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

The May 3 short-selling resumption will likely highlight the 5 local pairs:
1 stub pair
4 share class pairs
They are the exclusive members of the MC &gt; ₩1T and DTV &gt; ₩10B club, making them the most actively arb-traded pairs in Korea.Also, they are eligible for short-selling right on May 3 as they are part of the Short 350.












Name
Ticker
MC (₩B)
SO
DTV
DTV/SO
30D avg
DTV (₩B)


AmoreG
002790
5,648.4
82,458,180
160,858
0.20%
₩66,850
10.8


Amorepacific
090430
15,023.8
58,458,490
187,379
0.32%
₩260,386
48.8



Samsung Elec 1P
005935
61,716.5
822,886,700
1,415,401
0.17%
₩74,655
105.7


Samsung Elec Ord
005930
493,104.0
5,969,782,550
16,220,095
0.27%
₩83,305
1,351.2



LG Chem 1P
051915
3,017.9
7,688,800
30,796
0.40%
₩387,955
11.9


LG Chem Ord
051910
60,991.8
70,592,343
418,077
0.59%
₩830,818
347.3



Hyundai Motor 1P
005385
2,630.5
24,356,685
79,662
0.33%
₩105,491
8.4


Hyundai Motor Ord
005380
48,182.2
213,668,187
955,060
0.45%
₩226,159
216.0



Hyundai Motor 2PB
005387
3,794.5
36,485,451
90,328
0.25%
₩103,468
9.3


Hyundai Motor Ord
005380
48,182.2
213,668,187
955,060
0.45%
₩226,159
216.0

Source: KRX

On a 20D MA, LG Chem is the only one at -1σ or less.












σ on 20D MA
Ticker
Today
T-1
T-2
T-3
T-4
T-5


AmoreG
002790
1.31
1.77
1.46
1.79
0.92
1.28


Amorepacific
090430



Samsung Elec 1P
005935
1.44
0.69
1.10
0.18
-0.35
-0.03


Samsung Elec Ord
005930



LG Chem 1P
051915
-1.34
-1.80
-1.30
-1.93
-1.53
-0.95


LG Chem Ord
051910



Hyundai Motor 1P
005385
1.13
1.16
1.73
1.87
2.18
2.60


Hyundai Motor Ord
005380



Hyundai Motor 2PB
005387
0.34
1.45
1.06
0.79
1.29
1.45


Hyundai Motor Ord
005380

Source: KRX

But they (the holding company and prefs) are at a discount to the 1-yr means, except for Samsung Elec 1P.Hyundai Motor 2PB, AmoreG, and LG Chem 1P had substantially declined relative to their respective partner.












Price ratio
Ticker
Today
120D mean
120DH
120DL
1Y mean
2Y mean


AmoreG
002790
0.26654
-1.08%
-9.30%
9.17%
-9.13%
-22.50%


Amorepacific
090430



Samsung Elec 1P
005935
0.90799
0.87%
-4.16%
4.52%
2.76%
6.01%


Samsung Elec Ord
005930



LG Chem 1P
051915
0.45428
-3.34%
-13.17%
5.11%
-6.10%
-10.43%


LG Chem Ord
051910



Hyundai Motor 1P
005385
0.47894
3.09%
-5.02%
12.74%
-4.68%
-11.77%


Hyundai Motor Ord
005380



Hyundai Motor 2PB
005387
0.46120
1.18%
-6.27%
10.15%
-9.48%
-20.03%


Hyundai Motor Ord
005380

Source: KRX



5 Most Actively Arb-Traded Pairs in Korea: 1 Stub & 4 Share Class with +₩1T MC & +₩10B DTV

Founder/CEO of ROK Advisory, ROK Advisory LLC

Ken S. Kim

Founder/CEO of ROK Advisory

ROK Advisory LLC

ROK is an independent research advisory firm. We guide you to minimize the information gap between foreign and local investors in Northeast Asia with a focus in Korea, Taiwan and Japan.

