Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>The ChiNext Index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange. </li>
<li>The ChiNext 50 index is a <em>subset</em> of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.</li>
<li>In this insight, we take a brief look at the index selection methodology and the historical price and volume performance of ChiNext and ChiNext 50 rebalance baskets.</li>
</ul>


The ChiNext Index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange. 
The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
In this insight, we take a brief look at the index selection methodology and the historical price and volume performance of ChiNext and ChiNext 50 rebalance baskets.


Quiddity Primer for ChiNext & ChiNext 50 Index Rebalance Events

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

<ul>
<li>Back in February last year, the Aussie Treasurer <a href="https://www.legislation.gov.au/F2023N00026/asmade/text" target="_blank" rel="noopener">prohibited</a> Yuxiao Fund from buying an additional 9.92% in <strong><a href="https://www.smartkarma.com/entities/northern-minerals-ltd" target="_blank" data-smartkarma-citation="entities:20445:1" rel="noopener">Northern Minerals (NTU AU)</a></strong> which would have increased its stake to 19.9%.</li>
<li>On the <a href="https://announcements.asx.com.au/asxpdf/20231121/pdf/05xl2d4q74m61v.pdf" target="_blank" rel="noopener">20th November 2023</a>, Yuxiao sought the removal of Nicholas Curtis as director of the rare-metal play at an EGM; however Curtis <a href="https://announcements.asx.com.au/asxpdf/20240527/pdf/063yqlgvx8zbll.pdf" target="_blank" rel="noopener">resigned his post</a> and the EGM cancelled.</li>
<li>The Aussie Treasurer has <a href="https://www.legislation.gov.au/F2024N00475/latest/text" target="_blank" rel="noopener">now made orders</a> requiring Yuxiao and four (deemed) associated investors to sell their holdings (~10.4% all-in) within 60 days. </li>
</ul>


Back in February last year, the Aussie Treasurer prohibited Yuxiao Fund from buying an additional 9.92% in Northern Minerals (NTU AU) which would have increased its stake to 19.9%.
On the 20th November 2023, Yuxiao sought the removal of Nicholas Curtis as director of the rare-metal play at an EGM; however Curtis resigned his post and the EGM cancelled.
The Aussie Treasurer has now made orders requiring Yuxiao and four (deemed) associated investors to sell their holdings (~10.4% all-in) within 60 days. 


Northern Minerals (NMI AU): Chinese Investors Forced To Exit

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>
<a href="https://www.smartkarma.com/entities/albemarle-corp" target="_blank" data-smartkarma-citation="entities:7678:1" rel="noopener">Albemarle Corp (ALB US)</a> will replace <a href="https://www.smartkarma.com/entities/ioneer-ltd" target="_blank" data-smartkarma-citation="entities:10264:1" rel="noopener">ioneer (INR AU)</a> in the <a href="https://www.smartkarma.com/entities/vaneck-rare-earth-strategic-me" target="_blank" data-smartkarma-citation="entities:32320:1" rel="noopener">VanEck Rare Earth/Strategic Me (REMX US)</a> at the close on 15 December.</li>
<li>Constituent changes, float changes and capping changes result in an estimated one-way turnover is 13.4% and in a one-way trade of US$50m.</li>
<li>The mainland China stocks in the index have been the biggest laggards and this rebalance will reduce their weight in the index significantly.</li>
</ul>



Albemarle Corp (ALB US) will replace ioneer (INR AU) in the VanEck Rare Earth/Strategic Me (REMX US) at the close on 15 December.
Constituent changes, float changes and capping changes result in an estimated one-way turnover is 13.4% and in a one-way trade of US$50m.
The mainland China stocks in the index have been the biggest laggards and this rebalance will reduce their weight in the index significantly.


MVIS Global Rare Earth/​​​​​Strategic Metals Index Rebalance: Albermarle (ALB US) Finally Added

<ul>
<li>There is one add and two deletes for the MVIS Global Rare Earth/Strategic Metals Index at the September rebalance. Plus there are free float and capping changes.</li>
<li>One way turnover is estimated at 11.1% and will result in a one-way trade of US$58m. There are a few stocks with over 0.5 days of ADV to trade.</li>
<li>The inclusion of <a href="https://www.smartkarma.com/entities/sociedad-quimica-y-minera-de-chile-sa" target="_blank" data-smartkarma-citation="entities:27977:1" rel="noopener">Sociedad Quimica y Minera de Chile (SQM US)</a> and deletion of <a href="https://www.smartkarma.com/entities/zhejiang-huayou-cobalt-co-ltd" target="_blank" data-smartkarma-citation="entities:25048:1" rel="noopener">Zhejiang Huayou Cobalt (603799 CH)</a> are surprises.</li>
</ul>


There is one add and two deletes for the MVIS Global Rare Earth/Strategic Metals Index at the September rebalance. Plus there are free float and capping changes.
One way turnover is estimated at 11.1% and will result in a one-way trade of US$58m. There are a few stocks with over 0.5 days of ADV to trade.
The inclusion of Sociedad Quimica y Minera de Chile (SQM US) and deletion of Zhejiang Huayou Cobalt (603799 CH) are surprises.


