In today’s briefing:
- Hang Seng TECH Index Rebalance: No Changes BUT Big Turnover
- Last Week in Event SPACE: Tencent/Meituan, Jardine Matheson, Giordano, Nearmap, Fraser Hospitality
- ECM Weekly (21st Aug 2022) – China Tourism, SoCar, Beauty Farm, ANZ, Max, Judo, Steadfast, Cleanaway
- TOPIX Inclusions Pre-Event: Artspark Holdings (3663 JP)
Hang Seng TECH Index Rebalance: No Changes BUT Big Turnover
- 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.
Last Week in Event SPACE: Tencent/Meituan, Jardine Matheson, Giordano, Nearmap, Fraser Hospitality
- Chinese food delivery giant Meituan (3690 HK) shed 9% after Tencent (700 HK) reportedly planned to divest its $24bn stake. But it may just be a misunderstanding. Maybe.
- Given Jardine Matheson Holdings (JM SP)‘s strong underlying operating performance, the 40% discount to NAV – one in which there are discounts of discounts – JMH appears attractive here.
- Expect a firm Offer for Nearmap Ltd (NEA AU) shortly. Thoma Bravo’s due diligence is already at an advanced stage. And why Nearmap entered into the break fee.
ECM Weekly (21st Aug 2022) – China Tourism, SoCar, Beauty Farm, ANZ, Max, Judo, Steadfast, Cleanaway
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- On the IPO front, China Tourism managed to price its IPO above the mid-point.
- There were a host of placements and blocks this week across the region.
TOPIX Inclusions Pre-Event: Artspark Holdings (3663 JP)
- After market close on Friday, Japan-based UI/UX software solutions company Artspark Holdings (3663 JP) announced (link) they will be working towards a Segment transfer from Standard market to Prime market.
- If a TSE-listed name moves from the Standard Market to the Prime Market, a TOPIX Inclusion event will be triggered.
- In this insight, we take a look at the ability of Artspark Holdings (3663 JP) to meet the Prime Market Segment Transfer Requirements and the TOPIX Inclusion Implications.
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