Independent Research Advisory Firm

Equity Bottom-Up

<p>In Korea the safest way to invest is to align your interest as a minority shareholder with those of the family?  Usually the key asset of the chaebol is apparent but what about SK Group? It seems we have an opportunity to hone in what the key asset is.</p>

In Korea the safest way to invest is to align your interest as a minority shareholder with those of the family?  Usually the key asset of the chaebol is apparent but what about SK Group? It seems we have an opportunity to hone in what the key asset is.

The Chaebol Dilemma - What's the Family Jewel(S)?

<p>The April 30 tax report/payment deadline is around the corner.</p><p>The Samsung Lee family must report all of the inheritance tax to the local tax authorities by April 30.</p><p>They are also obligated to pay at least one-sixth of the total by then if they opt for a 5-year grace period option, which is very likely at this point.</p><p>So, it works like this:</p><ul>
<li><strong>One-sixth by April 30</strong></li>
<li><strong>The reminder (five-sixth) in 5 annual installments (an equal one-sixth) at an interest rate of 1.8% per annum</strong></li>
</ul><hr><div class="content-highlight"><h2>Tax amount estimations</h2></div><div><p>Inheritance tax on listed company equity is calculated based on the average of 4-month daily closing prices: 2 months before and 2 months after the passing. The calculation period is August 25 to December 25.</p></div><div><p>At the 2M average prices, it comes at ₩19.1T.</p></div><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 212.5px;" data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;Lee Kun-hee's shareholding (₩B)&quot;}">Lee Kun-hee's shareholding (₩B)</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":2,"2":"Shares"}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>Shares</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"%"}'>%</td>
<td style="text-align: right; width: 94.1667px;" data-sheets-value='{"1":2,"2":"Aug 25~Dec 25"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'>60D avg price on Aug 25~Dec 25</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"Value (₩B)"}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>Value (₩B)</td>
</tr>
<tr>
<td style="width: 212.5px;" data-sheets-value='{"1":2,"2":"Samsung Electronics Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung Electronics Co Ltd</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"005930"}' data-sheets-formula='="005930"'>005930</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":3,"3":249273200}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>249,273,200</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":0.04175582576286636}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/googlefinance(R[0]C[-2], "shares")'>4.18%</td>
<td style="text-align: right; width: 94.1667px;" data-sheets-value='{"1":3,"3":62789.28571428572}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=average(index(googlefinance(R[0]C[-3], "price", today()-236, today()-111), 0, 2))'><strong>₩62,789</strong></td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":15651.686175714287}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[-1]*R[0]C[-3]/1000000000"><strong>15,651.7</strong></td>
</tr>
<tr>
<td style="width: 212.5px;" data-sheets-value='{"1":2,"2":"Samsung Electronics Co Ltd Preference Shares Non Voting"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung Electronics Co Ltd Preference Shares Non Voting</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"005935"}' data-sheets-formula='="005935"'>005935</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":3,"3":619900}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>619,900</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":0.0007533236349548485}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/googlefinance(R[0]C[-2], "shares")'>0.08%</td>
<td style="text-align: right; width: 94.1667px;" data-sheets-value='{"1":3,"3":56154.166666666664}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=average(index(googlefinance(R[0]C[-3], "price", today()-236, today()-111), 0, 2))'><strong>₩56,154</strong></td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":34.809967916666665}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[-1]*R[0]C[-3]/1000000000"><strong>34.8</strong></td>
</tr>
<tr>
<td style="width: 212.5px;" data-sheets-value='{"1":2,"2":"Samsung Life Insurance co., Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung Life Insurance co., Ltd</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"032830"}' data-sheets-formula='="032830"'>032830</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":3,"3":41519180}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>41,519,180</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":0.2075959}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/googlefinance(R[0]C[-2], "shares")'>20.76%</td>
<td style="text-align: right; width: 94.1667px;" data-sheets-value='{"1":3,"3":66707.14285714286}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=average(index(googlefinance(R[0]C[-3], "price", today()-236, today()-111), 0, 2))'><strong>₩66,707</strong></td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":2769.625871571429}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[-1]*R[0]C[-3]/1000000000"><strong>2,769.6</strong></td>
</tr>
<tr>
<td style="width: 212.5px;" data-sheets-value='{"1":2,"2":"Samsung C&amp;T Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung C&amp;T Corp</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"028260"}' data-sheets-formula='="028260"'>028260</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":3,"3":5425733}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>5,425,733</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":0.029032145887066426}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/googlefinance(R[0]C[-2], "shares")'>2.90%</td>
