In today’s briefing:
- Tencent’s BIG In-Specie Dividend of JD.com Shares – The Likely Flows & Timing
- Index Rebalance & ETF Flow Recap: MSCI May, FTSE June, HFCAA/China ADRs, GoTo
- Quarz Capital Again Objects to the MNACT/MCT Deal – This Time to MAS
- FTSE China A50 Index: FOL Changes Done; 100 Index Members Next?
- S&P/ASX Index Rebalance Preview (June): Potential Changes from Now to June
Tencent’s BIG In-Specie Dividend of JD.com Shares – The Likely Flows & Timing
- Tencent (700 HK) will deliver shares of JD.com Inc. (9618 HK) this week in its in-specie distribution of 14.7% of the shares out of JD.com.
- Some people will NEED to hold. Some will NEED to sell. On a net basis, it is a short-term sell and a longer-term overhang.
- The timing and execution are going to be quite interesting. There will be short-term opportunity.
Index Rebalance & ETF Flow Recap: MSCI May, FTSE June, HFCAA/China ADRs, GoTo
- It was a busy Friday with a whole lot of rebalance implementations – FTSE AW/AC, EPRA Nareit, China 50, China A50, Taiwan 50, S&P/ASX. This week is quieter.
- We take an early look at potential changes to the MSCI Standard Index in May, to the FTSE AW/AC in June, China ADRs that could list in Hong Kong.
- There were some big inflows to Tracker Fund of Hong Kong Ltd (2800 HK) and Hang Seng H Share Index ETF (2828 HK) during the week.
Quarz Capital Again Objects to the MNACT/MCT Deal – This Time to MAS
- Quarz Capital objects to the proposed Mapletree Commercial Trust (MCT SP) / Mapletree North Asia Commercial Trust (MAGIC SP) as they claim it is damaging to MNACT unitholder interests.
- Now they have written a letter to the Monetary Authority of Singapore asking them to Do Something to force MNACT directors to Do Something Different.
- I doubt it comes to anything, but activist-ish letter commentary is my bag so…
FTSE China A50 Index: FOL Changes Done; 100 Index Members Next?
- With the FOL changes implemented at the March rebalance, the next step could be an increase in the number of FTSE China A50 Index (XIN9I) constituents from 50 to 100.
- The June rebalance will also see a change in the index universe from the FTSE China A All Cap Free Index to the FTSE China A All Cap Index.
- If the 50 to 100 stock increase is implemented on one-step, one-way turnover will be around 27.6% and result in a one-way trade of over CNY 13bn.
S&P/ASX Index Rebalance Preview (June): Potential Changes from Now to June
- The privatisation of Crown Resorts and CIMIC Group could lead to one change to the S&P/ASX100 and two changes to the S&P/ASX 200 (AS51 INDEX) prior to the regular rebalance.
- There will be more changes at the regular rebalance – one close change in the S&P/ASX50, one close change in the S&P/ASX100 and a few for the S&P/ASX 200.
- The potential inclusions have outperformed the potential deletions by a wide margin. Couple of the potential inclusions were added to the S&P/ASX300 and FTSE All-Cap indices on 18 March.
Before it’s here, it’s on Smartkarma
