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

Foxconn Industrial Internet / Event-Driven

<ul>
<li>Two thirds of the way through the review period, we see 10 potential adds/8 potential deletes in December. However, there can be a maximum of 5 changes at a review.</li>
<li>We estimate a one-way turnover of 5.8% at the December rebalance leading to a one-way trade of CNY 4.67bn. Index arb balances could increase the impact on the stocks.</li>
<li>The potential adds have outperformed the potential deletes over the last six months and there has been renewed outperformance over the last month.</li>
</ul>


Two thirds of the way through the review period, we see 10 potential adds/8 potential deletes in December. However, there can be a maximum of 5 changes at a review.
We estimate a one-way turnover of 5.8% at the December rebalance leading to a one-way trade of CNY 4.67bn. Index arb balances could increase the impact on the stocks.
The potential adds have outperformed the potential deletes over the last six months and there has been renewed outperformance over the last month.


SSE50 Index Rebalance Preview: Potential Adds Powering Higher

Cambricon Technologies  Lt / Event-Driven

<ul>
<li>There are 3 changes for the CNI Semiconductor Chips Index that will be implemented at the close on 9 June.</li>
<li>The inclusions will also be added to other indices over the next couple of weeks and there will be inflows from multiple index trackers.</li>
<li>The adds have outperformed and with 9 trading days to implementation of the changes and the inclusions also being added to other indices, there could be further outperformance near-term.</li>
</ul>


There are 3 changes for the CNI Semiconductor Chips Index that will be implemented at the close on 9 June.
The inclusions will also be added to other indices over the next couple of weeks and there will be inflows from multiple index trackers.
The adds have outperformed and with 9 trading days to implementation of the changes and the inclusions also being added to other indices, there could be further outperformance near-term.


CNI Semiconductor Chips Index Rebalance: Multiple Inflows for the Inclusions

<ul>
<li>There are 6 changes for the CES China Semiconductor Chips Index that will be implemented at the close on 9 June.</li>
<li>All the inclusions are also additions to the <a href="https://www.smartkarma.com/entities/csi-smallcap-500-index-shanghai" target="_blank" data-smartkarma-citation="entities:35347:1" rel="noopener">CSI 500 Index</a> and the passive flows will come from multiple trackers.</li>
<li>The adds have outperformed the deletes over the last couple of weeks and there could be further outperformance over the next two weeks.</li>
</ul>


There are 6 changes for the CES China Semiconductor Chips Index that will be implemented at the close on 9 June.
All the inclusions are also additions to the CSI 500 Index and the passive flows will come from multiple trackers.
The adds have outperformed the deletes over the last couple of weeks and there could be further outperformance over the next two weeks.


CES China Semiconductor Chips Index Rebalance: Six Changes in June

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>The overvaluation or undervaluation of China core assets cannot be explained solely by valuation models such as PE/PB/DCF etc., but rather by considering the deep meaning represented by them.</li>
<li>The so-called policy, strategic, and systemic importance are playing increasingly important role in stock picking process. It's not wise to just analyze it from bottom-up perspective without considering top-down perspective.</li>
<li>There’s no eternal,universal,absolute truth in this world. We’re in the midst of a "unprecedented upheaval in a century".It's time to change mindset so investors don't miss the next valuation takeoff.</li>
</ul>


The overvaluation or undervaluation of China core assets cannot be explained solely by valuation models such as PE/PB/DCF etc., but rather by considering the deep meaning represented by them.
The so-called policy, strategic, and systemic importance are playing increasingly important role in stock picking process. It's not wise to just analyze it from bottom-up perspective without considering top-down perspective.
There’s no eternal,universal,absolute truth in this world. We’re in the midst of a "unprecedented upheaval in a century".It's time to change mindset so investors don't miss the next valuation takeoff.


Valuation System with Chinese Characteristics – the Correct Interpretation and Its Deep Meaning

Equity Bottom-Up

<ul>
<li>Many people have begun to pay attention to whether there would be a second wave of COVID-19 in China. We think it is necessary to share our views.</li>
<li>The overvaluation or undervaluation of China’s core assets cannot be explained solely by classic valuation models such as PE/PB/DCF, but rather by considering the deep meaning represented by the companies.</li>
<li>Lifetech’s future growth space depend more on the performance of pacemakers and IBS, but they are facing different challenges. Therefore, we recommend short-term trade rather than long term hold.</li>
</ul>


Many people have begun to pay attention to whether there would be a second wave of COVID-19 in China. We think it is necessary to share our views.
The overvaluation or undervaluation of China’s core assets cannot be explained solely by classic valuation models such as PE/PB/DCF, but rather by considering the deep meaning represented by the companies.
Lifetech’s future growth space depend more on the performance of pacemakers and IBS, but they are facing different challenges. Therefore, we recommend short-term trade rather than long term hold.


China Healthcare Weekly (May.5)- 2nd Wave of COVID, Valuation Logic of China's Core Assets, Lifetech

China

Semiconductor Manufacturing International Corporation operates as a semiconductor foundry. The Company provides integrated circuit foundry and technology services including the testing, development, design, manufacturing, packaging, and sale of integrated circuits. Semiconductor Manufacturing International offers its products and services around the world.

Semiconductor Manufacturing International Corporation (SMIC) (688981 CH)

Semiconductor Manufacturing International Corporation (SMIC)

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Semiconductor Manufacturing International Corporation (SMIC) (688981 CH)

SSE50 Index Rebalance Preview: Potential Adds Powering Higher

Two thirds of the way through the review period, we see 10 potential adds/8 potential deletes in December. Turnover is over 5% and the potential...

Brian Freitas

CNI Semiconductor Chips Index Rebalance: Multiple Inflows for the Inclusions

There are 3 changes for the CNI Semiconductor Chips Index. The inclusions will also be added to other indices over the next couple of weeks. The...

Brian Freitas

CES China Semiconductor Chips Index Rebalance: Six Changes in June

There are 6 index changes in June. All the adds are also inclusions for the CSI500 Index, so there will be passive inflows from multiple trackers....

Brian Freitas

Valuation System with Chinese Characteristics – the Correct Interpretation and Its Deep Meaning

Many investors do not have a deep understanding of the "valuation system with Chinese characteristics". It is necessary to provide some...

Xinyao (Criss) Wang

China Healthcare Weekly (May.5)- 2nd Wave of COVID, Valuation Logic of China's Core Assets, Lifetech

It's time to talk about the 2nd wave of COVID in China.Investors need to understand deep meaning/valuation logic of China's core assets so as not...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)