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

<p>Below is KOSPI 200's screening methodology for the regular bi-annual rebalancing. The rebalancing trading will occur at the close on <strong>December 9</strong>, and the review period is <strong>May 1 to October 31</strong>. We will likely hear the rebalancing results in late November.</p><table class="table table-striped">
<colgroup>
<col width="150">
<col width="800">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Status (₩B)"}'>KOSPI 200 bi-annual rebalancing</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Rebalancing"}'>Rebalancing</td>
<td data-sheets-value='{"1":2,"2":"Biannually"}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>Biannually</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Effective date"}'>- Effective date</td>
<td data-sheets-value='{"1":2,"2":"Next trading day of 2nd Thursday of June &amp; December"}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>Next trading day of 2nd Thursday of June &amp; December</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - December"}'>- Implementation</td>
<td data-sheets-value='{"1":3,"3":44540}' data-sheets-numberformat='{"1":5,"2":"mmmm d, yyyy","3":1}'>December 10, 2021</td>
</tr>
<tr>
<td><strong>- Rebalancing trading</strong></td>
<td><strong>December 9, 2021</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Review period"}'><strong>- Review period</strong></td>
<td data-sheets-value='{"1":2,"2":"May 1 to October 31, 2021"}'><strong>May 1 to October 31, 2021</strong></td>
</tr>
<tr>
<td rowspan="6" data-sheets-value='{"1":2,"2":"Screening"}'><div><strong>Screening</strong></div></td>
<td rowspan="6" data-sheets-value='{"1":2,"2":"Select candidates for each sector in order by the cumulative average daily market cap (the cumulative cut-off at the 15th percentile). Include the first company that crosses the 15th percentile mark. Exclude those whose cumulative average daily trading value is below the 15th percentile. Also, exclude those new entrants whose average daily market cap ranking is above 110%. If not reach a full 200 members in the first and second screenings, then re-select the current constituents whose average daily market cap ranking is within 110%. Select additional names among the unselected current constituents by the average daily market cap regardless of classification."}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'><ul>
<li><strong>Select candidates for each sector in order by the cumulative average daily market cap (the cumulative cut-off at the 15th percentile).</strong></li>
<li><strong>Include the first company that crosses the 15th percentile mark. Exclude those whose cumulative average daily trading value is below the 15th percentile.</strong></li>
<li><strong>Also, exclude those new entrants whose average daily market cap ranking is above 110%.</strong></li>
<li><strong>If not reach 200 members in the first and second screenings, then re-select the current constituents whose average daily market cap ranking is within 110%.</strong></li>
<li><strong>Select additional names among the unselected current constituents by the average daily market cap regardless of classification.</strong></li>
</ul></td>
</tr>
<tr></tr>
<tr></tr>
<tr></tr>
<tr></tr>
<tr></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total float MC (₩B)"}'>Total float MC (₩B)</td>
<td data-sheets-value='{"1":3,"3":1247667.684}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}'>1,247,667.7</td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/231/157/original/1.png?1632295209" class="editor-image img-responsive" data-smartkarma-image-id="231157"></figure></section>

Below is KOSPI 200's screening methodology for the regular bi-annual rebalancing. The rebalancing trading will occur at the close on December 9, and the review period is May 1 to October 31. We will likely hear the rebalancing results in late November.





KOSPI 200 bi-annual rebalancing

Rebalancing
Biannually


- Effective date
Next trading day of 2nd Thursday of June &amp; December


- Implementation
December 10, 2021


- Rebalancing trading
December 9, 2021


- Review period
May 1 to October 31, 2021


Screening

Select candidates for each sector in order by the cumulative average daily market cap (the cumulative cut-off at the 15th percentile).
Include the first company that crosses the 15th percentile mark. Exclude those whose cumulative average daily trading value is below the 15th percentile.
Also, exclude those new entrants whose average daily market cap ranking is above 110%.
If not reach 200 members in the first and second screenings, then re-select the current constituents whose average daily market cap ranking is within 110%.
Select additional names among the unselected current constituents by the average daily market cap regardless of classification.








