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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<ul>
<li>The main question, for yet another rebalance, is whether the index committee chooses a 6 month minimum listing history or increases it to 12 months in line with the methodology.</li>
<li>That decision will result in either 4 or 5 changes at the rebalance. The deletions remain the same, while there is only 1 inclusion common across both lists.</li>
<li>There is a fair bit to trade on the potential inclusions and exclusions and we expect the inclusions to outperform the deletions over the next couple of months.</li>
</ul>


The main question, for yet another rebalance, is whether the index committee chooses a 6 month minimum listing history or increases it to 12 months in line with the methodology.
That decision will result in either 4 or 5 changes at the rebalance. The deletions remain the same, while there is only 1 inclusion common across both lists.
There is a fair bit to trade on the potential inclusions and exclusions and we expect the inclusions to outperform the deletions over the next couple of months.


STAR50 Index Rebalance Preview (March 2022): What Will The Index Committee Do?

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

Industry viewpoints:<ul>
<li>The national medical insurance negotiation is coming soon.</li>
<li>Last Friday, a new document about the VBP on insulin was released, and the bidding would start on November 26.</li>
<li>At some point next year, we may see some slowdown in the growth of investment and financing transmitted from the industry and primary market as well as a slowdown in the growth of CXO orders. </li>
</ul>Company news:News about the updated progress on new drugs of <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a>, <a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH)</a> and <a href="https://www.smartkarma.com/entities/antengene-corp-ltd" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 HK)</a>Market review:Last week, stock price for healthcare sector in A share decreased 1.35%, while CSI 300 decreased 1.35% over the same period of time.Risk disclosure: Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
The national medical insurance negotiation is coming soon.
Last Friday, a new document about the VBP on insulin was released, and the bidding would start on November 26.
At some point next year, we may see some slowdown in the growth of investment and financing transmitted from the industry and primary market as well as a slowdown in the growth of CXO orders. 
Company news:News about the updated progress on new drugs of Innovent Biologics Inc (1801 HK), Jiangsu Hengrui Medicine (600276 CH) and Antengene (6996 HK)Market review:Last week, stock price for healthcare sector in A share decreased 1.35%, while CSI 300 decreased 1.35% over the same period of time.Risk disclosure: Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China Healthcare Weekly (Nov.5) - Final Two Domestic Policy Risks, Outlook of China CXO Industry

Equity Bottom-Up

Since <a href="https://www.smartkarma.com/entities/shanghai-medicilon-inc" target="_blank" data-smartkarma-citation="entities:30368:1" rel="noopener">Shanghai Medicilon Inc (688202 CH)</a> was listed on the SSE STAR Market in November 2019, in less than two years, its share price has been up about 1535%, the highest among all CRO companies in A-share. By the end of October 18, 2021, its market value was RMB42.9 billion. So, what is so special about this CRO company that its stock is rising so sharply? This insight mainly analyzed the business, the financial performance, the outlook and the concerns of the Company.

Since Shanghai Medicilon Inc (688202 CH) was listed on the SSE STAR Market in November 2019, in less than two years, its share price has been up about 1535%, the highest among all CRO companies in A-share. By the end of October 18, 2021, its market value was RMB42.9 billion. So, what is so special about this CRO company that its stock is rising so sharply? This insight mainly analyzed the business, the financial performance, the outlook and the concerns of the Company. 

Shanghai Medicilon (688202.CH)- Concerns on Long-Term Outlook Despite Amazing Short Term Performance

