In today’s briefing:
- HSCEI Index Rebalance: Bilibili Replaces Sunac Next Week
- HSI Index Rebalance Preview: Finding the Balance
- FTSE TWSE Taiwan Dividend+ Index: A Rare Gem for Index Rebal Trades
- Giordano (709 HK): Cheng Family’s Offer (Even) Less Viable After Positive Profit Alert
- WCP IPO Preview
HSCEI Index Rebalance: Bilibili Replaces Sunac Next Week
- Bilibili (9626 HK) will replace Sunac China Holdings (1918 HK) in the Hang Seng China Enterprises Index (HSCEI INDEX) at the close of trading on 8 July.
- While Bilibili (9626 HK)‘s index inclusion is a surprise, the impact from passive fund trading is not a lot. Nothing much one can do on Sunac China Holdings (1918 HK).
- The Hang Seng China Enterprises Index (HSCEI INDEX) will drop 16.12 points at the close on 8 July. Something for traders to watch out for over the next week.
HSI Index Rebalance Preview: Finding the Balance
- Currently at 69 constituents, it is unlikely that we reach 80 member by year end. Hang Seng Indexes is finding it tough to reach the target by excluding unprofitable companies.
- We list 11 stocks that could be added to the index in September – with one-way turnover just over 5%, the actual number of inclusions will be lower.
- There are a few potential inclusions where short interest is over 5% of the free float. These stocks could see short covering ahead of announcement of the changes.
FTSE TWSE Taiwan Dividend+ Index: A Rare Gem for Index Rebal Trades
- The FTSE TWSE Taiwan Dividend+ Index is an index of stocks with the highest dividend yields in the universe of the FTSE TWSE Taiwan 50 and Mid-Cap 100 Indices.
- According to our estimates, the historical average return for index rebalance trades seems to be extremely attractive and the potential volume impact can be significant too.
- We feel this is one of the most interesting esoteric indices in the Asia-Pacific region for index rebalance trades.
Giordano (709 HK): Cheng Family’s Offer (Even) Less Viable After Positive Profit Alert
- After the close of trading yesterday, Giordano International (709 HK) announced a positive profit alert
- Giordano expects an interim net profit of HK$91mn-HK$101mn, a 52%-68% increase over the corresponding period.
- The Cheng family’s HK$1.88/share Offer was low-balled from the onset. Substantial shareholder David Webb agrees. This deal is dead without a bump.
WCP IPO Preview
- WCP is getting ready for an IPO in Korea in August. This is expected to be one of the largest IPOs in Korea post LG Energy Solution (373220 KS).
- The IPO price range is from 80,000 won to 100,000 won. The IPO base deal size is from $560 million to $700 million.
- WCP is a leading maker of separators which are key materials used in EV batteries.
Before it’s here, it’s on Smartkarma
