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

Korea Stock Exchange KOSPI 200 / Event-Driven

<ul>
<li>Korea banned all short selling in March 2020 and resumed short selling only on <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200</a> and <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150</a> index constituents in May 2021.</li>
<li>News reports indicate that there could be another short sell ban as soon as the coming week. Indications are that the ban could last 6 months.</li>
<li>There are many implications of a total short sell ban including futures backwardation, market manipulation, and no emerging to developed market promotion.</li>
</ul>


Korea banned all short selling in March 2020 and resumed short selling only on KOSPI 200 and KOSDAQ 150 index constituents in May 2021.
News reports indicate that there could be another short sell ban as soon as the coming week. Indications are that the ban could last 6 months.
There are many implications of a total short sell ban including futures backwardation, market manipulation, and no emerging to developed market promotion.


Korea Short Sell Ban: Background, Manipulation, Holdings, Flows, Short Interest, Implications

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.

<ul>
<li>The trigger for yesterday's sell-off was the sudden collective decision of the brokerages that had been allowing credit trading for these stocks to halt credit trading simultaneously.</li>
<li>There is a possibility that the identities of the stocks under investigation were leaked, and these brokerages took preemptive actions.</li>
<li>There have also been observations of large-cap stocks that may become the next targets. Some notable examples include Cosmo Chemical, Kum Yang, Posco International, and Ecopro Co.</li>
</ul>


The trigger for yesterday's sell-off was the sudden collective decision of the brokerages that had been allowing credit trading for these stocks to halt credit trading simultaneously.
There is a possibility that the identities of the stocks under investigation were leaked, and these brokerages took preemptive actions.
There have also been observations of large-cap stocks that may become the next targets. Some notable examples include Cosmo Chemical, Kum Yang, Posco International, and Ecopro Co.


Market Talk on the Five Stocks Hitting the Lower Limit Yesterday

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>There were five stocks in Korea that dropped limit down (30%) today. They included Pang Rim, Dongil Industries, Manho Rope &amp; Wire, Taihan Textile, and Dongil Metal.</li>
<li>The share price decline of these five stocks are similar to the crash in eight stocks in Korea in April which were related to CFD derivatives related margin call selling. </li>
<li>Domestic securities firms in Korea have been trying to significantly reduce their exposure to CFD related trading and in this process, these sharp drops could be caused by this selling.</li>
</ul>


There were five stocks in Korea that dropped limit down (30%) today. They included Pang Rim, Dongil Industries, Manho Rope &amp; Wire, Taihan Textile, and Dongil Metal.
The share price decline of these five stocks are similar to the crash in eight stocks in Korea in April which were related to CFD derivatives related margin call selling. 
Domestic securities firms in Korea have been trying to significantly reduce their exposure to CFD related trading and in this process, these sharp drops could be caused by this selling.


5 Stocks in Korea Drop Limit Down - Caused by CFD Derivatives Related Margin Call Again?

Thematic (Sector/Industry)

It was reported today that John Lee, the CEO of Meritz Asset Management, will create a new Korea Corporate Governance Fund, partnering with Sustinvest. John Lee previously ran the Lazard Korea Corporate Governance Fund, which shut down in 2012. This new "engagement fund" will essentially be the Korea Corporate Governance Fund II. In running the Lazard Korea Corporate Governance Fund, John Lee previously partnered with Jang Ha-Sung, the current Chief of Staff for Policy in Korea. The timing is…

It was reported today that John Lee, the CEO of Meritz Asset Management, will create a new Korea Corporate Governance Fund, partnering with Sustinvest. John Lee previously ran the Lazard Korea Corporate Governance Fund, which shut down in 2012. This new "engagement fund" will essentially be the Korea Corporate Governance Fund II. In running the Lazard Korea Corporate Governance Fund, John Lee previously partnered with Jang Ha-Sung, the current Chief of Staff for Policy in Korea. The timing is…

John Lee (CEO of Meritz Asset Mgmt) Creates a New Korea Corporate Governance Fund

It was reported in the local press that 38 minority shareholders of <a href="https://www.smartkarma.com/entities/11118" target="_blank" data-smartkarma-citation="entities:11118:1">Taihan Textile Co Ltd (001070 KS)</a> have combined their forces to remove the Chairman of Taihan Textile (Seol Bum) from the company. The minority shareholders also want to appoint six new members in the company's BOD.Established in 1953, Taihan Textile is one of the oldest textile companies in Korea. As of end of 3Q16, Chairman Seol Beom had a 19.88% stake in the company. Other related parties of Chairman Seol Beom had a 12.29%…

It was reported in the local press that 38 minority shareholders of Taihan Textile Co Ltd (001070 KS) have combined their forces to remove the Chairman of Taihan Textile (Seol Bum) from the company. The minority shareholders also want to appoint six new members in the company's BOD.Established in 1953, Taihan Textile is one of the oldest textile companies in Korea. As of end of 3Q16, Chairman Seol Beom had a 19.88% stake in the company. Other related parties of Chairman Seol Beom had a 12.29%…

Taihan Textile - Minority Shareholders Raise Voice Against the Chairman

South Korea

Taihan Textile Co., Ltd. manufactures and processes cotton yarn and fabrics. The Company also sells apartments in Daegu city.  Taihan Textile markets its products mainly to overseas market.

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Taihan Textile (001070 KS)

Korea Short Sell Ban: Background, Manipulation, Holdings, Flows, Short Interest, Implications

Media reports indicate that there could be a temporary short sell ban in Korea. This could lead to futures backwardation, market manipulation and a...

Brian Freitas

Market Talk on the Five Stocks Hitting the Lower Limit Yesterday

This post examines the major issues that have garnered significant attention based on the information available so far regarding the incident of...

Sanghyun Park

John Lee (CEO of Meritz Asset Mgmt) Creates a New Korea Corporate Governance Fund

It was reported today that John Lee, the CEO of Meritz Asset Management, will create a new Korea Corporate Governance Fund, partnering with...

Douglas Kim

Taihan Textile - Minority Shareholders Raise Voice Against the Chairman

It was reported in the local press that 38 minority shareholders of Taihan Textile Co Ltd (001070 KS) have combined their forces to remove the...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Korea Short Sell Ban: Background, Manipulation, Holdings, Flows, Short Interest, Implications

Media reports indicate that there could be a temporary short sell ban in Korea. This could lead to futures backwardation, market manipulation and a...

Brian Freitas

Market Talk on the Five Stocks Hitting the Lower Limit Yesterday

This post examines the major issues that have garnered significant attention based on the information available so far regarding the incident of...

Sanghyun Park

5 Stocks in Korea Drop Limit Down - Caused by CFD Derivatives Related Margin Call Again?

There were five stocks in Korea that dropped limit down (30%) today, which could have been due to another round of CFD derivatives related margin...

Douglas Kim

John Lee (CEO of Meritz Asset Mgmt) Creates a New Korea Corporate Governance Fund

It was reported today that John Lee, the CEO of Meritz Asset Management, will create a new Korea Corporate Governance Fund, partnering with...

Douglas Kim

Taihan Textile - Minority Shareholders Raise Voice Against the Chairman

It was reported in the local press that 38 minority shareholders of Taihan Textile Co Ltd (001070 KS) have combined their forces to remove the...

Douglas Kim