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

<p>Korea's local sector ETFs do not usually attract the spotlight as most of them are pretty insignificant in AUM. But a few sector index-mirroring ETFs are quite different. They are as hot as the flagship KOSPI 200-tracking ETFs.</p><p>The secondary battery sector ETFs are these exceptions. The extreme popularity of the secondary battery sector-ETFs bodes well for the level of investor interest sitting on the sector itself.</p><h2>How hot are they really?</h2><div>
<p>For instance, let's look at the KRX K-New Deal Index.</p>
<p>It has one mother index named the KRX BBIG K-New Deal Index, under which there are four sub-indices. BBIG stands for Battery, Bio, Internet, and Game, representing the four sectors that the New Deal initiative features.</p>
<div>
<p>The main index contains 12 large-cap stocks, three of which are from each of the four sectors. We then have four sub-indices, one for each sector. Each sub-index has 10 constituents, selected mainly based on the full market capitalization.</p>
<p>The mother index has three ETFs, and each of the four sub-indices has one ETF. The mother index's combined AUM stands at ₩529.2B at the last close. But the sub-index for the secondary battery has a total of ₩812.8B in AUM, substantially more than the mother index and simply incomparable to the other three sub-indices.</p>
</div>
</div><table class="table table-striped">
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<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"K-New Deal tracking ETFs"}'>K-New Deal tracking ETFs</td>
<td style="width: 189.531px;" data-sheets-value='{"1":2,"2":"Index"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Index</td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"Ticker"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Ticker</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":2,"2":"Market cap"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Market cap</td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"Mirae Asset TIGER KRX BBIG K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae Asset TIGER KRX BBIG K-New Deal ETF</td>
<td colspan="1" rowspan="4" style="width: 189.531px;" data-sheets-value='{"1":2,"2":"KRX BBIG K-New Deal Index"}' data-sheets-numberformat='{"1":1}'><div><strong>KRX BBIG K-New Deal Index</strong></div></td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"364960"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="364960"'>364960</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":497.352}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000">₩497.4B</td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"Hana Financial Investment Hana KRX BBIG K-New Deal ETN 3"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Hana Financial Investment Hana KRX BBIG K-New Deal ETN 3</td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"700003"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="700003"'>700003</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":9.63}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000">₩9.6B</td>
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<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"TIMEFOLIO TIMEFOLIO BBIG Active ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>TIMEFOLIO TIMEFOLIO BBIG Active ETF</td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"385710"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="385710"'>385710</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":22.231}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000">₩22.2B</td>
</tr>
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<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":" - Total"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'><strong>- Total</strong></td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":1}'><strong>-</strong></td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":529.213}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=sum(R[-3]C[0]:R[-1]C[0])"><strong>₩529.2B</strong></td>
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<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"Mirae TIGER KRX Secondary Battery K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae TIGER KRX Secondary Battery K-New Deal ETF</td>
<td style="width: 189.531px;" data-sheets-value='{"1":2,"2":"KRX Secondary Battery K-New Deal Index"}' data-sheets-numberformat='{"1":1}'><strong>KRX Secondary Battery K-New Deal Index</strong></td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"364980"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="364980"'>364980</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":812.80425}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000"><strong>₩812.8B</strong></td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"Mirae Asset TIGER KRX BIO K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae Asset TIGER KRX BIO K-New Deal ETF</td>
<td style="width: 189.531px;" data-sheets-value='{"1":2,"2":"KRX Bio K-New Deal Index"}' data-sheets-numberformat='{"1":1}'><strong>KRX Bio K-New Deal Index</strong></td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"364970"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="364970"'>364970</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":85.51125}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000"><strong>₩85.5B</strong></td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"Mirae Asset KRX TIGER Internet K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae Asset KRX TIGER Internet K-New Deal ETF</td>
<td style="width: 189.531px;" data-sheets-value='{"1":2,"2":"KRX Internet K-New Deal Index"}' data-sheets-numberformat='{"1":1}'><strong>KRX Internet K-New Deal Index</strong></td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"365000"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="365000"'>365000</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":45.1605}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000"><strong>₩45.2B</strong></td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"Mirae Asset KRX TIGER Game K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae Asset KRX TIGER Game K-New Deal ETF</td>
<td style="width: 189.531px;" data-sheets-value='{"1":2,"2":"KRX Game K-New Deal Index"}' data-sheets-numberformat='{"1":1}'><strong>KRX Game K-New Deal Index</strong></td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"364990"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="364990"'>364990</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":36.208}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000"><strong>₩36.2B</strong></td>
</tr>
<tr><td colspan="4" rowspan="1" style="width: 726.008px;" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><h2>How substantial is the flow impact?</h2><p>We have three major secondary battery ETFs, with a combined AUM of close to ₩3T.</p><table class="table table-striped">
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<td data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Samsung KODEX Secondary Battery Industry ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Samsung KODEX Secondary Battery Industry ETF</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Mirae Asset TIGER Secondary Cell ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Mirae Asset TIGER Secondary Cell ETF</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Mirae TIGER KRX Secondary Battery K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Mirae TIGER KRX Secondary Battery K-New Deal ETF</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Market cap"}'><strong>Market cap</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1233.609}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]/1000000000"><strong>₩1,233.6B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":873.704}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]/1000000000"><strong>₩873.7B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":812.80425}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]/1000000000"><strong>₩812.8B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Underlying index"}'>Underlying index</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"FnGuide Secondary Battery Industry Index"}'>FnGuide Secondary Battery Industry Index</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"WISE Secondary Battery Theme Index"}'>WISE Secondary Battery Theme Index</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"KRX Secondary Battery K-New Deal Index"}'><div><div>KRX Secondary Battery K-New Deal Index</div></div></td>
</tr>
<tr><td colspan="4" data-sheets-value='{"1":2,"2":"Source: KRX &amp; FnGuide Index"}'>Source: KRX &amp; FnGuide Index</td></tr>
</tbody>
</table><div>
<p>These are 4 major constituents making all three indices.</p>
<table class="table table-striped">
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<td data-sheets-value='{"1":2,"2":"4 major constituents making all the three indices"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>4 major constituents making all three indices</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Samsung KODEX Secondary Battery Industry ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Samsung KODEX Secondary Battery Industry ETF</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Mirae Asset TIGER Secondary Cell ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Mirae Asset TIGER Secondary Cell ETF</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Mirae TIGER KRX Secondary Battery K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Mirae TIGER KRX Secondary Battery K-New Deal ETF</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SK Innovation Co Ltd"}'>SK Innovation Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1713}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-7]">17.13%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.11449999999999999}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-6]">11.45%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2641}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-5]">26.41%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Posco Chemical Co Ltd"}'><strong>Posco Chemical Co Ltd</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.165}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-7]"><strong>16.50%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0877}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[3]C[-6]"><strong>8.77%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0796}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[2]C[-5]"><strong>7.96%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"LG Chem Ltd"}'>LG Chem Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1596}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-7]">15.96%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0984}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[-6]">9.84%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2395}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[-5]">23.95%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Samsung SDI Co Ltd"}'>Samsung SDI Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1318}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-7]">13.18%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.09210000000000002}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-6]">9.21%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2296}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[-5]">22.96%</td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX &amp; FnGuide Index"}'>Source: KRX &amp; FnGuide Index</td></tr>
</tbody>
</table>
<p>As seen below, these three ETFs spark at least as much a passive flow as the KOSPI 200 if we factor in only passive funds making rebalancing trade on the implementation day. As for Posco Chemical, the three ETFs combined passive flow is nearly 6 times KOSPI 200.</p>
<table class="table table-striped">
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<col width="100">
<col width="100">
<col width="100">
<col width="100">
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<tr>
<td data-sheets-value='{"1":2,"2":"Name"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Name</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Three sector ETFs combined passive flow"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Three ETFs combined passive flow</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"KOSPI 200 passive flow, assuming ₩20T worth of ETFs/index funds making rebalancing trade on the implementation day"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>KOSPI 200 passive flow, assuming ₩20T worth of ETFs/index funds making rebalancing trade on the implementation day</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"KOSPI 200 weight"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>KOSPI 200 weight</td>
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<tr>
<td data-sheets-value='{"1":2,"2":"SK Innovation Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[10], "name")'>SK Innovation Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":526.017932125}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[3]+R[0]C[5]+R[0]C[7]">₩526.0B</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩218.0B"}'>₩218.0B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0109}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>1.09%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Posco Chemical Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[10], "name")'><strong>Posco Chemical Co Ltd</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":344.86854409999995}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[3]+R[0]C[5]+R[0]C[7]"><strong>₩344.9B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩60.0B"}'><strong>₩60.0B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.003}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'><strong>0.30%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"LG Chem Ltd"}' data-sheets-formula='=googlefinance(R[0]C[10], "name")'>LG Chem Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":477.52308787499993}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[3]+R[0]C[5]+R[0]C[7]">₩477.5B</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩580.0B"}'>₩580.0B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.029}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>2.90%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Samsung SDI Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[10], "name")'>Samsung SDI Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":429.67766040000004}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[3]+R[0]C[5]+R[0]C[7]">₩429.7B</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩490.0B"}'>₩490.0B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0245}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>2.45%</td>
</tr>
<tr><td colspan="4" data-sheets-value='{"1":2,"2":"Source: KRX &amp; FnGuide Index"}'>Source: KRX &amp; FnGuide Index</td></tr>
</tbody>
</table>
</div>