<div>The <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">SSE STAR 50 (STAR50 INDEX)</a> is a free float market cap weighted and is made up of the 50 largest stocks based on full market cap that are listed on the STAR Market.</div><div>
The review period for the December rebalance ends on 31 October, the results of the rebalance are likely to be announced on 26 November and the changes will be implemented at the close of trading on 10 December.
There are 191 stocks that will be listed longer than 12 months by 31 October and we expect the index committee to use a 12 month minimum listing history for the December review.
With 11 days remaining in the review period, potential inclusions are <a href="https://www.smartkarma.com/entities/xinjiang-daqo-new-energy-co-ltd" target="_blank" data-smartkarma-citation="entities:34163:1" rel="noopener">Xinjiang Daqo New Energy (688303 CH)</a>, <a href="https://www.smartkarma.com/entities/jiangsu-goodwe-power-supply-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:34165:1" rel="noopener">Jiangsu GoodWe Power Supply Technology (688390 CH)</a>, <a href="https://www.smartkarma.com/entities/infovision-optoelectronics-kunshan-co-ltd" target="_blank" data-smartkarma-citation="entities:34164:1" rel="noopener">InfoVision Optoelectronics Kunshan (688055 CH)</a>, <a href="https://www.smartkarma.com/entities/eyebright-medical-technology-beijing-co-ltd" target="_blank" data-smartkarma-citation="entities:33455:1" rel="noopener">Eyebright Medical Technology Beijing (688050 CH)</a> and <a href="https://www.smartkarma.com/entities/beijing-huafeng-test-control-technology-a" target="_blank" data-smartkarma-citation="entities:30367:1" rel="noopener">Beijing Huafeng Test &amp; Control Technology-A (688200 CH)</a>. <a href="https://www.smartkarma.com/entities/shanghai-medicilon-inc" target="_blank" data-smartkarma-citation="entities:30368:1" rel="noopener">Shanghai Medicilon Inc (688202 CH)</a> is a very close add currently.
The potential deletions are <a href="https://www.smartkarma.com/entities/willfar-information-technology-a" target="_blank" data-smartkarma-citation="entities:30341:1" rel="noopener">Willfar Information Technology-A (688100 CH)</a>, <a href="https://www.smartkarma.com/entities/appotronics-corp-ltd" target="_blank" data-smartkarma-citation="entities:28235:1" rel="noopener">Appotronics Corp Ltd (688007 CH)</a>, <a href="https://www.smartkarma.com/entities/espressif-systems-shanghai-co-ltd" target="_blank" data-smartkarma-citation="entities:30311:1" rel="noopener">Espressif Systems Shanghai (688018 CH)</a>, <a href="https://www.smartkarma.com/entities/xiamen-amoytop-biotech-co-ltd" target="_blank" data-smartkarma-citation="entities:30377:1" rel="noopener">Xiamen Amoytop Biotech Co Ltd (688278 CH)</a> and <a href="https://www.smartkarma.com/entities/anji-microelectronics-tech-a" target="_blank" data-smartkarma-citation="entities:30312:1" rel="noopener">Anji Microelectronics Tech-A (688019 CH)</a>.
In the unlikely event that the index committee decides to continue using a 6 month minimum listing history, the potential inclusions are <a href="https://www.smartkarma.com/entities/xinjiang-daqo-new-energy-co-ltd" target="_blank" data-smartkarma-citation="entities:34163:1" rel="noopener">Xinjiang Daqo New Energy (688303 CH)</a>, <a href="https://www.smartkarma.com/entities/zwsoft-guangzhou-co-ltd" target="_blank" data-smartkarma-citation="entities:34166:1" rel="noopener">ZWSOFT Guangzhou (688083 CH)</a>, <a href="https://www.smartkarma.com/entities/chengdu-xgimi-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:34167:1" rel="noopener">Chengdu XGimi Technology (688696 CH)</a>, <a href="https://www.smartkarma.com/entities/opt-machine-vision-tech-co-a" target="_blank" data-smartkarma-citation="entities:33148:1" rel="noopener">OPT Machine Vision Tech Co-A (688686 CH)</a> and <a href="https://www.smartkarma.com/entities/jiangsu-goodwe-power-supply-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:34165:1" rel="noopener">Jiangsu GoodWe Power Supply Technology (688390 CH)</a>, while <a href="https://www.smartkarma.com/entities/infovision-optoelectronics-kunshan-co-ltd" target="_blank" data-smartkarma-citation="entities:34164:1" rel="noopener">InfoVision Optoelectronics Kunshan (688055 CH)</a> is a close add. There is no change to the list of potential deletions from the index.
One-way turnover at the December rebalance is estimated at 11.04% assuming that CSI &amp; SSE use a 12 month minimum listing history.
</div>