Total float MC (₩B)
1,247,667.7

Source: KRX



KOSPI 200 Bi-Annual Rebalancing Preview (December 9)

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<p>Post market close on 3 August, the KRX announced that <a href="https://www.smartkarma.com/entities/skckolonpi-inc" target="_blank" data-smartkarma-citation="entities:9196:1" rel="noopener">Skckolonpi Inc (178920 KS)</a> would 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 (KOSDQ150 INDEX)</a> following the move of the stock from the KOSDAQ market to the KOSPI market.</p><p><a href="https://www.smartkarma.com/entities/kpm-tech-co-ltd" target="_blank" data-smartkarma-citation="entities:15948:1" rel="noopener">Kpm Tech Co Ltd (042040 KS)</a> will be added to the index as a replacement to take the number of constituents back to 150.</p><p>The changes will be effective after the close of trading on Friday, 6 August.</p><p>The change will make <a href="https://www.smartkarma.com/entities/skckolonpi-inc" target="_blank" data-smartkarma-citation="entities:9196:1" rel="noopener">Skckolonpi Inc (178920 KS)</a> ineligible for short selling while <a href="https://www.smartkarma.com/entities/kpm-tech-co-ltd" target="_blank" data-smartkarma-citation="entities:15948:1" rel="noopener">Kpm Tech Co Ltd (042040 KS)</a> will become eligible for short selling.</p><p><a href="https://www.smartkarma.com/entities/skckolonpi-inc" target="_blank" data-smartkarma-citation="entities:9196:1" rel="noopener">Skckolonpi Inc (178920 KS)</a> belongs to the Materials sector and will be a very close add to the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> at the December rebalance.</p><p>Passive funds will need to sell 2.45 days of ADV on <a href="https://www.smartkarma.com/entities/skckolonpi-inc" target="_blank" data-smartkarma-citation="entities:9196:1" rel="noopener">Skckolonpi Inc (178920 KS)</a> and buy 1 day of ADV on <a href="https://www.smartkarma.com/entities/kpm-tech-co-ltd" target="_blank" data-smartkarma-citation="entities:15948:1" rel="noopener">Kpm Tech Co Ltd (042040 KS)</a>. There are only 3 days to the implementation of the changes.</p>

Post market close on 3 August, the KRX announced that Skckolonpi Inc (178920 KS) would be deleted from the KOSDAQ 150 Index (KOSDQ150 INDEX) following the move of the stock from the KOSDAQ market to the KOSPI market.Kpm Tech Co Ltd (042040 KS) will be added to the index as a replacement to take the number of constituents back to 150.The changes will be effective after the close of trading on Friday, 6 August.The change will make Skckolonpi Inc (178920 KS) ineligible for short selling while Kpm Tech Co Ltd (042040 KS) will become eligible for short selling.Skckolonpi Inc (178920 KS) belongs to the Materials sector and will be a very close add to the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) at the December rebalance.Passive funds will need to sell 2.45 days of ADV on Skckolonpi Inc (178920 KS) and buy 1 day of ADV on Kpm Tech Co Ltd (042040 KS). There are only 3 days to the implementation of the changes.

KOSDAQ150 Index Rebalance: PIAM Transfer to KOSPI; Is Replaced by KPM Tech

<p>PI Advanced Materials, a company specializing in polyimide, which has the largest market share globally, received final approval from KRX for a transfer listing from KOSDAQ to KOSPI. Since April of this year, PI Advanced Materials has been pursuing a transfer listing to KOSPI.</p><div class="content-highlight"><p><strong>Therefore, PI Advanced Materials will be delisted on the KOSDAQ and newly listed on the KOSPI at the same time on August 9th.</strong></p></div><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/221/644/original/1.png?1627885803" class="editor-image img-responsive" data-smartkarma-image-id="221644"></figure><p></p></section><h2>KOSDAQ 150 exclusion</h2><p>PI Advanced Materials is currently a constituent of the KOSDAQ 150. Based on yesterday's closing price, the index weight is 0.61%. When the company is newly listed on the KOSPI on August 9th, it will be delisted from the KOSDAQ. So, it will be excluded from the KOSDAQ 150 on that day.</p><div class="content-highlight"><p><strong>This means that rebalancing trading should be done by index funds and ETFs that track the KOSDAQ 150 at the closing price of the previous trading day, August 6th.</strong></p></div><hr><p><em>In the case of KOSPI 200 inclusion, KRX considers transfer listings to be new listings. Therefore, the same rules as the fast entry rules applied to new listings apply, and if the conditions are not met, we have to wait until regular rebalancing.</em></p><p><em>The current market cap of PI Advanced Materials is far from conceivable for Fast Entry. So, we should aim for inclusion in the regular rebalancing this December, but the current situation is a bit tight to beat the buffer rule.</em></p>