Korea's local sector ETFs do not usually attract the spotlight as most of them are pretty insignificant in AUM. But a few sector index-mirroring ETFs are quite different. They are as hot as the flagship KOSPI 200-tracking ETFs.The secondary battery sector ETFs are these exceptions. The extreme popularity of the secondary battery sector-ETFs bodes well for the level of investor interest sitting on the sector itself.How hot are they really?
For instance, let's look at the KRX K-New Deal Index.
It has one mother index named the KRX BBIG K-New Deal Index, under which there are four sub-indices. BBIG stands for Battery, Bio, Internet, and Game, representing the four sectors that the New Deal initiative features.

The main index contains 12 large-cap stocks, three of which are from each of the four sectors. We then have four sub-indices, one for each sector. Each sub-index has 10 constituents, selected mainly based on the full market capitalization.
The mother index has three ETFs, and each of the four sub-indices has one ETF. The mother index's combined AUM stands at ₩529.2B at the last close. But the sub-index for the secondary battery has a total of ₩812.8B in AUM, substantially more than the mother index and simply incomparable to the other three sub-indices.










K-New Deal tracking ETFs
Index
Ticker
Market cap


Mirae Asset TIGER KRX BBIG K-New Deal ETF
KRX BBIG K-New Deal Index
364960
₩497.4B


Hana Financial Investment Hana KRX BBIG K-New Deal ETN 3
700003
₩9.6B


TIMEFOLIO TIMEFOLIO BBIG Active ETF
385710
₩22.2B


- Total
-
₩529.2B


Mirae TIGER KRX Secondary Battery K-New Deal ETF
KRX Secondary Battery K-New Deal Index
364980
₩812.8B


Mirae Asset TIGER KRX BIO K-New Deal ETF
KRX Bio K-New Deal Index
364970
₩85.5B


Mirae Asset KRX TIGER Internet K-New Deal ETF
KRX Internet K-New Deal Index
365000
₩45.2B


Mirae Asset KRX TIGER Game K-New Deal ETF
KRX Game K-New Deal Index
364990
₩36.2B

Source: KRX

How substantial is the flow impact?We have three major secondary battery ETFs, with a combined AUM of close to ₩3T.








