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

<ul>
<li>Media reports indicate that <a href="https://www.smartkarma.com/entities/walmart-inc" target="_blank" data-smartkarma-citation="entities:11134:1" rel="noopener">Walmart (WMT US)</a> is looking to sell 144.5m shares of <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com (JD US)</a> to raise up to US$3.74bn. That would be substantially all of its stake.</li>
<li>There will be passive buying from global index trackers at the time of settlement of the placement shares and could absorb around 12% of the placement shares.</li>
<li>There will be no passive buying from <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">HSI</a>, <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">HSCEI</a>, <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">HSTECH</a> and HSIII trackers in the short-term. An increase in CCASS holdings should result in passive buying in December.</li>
</ul>


Media reports indicate that Walmart (WMT US) is looking to sell 144.5m shares of JD.com (JD US) to raise up to US$3.74bn. That would be substantially all of its stake.
There will be passive buying from global index trackers at the time of settlement of the placement shares and could absorb around 12% of the placement shares.
There will be no passive buying from HSI, HSCEI, HSTECH and HSIII trackers in the short-term. An increase in CCASS holdings should result in passive buying in December.


JD.com (9618 HK): Index Implications of Walmart Placement

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>700 HK: &lt;Black Myth: WuKong&gt; Tops Steam’s Most Played Games Now with Over 1.2 million Concurrent Players (+)</li>
<li>700 HK: Tencent’s &lt;Rock Kingdom: World&gt; Begins Beta Testing Today: iOS Only, Android/PC Versions Not Yet Available (+)</li>
<li>700 HK: &lt;Honor of Kings&gt; Matchmaking Algorithm to Be Overhauled (+)</li>
</ul>


700 HK: &lt;Black Myth: WuKong&gt; Tops Steam’s Most Played Games Now with Over 1.2 million Concurrent Players (+)
700 HK: Tencent’s &lt;Rock Kingdom: World&gt; Begins Beta Testing Today: iOS Only, Android/PC Versions Not Yet Available (+)
700 HK: &lt;Honor of Kings&gt; Matchmaking Algorithm to Be Overhauled (+)


[Blue Lotus Daily-TMT Update]:700 HK/LCKNY US/NTES US/BABA US/PDD US/AMZN US/SHEIN/3690 HK

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>AntFin is looking to raise around US$400m by selling around 2% of <a href="https://www.smartkarma.com/entities/zomato-ltd" target="_blank" data-smartkarma-citation="entities:28820:1" rel="noopener">Zomato (ZOMATO IN)</a>.</li>
<li>Ant Group had earlier sold some of its stake in Nov 2023 and Mar 2024, with the deals producing a mixed bag result.</li>
<li>In this note, we talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>


AntFin is looking to raise around US$400m by selling around 2% of Zomato (ZOMATO IN).
Ant Group had earlier sold some of its stake in Nov 2023 and Mar 2024, with the deals producing a mixed bag result.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.


Zomato Placement - Momentum Is Very Strong, past Ant Related Deals Have Been Mixed

Midea Group Co Ltd A / Equity Capital Markets

<ul>
<li>Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.</li>
<li>On the IPO front, <a href="https://www.smartkarma.com/entities/brainbees-solutions" target="_blank" data-smartkarma-citation="entities:36115:1" rel="noopener">BrainBees</a> contiued along <a href="https://www.smartkarma.com/entities/ola-electric-mobility-pvt-ltd" target="_blank" data-smartkarma-citation="entities:40618:1" rel="noopener">Ola Electric</a>'s path, ensuring that India's ECM wave will continue, for now.</li>
<li>Once again there was only one placement this week, that too in India, just like the week before.</li>
</ul>


Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, BrainBees contiued along Ola Electric's path, ensuring that India's ECM wave will continue, for now.
Once again there was only one placement this week, that too in India, just like the week before.