PI Advanced Materials, a company specializing in polyimide, which has the largest market share globally, received final approval from KRX for a transfer listing from KOSDAQ to KOSPI. Since April of this year, PI Advanced Materials has been pursuing a transfer listing to KOSPI.Therefore, PI Advanced Materials will be delisted on the KOSDAQ and newly listed on the KOSPI at the same time on August 9th.KOSDAQ 150 exclusionPI Advanced Materials is currently a constituent of the KOSDAQ 150. Based on yesterday's closing price, the index weight is 0.61%. When the company is newly listed on the KOSPI on August 9th, it will be delisted from the KOSDAQ. So, it will be excluded from the KOSDAQ 150 on that day.This means that rebalancing trading should be done by index funds and ETFs that track the KOSDAQ 150 at the closing price of the previous trading day, August 6th.In the case of KOSPI 200 inclusion, KRX considers transfer listings to be new listings. Therefore, the same rules as the fast entry rules applied to new listings apply, and if the conditions are not met, we have to wait until regular rebalancing.The current market cap of PI Advanced Materials is far from conceivable for Fast Entry. So, we should aim for inclusion in the regular rebalancing this December, but the current situation is a bit tight to beat the buffer rule.

PI Advanced Materials KOSDAQ→KOSPI Relisting on August 9: Passive Flow Tracking

KMW and HLB are at the top in both short and loan interests among the KOSDAQ stocks (excluding SillaJen).KMW has a 4.83% short interest (as a % of SO), closely followed by HLB at 4.57%.Not much change in their short interest, but KMW had a substantial weekly increase in its loan interest, +18.42% and +2.18%p. Its loan interest now sits at a whopping 18.42% of the SO.













Top 20 short interest
Ticker
K150
Short
1W Δ
1W Δ %p
Loan
1W Δ
1W Δ %p


KMW Co Ltd
032500
126
4.83%
-0.10%
0.00%p
14.02%
18.42%
2.18%p


HLB Inc
028300
82
4.57%
1.26%
0.06%p
10.92%
4.51%
0.47%p


Apam Corp
073070
#N/A
2.41%
0.00%
0.00%p
4.09%
0.00%
0.00%p


Sangsangin Co Ltd
038540
50
2.08%
-4.34%
-0.09%p
4.11%
-0.76%
-0.03%p


Toptec Co Ltd
108230
137
2.07%
-1.95%
-0.04%p
4.05%
0.60%
0.02%p


NatureCell Co Ltd
007390
19
1.96%
4.13%
0.08%p
5.31%
-0.76%
-0.04%p


Kuk Il Paper MFG Co Ltd
078130
17
1.92%
3.92%
0.07%p
6.75%
1.77%
0.12%p


Komipharm International Co., Ltd.
041960
128
1.84%
-1.23%
-0.02%p
4.51%
1.30%
0.06%p


BH Co Ltd
090460
45
1.79%
0.30%
0.01%p
4.90%
0.96%
0.05%p


Power Logics
047310
#N/A
1.75%
-0.12%
0.00%p
2.85%
-7.12%
-0.22%p


Innovation For Creative Devices Co Ltd
040910
#N/A
1.73%
-0.92%
-0.02%p
2.83%
0.57%
0.02%p