Name
Samsung KODEX Secondary Battery Industry ETF
Mirae Asset TIGER Secondary Cell ETF
Mirae TIGER KRX Secondary Battery K-New Deal ETF


Market cap
₩1,233.6B
₩873.7B
₩812.8B


Underlying index
FnGuide Secondary Battery Industry Index
WISE Secondary Battery Theme Index
KRX Secondary Battery K-New Deal Index

Source: KRX &amp; FnGuide Index


These are 4 major constituents making all three indices.









4 major constituents making all three indices
Samsung KODEX Secondary Battery Industry ETF
Mirae Asset TIGER Secondary Cell ETF
Mirae TIGER KRX Secondary Battery K-New Deal ETF


SK Innovation Co Ltd
17.13%
11.45%
26.41%


Posco Chemical Co Ltd
16.50%
8.77%
7.96%


LG Chem Ltd
15.96%
9.84%
23.95%


Samsung SDI Co Ltd
13.18%
9.21%
22.96%

Source: KRX &amp; FnGuide Index


As seen below, these three ETFs spark at least as much a passive flow as the KOSPI 200 if we factor in only passive funds making rebalancing trade on the implementation day. As for Posco Chemical, the three ETFs combined passive flow is nearly 6 times KOSPI 200.









Name
Three ETFs combined passive flow
KOSPI 200 passive flow, assuming ₩20T worth of ETFs/index funds making rebalancing trade on the implementation day
KOSPI 200 weight


SK Innovation Co Ltd
₩526.0B
₩218.0B
1.09%


Posco Chemical Co Ltd
₩344.9B
₩60.0B
0.30%


LG Chem Ltd
₩477.5B
₩580.0B
2.90%


Samsung SDI Co Ltd
₩429.7B
₩490.0B
2.45%

Source: KRX &amp; FnGuide Index




Passive Flow Estimations of Two TIGER ETFs on SK IE Tech on Rebalancing Implementation Day

Alpha-Centric ESG Research

Kyle Rudden

<p>Shortly after publishing <a href="https://www.smartkarma.com/insights/engine-versus-exxon-activist-hedge-fund-s-proxy-fight-win-reverberates-through-big-oil-boardrooms" target="_blank" data-smartkarma-citation="insights:52318" rel="noopener">Engine Versus Exxon: Activist Hedge Fund's Proxy Fight Win Reverberates Through "Big Oil" Boardrooms</a>, I decided that a follow-up report (such as this one) would be a good supplement. So, consider this an addendum of sorts to that first Insight.</p><p>Whereas "Engine Versus Exxon" was a mostly qualitative discussion of recent events for Exxon and six other supermajors, this is a more data-driven look of a much larger universe of oil stocks; 50 in total, representing 24 countries (mainly in the Americas, Asia Pacific, and Europe).</p><p>Together, they are a good proxy for the broader Energy sector – an aggregate market capitalisation of US$4.6 trillion, and responsible for an astounding 20.5 billion MtCO2e in emissions, about 65% of all energy-related greenhouse gas (GHG) emissions.</p><p>This is a relatively focused Insight, covering four related areas:</p><ol>
<li>
<strong>Carbon Footprints:</strong> Scope 1, Scope 2, and Scope 3 emissions for each (ranked and sorted).</li>
<li>
<strong>Climate Policies:</strong> Where each stands vis-à-vis implementation of climate-related policies.</li>
<li>
<strong>Emissions Targets:</strong> Which companies are claiming to go net-zero emissions, and by when.</li>
<li>
<strong>Capital Investment:</strong> How future CapEx is (or is not) aligned with global warming targets.</li>
</ol>

Shortly after publishing Engine Versus Exxon: Activist Hedge Fund's Proxy Fight Win Reverberates Through "Big Oil" Boardrooms, I decided that a follow-up report (such as this one) would be a good supplement. So, consider this an addendum of sorts to that first Insight.Whereas "Engine Versus Exxon" was a mostly qualitative discussion of recent events for Exxon and six other supermajors, this is a more data-driven look of a much larger universe of oil stocks; 50 in total, representing 24 countries (mainly in the Americas, Asia Pacific, and Europe).Together, they are a good proxy for the broader Energy sector – an aggregate market capitalisation of US$4.6 trillion, and responsible for an astounding 20.5 billion MtCO2e in emissions, about 65% of all energy-related greenhouse gas (GHG) emissions.This is a relatively focused Insight, covering four related areas:

Carbon Footprints: Scope 1, Scope 2, and Scope 3 emissions for each (ranked and sorted).

Climate Policies: Where each stands vis-à-vis implementation of climate-related policies.

Emissions Targets: Which companies are claiming to go net-zero emissions, and by when.

Capital Investment: How future CapEx is (or is not) aligned with global warming targets.


