In today’s briefing:
- Alibaba (9988 HK): Dual Primary Listing Implications
- MSCI August 2022 Index Rebalance Preview: The Last QIR!
- S&P/ASX Index Rebalance Preview: Busy Rebalance With Lots of Changes Expected
- Alibaba to Pursue Dual Primary Listing in HK – Impact on Stock Connect, Indices, Etc
- IDX30/LQ45 Index Rebalance: Big Inflows on ARTO, BBRI, BBCA; Outflows on GOTO, TLKM, BMRI
- Hong Kong CEO & Director Dealings – 26th July 2022
- Smartkarma Corporate Webinar | Metrodata Electronics: Rising with the Digital Tide
- Chinese GDRs on the SIX Exchange – More Names, Smaller Discounts, Smaller Size, Less Liquidity
- Walmart Shocker #2 – Sell Japanese Electronics Retailers
- MACA’s Recommended $1.025 Per Share Takeover Offer from Thiess
Alibaba (9988 HK): Dual Primary Listing Implications
- Alibaba Group (9988 HK) currently has a Secondary Listing in Hong Kong and is looking to become dual primary listed in Hong Kong and the U.S.
- The main change will be inclusion in the Southbound Stock Connect program where mainland investors will be able to buy the stock.
- Alibaba Group (9988 HK) is capped at 8% in the HSCEI INDEX and is close to 8% of the HSI INDEX, there will be negligible impact on the dividend futures.
MSCI August 2022 Index Rebalance Preview: The Last QIR!
- We have completed days 1-5 in the review period for the MSCI August QIR. This is the last review that will use the current QIR methodology.
- Most changes are expected in China with the largest inflows on Gcl Poly Energy Holdings Limited (3800 HK), Tianqi Lithium (002466 CH) and Qinghai Salt Lake Industry (000792 CH).
- There are a few stocks that will have same way flows from the FTSE All-World and All-Cap trackers at the September SAIR.
S&P/ASX Index Rebalance Preview: Busy Rebalance With Lots of Changes Expected
- At the September rebalance, we expect changes to the S&P/ASX 100 Index, S&P/ASX 200 (AS51 INDEX) and S&P/ASX 300 Index. Announcement is on 2 September with implementation on 16 September.
- Potential adds/deletes with large flow and impact include Shopping Cntrs Austrls (SCP AU), Sayona Mining (SYA AU), Charter Hall Social Infrastructure REIT (CQE AU) and Capricorn Metals (CMM AU).
- Shorts have increased significantly on a few stocks over the last few weeks, indicating that there could be some pre-positioning on these stocks.
Alibaba to Pursue Dual Primary Listing in HK – Impact on Stock Connect, Indices, Etc
- This morning – 26 July – Alibaba (ADR) (BABA US) / Alibaba Group (9988 HK) issued an announcement it would pursue a primary listing on the HKEX.
- When Alibaba listed in NY, it was on ADRs. When it listed in HK, it was the shares underlying the ADRs but it was a quickie secondary listing.
- It will now seek a dual primary listing as others have. This will make BABA Southbound-eligible and will slightly improve BABA’s HSI funding trade prospects in future.
IDX30/LQ45 Index Rebalance: Big Inflows on ARTO, BBRI, BBCA; Outflows on GOTO, TLKM, BMRI
- There are 3 changes each for the IDX30 Index and LQ45 Index and 11 changes for the IDX80 Index at the upcoming rebalance to be implemented on 29 July.
- There is passive inflow on Bank Jago Tbk PT (ARTO) due to index inclusion, and on Bank Rakyat Indonesia (BBRI) and Bank Central Asia (BBCA) due to capping changes.
- With only 4 days to implementation, there will be relatively big moves on stocks that have large flow/impact from passive fund trading.
Hong Kong CEO & Director Dealings – 26th July 2022
- The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
- Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. However, such disclosures are by no means an absolute.
- These insights also flags those companies where shares have been pledged, both recently and ongoing.
Smartkarma Corporate Webinar | Metrodata Electronics: Rising with the Digital Tide
For our next Corporate Webinar we are glad to welcome Metrodata Electronics’ President Director/CEO, Susanto Djaja and Director/CFO, Randy Kartadinata.
In the upcoming webinar, Susanto will share a short company presentation after which, he and Randy will engage in a fireside chat with Smartkarma Insight Provider, Angus Mackintosh. The Corporate Webinar will include a live Q&A session.
The Corporate Webinar will be hosted on Tuesday, August 16, 17:00 SGT.
PT Metrodata Electronics, Tbk (MTDL:IJ), publicly listed company on Indonesia Stock Exchange since 1990, is a Digital Solution Provider and Technology Innovator in Indonesia that leads and enables the digital economy hub. MTDL builds strategic alliances with world-class ICT companies. The Company has two main business units, including Distribution Business (providing World-Class ICT Hardware and Software) that handles distribution through Omnichannel to partnered dealers (both offline and online) and ICT solution companies, as well as runs an e-commerce business (e-catalogue for Government/B2G). Its Distribution network covers more than 150 cities in Indonesia and has more than 5,200 channel partners and more than 100 world-class IT products and service brands. The second business unit, Solution & Consulting Business, is a digital solution provider that provides a complete range of ICT solutions based on Metrodata’s 8 Pillars of Digital Solutions, which consist of Cloud Services, Big Data & Analytics, Hybrid IT Infrastructure, Security, Business Application, Digital Business Platform, Consulting & Advisory Services, and Managed Services to support digital business transformation, for Enterprise, Corporate, SME, and Public Sector segment.
Corporate Webinars by Smartkarma Corporate Solutions feature discussions with IROs and Executives, discussing their companies, the challenges they face, and the opportunities in their sectors and markets.
Chinese GDRs on the SIX Exchange – More Names, Smaller Discounts, Smaller Size, Less Liquidity
- China started mulling an expansion of its Stock Connect relationships in late 2021 with plans to allow GDR issuance in Switzerland and eventually Germany.
- New GDR issuance rules came into effect in February and companies started planning to issue GDRs in Switzerland in March.
- The new SIX Listing Rules went into effect 25 July. Two companies priced GDRs on 22 July and two more yesterday. US$1.5bn so far. There are 6 more near-term.
Walmart Shocker #2 – Sell Japanese Electronics Retailers
- After the close, Walmart slashed its quarter and full-year profit guidance – the second inflation-induced cut this year – stock down sharply
- The company said inflation is causing consumers to spend more on must-have things such as food and less on electronics
- Japanese electronics retailers will face a similar problem as inflation feeds through to weaker consumption of high-end goods
MACA’s Recommended $1.025 Per Share Takeover Offer from Thiess
- MACA Ltd (MLD AU) has recommended a A$1.025 per share offer from Thiess. The offer price represents a 28.1% premium to the unaffected price of A$0.80 (on 25 July).
- The offer is conditional on a 90% minimum acceptance condition and regulatory approvals (FIRB and ACCC). The target statement will be released in late August.
- We think that the offer is reasonable in the context of historical share prices and multiples. At the last close, the gross spread is 3.5%.
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