In today’s briefing:
- Sony – IR Day One and Kadokawa
- FTSE100/FTSE250 Index Rebalance Preview: Changes and Migrations
- LG Energy Solution: Short-Term Flow Crunch & Block Deal Possibility
- SAIC’s Unconditional Offer For Dongzheng
- Shanghai/Shenzhen Southbound Connect: Weekly Moves (27 May 2022)
Sony – IR Day One and Kadokawa
- Sony held the first of their two investor days yesterday presenting on the Game & Network Services, Music and Pictures segments.
- While there was nothing especially new for those paying attention to the broad flow of news conditions for the content businesses remain strong.
- What was interesting to us was the degree of collaboration with Kadokawa.
FTSE100/FTSE250 Index Rebalance Preview: Changes and Migrations
- At the June rebalance, Centrica PLC (CNA LN) and Unite Group (UTG LN) could replace Royal Mail PLC (RMG LN) and ITV PLC (ITV LN) in the UKX Index.
- Apart from the migration between the FTSE 100 and FTSE 250 indices, there could be 5 adds and deletes to the FTSE 250 Index in June.
- There are some close adds and the list could change from now to the review cutoff date on 31 May. These changes could be interesting from a trading perspective.
LG Energy Solution: Short-Term Flow Crunch & Block Deal Possibility
- LG Energy Solution’s real-world free-float rate should be around 5%, or 12.3M shares. We will see two additional passive inflows with the real-world float this tight.
- KOSPI 200 up-weight and FTSE June QIR New Entry’s combined inflow will be 0.6% of SO, enough for us to expect a short-term flow crunch.
- Then, there will likely be a share let-go event (block deals) by LG Chem to lessen the tight float situation, just like what KSOE had done for HHI.
SAIC’s Unconditional Offer For Dongzheng
- It’s now official – SAIC Motor (600104 CH) has made a possible unconditional mandatory cash Offer for Dongzheng Automotive Finance (2718 HK).
- To recap: on the 19 May, SAIC acquired China Zhengtong Auto Services Hldg (1728 HK)‘s 71.04% stake in Dongzheng at a judicial auction. This triggers the mandatory Offer.
- The new news from today’s announcement is that the Offer price was reduced to HK$1.243/share – presumably on account of moves in HKD vs. RMB. The Offer price is final.
Shanghai/Shenzhen Southbound Connect: Weekly Moves (27 May 2022)
- Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry.
- Overall, net inflow was ~US$1.1bn, split evenly (roughly) between Shanghai and Shenzhen.
- The largest inflows were into China Mobile (941 HK) and CNOOC Ltd (883 HK). The largest outflows were in Kuaishou Technology (1024 HK) and BYD (1211 HK).
Before it’s here, it’s on Smartkarma