Greenhouse Gas Emissions Profiles of 50 of the World's Largest Oil Companies

Equity Capital Markets

<h2>Preliminary review application</h2><p>The KRX announced that it had received an application for preliminary examination for the listing of LG Energy Solution. LG Energy Solutions aims to be listed on the KOSPI within this year.</p><p>LG Energy Solutions was established on December 1st last year through a physical spin-off of LG Chem's battery business division. <strong>Currently, LG Energy Solution is LG Chem's wholly-owned subsidiary. As of 2020, its sales were ₩1.46T, with a net loss of ₩451.8B.</strong></p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"LG Energy Solution financials for 2020"}'>LG Energy Solution financials for 2020</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Sales"}'><strong>Sales</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1461.1}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}'><strong>₩1,461.1B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Operating loss"}'><strong>Operating loss</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-475.2}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}'><strong>-₩475.2B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Net loss"}'><strong>Net loss</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-451.8}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}'><strong>-₩451.8B</strong></td>
</tr>
<tr>
<td>Assets</td>
<td style="text-align: right;">₩19,941.8B</td>
</tr>
<tr>
<td>Equity</td>
<td style="text-align: right;">₩7,565.4B</td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><h2>Listing schedule</h2><p>The preliminary examination for listing is a process of reviewing whether a company wishing to be listed meets the listing requirements specified in the listing regulations. For local companies, the preliminary examination for listing takes 45 days.</p><p>A listing applicant who has received approval for the preliminary examination for listing shall submit a registration statement (commonly called IPO book) to the Financial Services Commission. This process takes about 15 days.</p><p><strong>So, we will likely see an IPO book from LG Energy Solution in early August. Then, another 4 weeks should pass until listing, meaning that LG Energy Solution will likely make its public market debut in early September.</strong></p>

Preliminary review applicationThe KRX announced that it had received an application for preliminary examination for the listing of LG Energy Solution. LG Energy Solutions aims to be listed on the KOSPI within this year.LG Energy Solutions was established on December 1st last year through a physical spin-off of LG Chem's battery business division. Currently, LG Energy Solution is LG Chem's wholly-owned subsidiary. As of 2020, its sales were ₩1.46T, with a net loss of ₩451.8B.





LG Energy Solution financials for 2020

Sales
₩1,461.1B


Operating loss
-₩475.2B


Net loss
-₩451.8B


Assets
₩19,941.8B


Equity
₩7,565.4B

Source: KRX

Listing scheduleThe preliminary examination for listing is a process of reviewing whether a company wishing to be listed meets the listing requirements specified in the listing regulations. For local companies, the preliminary examination for listing takes 45 days.A listing applicant who has received approval for the preliminary examination for listing shall submit a registration statement (commonly called IPO book) to the Financial Services Commission. This process takes about 15 days.So, we will likely see an IPO book from LG Energy Solution in early August. Then, another 4 weeks should pass until listing, meaning that LG Energy Solution will likely make its public market debut in early September.