<td style="text-align: right; width: 94.1667px;" data-sheets-value='{"1":3,"3":115208.33333333333}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=average(index(googlefinance(R[0]C[-3], "price", today()-236, today()-111), 0, 2))'><strong>₩115,208</strong></td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":625.0896560416667}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[-1]*R[0]C[-3]/1000000000"><strong>625.1</strong></td>
</tr>
<tr>
<td style="width: 212.5px;" data-sheets-value='{"1":2,"2":"Samsung SDS Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung SDS Co Ltd</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"018260"}' data-sheets-formula='="018260"'>018260</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":3,"3":9701}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>9,701</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":0.0001253718766881457}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/googlefinance(R[0]C[-2], "shares")'>0.01%</td>
<td style="text-align: right; width: 94.1667px;" data-sheets-value='{"1":3,"3":173345.2380952381}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=average(index(googlefinance(R[0]C[-3], "price", today()-236, today()-111), 0, 2))'><strong>₩173,345</strong></td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":1.681622154761905}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[-1]*R[0]C[-3]/1000000000"><strong>1.7</strong></td>
</tr>
<tr>
<td style="width: 212.5px;" data-sheets-value='{"1":2,"2":" - Total"}'>- Total</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 94.1667px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":19082.89329339881}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=sum(R[-5]C[0]:R[-1]C[0])"><strong>19,082.9</strong></td>
</tr>
<tr><td colspan="6" rowspan="1" style="width: 722.5px;" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p>The late Lee's artwork collection is estimated at ₩2.8T, and his other assets (real-estates and cash) are valued at ₩2T.</p><p>All combined, the total gross taxable amount comes at ₩23.9T, which then spits out a total inheritance tax of ₩12T after deductibles and extra charges at a 60% tax rate.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Inheritance tax (₩B)"}'>Inheritance tax (₩B)</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total shareholding value"}'><strong>Total shareholding value</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":19082.89329339881}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=R[-4]C[4]"><strong>19,082.89</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Art works"}'><strong>Artworks</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2800}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}'><strong>2,800.00</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Real-estates &amp; cash"}'><strong>Real-estates &amp; cash</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2000}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}'><strong>2,000.00</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total gross taxable"}'><strong>Total gross taxable</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":23882.89329339881}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=sum(R[-3]C[0]:R[-1]C[0])"><strong>23,882.89</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Taxable after various deductibles (70%)"}'>Taxable after various deductibles (70%)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":16718.025305379168}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=R[-1]C[0]*0.7">16,718.03</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"20% extra charge (management premium)"}'>20% extra charge (management premium)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":20061.630366455}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=R[-1]C[0]*1.2">20,061.63</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Inheritance tax at a 60% tax rate"}'><strong>Inheritance tax at a 60% tax rate</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":12036.978219872999}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=R[-1]C[0]*0.6"><strong>12,036.98</strong></td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX FIND, Chosun, &amp; Korean NTS"}'>Source: KRX FIND, Chosun, &amp; Korean NTS</td></tr>
</tbody>
</table><p>Unless specified in the will, the inheritance will go at a 1/3 (spouse) to 2/3/N (each child) ratio.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Inheritance tax burden for each family member (₩B)"}'>The inheritance tax burden for each family member (₩B)</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Inheritance tax at a 60% tax rate"}'>Total Inheritance tax</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":12036.978219872999}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=R[-4]C[0]">12,036.98</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Lee JY (oldest)"}'> - Lee JY (oldest)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2674.884048860666}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=2/3*R21C2/3">2,674.88</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Lee Bu-jin (second)"}'> - Lee Bu-jin (second)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2674.884048860666}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=2/3*R21C2/3">2,674.88</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Lee Seo-hyun (third)"}'> - Lee Seo-hyun (third)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2674.884048860666}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=2/3*R21C2/3">2,674.88</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Hong Ra-hee(spouse)"}'> - Hong Ra-hee (spouse)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4012.3260732909994}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=1/3*R[-4]C[0]">4,012.33</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX FIND &amp; Korean NTS"}'>Source: KRX FIND &amp; Korean NTS</td></tr>
</tbody>
</table>

