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

<ul>
<li>The 2nd screening only deals with those who have passed the 1st screening. The 2nd screening does NOT include the first company to cross the threshold.</li>
<li>Lotte Confectionery will be the only addition to the KOSPI 200. Samyang Holdings or Hyundai Home Shopping Network will leave the index.</li>
<li>There will be ten changes in the KOSDAQ 150: eight regular &amp; two special entries. WCP's special entry still seems uncertain due to the GICS classification issue.</li>
</ul>


The 2nd screening only deals with those who have passed the 1st screening. The 2nd screening does NOT include the first company to cross the threshold.
Lotte Confectionery will be the only addition to the KOSPI 200. Samyang Holdings or Hyundai Home Shopping Network will leave the index.
There will be ten changes in the KOSDAQ 150: eight regular &amp; two special entries. WCP's special entry still seems uncertain due to the GICS classification issue.


KOSPI 200 & KOSDAQ 150: Rule Clarifications & Rebalancing Predictions

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

<ul>
<li>90% of the way through the review period of the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Kospi 200 Index</a> December rebalance, we see two potential changes to the index. There is another potential inclusion failing liquidity.</li>
<li>This rebalance is expected to have the lowest turnover as compared to any of the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Kospi 200 Index</a> rebalances over the last few years. Partly lower markets, partly no IPOs.</li>
<li>That said, passive trackers are estimated to need to trade over 10 days of ADV on one of the potential adds and both potential deletes.</li>
</ul>


90% of the way through the review period of the Kospi 200 Index December rebalance, we see two potential changes to the index. There is another potential inclusion failing liquidity.
This rebalance is expected to have the lowest turnover as compared to any of the Kospi 200 Index rebalances over the last few years. Partly lower markets, partly no IPOs.
That said, passive trackers are estimated to need to trade over 10 days of ADV on one of the potential adds and both potential deletes.


KOSPI200 Index Rebalance Preview: Few Changes, Big Impact

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>This article discusses the potential inclusions and exclusions of KOSPI 200 rebalance in December 2022 (especially those that are highlighted by the locals). </li>
<li>Stocks that are expected to be included in the KOSPI 200 index include Samyang Foods (003230 KS) and Lotte Confectionery (280360 KS). </li>
<li>Stocks that are expected to be excluded in the KOSPI 200 index include Samyang Holdings (000070 KS) and Boryung Pharmaceutical (003850 KS).</li>
</ul>


This article discusses the potential inclusions and exclusions of KOSPI 200 rebalance in December 2022 (especially those that are highlighted by the locals). 
Stocks that are expected to be included in the KOSPI 200 index include Samyang Foods (003230 KS) and Lotte Confectionery (280360 KS). 
Stocks that are expected to be excluded in the KOSPI 200 index include Samyang Holdings (000070 KS) and Boryung Pharmaceutical (003850 KS).


KOSPI 200 Rebalance in December Highlighted by Locals

<ul>
<li>In addition to Lotte Confectionery, Samyang Foods is also in the inclusion zone. As for deletions, Samyang Holdings and Boryung are the most likely deletes at this point.</li>
<li>Samyang Foods and Boryung have a small passive impact but have way more liquidity than Lotte and Samyang Holdings. We should approach them differently depending on the target trading window.</li>
<li>Samyang Foods is in a tight situation, and Boryung's fate depends on Samyang Foods. But given the recent price trends, Samyang Foods appears to have a good shot.</li>
</ul>


In addition to Lotte Confectionery, Samyang Foods is also in the inclusion zone. As for deletions, Samyang Holdings and Boryung are the most likely deletes at this point.
Samyang Foods and Boryung have a small passive impact but have way more liquidity than Lotte and Samyang Holdings. We should approach them differently depending on the target trading window.
Samyang Foods is in a tight situation, and Boryung's fate depends on Samyang Foods. But given the recent price trends, Samyang Foods appears to have a good shot.


KOSPI 200 Rebalancing: Recent Changes in the Race

<ul>
<li>China has started to suspend nearly 2,000 food products from Taiwan to China as it protests a visit to Taipei by the US Speaker of the House Nancy Pelosi.</li>
<li>While this move will negatively impact the food producers in Taiwan, this will positively impact some of the major F&amp;B companies in Korea that sell their products in China.</li>
<li>Korean F&amp;B companies such as Crown Confectionery and Lotte Confectionery will likely to benefit from this ban as it results in reduced competition from major Taiwanese food companies in China. </li>
</ul>


China has started to suspend nearly 2,000 food products from Taiwan to China as it protests a visit to Taipei by the US Speaker of the House Nancy Pelosi.
While this move will negatively impact the food producers in Taiwan, this will positively impact some of the major F&amp;B companies in Korea that sell their products in China.
Korean F&amp;B companies such as Crown Confectionery and Lotte Confectionery will likely to benefit from this ban as it results in reduced competition from major Taiwanese food companies in China. 


Suspension of 2,000 Taiwan Food Products by China: Start of an Economic Warfare?

South Korea

Samyang Foods Co., Ltd. manufactures instant and processed food products, such as noodles, snacks, cooking oil, and feed.  The Company also produces dairy goods including milk, cheese, and ice cream.

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Samyang Foods (003230 KS)

KOSPI 200 & KOSDAQ 150: Rule Clarifications & Rebalancing Predictions

This post clarifies some vague rules of the KOSPI 200 & KOSDAQ 150 rebalancing and discusses the constituent changes in the December review.

Sanghyun Park

KOSPI200 Index Rebalance Preview: Few Changes, Big Impact

There should be two changes at the December rebalance. There could be a third if the stock passes the liquidity test. Passive trackers are...

Brian Freitas

KOSPI 200 Rebalance in December Highlighted by Locals

This article discusses the potential inclusions and exclusions of KOSPI 200 rebalance in December 2022 (especially those that are highlighted by...

Douglas Kim

KOSPI 200 Rebalancing: Recent Changes in the Race

This post investigates the recent changes in the upcoming rebalancing of the KOSPI 200 and discusses the resulting passive impacts and trading...

Sanghyun Park

Suspension of 2,000 Taiwan Food Products by China: Start of an Economic Warfare?

China has started to suspend nearly 2,000 food products from Taiwan to China as it protests a visit to Taipei by the US Speaker of the House Nancy...

Douglas Kim

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