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>There are no changes to the index names, but FAF and capping changes will lead to a one-way turnover of 4.5% and one-way flow of HK$3,287m.</li>
<li>An increase in the FAF from 3% to 40% will result in passive inflows of HK$1.18bn for <a href="https://www.smartkarma.com/entities/sensetime-group-inc" target="_blank" data-smartkarma-citation="entities:34319:1" rel="noopener">SenseTime Group (20 HK)</a> - that is over 5 days of ADV.</li>
<li>There are large shorts on some of the stocks that will have passive outflows and some of these positions could be covered on implementation day.</li>
</ul>


There are no changes to the index names, but FAF and capping changes will lead to a one-way turnover of 4.5% and one-way flow of HK$3,287m.
An increase in the FAF from 3% to 40% will result in passive inflows of HK$1.18bn for SenseTime Group (20 HK) - that is over 5 days of ADV.
There are large shorts on some of the stocks that will have passive outflows and some of these positions could be covered on implementation day.


Hang Seng TECH Index Rebalance: No Changes BUT Big Turnover

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Aug 5th. </li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short covers for Alibaba, AIA and Country Garden.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Aug 5th. 
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short covers for Alibaba, AIA and Country Garden.


HK Short Interest: Alibaba, AIA, Country Garden Short Covers

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<strong><a href="https://www.smartkarma.com/entities/swire-pacific-ltd-cl-a" target="_blank" data-smartkarma-citation="entities:10433:1" rel="noopener">Swire Pacific (19 HK)</a></strong> has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0811/2022081100273.pdf" target="_blank" rel="noopener">announced</a> a "small" buyback at HK$4bn, but it is a material portion of ADV.  </li>
<li>What remains unknown is how the buyback will be split.  The split will only be known once buyback volumes are announced. </li>
<li>Swire is trading cheap at a look-through forward P/B of 0.28x compared to its five-year average of 0.38x, and the two-year average pre-Covid of 0.48x. </li>
</ul>



Swire Pacific (19 HK) has announced a "small" buyback at HK$4bn, but it is a material portion of ADV.  
What remains unknown is how the buyback will be split.  The split will only be known once buyback volumes are announced. 
Swire is trading cheap at a look-through forward P/B of 0.28x compared to its five-year average of 0.38x, and the two-year average pre-Covid of 0.48x. 


Swire A/​​B (19 HK /​​ 87 HK)'s BIG Buyback Programme

Asia biased macro & technical analysis, Untying The Gordian Knot

Untying The Gordian Knot

Asia biased macro & technical analysis

A differentiated process with a primary focus on Asia. Technical Analysis as core and Macro drivers that could bring the view to fruition & changes that could make the idea fall apart. The objective is to be the best in class, hence corner shop.

Technical Analysis

<ul><li>The Hong Kong Indices have been much weaker than Taiwan &amp; China due to liquidity and open capital account.</li><li>It is a canary for global indices and should be analyzed accordingly.</li><li>There is no change in views of real estate and technology sector stocks mentioned in previous updates on Hang Seng constituents.</li></ul>

The Hong Kong Indices have been much weaker than Taiwan &amp; China due to liquidity and open capital account.It is a canary for global indices and should be analyzed accordingly.There is no change in views of real estate and technology sector stocks mentioned in previous updates on Hang Seng constituents.

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Jul 22nd. </li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short interests changes in Wuxi Biologics, Techtronic, Tencent, XPeng.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Jul 22nd. 
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short interests changes in Wuxi Biologics, Techtronic, Tencent, XPeng.


HK Short Interest: Wuxi Biologics, Techtronic, Tencent, XPeng

China

Xiaomi Corporation manufactures communication equipment and parts. The Company produces and sells mobile phones, smart phone software,  set-top boxes, and related accessories. Xiaomi markets its products worldwide.

Price Gauge
52-week Range	0.00 - 0.00
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Xiaomi Corp (1810 HK)

Hang Seng TECH Index Rebalance: No Changes BUT Big Turnover

There are no add/deletes for the HSTECH, but FAF and capping changes will lead to a one-way turnover of 4.5% and one-way flow of HK$3,287m....

Brian Freitas

HK Short Interest: Alibaba, AIA, Country Garden Short Covers

We highlight week on week short covers for Alibaba, AIA and Country Garden based on latest HK SFC short aggregate report.

Ke Yan, CFA, FRM

Swire A/B (19 HK / 87 HK)'s BIG Buyback Programme

I continue to tilt bullish on Swire Pac. ~45% discount is unreasonably wide given its tendency to historically trade in the low-to-mid twenties....

David Blennerhassett

Xiaomi, China Unicom, and Bank Of China

There is no change in views of real estate and technology sector stocks mentioned in previous updates on Hang Seng constituents.

Untying The Gordian Knot

HK Short Interest: Wuxi Biologics, Techtronic, Tencent, XPeng

We highlight weekly short interests changes in Wuxi Biologics, Techtronic, Tencent, XPeng based on the latest HK SFC Short Aggregate report.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hang Seng TECH Index Rebalance: No Changes BUT Big Turnover

There are no add/deletes for the HSTECH, but FAF and capping changes will lead to a one-way turnover of 4.5% and one-way flow of HK$3,287m....

Brian Freitas

HK Short Interest: Alibaba, AIA, Country Garden Short Covers

We highlight week on week short covers for Alibaba, AIA and Country Garden based on latest HK SFC short aggregate report.

Ke Yan, CFA, FRM

Swire A/​​B (19 HK /​​ 87 HK)'s BIG Buyback Programme

I continue to tilt bullish on Swire Pac. ~45% discount is unreasonably wide given its tendency to historically trade in the low-to-mid twenties....

David Blennerhassett

Xiaomi, China Unicom, and Bank Of China

There is no change in views of real estate and technology sector stocks mentioned in previous updates on Hang Seng constituents.

Untying The Gordian Knot

HK Short Interest: Wuxi Biologics, Techtronic, Tencent, XPeng

We highlight weekly short interests changes in Wuxi Biologics, Techtronic, Tencent, XPeng based on the latest HK SFC Short Aggregate report.

Ke Yan, CFA, FRM

Swire A/B (19 HK / 87 HK)'s BIG Buyback Programme