The April 30 tax report/payment deadline is around the corner.The Samsung Lee family must report all of the inheritance tax to the local tax authorities by April 30.They are also obligated to pay at least one-sixth of the total by then if they opt for a 5-year grace period option, which is very likely at this point.So, it works like this:
One-sixth by April 30
The reminder (five-sixth) in 5 annual installments (an equal one-sixth) at an interest rate of 1.8% per annum
Tax amount estimationsInheritance tax on listed company equity is calculated based on the average of 4-month daily closing prices: 2 months before and 2 months after the passing. The calculation period is August 25 to December 25.At the 2M average prices, it comes at ₩19.1T.










Lee Kun-hee's shareholding (₩B)
Ticker
Shares
%
60D avg price on Aug 25~Dec 25
Value (₩B)


Samsung Electronics Co Ltd
005930
249,273,200
4.18%
₩62,789
15,651.7


Samsung Electronics Co Ltd Preference Shares Non Voting
005935
619,900
0.08%
₩56,154
34.8


Samsung Life Insurance co., Ltd
032830
41,519,180
20.76%
₩66,707
2,769.6


Samsung C&amp;T Corp
028260
5,425,733
2.90%
₩115,208
625.1


Samsung SDS Co Ltd
018260
9,701
0.01%
₩173,345
1.7


- Total
-
-
-
-
19,082.9

Source: KRX

The late Lee's artwork collection is estimated at ₩2.8T, and his other assets (real-estates and cash) are valued at ₩2T.All combined, the total gross taxable amount comes at ₩23.9T, which then spits out a total inheritance tax of ₩12T after deductibles and extra charges at a 60% tax rate.





Inheritance tax (₩B)

Total shareholding value
19,082.89


Artworks
2,800.00


Real-estates &amp; cash
2,000.00


Total gross taxable
23,882.89


Taxable after various deductibles (70%)
16,718.03


20% extra charge (management premium)
20,061.63


Inheritance tax at a 60% tax rate
12,036.98

Source: KRX FIND, Chosun, &amp; Korean NTS

Unless specified in the will, the inheritance will go at a 1/3 (spouse) to 2/3/N (each child) ratio.





The inheritance tax burden for each family member (₩B)

Total Inheritance tax
12,036.98


 - Lee JY (oldest)
2,674.88


 - Lee Bu-jin (second)
2,674.88


 - Lee Seo-hyun (third)
2,674.88


 - Hong Ra-hee (spouse)
4,012.33

Source: KRX FIND &amp; Korean NTS



Samsung Inheritance Tax Event: Why Market Being Bearish on Samsung Electronics?