LG Energy Solution KOSPI IPO: Listing Schedule & Valuation Issues

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/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>, <a href="https://www.smartkarma.com/entities/ind-comm-bk-of-china-h" target="_blank" data-smartkarma-citation="entities:1119:1" rel="noopener">ICBC (H) (1398 HK)</a>, <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>, <a href="https://www.smartkarma.com/entities/shenzhou-intl-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10415:1" rel="noopener">Shenzhou Intl Group Holdings (2313 HK)</a> and <a href="https://www.smartkarma.com/entities/aia-group-ltd" target="_blank" data-smartkarma-citation="entities:14895:1" rel="noopener">AIA Group Ltd (1299 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 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/alibaba-health-information-technology-ltd" target="_blank" data-smartkarma-citation="entities:453:1" rel="noopener">Alibaba Health Information Technology (241 HK)</a>, <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com Inc. (9618 HK)</a> and <a href="https://www.smartkarma.com/entities/china-international-capital-corporation-ltd" target="_blank" data-smartkarma-citation="entities:1071:1" rel="noopener">China International Capital Corporation (3908 HK)</a>. Shorts increased in the Communication Services, Information Technology and Financials sectors, while decreasing in Health Care, Real Estate and Consumer Discretionary.</p></div><div><p>In Japan, stocks increased on <a href="https://www.smartkarma.com/entities/oriental-land-co-ltd" target="_blank" data-smartkarma-citation="entities:13517:1" rel="noopener">Oriental Land (4661 JP)</a>, <a href="https://www.smartkarma.com/entities/canon-inc" target="_blank" data-smartkarma-citation="entities:1:1" rel="noopener">Canon Inc (7751 JP)</a>, <a href="https://www.smartkarma.com/entities/nagoya-railroad-co-ltd" target="_blank" data-smartkarma-citation="entities:8652:1" rel="noopener">Nagoya Railroad (9048 JP)</a>, <a href="https://www.smartkarma.com/entities/renesas-electronics-corp" target="_blank" data-smartkarma-citation="entities:15933:1" rel="noopener">Renesas Electronics (6723 JP)</a> and <a href="https://www.smartkarma.com/entities/kyushu-railway-company" target="_blank" data-smartkarma-citation="entities:23609:1" rel="noopener">Kyushu Railway Company (9142 JP)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/monex-group-inc" target="_blank" data-smartkarma-citation="entities:14211:1" rel="noopener">Monex Group Inc (8698 JP)</a>, <a href="https://www.smartkarma.com/entities/tokyo-electric-power-co-inc" target="_blank" data-smartkarma-citation="entities:15457:1" rel="noopener">Tokyo Electric Power Co (9501 JP)</a>, <a href="https://www.smartkarma.com/entities/sharp-corp" target="_blank" data-smartkarma-citation="entities:391:1" rel="noopener">Sharp Corp (6753 JP)</a>, <a href="https://www.smartkarma.com/entities/thk-co-ltd" target="_blank" data-smartkarma-citation="entities:19572:1" rel="noopener">Thk Co Ltd (6481 JP)</a> and <a href="https://www.smartkarma.com/entities/sbi-holdings-inc" target="_blank" data-smartkarma-citation="entities:10928:1" rel="noopener">SBI Holdings (8473 JP)</a>. Shorts increased in almost all sectors led by Information Technology, Consumer Discretionary and Industrials.</p></div><div>
<p>In Korea, shorts increased on <a href="https://www.smartkarma.com/entities/hyundai-motor-co" target="_blank" data-smartkarma-citation="entities:155:1" rel="noopener">Hyundai Motor Co (005380 KS)</a>, <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/lg-display-co-ltd" target="_blank" data-smartkarma-citation="entities:7145:1" rel="noopener">LG Display (034220 KS)</a> and <a href="https://www.smartkarma.com/entities/sk-innovation-co-ltd" target="_blank" data-smartkarma-citation="entities:1268:1" rel="noopener">SK Innovation (096770 KS)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/hmm-co-ltd" target="_blank" data-smartkarma-citation="entities:13494:1" rel="noopener">HMM Co., Ltd. (011200 KS)</a>, <a href="https://www.smartkarma.com/entities/korea-electric-power-corp" target="_blank" data-smartkarma-citation="entities:16:1" rel="noopener">Korea Electric Power (015760 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/posco" target="_blank" data-smartkarma-citation="entities:208:1" rel="noopener">Posco (005490 KS)</a>.</p>
<p>In Taiwan, shorts increased on <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>, <a href="https://www.smartkarma.com/entities/innolux-corp" target="_blank" data-smartkarma-citation="entities:4509:1" rel="noopener">Innolux Corp (3481 TT)</a>, <a href="https://www.smartkarma.com/entities/wan-hai-lines-ltd" target="_blank" data-smartkarma-citation="entities:14262:1" rel="noopener">Wan Hai Lines (2615 TT)</a>, <a href="https://www.smartkarma.com/entities/united-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:6450:1" rel="noopener">United Microelectronics Corp (2303 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> while shorts covered on <a href="https://www.smartkarma.com/entities/pegatron-corp" target="_blank" data-smartkarma-citation="entities:12852:1" rel="noopener">Pegatron Corp (4938 TT)</a>, <a href="https://www.smartkarma.com/entities/walsin-technology-corp" target="_blank" data-smartkarma-citation="entities:11084:1" rel="noopener">Walsin Technology (2492 TT)</a>, <a href="https://www.smartkarma.com/entities/foxconn-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:11950:1" rel="noopener">Foxconn Technology (2354 TT)</a>, <a href="https://www.smartkarma.com/entities/global-unichip-corp" target="_blank" data-smartkarma-citation="entities:10305:1" rel="noopener">Global Unichip (3443 TT)</a> and <a href="https://www.smartkarma.com/entities/zhen-ding-technology-holding-ltd" target="_blank" data-smartkarma-citation="entities:16830:1" rel="noopener">Zhen Ding Technology Holding (4958 TT)</a>. Short notional in Taiwan is rising fast and outpacing the rise in the market.</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 Tencent (700 HK), ICBC (H) (1398 HK), Sunny Optical (2382 HK), Shenzhou Intl Group Holdings (2313 HK) and AIA Group Ltd (1299 HK) while there was short covering on Alibaba Group (9988 HK), Ping An Insurance (H) (2318 HK), Alibaba Health Information Technology (241 HK), JD.com Inc. (9618 HK) and China International Capital Corporation (3908 HK). Shorts increased in the Communication Services, Information Technology and Financials sectors, while decreasing in Health Care, Real Estate and Consumer Discretionary.In Japan, stocks increased on Oriental Land (4661 JP), Canon Inc (7751 JP), Nagoya Railroad (9048 JP), Renesas Electronics (6723 JP) and Kyushu Railway Company (9142 JP) while there was short covering on Monex Group Inc (8698 JP), Tokyo Electric Power Co (9501 JP), Sharp Corp (6753 JP), Thk Co Ltd (6481 JP) and SBI Holdings (8473 JP). Shorts increased in almost all sectors led by Information Technology, Consumer Discretionary and Industrials.
In Korea, shorts increased on Hyundai Motor Co (005380 KS), Samsung Biologics Co., (207940 KS), LG Display (034220 KS) and SK Innovation (096770 KS) while shorts were covered on HMM Co., Ltd. (011200 KS), Korea Electric Power (015760 KS), Celltrion Inc (068270 KS) and Posco (005490 KS).
In Taiwan, shorts increased on TSMC (2330 TT), Innolux Corp (3481 TT), Wan Hai Lines (2615 TT), United Microelectronics Corp (2303 TT), Taiwan Cement (1101 TT) while shorts covered on Pegatron Corp (4938 TT), Walsin Technology (2492 TT), Foxconn Technology (2354 TT), Global Unichip (3443 TT) and Zhen Ding Technology Holding (4958 TT). Short notional in Taiwan is rising fast and outpacing the rise in the market.