The SSE STAR 50 (STAR50 INDEX) is a free float market cap weighted and is made up of the 50 largest stocks based on full market cap that are listed on the STAR Market.
The review period for the December rebalance ends on 31 October, the results of the rebalance are likely to be announced on 26 November and the changes will be implemented at the close of trading on 10 December.
There are 191 stocks that will be listed longer than 12 months by 31 October and we expect the index committee to use a 12 month minimum listing history for the December review.
With 11 days remaining in the review period, potential inclusions are Xinjiang Daqo New Energy (688303 CH), Jiangsu GoodWe Power Supply Technology (688390 CH), InfoVision Optoelectronics Kunshan (688055 CH), Eyebright Medical Technology Beijing (688050 CH) and Beijing Huafeng Test &amp; Control Technology-A (688200 CH). Shanghai Medicilon Inc (688202 CH) is a very close add currently.
The potential deletions are Willfar Information Technology-A (688100 CH), Appotronics Corp Ltd (688007 CH), Espressif Systems Shanghai (688018 CH), Xiamen Amoytop Biotech Co Ltd (688278 CH) and Anji Microelectronics Tech-A (688019 CH).
In the unlikely event that the index committee decides to continue using a 6 month minimum listing history, the potential inclusions are Xinjiang Daqo New Energy (688303 CH), ZWSOFT Guangzhou (688083 CH), Chengdu XGimi Technology (688696 CH), OPT Machine Vision Tech Co-A (688686 CH) and Jiangsu GoodWe Power Supply Technology (688390 CH), while InfoVision Optoelectronics Kunshan (688055 CH) is a close add. There is no change to the list of potential deletions from the index.
One-way turnover at the December rebalance is estimated at 11.04% assuming that CSI &amp; SSE use a 12 month minimum listing history.


STAR50 Index Rebalance Dec 21 Preview: Big Turnover & Moderate Impact

Xinjiang Daqo New Energy  Lt / Event-Driven

<div>
The <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">SSE STAR 50 (STAR50 INDEX)</a> is a free float market cap weighted and is made up of the 50 largest stocks based on full market cap that are listed on the STAR Market.
</div>
<div>
The review period for the December rebalance ends on 31 October, the results of the rebalance are likely to be announced on 26 November and the changes will be implemented at the close of trading on 10 December.
With 191 stocks listed for longer than 12 months by the review cut-off date, the minimum listing history should reset higher from 6 months to 12 months.
Potential inclusions are <a href="https://www.smartkarma.com/entities/xinjiang-daqo-new-energy-co-ltd" target="_blank" data-smartkarma-citation="entities:34163:1" rel="noopener">Xinjiang Daqo New Energy (688303 CH)</a>, <a href="https://www.smartkarma.com/entities/infovision-optoelectronics-kunshan-co-ltd" target="_blank" data-smartkarma-citation="entities:34164:1" rel="noopener">InfoVision Optoelectronics Kunshan (688055 CH)</a>, <a href="https://www.smartkarma.com/entities/jiangsu-goodwe-power-suppl-a" target="_blank" data-smartkarma-citation="entities:34165:1" rel="noopener">Jiangsu Goodwe Power Suppl-A (688390 CH)</a>, <a href="https://www.smartkarma.com/entities/beijing-huafeng-test-control-technology-a" target="_blank" data-smartkarma-citation="entities:30367:1" rel="noopener">Beijing Huafeng Test &amp; Control Technology-A (688200 CH)</a> and <a href="https://www.smartkarma.com/entities/eyebright-medical-technology-beijing-co-ltd" target="_blank" data-smartkarma-citation="entities:33455:1" rel="noopener">Eyebright Medical Technology Beijing (688050 CH)</a>. <a href="https://www.smartkarma.com/entities/shanghai-medicilon-inc" target="_blank" data-smartkarma-citation="entities:30368:1" rel="noopener">Shanghai Medicilon Inc (688202 CH)</a> is a close add at the moment.
Potential deletions are <a href="https://www.smartkarma.com/entities/willfar-information-techno-a" target="_blank" data-smartkarma-citation="entities:30341:1" rel="noopener">Willfar Information Techno-A (688100 CH)</a>, <a href="https://www.smartkarma.com/entities/appotronics-corp-ltd" target="_blank" data-smartkarma-citation="entities:28235:1" rel="noopener">Appotronics Corp Ltd (688007 CH)</a>, <a href="https://www.smartkarma.com/entities/xiamen-amoytop-biotech-co-ltd" target="_blank" data-smartkarma-citation="entities:30377:1" rel="noopener">Xiamen Amoytop Biotech Co Ltd (688278 CH)</a>, <a href="https://www.smartkarma.com/entities/espressif-systems-shanghai-co-ltd" target="_blank" data-smartkarma-citation="entities:30311:1" rel="noopener">Espressif Systems Shanghai (688018 CH)</a> and <a href="https://www.smartkarma.com/entities/anji-microelectronics-tech-a" target="_blank" data-smartkarma-citation="entities:30312:1" rel="noopener">Anji Microelectronics Tech-A (688019 CH)</a>.
If, for some reason, the index committee decides to continue to use a 6 month minimum listing history, potential inclusions are <a href="https://www.smartkarma.com/entities/xinjiang-daqo-new-energy-co-ltd" target="_blank" data-smartkarma-citation="entities:34163:1" rel="noopener">Xinjiang Daqo New Energy (688303 CH)</a>, <a href="https://www.smartkarma.com/entities/zwsoft-co-ltd-guangzhou" target="_blank" data-smartkarma-citation="entities:34166:1" rel="noopener">ZWSOFT Co Ltd Guangzhou (688083 CH)</a>, <a href="https://www.smartkarma.com/entities/chengdu-xgimi-technology-c-a" target="_blank" data-smartkarma-citation="entities:34167:1" rel="noopener">Chengdu Xgimi Technology C-A (688696 CH)</a>, <a href="https://www.smartkarma.com/entities/opt-machine-vision-tech-co-a" target="_blank" data-smartkarma-citation="entities:33148:1" rel="noopener">Opt Machine Vision Tech Co-A (688686 CH)</a> and <a href="https://www.smartkarma.com/entities/infovision-optoelectronics-kunshan-co-ltd" target="_blank" data-smartkarma-citation="entities:34164:1" rel="noopener">InfoVision Optoelectronics Kunshan (688055 CH)</a> while there is no change to the list of potential deletions.
One-way turnover at the December rebalance is estimated at 10.17% assuming that CSI/SSE use a 12 month minimum listing history.
</div>