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div><p>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</p></div><div><p>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>, <a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a>, <a href="https://www.smartkarma.com/entities/haidilao-international-holding-ltd" target="_blank" data-smartkarma-citation="entities:27044:1" rel="noopener">Haidilao (6862 HK)</a>, <a href="https://www.smartkarma.com/entities/yihai-int-l-holding-ltd" target="_blank" data-smartkarma-citation="entities:22803:1" rel="noopener">Yihai Int’L Holding (1579 HK)</a> and <a href="https://www.smartkarma.com/entities/sunny-optical-tech" target="_blank" data-smartkarma-citation="entities:13363:1" rel="noopener">Sunny Optical (2382 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>, <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a>, <a href="https://www.smartkarma.com/entities/country-garden-services-holdings-company-limited" target="_blank" data-smartkarma-citation="entities:27343:1" rel="noopener">Country Garden Services Holdings (6098 HK)</a>, <a href="https://www.smartkarma.com/entities/baidu-inc-a55ca720-5968-48f0-8194-ac94390d065c" target="_blank" data-smartkarma-citation="entities:32212:1" rel="noopener">Baidu (9888 HK)</a> and <a href="https://www.smartkarma.com/entities/zhongsheng-group-holdings" target="_blank" data-smartkarma-citation="entities:10573:1" rel="noopener">Zhongsheng Group (881 HK)</a>. Shorts increased in the Consumer Discretionary, Health Care and Information Technology sectors, and decreased in the Communication Services and Financials sectors.</p></div><div><p>In Japan, stocks that saw the most shorts were <a href="https://www.smartkarma.com/entities/nexon-co-ltd" target="_blank" data-smartkarma-citation="entities:16032:1" rel="noopener">Nexon (3659 JP)</a>, <a href="https://www.smartkarma.com/entities/orix-corp" target="_blank" data-smartkarma-citation="entities:9936:1" rel="noopener">Orix Corp (8591 JP)</a>, <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a> and <a href="https://www.smartkarma.com/entities/hitachi-metals-ltd" target="_blank" data-smartkarma-citation="entities:8561:1" rel="noopener">Hitachi Metals (5486 JP)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/shiseido-company-limited" target="_blank" data-smartkarma-citation="entities:5718:1" rel="noopener">Shiseido Company (4911 JP)</a>, <a href="https://www.smartkarma.com/entities/tokai-carbon-co-ltd" target="_blank" data-smartkarma-citation="entities:9145:1" rel="noopener">Tokai Carbon (5301 JP)</a>, <a href="https://www.smartkarma.com/entities/yaskawa-electric-corp" target="_blank" data-smartkarma-citation="entities:2458:1" rel="noopener">Yaskawa Electric (6506 JP)</a> and <a href="https://www.smartkarma.com/entities/canon-inc" target="_blank" data-smartkarma-citation="entities:1:1" rel="noopener">Canon Inc (7751 JP)</a>. Shorts increased in the Financials and Communication Services sectors, and decreased in the Information Technology and Consumer Staples sectors.</p></div><div><p>In Korea, shorts decreased on <a href="https://www.smartkarma.com/entities/samsung-biologics-co-ltd" target="_blank" data-smartkarma-citation="entities:22932:1" rel="noopener">Samsung Biologics Co., (207940 KS)</a>, <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a> and <a href="https://www.smartkarma.com/entities/samsung-sdi-co-ltd" target="_blank" data-smartkarma-citation="entities:503:1" rel="noopener">Samsung SDI (006400 KS)</a> during the week.</p></div><div><p>Stocks in Taiwan that saw the highest increase in shorts were <a href="https://www.smartkarma.com/entities/yageo-corporation" target="_blank" data-smartkarma-citation="entities:13212:1" rel="noopener">Yageo Corporation (2327 TT)</a>, <a href="https://www.smartkarma.com/entities/novatek-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:10904:1" rel="noopener">Novatek Microelectronics Corp (3034 TT)</a>, <a href="https://www.smartkarma.com/entities/evergreen-marine-corp-ltd" target="_blank" data-smartkarma-citation="entities:15428:1" rel="noopener">Evergreen Marine Corp (2603 TT)</a>, <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a> and <a href="https://www.smartkarma.com/entities/fitipower-integrated-tech" target="_blank" data-smartkarma-citation="entities:8712:1" rel="noopener">Fitipower Integrated Tech (4961 TT)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/genius-electronic-optical-co-ltd" target="_blank" data-smartkarma-citation="entities:9632:1" rel="noopener">Genius Electronic Optical (3406 TT)</a>, <a href="https://www.smartkarma.com/entities/hannstar-display-corp" target="_blank" data-smartkarma-citation="entities:13922:1" rel="noopener">Hannstar Display (6116 TT)</a>, <a href="https://www.smartkarma.com/entities/taiwan-cement" target="_blank" data-smartkarma-citation="entities:19736:1" rel="noopener">Taiwan Cement (1101 TT)</a>, <a href="https://www.smartkarma.com/entities/focaltech-systems-co-ltd" target="_blank" data-smartkarma-citation="entities:11240:1" rel="noopener">Focaltech Systems (3545 TT)</a> and <a href="https://www.smartkarma.com/entities/winbond-electronics-corp" target="_blank" data-smartkarma-citation="entities:9177:1" rel="noopener">Winbond Electronics (2344 TT)</a>. </p></div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on Meituan (3690 HK), Wuxi Biologics (2269 HK), Haidilao (6862 HK), Yihai Int’L Holding (1579 HK) and Sunny Optical (2382 HK) while there was short covering on Tencent Holdings (700 HK), Ping An Insurance (H) (2318 HK), Country Garden Services Holdings (6098 HK), Baidu (9888 HK) and Zhongsheng Group (881 HK). Shorts increased in the Consumer Discretionary, Health Care and Information Technology sectors, and decreased in the Communication Services and Financials sectors.In Japan, stocks that saw the most shorts were Nexon (3659 JP), Orix Corp (8591 JP), Toshiba Corp (6502 JP) and Hitachi Metals (5486 JP) while shorts decreased on Shiseido Company (4911 JP), Tokai Carbon (5301 JP), Yaskawa Electric (6506 JP) and Canon Inc (7751 JP). Shorts increased in the Financials and Communication Services sectors, and decreased in the Information Technology and Consumer Staples sectors.In Korea, shorts decreased on Samsung Biologics Co., (207940 KS), Samsung Electronics (005930 KS), Celltrion Inc (068270 KS) and Samsung SDI (006400 KS) during the week.Stocks in Taiwan that saw the highest increase in shorts were Yageo Corporation (2327 TT), Novatek Microelectronics Corp (3034 TT), Evergreen Marine Corp (2603 TT), TSMC (2330 TT) and Fitipower Integrated Tech (4961 TT) while shorts were covered on Genius Electronic Optical (3406 TT), Hannstar Display (6116 TT), Taiwan Cement (1101 TT), Focaltech Systems (3545 TT) and Winbond Electronics (2344 TT). 

