Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Looking Ahead to the KOSPI 200 Rebalance in November 2021

KRX Plans to Launch a New Index Called 'KOSPI 200 Top 10'

KOSPI 200 Review Period Completed: Early Phase Long Short Trade

Hyosung’s Transformation into a Holdco + Four Subsidiaries (Part 3): What's Next?

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Event-Driven

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<p>KRX announced today after the market close the changes in the constituents for KOSPI 200, KOSDAQ 150, and KRX 300 indices. There were 5 stocks that were added and 7 stocks that were deleted in KOSPI 200. As a result of the being included in the KOSPI 200, the five new additions will be subject to potential short selling. These five stocks have done really well in the past few months and some investors could be taking some short positions on them. </p>
<p>We have also provided the impact of the additions and deletions of KOSPI 200 on their share prices post the announcements in November 2020 and May 2020 in terms of 20 trading days after the KOSPI 200 rebalance announcement dates. </p>
<p>Although the November 2020 rebalance showed the additions far outperforming the deletions (20 trading days after announcement date), this trend reversed in the May 2020 rebalance. These data points suggest lack of a definitive conclusion on taking long/short position post the announcement date. In addition, the regulators have allowed shorting for only the stocks included in KOSPI 200 and KOSDAQ 150, making it even more difficult to short stocks that are excluded from these indices.</p>
</div>


KRX announced today after the market close the changes in the constituents for KOSPI 200, KOSDAQ 150, and KRX 300 indices. There were 5 stocks that were added and 7 stocks that were deleted in KOSPI 200. As a result of the being included in the KOSPI 200, the five new additions will be subject to potential short selling. These five stocks have done really well in the past few months and some investors could be taking some short positions on them. 
We have also provided the impact of the additions and deletions of KOSPI 200 on their share prices post the announcements in November 2020 and May 2020 in terms of 20 trading days after the KOSPI 200 rebalance announcement dates. 
Although the November 2020 rebalance showed the additions far outperforming the deletions (20 trading days after announcement date), this trend reversed in the May 2020 rebalance. These data points suggest lack of a definitive conclusion on taking long/short position post the announcement date. In addition, the regulators have allowed shorting for only the stocks included in KOSPI 200 and KOSDAQ 150, making it even more difficult to short stocks that are excluded from these indices.


KOSPI 200, KOSDAQ 150, & KRX 300 Indices Rebalance Changes - May 2021

Hyosung TNC Co Ltd

KOSPI 200, KOSDAQ 150, & KRX 300 Indices Rebalance Changes - May 2021