MVIS Global Rare Earth/​​​​​Strategic Metals Index Rebalance: One Add, Two Deletes & Big Turnover

<ul>
<li>There are 3 inclusions for the MVIS Global Rare Earth/Strategic Metals Index at the June rebalance. Plus there are free float and capping changes.</li>
<li>One way turnover is estimated at 10.6% and will result in a one-way trade of US$66m. There are a few stocks with over 0.5 days of ADV to trade.</li>
<li>
<a href="https://www.smartkarma.com/entities/yunnan-chihong-zinc-germanium-co-ltd" target="_blank" data-smartkarma-citation="entities:1779:1" rel="noopener">Yunnan Chihong Zinc&amp;Germanium Co, Ltd. (600497 CH)</a> was not added to the index while <a href="https://www.smartkarma.com/entities/ioneer-ltd" target="_blank" data-smartkarma-citation="entities:10264:1" rel="noopener">ioneer Ltd (INR AU)</a> has avoided deletion in June.</li>
</ul>


There are 3 inclusions for the MVIS Global Rare Earth/Strategic Metals Index at the June rebalance. Plus there are free float and capping changes.
One way turnover is estimated at 10.6% and will result in a one-way trade of US$66m. There are a few stocks with over 0.5 days of ADV to trade.

Yunnan Chihong Zinc&amp;Germanium Co, Ltd. (600497 CH) was not added to the index while ioneer Ltd (INR AU) has avoided deletion in June.


MVIS Global Rare Earth/​​​​Strategic Metals Index Rebalance: Three Adds; Float & Capping Changes

China

Shenghe Resources Holding Co Ltd engages in all types of industrial investments, including sales, integrated application and processing, technical advice in rare earth metals, sales and processing of new rare earth materials; sales in chemical materials, import and export of various goods and technology, etc.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
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Dividend (Yield)	0.00

Shenghe Resources Holding (600392 CH)

Quiddity Primer for ChiNext & ChiNext 50 Index Rebalance Events

Going forward, Quiddity Leaderboard for ChiNext and ChiNext 50 indices will be published on a monthly basis to help readers track the developments...

Janaghan Jeyakumar, CFA

Northern Minerals (NMI AU): Chinese Investors Forced To Exit

I don't have a strong conviction either way on Northern Minerals here; but the expulsion of Yuxiao, an agitating presence, removes an overhang....

David Blennerhassett

MVIS Global Rare Earth/Strategic Metals Index Rebalance: Albermarle (ALB US) Finally Added

Albemarle will replace ioneer in the index. Constituent changes, float changes and capping changes result in an estimated one-way turnover is 13.4%...

Brian Freitas

MVIS Global Rare Earth/Strategic Metals Index Rebalance: One Add, Two Deletes & Big Turnover

One add, two deletes, float and capping changes will result in one-way turnover estimated at 11.1% resulting in a one-way trade of US$58m. There...

Brian Freitas

MVIS Global Rare Earth/Strategic Metals Index Rebalance: Three Adds; Float & Capping Changes

There are 3 additions, float & capping changes for REMX in June. One way turnover is estimated at 10.6% resulting in a one-way trade of US$66m....

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Quiddity Primer for ChiNext & ChiNext 50 Index Rebalance Events

Going forward, Quiddity Leaderboard for ChiNext and ChiNext 50 indices will be published on a monthly basis to help readers track the developments...

Janaghan Jeyakumar, CFA

Northern Minerals (NMI AU): Chinese Investors Forced To Exit

I don't have a strong conviction either way on Northern Minerals here; but the expulsion of Yuxiao, an agitating presence, removes an overhang....

David Blennerhassett

MVIS Global Rare Earth/​​​​​Strategic Metals Index Rebalance: Albermarle (ALB US) Finally Added

Albemarle will replace ioneer in the index. Constituent changes, float changes and capping changes result in an estimated one-way turnover is 13.4%...

Brian Freitas

MVIS Global Rare Earth/​​​​​Strategic Metals Index Rebalance: One Add, Two Deletes & Big Turnover

One add, two deletes, float and capping changes will result in one-way turnover estimated at 11.1% resulting in a one-way trade of US$58m. There...

Brian Freitas

MVIS Global Rare Earth/​​​​Strategic Metals Index Rebalance: Three Adds; Float & Capping Changes

There are 3 additions, float & capping changes for REMX in June. One way turnover is estimated at 10.6% resulting in a one-way trade of US$66m....

Brian Freitas

MVIS Global Rare Earth/Strategic Metals Index Rebalance: Albermarle (ALB US) Finally Added

MVIS Global Rare Earth/Strategic Metals Index Rebalance: One Add, Two Deletes & Big Turnover

MVIS Global Rare Earth/Strategic Metals Index Rebalance: Three Adds; Float & Capping Changes