Korea Alcohol Industrial
017890
#N/A
1.72%
3.37%
0.06%p
2.99%
0.00%
0.00%p


Cancer Rop Co Ltd
180400
#N/A
1.67%
0.00%
0.00%p
1.98%
-0.12%
0.00%p


Curocom Co., Ltd.
040350
#N/A
1.62%
3.46%
0.05%p
2.84%
0.00%
0.00%p


MS Autotech Co Ltd
123040
#N/A
1.50%
0.12%
0.00%p
2.73%
0.00%
0.00%p


Hyundai Bioscience Co Ltd
048410
148
1.49%
-0.67%
-0.01%p
4.50%
1.37%
0.06%p


ACT Co Ltd (Chungcheongbuk-do)
138360
#N/A
1.48%
0.00%
0.00%p
1.98%
0.00%
0.00%p


Orbitech Co Ltd
046120
#N/A
1.46%
-1.78%
-0.03%p
2.04%
0.39%
0.01%p


STCube Inc
052020
78
1.45%
0.82%
0.01%p
3.62%
1.94%
0.07%p


Chemtronics Co Ltd
089010
#N/A
1.45%
-1.14%
-0.02%p
3.23%
-0.21%
-0.01%p

Source: KRX &amp; KOFIA















Top 20 loan balance
Ticker
K150
Short
1W Δ
1W Δ %p
Loan
1W Δ
1W Δ %p


KMW Co Ltd
032500
126
4.83%
-0.10%
0.00%p
14.02%
18.42%
2.18%p


HLB Inc
028300
82
4.57%
1.26%
0.06%p
10.92%
4.51%
0.47%p


Easy Holdings Co Ltd
035810
113
0.46%
0.58%
0.00%p
8.08%
3.57%
0.28%p


Anterogen Co Ltd
065660
72
0.59%
1.17%
0.01%p
7.44%
-3.19%
-0.25%p


Medipost Co Ltd
078160
42
0.84%
-0.17%
0.00%p
7.36%
1.90%
0.14%p


Intops Co Ltd
049070
#N/A
0.07%
0.00%
0.00%p
7.33%
-28.64%
-2.94%p


Ecopro Co., Ltd.
086520
86
0.74%
-5.99%
-0.05%p
7.04%
1.68%
0.12%p


Kuk Il Paper MFG Co Ltd
078130
17
1.92%
3.92%
0.07%p
6.75%
1.77%
0.12%p


NHN KCP Corp
060250
9
0.09%
23.86%
0.02%p
6.72%
2.53%
0.17%p


Jusung Engineering Co., Ltd.
036930
118
0.42%
-9.99%
-0.05%p
6.52%
2.24%
0.14%p


PearlAbyss Corp
263750
142
0.43%
284.98%
0.32%p
6.52%
394.02%
5.20%p


Seegene Inc
096530
66
0.67%
-2.59%
-0.02%p
6.16%
23.97%
1.19%p


PARTRON Co Ltd
091700
141
1.41%
-26.86%
-0.52%p
6.11%
12.15%
0.66%p


Genic Co Ltd
123330
#N/A
0.33%
0.00%
0.00%p
6.07%
-0.13%
-0.01%p


TSE Co Ltd
131290
#N/A
0.07%
0.00%
0.00%p
5.88%
-11.63%
-0.77%p


MedyTox Inc
086900
41
0.60%
2.17%
0.01%p
5.86%
-0.01%
0.00%p


DAWONSYS CO., LTD
068240
26
0.76%
1.00%
0.01%p
5.86%
-6.62%
-0.41%p


JYP Entertainment Corp
035900
6
0.57%
96.86%
0.28%p
5.84%
-1.89%
-0.11%p


Cafe24 Corp
042000
123
1.21%
10.81%
0.12%p
5.59%
1.83%
0.10%p


L&amp;K Biomed Co Ltd
156100
#N/A
0.05%
53.16%
0.02%p
5.35%
-0.79%
-0.04%p

Source: KRX &amp; KOFIA

In the run-up to the May 3 short-selling resumption, we should probably focus on gainers in loan interest, which often serves as a leading indicator of short-selling.Last week, the biggest gainer was Pearl Abyss, with a 5.2%p increase to 6.52% of the SO. Kyhyoung and KMW follow distantly, with 3.24%p and 2.18%p, respectively.The market seems to be interested in shorting Pearl Abyss on the recent bounce, largely resulting from the stock split event.













Top 20 loan balance gainers
Ticker
K150
Short
1W Δ
1W Δ %p
Loan
1W Δ
1W Δ %p


PearlAbyss Corp
263750
142
0.43%
284.98%
0.32%p
6.52%
394.02%
5.20%p


Kohyoung Technology Inc
098460
15
1.10%
387.22%
0.87%p
4.04%
405.32%
3.24%p


KMW Co Ltd
032500
126
4.83%
-0.10%
0.00%p
14.02%
18.42%
2.18%p


Victek Co., Ltd.
065450
#N/A
0.19%
-73.11%
-0.53%p
2.64%
132.44%
1.51%p


Seegene Inc
096530
66
0.67%
-2.59%
-0.02%p
6.16%
23.97%
1.19%p


Ace Technologies Corp.
088800
81
0.82%
-0.75%
-0.01%p
3.67%
40.14%
1.05%p


HLB Life Science Co Ltd
067630
83
1.32%
-1.60%
-0.02%p
4.62%
23.87%
0.89%p


Bosung Power Technology Co., Ltd.
006910
#N/A
1.05%
-0.11%
0.00%p
2.43%
51.56%
0.83%p


Alteogen Inc
196170
74
0.26%
39.89%
0.07%p
3.20%
34.31%
0.82%p


Helixmith Co Ltd
084990
147
0.78%
-0.71%
-0.01%p
4.89%
15.94%
0.67%p


PARTRON Co Ltd
091700
141
1.41%
-26.86%
-0.52%p
6.11%
12.15%
0.66%p


Deutsch Motors Inc
067990
#N/A
0.89%
2.00%
0.02%p
2.81%
29.96%
0.65%p


Kakao Games Corp
293490
122
0.00%
-100.00%
-0.01%p
4.08%
18.68%
0.64%p


Youngsin Metal Industrial
007530
#N/A
0.00%
#DIV/0!
0.00%p
0.98%
171.75%
0.62%p


Eone Diagnomics Genome Center Co Ltd
245620
#N/A
0.32%
127.91%
0.18%p
1.46%
69.18%
0.60%p