Asia Shorts: Tencent, AIA, JD, CICC, Canon, Renesas, Monex, HMC, LGD, HMM, KEPCO, Innolux, Wan Hai

<p>SK IE Tech's 5-day daily average market cap (May 11~17) is <span data-sheets-value='{"1":3,"3":10338.15084}' data-sheets-userformat='{"2":14529,"3":{"1":2,"2":"₩#,##0.0B","3":1},"9":2,"10":1,"14":{"1":2,"2":3815996},"15":"\"Courier New\"","16":9}' data-sheets-formula="=average(R[-5]C[0]:R[-1]C[0])*Terms!R[12]C[-9]/1000000000"><strong>₩10,338.2B</strong>, placing it at the <strong>35th spot</strong> among KOSPI's largest market cap ordinary shares. The 50th spot (CJ Cheiljedang) has a 5-day daily average market cap of ₩6,870.7B, 33.54% below where SK IE Tech sits. </span></p><div>
<p>SK IE Tech finally bounces back today with a 4.5% gain as I'm writing this post. We still have 10 more trading sessions to confirm SK IE Tech's fast entry into KOSPI 200. The last review day falls on May 31. <strong>But it seems to me that it is a done deal as a 33.54% gap is a pretty comfortable cushion.</strong> </p>
<p>The KRX will likely announce SK IET's entry on <strong>June 1</strong>, right after the 15-trading day review period. The inclusion should then occur on <strong>June 11</strong>.</p>
<div class="content-highlight"><em><strong>KOSPI 200 fast entry rule for an IPO stock</strong>: A newly listed stock in the <strong>top 50 ordinary shares</strong> in the KOSPI market by market capitalization is subject to index inclusion. The market capitalization refers to the <strong>average daily market capitalization for 15 trading days</strong> from the listing day.</em></div>
<hr>
<h2>Non-float and free float</h2>
<p>As filed at the <a href="http://find.krx.co.kr/p/Fids0207/" target="_blank" rel="noopener">KRX FIND</a>, SK Innovation and Premier Superior (the early investor) have a combined 71.00%. Adding the ESOP-owned 3.96% raises the total non-float shares to <strong>73.96%</strong>.</p>
<table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 218.182px;" data-sheets-value='{"1":2,"2":"Non-float"}'>Non-float</td>
<td style="text-align: right; width: 79.0909px;" data-sheets-value='{"1":2,"2":"Shares"}'>Shares</td>
<td style="text-align: right; width: 120px;" data-sheets-value='{"1":2,"2":"Shareholding %"}'>Shareholding %</td>
<td style="text-align: right; width: 108.182px;" data-sheets-value='{"1":2,"2":"Lockup period"}'>Lockup period</td>
<td style="text-align: right; width: 114.545px;">Last filed</td>
</tr>
<tr>
<td style="width: 218.182px;" data-sheets-value='{"1":2,"2":"SK Innovation"}'><strong>SK Innovation</strong></td>
<td style="text-align: right; width: 79.0909px;" data-sheets-value='{"1":3,"3":43633432}' data-sheets-numberformat='[null,2,"#,##0",1]'>43,633,432</td>
<td style="text-align: right; width: 120px;" data-sheets-value='{"1":3,"3":0.6119902618871055}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5"><strong>61.20%</strong></td>
<td style="text-align: right; width: 108.182px;" data-sheets-value='{"1":2,"2":"6 months"}'>6 months</td>
<td style="text-align: right; width: 114.545px;">2021. 5. 13</td>
</tr>
<tr>
<td style="width: 218.182px;" data-sheets-value='{"1":2,"2":"Premier Superior Ltd."}'><strong>Premier Superior Ltd.</strong></td>
<td style="text-align: right; width: 79.0909px;" data-sheets-value='{"1":3,"3":6274160}' data-sheets-numberformat='[null,2,"#,##0",1]'>6,274,160</td>
<td style="text-align: right; width: 120px;" data-sheets-value='{"1":3,"3":0.08799960593339534}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5"><strong>8.80%</strong></td>
<td style="text-align: right; width: 108.182px;" data-sheets-value='{"1":2,"2":"6 months"}'>6 months</td>
<td style="text-align: right; width: 114.545px;">2021. 5. 12</td>
</tr>
<tr>
<td style="width: 218.182px;" data-sheets-value='{"1":2,"2":"ESOP"}'><strong>ESOP</strong></td>
<td style="text-align: right; width: 79.0909px;" data-sheets-value='{"1":3,"3":2823956}' data-sheets-numberformat='[null,2,"#,##0",1]'>2,823,956</td>
<td style="text-align: right; width: 120px;" data-sheets-value='{"1":3,"3":0.03960801368999951}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5"><strong>3.96%</strong></td>
<td style="text-align: right; width: 108.182px;" data-sheets-value='{"1":2,"2":"1 year"}'>1 year</td>
<td style="text-align: right; width: 114.545px;">-</td>
</tr>
<tr>
<td style="width: 218.182px;" data-sheets-value='{"1":2,"2":"Total"}'><strong>Total</strong></td>
<td style="text-align: right; width: 79.0909px;" data-sheets-value='{"1":3,"3":52731548}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=sum(R[-3]C[0]:R[-1]C[0])"><strong>52,731,548</strong></td>
<td style="text-align: right; width: 120px;" data-sheets-value='{"1":3,"3":0.7395978815105004}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5"><strong>73.96%</strong></td>
<td style="text-align: right; width: 108.182px;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
<td style="text-align: right; width: 114.545px;"><strong>-</strong></td>
</tr>
<tr>
<td colspan="4" style="width: 588.182px;" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td>
<td style="width: 114.545px;"></td>
</tr>
</tbody>
</table>
<p>So, the eventual free float rate should be <strong>26.04%</strong>, of which <strong>11.00%</strong> are voluntary lockups from 15 days to 6 months by the IPO institutional shareholders.</p>
<table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Free float"}'>Free float</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Shares"}'>Shares</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Shareholding %"}'>Shareholding %</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Lockup period"}'>Lockup period</td>
</tr>
<tr>
<td colspan="1" rowspan="4" data-sheets-value='{"1":2,"2":"IPO voluntary lockup"}'><div>IPO voluntary lockup</div></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3020988}' data-sheets-numberformat='[null,2,"#,##0",1]'>3,020,988</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0423715291815185}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5">4.24%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"6 months"}'>6 months</td>
</tr>
<tr>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2087672}' data-sheets-numberformat='[null,2,"#,##0",1]'>2,087,672</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.02928110110647215}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5">2.93%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"3 months"}'>3 months</td>
</tr>
<tr>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2700264}' data-sheets-numberformat='[null,2,"#,##0",1]'>2,700,264</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.037873144439436325}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5">3.79%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"1 month"}'>1 month</td>
</tr>
<tr>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":35922}' data-sheets-numberformat='[null,2,"#,##0",1]'>35,922</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0005038318825690495}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5">0.05%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"15 days"}'>15 days</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"IPO institutional"}'><strong>IPO institutional</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4304198}' data-sheets-numberformat='[null,2,"#,##0",1]'><strong>4,304,198</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.06036947222565385}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5"><strong>6.04%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"IPO retail"}'><strong>IPO retail</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6417000}' data-sheets-numberformat='[null,2,"#,##0",1]'><strong>6,417,000</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.09000303965384975}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5"><strong>9.00%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>