ECM Weekly (19th Aug 2024) - Midea, China Res, WeRide, FirstCry, ACME, Gadgil, 99 Speed, Hind Zinc

<ul>
<li>As expected, <a href="https://www.smartkarma.com/entities/asm-pacific-technology-ltd" target="_blank" data-smartkarma-citation="entities:15061:1" rel="noopener">ASM Pacific Technology (522 HK)</a> will replace <a href="https://www.smartkarma.com/entities/ping-an-healthcare-and-technol" target="_blank" data-smartkarma-citation="entities:27008:1" rel="noopener">Ping An Healthcare and Technol (1833 HK)</a> in the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng TECH Index (HSTECH INDEX)</a> at the close on 6 September.</li>
<li>Estimated one-way turnover at the rebalance is 3.2% resulting in a round-trip trade of HK$6.5bn. Passives need to buy over 7x ADV in <a href="https://www.smartkarma.com/entities/asm-pacific-technology-ltd" target="_blank" data-smartkarma-citation="entities:15061:1" rel="noopener">ASM Pacific Technology (522 HK)</a>. </li>
<li>Positioning appears light in both stocks. Expect <a href="https://www.smartkarma.com/entities/asm-pacific-technology-ltd" target="_blank" data-smartkarma-citation="entities:15061:1" rel="noopener">ASM Pacific Technology (522 HK)</a> to move up and <a href="https://www.smartkarma.com/entities/ping-an-healthcare-and-technol" target="_blank" data-smartkarma-citation="entities:27008:1" rel="noopener">Ping An Healthcare and Technol (1833 HK)</a> to move lower near-term.</li>
</ul>


As expected, ASM Pacific Technology (522 HK) will replace Ping An Healthcare and Technol (1833 HK) in the Hang Seng TECH Index (HSTECH INDEX) at the close on 6 September.
Estimated one-way turnover at the rebalance is 3.2% resulting in a round-trip trade of HK$6.5bn. Passives need to buy over 7x ADV in ASM Pacific Technology (522 HK). 
Positioning appears light in both stocks. Expect ASM Pacific Technology (522 HK) to move up and Ping An Healthcare and Technol (1833 HK) to move lower near-term.


HSTECH Index Rebalance: ASMPT (522 HK) Replaces Ping An Healthcare (1833 HK)

China

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

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Tencent (700 HK)

JD.com (9618 HK): Index Implications of Walmart Placement

Walmart is looking to sell its entire stake in JD.com. The ADR is lower in the aftermarket and the HK-line is down 10.8%. Passive trackers will buy...

Brian Freitas

[Blue Lotus Daily-TMT Update]:700 HK/LCKNY US/NTES US/BABA US/PDD US/AMZN US/SHEIN/3690 HK

Popular games like <black wukong myth:=""> and <honor of kings> are making waves on Steam and in beta testing, while changes are coming to...

Blue Lotus Research Institute

ECM Weekly (19th Aug 2024) - Midea, China Res, WeRide, FirstCry, ACME, Gadgil, 99 Speed, Hind Zinc

Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.

Sumeet Singh

HSTECH Index Rebalance: ASMPT (522 HK) Replaces Ping An Healthcare (1833 HK)

ASMPT will replace Ping An Healthcare in the HSTECH at the close on 6 Sep. Changes were expected but positioning appears light. With 6.5% of float...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

JD.com (9618 HK): Index Implications of Walmart Placement

Walmart is looking to sell its entire stake in JD.com. The ADR is lower in the aftermarket and the HK-line is down 10.8%. Passive trackers will buy...

Brian Freitas

[Blue Lotus Daily-TMT Update]:700 HK/LCKNY US/NTES US/BABA US/PDD US/AMZN US/SHEIN/3690 HK

​Popular games like <black wukong myth:=""> and <honor of kings> are making waves on Steam and in beta testing, while changes are coming to...

Blue Lotus Research Institute

Zomato Placement - Momentum Is Very Strong, past Ant Related Deals Have Been Mixed

AntFin is looking to raise around US$400m by selling around 2% of Zomato (ZOMATO IN). Past selldown's by AntFin have produced mixed results.

Sumeet Singh

ECM Weekly (19th Aug 2024) - Midea, China Res, WeRide, FirstCry, ACME, Gadgil, 99 Speed, Hind Zinc

Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.

Sumeet Singh

HSTECH Index Rebalance: ASMPT (522 HK) Replaces Ping An Healthcare (1833 HK)

ASMPT will replace Ping An Healthcare in the HSTECH at the close on 6 Sep. Changes were expected but positioning appears light. With 6.5% of float...

Brian Freitas

Popular games like <black wukong myth:=""> and <honor of kings> are making waves on Steam and in beta testing, while changes are coming to...