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>Last week we had the implementation of the first two tranches of the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> rebalance with the third tranche to be implemented at the close on Monday.</li>
<li>Thursday saw the NIFTY indices implementation while Friday marked the end of the review period for the December rebalance of the Hang Seng family of indices.</li>
<li>There were large inflows to China, Taiwan, Korea and Hong Kong ETFs during the week while there were some outflows from Japan.</li>
</ul>


Last week we had the implementation of the first two tranches of the Nikkei 225 (NKY INDEX) rebalance with the third tranche to be implemented at the close on Monday.
Thursday saw the NIFTY indices implementation while Friday marked the end of the review period for the December rebalance of the Hang Seng family of indices.
There were large inflows to China, Taiwan, Korea and Hong Kong ETFs during the week while there were some outflows from Japan.


Index Rebalance & ETF Flow Recap: S&P/ASX, China A50, SET50, Bilibili, Leapmotor, Onewo, CALB

Equity Research in HK and Mainland China

Li Tang

Thematic (Sector/Industry)

<ul>
<li>The China Development Bank has issued the first special loan for guaranteeing property in Shenyang, capital of Liaoning province, and resumption of qualified stalled projects.</li>
<li>We believe, even if the policy side is eased, the stimulus to housing demand is still limited</li>
<li>We maintain preferences for high-quality, lower-leveraged developers, mostly state-owned developers.</li>
</ul>


The China Development Bank has issued the first special loan for guaranteeing property in Shenyang, capital of Liaoning province, and resumption of qualified stalled projects.
We believe, even if the policy side is eased, the stimulus to housing demand is still limited
We maintain preferences for high-quality, lower-leveraged developers, mostly state-owned developers.


First Special Loan for Guaranteeing Property Deliveries Issued to Shenyang City

<ul>
<li>Following the repeated calls for stability of the economy and the housing market, local governments are stepping up support.</li>
<li>More cities cut the down-payment ratio for the first home buyers</li>
<li>In 2022 we expect a nuanced policy response to the downturn in the housing market:</li>
</ul>


Following the repeated calls for stability of the economy and the housing market, local governments are stepping up support.
More cities cut the down-payment ratio for the first home buyers
In 2022 we expect a nuanced policy response to the downturn in the housing market:


<ul>
<li>Relevant government departments have reportedly issued opinions on the supervision of presales funds</li>
<li>Property lending dropped YoY in January despite adequate liquidity in last month</li>
<li>We think policy support is still inadequate and should step up in the real estate sector on the demand-side</li>
</ul>


Relevant government departments have reportedly issued opinions on the supervision of presales funds
Property lending dropped YoY in January despite adequate liquidity in last month
We think policy support is still inadequate and should step up in the real estate sector on the demand-side


China Plan Easing Rules on Presales Funds Held in Escrow

<ul>
<li>Some developers have been informed by banks that M&amp;A loans will not be counted in the "three red lines" if these loans are used for takeovers of insolvent companies' projects</li>
<li>Stronger state and private developers will be given funding support for project-level M&amp;A</li>
<li>The impact of credit policy plus local level policy shifts will be continued</li>
</ul>


Some developers have been informed by banks that M&amp;A loans will not be counted in the "three red lines" if these loans are used for takeovers of insolvent companies' projects
Stronger state and private developers will be given funding support for project-level M&amp;A
The impact of credit policy plus local level policy shifts will be continued


Developers Informed by Banks that M&A Loans Are Excluded from Three Red Lines

China

Poly Real Estate Group Co., Ltd. mainly develops and sells residential homes. The company is also in the business of leasing and rental of real estates, and property management.

Poly Real Estate Group Co., Ltd (600048 CH)

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Poly Real Estate Group Co., Ltd (600048 CH)

Index Rebalance & ETF Flow Recap: S&P/ASX, China A50, SET50, Bilibili, Leapmotor, Onewo, CALB

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

Brian Freitas

First Special Loan for Guaranteeing Property Deliveries Issued to Shenyang City

We maintain preferences for high-quality, lower-leveraged developers, mostly state-owned, We view the home completion-side will to benefit...

Li Tang

China Cities Start Cutting Down-Payments

In terms of the investment impact, we expect the home market recovery to continue to be differentiated by region and developer

Li Tang

China Plan Easing Rules on Presales Funds Held in Escrow

Recovery of the real estate sector is still reliant on the demand side, which should take longer to recover as people wait for policy support and...

Li Tang

Developers Informed by Banks that M&A Loans Are Excluded from Three Red Lines

We maintain our view that state-backed developers would take the advantage to obtain quality assets and gain market share, of which our recommends

Li Tang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)