recap: CSI300, CSI500, SSE50, ChiNext, KOSPI200, Renesas, IDX30/LQ45

<ul>
<li>The China equity markets have continued to slide and the lower market caps and free float market caps will see a lot of stocks deleted from passive portfolios in February.</li>
<li>We currently estimate selling of around US$1.66bn across 74 stocks listed on the mainland, in HK and the U.S., and that number could increase as markets continue to underperform.</li>
<li>The potential deletes have dropped a lot over the last 4 months and there has been a marked underperformance versus the headline indices over the last month.</li>
</ul>


The China equity markets have continued to slide and the lower market caps and free float market caps will see a lot of stocks deleted from passive portfolios in February.
We currently estimate selling of around US$1.66bn across 74 stocks listed on the mainland, in HK and the U.S., and that number could increase as markets continue to underperform.
The potential deletes have dropped a lot over the last 4 months and there has been a marked underperformance versus the headline indices over the last month.


China: Sliding Market Leads to Passive Selling

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

<ul>
<li>A sharp decline in lumber prices this year suggests potential difficulties in the global housing market but it should also be a positive factor in the pulp &amp; paper industry.</li>
<li>Nine Dragons Paper, Oji Holdings, and Hansol Paper are some of the best Asian pulp &amp; paper plays that could benefit from lower lumber prices in the next several months.</li>
<li>The major drivers of lower lumber prices include higher interest rates and concerns about the global housing sector, mainly in the US with signs of lower home sales.</li>
</ul>


A sharp decline in lumber prices this year suggests potential difficulties in the global housing market but it should also be a positive factor in the pulp &amp; paper industry.
Nine Dragons Paper, Oji Holdings, and Hansol Paper are some of the best Asian pulp &amp; paper plays that could benefit from lower lumber prices in the next several months.
The major drivers of lower lumber prices include higher interest rates and concerns about the global housing sector, mainly in the US with signs of lower home sales.


Decline in Lumber Prices Suggests Looming Difficulties in Housing but a Positive in Pulp & Paper

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

<ul>
<li>China’s papermaking companies have been raising prices since last month due to solid overseas demand and rising raw material costs amid supply chain disruptions</li>
<li>Rising paper prices in the world’s largest producer and consumer of the commodity has sparked concerns of consumer inflation if higher costs get passed down to consumers</li>
<li>The concern has grown more acute with the war between Russia and Ukraine, which analysts worry will continue to add pressure to global supply chains.</li>
</ul>


China’s papermaking companies have been raising prices since last month due to solid overseas demand and rising raw material costs amid supply chain disruptions
Rising paper prices in the world’s largest producer and consumer of the commodity has sparked concerns of consumer inflation if higher costs get passed down to consumers
The concern has grown more acute with the war between Russia and Ukraine, which analysts worry will continue to add pressure to global supply chains.


China’s Papermaker Price Hikes Add to Inflation Worries

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>Many minority shareholders have lodged complaints against ACC with the SFC, since unfair privatization price damages the ecology of the entire market.It depends on whether the SFC will take action.</li>
<li>The failure of privatization does not necessarily mean better returns for investors. On the contrary, it may result in greater losses. ACC can have other ways “hollow out” the Company.</li>
<li>Arbitrageurs can choose to bet on a second privatization (with higher Offer Price) and also on the potential dividends, but the prerequisite is that the management choose to "act honorably".</li>
</ul>


Many minority shareholders have lodged complaints against ACC with the SFC, since unfair privatization price damages the ecology of the entire market.It depends on whether the SFC will take action.
The failure of privatization does not necessarily mean better returns for investors. On the contrary, it may result in greater losses. ACC can have other ways “hollow out” the Company.
Arbitrageurs can choose to bet on a second privatization (with higher Offer Price) and also on the potential dividends, but the prerequisite is that the management choose to "act honorably".


Asia Cement China (743.HK) - Investors Are Facing the Dilemma of Low-Priced Privatization

Hong Kong

Nine Dragons Paper Holdings Limited produces a wide range of containerboard products. The Company primarily produces linerboard, including kraft linerboard, test linerboard, white top linerboard, high performance corrugating medium and coated duplex board.

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Nine Dragons Paper (2689 HK)

Index Rebalance & ETF Flow Recap: CSI300, CSI500, SSE50, ChiNext, KOSPI200, Renesas, IDX30/LQ45

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

China: Sliding Market Leads to Passive Selling

A rapidly falling market could be upwards of 74 China stocks being deleted from passive portfolios. These stocks have underperformed the headline...

Brian Freitas

Decline in Lumber Prices Suggests Looming Difficulties in Housing but a Positive in Pulp & Paper

A sharp decline in lumber prices this year suggests potential difficulties in the global housing market but it should also be a positive factor in...

Douglas Kim

China’s Papermaker Price Hikes Add to Inflation Worries

China’s papermaking companies have been raising prices since last month due to solid overseas demand and rising raw material costs amid supply...

Caixin Global

Asia Cement China (743.HK) - Investors Are Facing the Dilemma of Low-Priced Privatization

There're rumors an investor with about 20m shares plans to vote against the privatization and then bet on a second one because he is dissatisfied...

Xinyao (Criss) Wang

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