<p>But SK IE Tech's free float rate for the KOSPI 200 index should be 26.04% as the KRX considers institutional voluntary lockups as free float shares instead of non-float. The KRX then rounds it up to the nearest 1%. So, it will be <strong>27.00</strong>%.</p>
<table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Free float schedule"}'>Free float schedule</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Shares"}'>Shares</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Shareholding %"}'>Shareholding %</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Date"}'>Release date</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"6 months"}'><strong>6 months</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":18566044}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[1]C[0]+R[-9]C[0]"><strong>18,566,044</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2604021184894996}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5"><strong>26.04%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44511}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'><strong>11. 11</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"3 months"}'>3 months</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":15545056}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[1]C[0]+R[-9]C[0]">15,545,056</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2180305893079811}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5">21.80%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44419}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>8. 11</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1 month"}'>1 month</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":13457384}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[1]C[0]+R[-9]C[0]">13,457,384</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.18874948820150897}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5">18.87%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44358}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>6. 11</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"15 days"}'>15 days</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":10757120}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[1]C[0]+R[-9]C[0]">10,757,120</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.15087634376207265}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5">15.09%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44342}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>5. 26</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Immediate"}'>Immediate</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":10721198}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=sum(R[-9]C[0]:R[-8]C[0])">10,721,198</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1503725118795036}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/R1C5">15.04%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44327}' data-sheets-numberformat='{"1":5,"2":"m\". \"d","3":1}'>5. 11</td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>
<h2>Passive inflow estimation</h2>
<p>The 5-day daily average float-adjusted market cap arrives at <strong><span data-sheets-value='{"1":3,"3":2791.3140000000003}' data-sheets-userformat='{"2":15041,"3":{"1":2,"2":"₩#,##0.0B"},"9":2,"10":1,"12":0,"14":{"1":2,"2":3815996},"15":"\"Courier New\"","16":9}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]">₩2,791.3B with a free float rate of 27.00%, giving an estimated weight of 0.22% in the KOSPI 200. </span></strong><span data-sheets-value='{"1":3,"3":2791.3140000000003}' data-sheets-userformat='{"2":15041,"3":{"1":2,"2":"₩#,##0.0B"},"9":2,"10":1,"12":0,"14":{"1":2,"2":3815996},"15":"\"Courier New\"","16":9}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]">We realistically estimate total passive funds mirroring KOSPI 200 at ₩80T, 0.22% of which spits out ₩178.7B flowing into SK IE Tech.</span></p>
<p><span data-sheets-value='{"1":3,"3":2791.3140000000003}' data-sheets-userformat='{"2":15041,"3":{"1":2,"2":"₩#,##0.0B"},"9":2,"10":1,"12":0,"14":{"1":2,"2":3815996},"15":"\"Courier New\"","16":9}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]">How many shares? ₩178.7B at the 5-day VWAP (volume-weighted average price) translates into <strong>1,117,477 shares</strong>, representing <strong>10.42%</strong> of the immediate free float shares. The current daily trade volume (TV) hovers around 1M shares. So, it is equivalent to one full-day TV.</span></p>
<table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"KOSPI 200 estimated passive inflow"}' data-sheets-numberformat='[null,2,"#,##0.0"]'>Passive inflow estimation for SK IE Tech</td></tr>
<tr>
<td style="width: 485.455px;" data-sheets-value='{"1":2,"2":"5-day daily average market cap"}'>5-day daily average market cap</td>
<td style="text-align: right; width: 217.273px;" data-sheets-value='{"1":3,"3":10338.2}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'>₩10,338.2B</td>
</tr>
<tr>
<td style="width: 485.455px;" data-sheets-value='{"1":2,"2":"Index free float"}'>Index free float</td>
<td style="text-align: right; width: 217.273px;" data-sheets-value='{"1":3,"3":0.2604}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>27.00%</td>
</tr>
<tr>
<td style="width: 485.455px;" data-sheets-value='{"1":2,"2":"5-day daily average float-adj market cap"}'><strong>5-day daily average float-adj market cap</strong></td>
<td style="text-align: right; width: 217.273px;" data-sheets-value='{"1":3,"3":2692.06728}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]"><strong><span data-sheets-value='{"1":3,"3":2791.3140000000003}' data-sheets-userformat='{"2":15041,"3":{"1":2,"2":"₩#,##0.0B"},"9":2,"10":1,"12":0,"14":{"1":2,"2":3815996},"15":"\"Courier New\"","16":9}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]">₩2,791.3B</span></strong></td>
</tr>
<tr>
<td style="width: 485.455px;" data-sheets-value='{"1":2,"2":"Weight in KOSPI 200"}'><strong>Estimated weight in KOSPI 200</strong></td>
<td style="text-align: right; width: 217.273px;" data-sheets-value='{"1":3,"3":0.0022}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'><strong>0.22%</strong></td>
</tr>
<tr>
<td style="width: 485.455px;" data-sheets-value='{"1":2,"2":"Estimated passive inflow"}'><strong>Estimated passive inflow</strong></td>
<td style="text-align: right; width: 217.273px;" data-sheets-value='{"1":3,"3":178.7}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><strong>₩178.7B</strong></td>
</tr>
<tr>
<td style="width: 485.455px;" data-sheets-value='{"1":2,"2":"Passive inflow: amount of shares at the 5-day volume-weighted average price"}'>Passive inflow: the number of shares at the 5-day volume-weighted average price</td>
<td style="text-align: right; width: 217.273px;" data-sheets-value='{"1":3,"3":1117476.9164515114}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[-1]C[0]*1000000000/R[-1]C[1]">1,117,477 shares</td>
</tr>
<tr>
<td style="width: 485.455px;" data-sheets-value='{"1":2,"2":" - % of the immediate float (26.04%)"}'><strong>- % of the immediate free float shares (15.04%)</strong></td>
<td style="text-align: right; width: 217.273px;" data-sheets-value='{"1":3,"3":0.10388253700353918}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[0]/R[-11]C[0]"><strong>10.42%</strong></td>
</tr>
<tr><td colspan="2" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table>
<p></p>
</div>

