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

<ul>
<li>There are 29 inclusions and 12 deletions for the HSCI at the March rebalance. 26 of the inclusions will be added to Connect while all deletes will leave Stock Connect.</li>
<li>Some of the Stock Connect deletions have a lot of mainland holdings and there could unwinding of some of the positions ahead of becoming sell-only on the link.</li>
<li>Orient Overseas International, United Energy, Cloud Village and Gcl Poly Energy Holdings Limited could also move higher over the next couple of weeks before the stocks enter Stock Connect.</li>
</ul>


There are 29 inclusions and 12 deletions for the HSCI at the March rebalance. 26 of the inclusions will be added to Connect while all deletes will leave Stock Connect.
Some of the Stock Connect deletions have a lot of mainland holdings and there could unwinding of some of the positions ahead of becoming sell-only on the link.
Orient Overseas International, United Energy, Cloud Village and Gcl Poly Energy Holdings Limited could also move higher over the next couple of weeks before the stocks enter Stock Connect.


HSCI Index Rebalance: 29 Adds, 12 Deletes & Changes to Stock Connect

<ul>
<li>The review period for the March review of the HSCI ended on 31 December. There are a lot of new listings that should be included in the index.</li>
<li>SenseTime is a high probability inclusion to the index, though it will only be added to Stock Connect in July once it completes 6 months and 20 trading days.</li>
<li>Xpeng and Li Auto will be added to Stock Connect in Feb/March if they pass the velocity test. We see Li Auto as failing the test, while Xpeng is close.</li>
</ul>


The review period for the March review of the HSCI ended on 31 December. There are a lot of new listings that should be included in the index.
SenseTime is a high probability inclusion to the index, though it will only be added to Stock Connect in July once it completes 6 months and 20 trading days.
Xpeng and Li Auto will be added to Stock Connect in Feb/March if they pass the velocity test. We see Li Auto as failing the test, while Xpeng is close.


HSCI Index Rebalance and Stock Connect: Plenty of New Listings Should Be Included

<ul>
<li>The review period for the March review of the HSCI ends on 31 December. There are expected to be a lot more inclusions than deletions at the review.</li>
<li>There are quite a few stocks that should be included following their listing over the last couple of months while others are now potential inclusions after passing the velocity test.</li>
<li>Quite a few of the potential deletions from the HSCI and Stock Connect have large holdings via Southbound Stock Connect and these stock could see some selling.</li>
</ul>


The review period for the March review of the HSCI ends on 31 December. There are expected to be a lot more inclusions than deletions at the review.
There are quite a few stocks that should be included following their listing over the last couple of months while others are now potential inclusions after passing the velocity test.
Quite a few of the potential deletions from the HSCI and Stock Connect have large holdings via Southbound Stock Connect and these stock could see some selling.


HSCI Index Rebalance and Stock Connect: More Inclusions than Exclusions in March

Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

Thematic (Sector/Industry)

This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity indices. 
Companies mentioned this week:
<a href="https://www.smartkarma.com/entities/china-telecom-corp-ltd-h" target="_blank" data-smartkarma-citation="entities:1015:1" rel="noopener">China Telecom (H) (728 HK)</a>, <a href="https://www.smartkarma.com/entities/pax-global-technology-ltd" target="_blank" data-smartkarma-citation="entities:7514:1" rel="noopener">Pax Global Technology (327 HK)</a>, <a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a>

This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity indices. 
Companies mentioned this week:
China Telecom (H) (728 HK), Pax Global Technology (327 HK), SK Hynix (000660 KS)

Global Emerging Markets Weekly: 29 October 2021

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Headquartered in Shenzhen, <a href="https://www.smartkarma.com/entities/pax-global-technology-ltd" target="_blank" data-smartkarma-citation="entities:7514:1" rel="noopener">Pax Global Technology (327 HK)</a> is a Chinese company with more than 60 million point-of-sale terminals that are used in nearly 120 countries around the world. On 26 October, there was news that the U.S. <a href="https://krebsonsecurity.com/2021/10/fbi-raids-chinese-point-of-sale-giant-pax-technology/" target="_blank" rel="noopener">FBI raided</a> the Florida offices of Pax Global. We would not Buy the dip on <a href="https://www.smartkarma.com/entities/pax-global-technology-ltd" target="_blank" data-smartkarma-citation="entities:7514:1" rel="noopener">Pax Global Technology (327 HK) </a>due to three main reasons:<ul>
<li>First, the U.S. FBI would not have raided the company's offices unless it had significant amounts of evidence that suggested that something very wrong was occurring at the company. </li>
<li>Second, the legal fight will likely get prolonged. </li>
<li>Third, while this legal fight gets prolonged, this will likely result in many existing customers around the world stop using the company's point-of-sale terminals and new potential customers using other suppliers. </li>
</ul>

Headquartered in Shenzhen, Pax Global Technology (327 HK) is a Chinese company with more than 60 million point-of-sale terminals that are used in nearly 120 countries around the world. On 26 October, there was news that the U.S. FBI raided the Florida offices of Pax Global. We would not Buy the dip on Pax Global Technology (327 HK) due to three main reasons:
First, the U.S. FBI would not have raided the company's offices unless it had significant amounts of evidence that suggested that something very wrong was occurring at the company. 
Second, the legal fight will likely get prolonged. 
Third, while this legal fight gets prolonged, this will likely result in many existing customers around the world stop using the company's point-of-sale terminals and new potential customers using other suppliers. 


PAX Global Technology Gets Raided by the US FBI - Is This The Tip of the Cybersecurity Iceberg?

