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Most Read: Sea Ltd, BHP Group, Softbank Group, LG Energy Solution, Nippon Building Fund and more

In today’s briefing:

  • Sea Ltd (SE US): Tencent’s Selldown and Upcoming MSCI Passive Inflow
  • ASX100/​200/300 Index Rebalance Preview (March 2022): A Lot Happening From Now to March
  • TOPIX-Nikkei Skew Trade Looking Increasingly Juicy
  • Aequitas 2021 IPOs and Placements Performance Review – Busiest Year on Record
  • Nippon Building Fund (8951) – Calculating Passive Tracking of J-REITs and Index Events Around Offers

Sea Ltd (SE US): Tencent’s Selldown and Upcoming MSCI Passive Inflow

By Brian Freitas

  • Sea Ltd (SE US) stock was down a lot since the announcement of its Q3 results. Tencent (700 HK) selling a 2.6% stake yesterday took the stock down even further.
  • Given the large drawdown and Tencent (700 HK) locking in its remaining Sea Ltd (SE US) holding for the next 6 months, the stock could rally in the short term.
  • There will be passive inflow from MSCI trackers in February as a part of the tranched inclusion and then more in May due to an increase in the FIF.

ASX100/​200/300 Index Rebalance Preview (March 2022): A Lot Happening From Now to March

By Brian Freitas


TOPIX-Nikkei Skew Trade Looking Increasingly Juicy

By Mio Kato

  • Our suggested TOPIX-Nikkei skew trade continues to grind out positive returns with relatively low volatility. 
  • With Nikkei starting to noticeably underperform over the last few days we believe faster outperformance could be ahead. 
  • In particular we believe two of the worst performing legs here could start to contribute.

Aequitas 2021 IPOs and Placements Performance Review – Busiest Year on Record

By Sumeet Singh

  • 2021 marked our sixth year covering Equity Capital Markets (ECM) in Asia Pacific. 
  • Most markets were in top gear on the ECM front and we ended the year covering the highest number of IPOs and the second highest number of placements since inception.
  • For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.

Nippon Building Fund (8951) – Calculating Passive Tracking of J-REITs and Index Events Around Offers

By Travis Lundy

  • Nippon Building Fund (8951 JP) announced a smallish primary offering to assist in funding a portion of its Asset Replacement Campaign involving sales and purchases and an uplift in DPU.
  • That is an occasion to look at how much of float is held by passive trackers. 
  • A test was done on the top 10 J-REITs on a holder-by-holder basis to see what one could expect at a minimum. The result may surprise some.

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