The SSE STAR 50 (STAR50 INDEX) is a free float market cap weighted and is made up of the 50 largest stocks based on full market cap that are listed on the STAR Market.


The review period for the December rebalance ends on 31 October, the results of the rebalance are likely to be announced on 26 November and the changes will be implemented at the close of trading on 10 December.
With 191 stocks listed for longer than 12 months by the review cut-off date, the minimum listing history should reset higher from 6 months to 12 months.
Potential inclusions are Xinjiang Daqo New Energy (688303 CH), InfoVision Optoelectronics Kunshan (688055 CH), Jiangsu Goodwe Power Suppl-A (688390 CH), Beijing Huafeng Test &amp; Control Technology-A (688200 CH) and Eyebright Medical Technology Beijing (688050 CH). Shanghai Medicilon Inc (688202 CH) is a close add at the moment.
Potential deletions are Willfar Information Techno-A (688100 CH), Appotronics Corp Ltd (688007 CH), Xiamen Amoytop Biotech Co Ltd (688278 CH), Espressif Systems Shanghai (688018 CH) and Anji Microelectronics Tech-A (688019 CH).
If, for some reason, the index committee decides to continue to use a 6 month minimum listing history, potential inclusions are Xinjiang Daqo New Energy (688303 CH), ZWSOFT Co Ltd Guangzhou (688083 CH), Chengdu Xgimi Technology C-A (688696 CH), Opt Machine Vision Tech Co-A (688686 CH) and InfoVision Optoelectronics Kunshan (688055 CH) while there is no change to the list of potential deletions.
One-way turnover at the December rebalance is estimated at 10.17% assuming that CSI/SSE use a 12 month minimum listing history.


STAR50 Index Rebalance December Preview: 12 Month or 6 Month Listing History, That Is The Question

China

Shanghai Medicilon Inc. develops pharmaceutical products. The Company produces acquired immune deficiency syndrome drugs, anticancer drug sensitizers, genetic engineering vaccines, biomedical intermediates, and other products. Shanghai Medicilon also provides biological analysis, drug safety evaluation, and other services.

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Shanghai Medicilon (688202 CH)

STAR50 Index Rebalance Preview (March 2022): What Will The Index Committee Do?

There could be 4 or 5 changes to the STAR50 Index at the March rebalance depending on whether the index committee uses a 6 month or 12 month...

Brian Freitas

China Healthcare Weekly (Nov.5) - Final Two Domestic Policy Risks, Outlook of China CXO Industry

The insight mainly analyzed the final two domestic policy risks (the national medical insurance negotiation & the VBP on insulin) by the end of...

Xinyao (Criss) Wang