Hong Kong

Digital China Holdings Limited, through its subsidiaries, distributes foreign brand information technology products and provides system integration service in China.  The Company also develops and distributes networking products.

Wasion Group Holdings Limited is engaged in the provision of Advanced Metering Infrastructure solutions, Advanced Distribution Operations solutions; and development, manufacturing and sale of smart power, water, heat and gas meters and smart power distribution devices.

VST Holdings Limited distributes a wide range of IT products, including data storage device, CPUs, media products, PC motherboards, and server motherboards. The Company also provides value-added services to its suppliers as well as support and after-sale service to its customers.

Truly International Holdings Limited, through its subsidiaries, manufactures and sells liquid crystal display products, electronic consumer products including calculators, pagers, MP3 player, and electronic components.

Truly International Holdings Ltd (732 HK)

S.A.S. Dragon Holdings Ltd. designs, develops, sources, and provides quality assurance and logistics management services of electronic components and semiconductors products. The products are used in mobile phones, consumer electronics, computers, telecommunication and lighting products. The Company operates in China, Hong Kong, Taiwan and Korea.

Yeebo International Holdings Ltd, through its subsidiaries, develops, manufactures, and sells liquid crystal displays.  The Company also invests in properties.

Karrie International Holdings Ltd, through its subsidiaries, manufactures and sells computer casings, video cassette housings and moulds, office automation products, plastic and metal parts, moulds, and provides electronic manufacturing services.

Changhong Jiahua Holdings Limited, through its subsidiaries, trades consumer electronic products and related parts and components.  The Company also manufactures and sells the data broadcasting hardware and software and provides data broadcasting and related services.

Ju Teng International Holdings Ltd. manufactures semi-finished consumer goods. The Company produces casings for notebook computers.  Ju Teng's manufacturing includes plastic injection molding, spray painting, metal tooling and stamping, and assembly.

Peking University Resources (Holdings) Company Limited, through its subsidiaries, distributes digital and information products.  The Company offers information products such as servers, networking products, and storage devices as well as provides information solutions and technical consultation services to the finance, manufacturing and communication industries.

Oki Electric Industry Company, Limited, develops, produces, and sells a broad range of communication and information related equipment.  The Company's products include personal computers (PCs), PC peripheral equipment, and electronic devices such as semiconductors and automated teller machines (ATMs). Oki Electric Industry also provides installation and maintenance services.

Chin-Poon Industrial Co., Ltd. manufactures and markets single-sided, double-sided, and multi-layer printed circuit boards (PCBs).

Henan Hanwei Electronics Company Ltd. manufactures domestic gas alarms, portable gas detectors, industrial fixed systems, breath alcohol testers, gas analyzers, and gas sensors.

Guangdong Goworld Co., Ltd. manufactures and markets printed circuit boards, liquid crystal displays (LCDs), and ultrasonic electronic measuring instruments. Guangdong Goworld distributes its products throughout the world.

Wuhan P&S Information Technology Company Limited is engaged in the promotion, sales and application services of IC and other electronic components.  The Company's main products are microcontrollers and microprocessors, clock management components and system management components, etc.

Wuhan P&S Information Technology (300184 CH)

Unitech Printed Circuit Board Corp. manufactures and markets multi-layered and double-sided printed circuit boards.

Beijing SDL Technology Company Limited develops, manufactures and sells analytical instruments, environmental monitoring systems, industrial process analysis systems, and provides operational and maintenance services. The Company's main products include analytical instruments, and related ancillary products.

Guangzhou Hi-Target Navigation Tech Company Limited develops, produces and sells high-precision GNSS software and hardware products. The Company's main products envelopes mapping measurement, GIS data collection, geological disaster monitoring, precision construction and machine control, marine exploration, forestry, urban resource management and national defense etc.

SVG Optronics Company Limited designs, develops and manufactures micro-nano optical products. The Company provides optical micro-nano manufacturing technology services, develops micro-nano optical manufacturing equipment, and researches the field of optical micro-nano science and technology.

BH Co., Ltd. manufactures and distributes various flexible printed circuits boards (FPCB), such as multi-layer and build-up FPCBs mainly for mobile phones and rigid FPCBs for aerospace sphere.

PAX Global Technology Ltd. is an electronic fund transfer point-of-sale (EFT-POS) terminal solutions provider. The Company principally engaged in the development and sale of EFT-POS products and provision of related services. PAX develop and sells countertop and mobile EFT-POS terminals which are able to process a wide range of electronic payment types.

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Pax Global Technology (327 HK)

HSCI Index Rebalance: 29 Adds, 12 Deletes & Changes to Stock Connect

There are 29 adds & 12 deletes for the HSCI at the March rebal. 26 of the inclusions will join Southbound Stock Connect while all the deletes will...

Brian Freitas

HSCI Index Rebalance and Stock Connect: Plenty of New Listings Should Be Included

There could be up to 34 adds and 22 deletes for the HSCI in March based on market cap, liquidity and prolonged suspensions. A lot of new listings,...

Brian Freitas

HSCI Index Rebalance and Stock Connect: More Inclusions than Exclusions in March

We expect there will be a lot more inclusions than exclusions at the March rebalance of the HSCI. The changes to the index will result in changes...

Brian Freitas

Global Emerging Markets Weekly: 29 October 2021

This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity...

Wium Malan, CFA

PAX Global Technology Gets Raided by the US FBI - Is This The Tip of the Cybersecurity Iceberg?

In this insight, we discuss about a company called Pax Global Technology (327 HK). On 26 October, there was news that the U.S. FBI raided the...

Douglas Kim

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