Huons Global Co Ltd
084110
#N/A
0.08%
-10.97%
-0.01%p
1.23%
85.37%
0.57%p


FORMETAL CO., LTD.
119500
#N/A
0.00%
#DIV/0!
0.00%p
2.11%
36.06%
0.56%p


LET Co Ltd
297890
#N/A
0.00%
#DIV/0!
0.00%p
0.52%
#DIV/0!
0.52%p


HLB Inc
028300
82
4.57%
1.26%
0.06%p
10.92%
4.51%
0.47%p


Fantagio Corp
032800
#N/A
0.31%
400.00%
0.25%p
0.58%
307.70%
0.44%p

Source: KRX &amp; KOFIA



KOSDAQ Short/Loan Int: Pearl Abyss on Radar for Recent Bounce & Big Names KOSPI Moving

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<div class="content-highlight">
<h2>Review of Our M&amp;A Research in 2019</h2>
<p>We wrote 31 reports about the M&amp;As in 2019, representing 11% of our total research production. All of them were related to Korean companies. We typically prefer to write about Korean M&amp;A deals that involve at $500 million in investments. Most of the M&amp;A research that we write about are related to public companies. However, we also wrote about a few private companies including Woowa Brothers, Have &amp; Be, and KCFT that were involved in major M&amp;A deals.</p>
<h2>2020 Korea M&amp;A Market Outlook - What’s For Sale?</h2>
<p>We highlight<strong> 30</strong> Korean companies that are/may be seeking to find new owners through M&amp;As in 2020. Key sectors of M&amp;A in Korea in 2020 include <strong>financial</strong> (<strong>insurance in particular), industrial, and consumer.</strong> Our analysis is based on the publicly available information.</p>
</div>


Review of Our M&amp;A Research in 2019
We wrote 31 reports about the M&amp;As in 2019, representing 11% of our total research production. All of them were related to Korean companies. We typically prefer to write about Korean M&amp;A deals that involve at $500 million in investments. Most of the M&amp;A research that we write about are related to public companies. However, we also wrote about a few private companies including Woowa Brothers, Have &amp; Be, and KCFT that were involved in major M&amp;A deals.
2020 Korea M&amp;A Market Outlook - What’s For Sale?
We highlight 30 Korean companies that are/may be seeking to find new owners through M&amp;As in 2020. Key sectors of M&amp;A in Korea in 2020 include financial (insurance in particular), industrial, and consumer. Our analysis is based on the publicly available information.


Review of Our M&A Research in 2019 & Korea M&A Market Outlook in 2020: What’s For Sale?

South Korea

PI Advanced Materials Co., Ltd. manufactures and sells plastics films. The Company produces and sells polyimide films and other products. PI Advanced Materials conducts businesses in South Korea.

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

PI Advanced Materials (178920 KS)

KOSPI 200 Bi-Annual Rebalancing Preview (December 9)

This post previews the upcoming regular bi-annual rebalancing of KOSPI 200, whose rebalancing trading will take place on December 9.

Sanghyun Park

KOSDAQ150 Index Rebalance: PIAM Transfer to KOSPI; Is Replaced by KPM Tech

KPM Tech replaces PI Advanced Materials in the KOSDAQ150 following PIAM's move to the KOSPI board. PIAM could be included in the KOSPI200 at the...

Brian Freitas

PI Advanced Materials KOSDAQ→KOSPI Relisting on August 9: Passive Flow Tracking

PI Advanced Materials will be delisted on KOSDAQ and newly listed on KOSPI at the same time on August 9, meaning that rebalancing trading will be...

Sanghyun Park

KOSDAQ Short/Loan Int: Pearl Abyss on Radar for Recent Bounce & Big Names KOSPI Moving

This post compiles weekly flow in short/loan interest for KOSDAQ stocks. It looks into Pearl Abyss for a substantial increase in loan interest and...

Sanghyun Park

Review of Our M&A Research in 2019 & Korea M&A Market Outlook in 2020: What’s For Sale?

Review of Our M&A Research in 2019 We wrote 31 reports about the M&As in 2019, representing 11% of our total research production. All of...

Douglas Kim

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