Asia Short Interest: Meituan, WuxiBio, Tencent, Nexon, Orix, Toshiba, Shiseido, Samsung, Hannstar

President, Vision Research

Robert C Prather Jr

President

Vision Research

Vision Research was formed in 2004 with the vision of generating the best possible fundamental analysis and investment research for smid cap US equities. In 2008, we broadened our coverage to include mid/large cap US stocks.  After researching a  few ideas outside the US each year for a number of years, we launched a dedicated non-US equity product at the end of 2015.  This was followed by the introduction of a product focused on IPOs in mid-2017.

Fundamental Insight

<p><a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> , <a href="https://www.smartkarma.com/entities/lg-electronics-inc" target="_blank" data-smartkarma-citation="entities:8814:1" rel="noopener">LG Electronics (066570 KS)</a>, and <a href="https://www.smartkarma.com/entities/haier-electronics-group-co" target="_blank" data-smartkarma-citation="entities:4877:1" rel="noopener">Haier Electronics Group Co (1169 HK)</a> were stealing share from <a href="https://www.smartkarma.com/entities/electrolux-ab" target="_blank" data-smartkarma-citation="entities:22351:1" rel="noopener">Electrolux AB (ELUXB SS)</a> prior to the pandemic.  After pandemic induced demand surge subsides, Vision expects these market share headwinds to revive while <a href="https://www.smartkarma.com/entities/electrolux-ab" target="_blank" data-smartkarma-citation="entities:22351:1" rel="noopener">Electrolux AB (ELUXB SS)</a> faces difficult comparisons leading to weak top line growth and rising commodity costs weigh on profits.</p>

Samsung Electronics (005930 KS) , LG Electronics (066570 KS), and Haier Electronics Group Co (1169 HK) were stealing share from Electrolux AB (ELUXB SS) prior to the pandemic.  After pandemic induced demand surge subsides, Vision expects these market share headwinds to revive while Electrolux AB (ELUXB SS) faces difficult comparisons leading to weak top line growth and rising commodity costs weigh on profits.

Electrolux (ELUXB SS): Asian Competitors, Difficult Comps, & Rising Commodity Costs Create Headwinds

South Korea

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

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Samsung Electronics (SMSN LI)

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