Daily Brief Financials: TSE Tokyo Price Index TOPIX, Zip , ICBC (H), NIFTY Index, Greentown China and more

• Last year, the GPIF as a whole returned 22.67% in yen terms. As a whole, GPIF outperformed its benchmarks by 0.04% after paying 0.02% in fees and costs.
• GPIF traded ¥30trln of assets – relatively high turnover for a fund which espouses very low turnover – but there’s a reason for that. There were also sharp active/passive moves.
• This year is the last year in the “cycle” of the “old” Policy Allocation Framework. A new one is likely to be introduced this year.

• With all regulatory approvals received, the Scheme Meeting for Renesas Electronics (6723 JP)‘ acquisition of Altium Ltd (ALU AU) will take place on 12 July.
• If approved at the Scheme Meeting and at the Second Court Hearing, Altium Ltd (ALU AU) will stop trading from the close on 19 July.
• The replacements for Altium Ltd (ALU AU) in the ASX100/200 indices could be announced late this week with implementation at the close on 19 July.

• SOUTHBOUND was again a net buyer, for HK$10.9bn this week, on smallish two-way volumes. Banks were a big buy.
• The more I watch, the more I think the last few months have had serious national team buying of banks and energy, perhaps ahead of shareholder return policy changes.
• But valuations are acceptable. Flows are good. Policy changes are afoot. SOUTHBOUND may continue to see inflows – national team and otherwise.

• Regular Spot-Vol Correlations reasserted – Implied Volatilities (IVs) traded lower as Equity Markets continued making new Highs.
• As expected, Vol-Regime Switching Model is stuck in “High & Down” state. IVs projected to grind lower over an elongated period.      
• Changes in Vol term-structure + Skew/ Smile compression – indicative of reduced risk-premia for July-end India Budget event.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Greentown China
• NagaCorp Ltd
• Vedanta Resources
• Yuexiu Property