SK IE Tech's 5-day daily average market cap (May 11~17) is ₩10,338.2B, placing it at the 35th spot among KOSPI's largest market cap ordinary shares. The 50th spot (CJ Cheiljedang) has a 5-day daily average market cap of ₩6,870.7B, 33.54% below where SK IE Tech sits. 
SK IE Tech finally bounces back today with a 4.5% gain as I'm writing this post. We still have 10 more trading sessions to confirm SK IE Tech's fast entry into KOSPI 200. The last review day falls on May 31. But it seems to me that it is a done deal as a 33.54% gap is a pretty comfortable cushion. 
The KRX will likely announce SK IET's entry on June 1, right after the 15-trading day review period. The inclusion should then occur on June 11.
KOSPI 200 fast entry rule for an IPO stock: A newly listed stock in the top 50 ordinary shares in the KOSPI market by market capitalization is subject to index inclusion. The market capitalization refers to the average daily market capitalization for 15 trading days from the listing day.

Non-float and free float
As filed at the KRX FIND, SK Innovation and Premier Superior (the early investor) have a combined 71.00%. Adding the ESOP-owned 3.96% raises the total non-float shares to 73.96%.









Non-float
Shares
Shareholding %
Lockup period
Last filed


SK Innovation
43,633,432
61.20%
6 months
2021. 5. 13


Premier Superior Ltd.
6,274,160
8.80%
6 months
2021. 5. 12


ESOP
2,823,956
3.96%
1 year
-


Total
52,731,548
73.96%
-
-


Source: DART




So, the eventual free float rate should be 26.04%, of which 11.00% are voluntary lockups from 15 days to 6 months by the IPO institutional shareholders.









Free float
Shares
Shareholding %
Lockup period


IPO voluntary lockup
3,020,988
4.24%
6 months


2,087,672
2.93%
3 months


2,700,264
3.79%
1 month


35,922
0.05%
15 days


IPO institutional
4,304,198
6.04%
-


IPO retail
6,417,000
9.00%
-

Source: DART


But SK IE Tech's free float rate for the KOSPI 200 index should be 26.04% as the KRX considers institutional voluntary lockups as free float shares instead of non-float. The KRX then rounds it up to the nearest 1%. So, it will be 27.00%.









Free float schedule
Shares
Shareholding %
Release date


6 months
18,566,044
26.04%
11. 11


3 months
15,545,056
21.80%
8. 11


1 month
13,457,384
18.87%
6. 11


15 days
10,757,120
15.09%
5. 26


Immediate
10,721,198
15.04%
5. 11

Source: DART


Passive inflow estimation
The 5-day daily average float-adjusted market cap arrives at ₩2,791.3B with a free float rate of 27.00%, giving an estimated weight of 0.22% in the KOSPI 200. We realistically estimate total passive funds mirroring KOSPI 200 at ₩80T, 0.22% of which spits out ₩178.7B flowing into SK IE Tech.
How many shares? ₩178.7B at the 5-day VWAP (volume-weighted average price) translates into 1,117,477 shares, representing 10.42% of the immediate free float shares. The current daily trade volume (TV) hovers around 1M shares. So, it is equivalent to one full-day TV.






Passive inflow estimation for SK IE Tech

5-day daily average market cap
₩10,338.2B


Index free float
27.00%


5-day daily average float-adj market cap
₩2,791.3B


Estimated weight in KOSPI 200
0.22%


Estimated passive inflow
₩178.7B


Passive inflow: the number of shares at the 5-day volume-weighted average price
1,117,477 shares


- % of the immediate free float shares (15.04%)
10.42%

Source: KRX





SK IE Tech KOSPI 200 Fast Entry: Estimated Passive Inflow & Ongoing Local Passive Buying

South Korea

SK Innovation Co., Ltd. refines, markets, and distributes oil.  The Company produces a variety of petroleum products, such as gasoline, kerosene, liquefied petroleumgas (LPG), and diesel oil.  SK Energy also manufactures petrochemical p roducts, including paraxylene, synthetic resins, styrene monomer, and ethylene.

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SK Innovation (096770 KS)

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