Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

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KRX BBIG Index Rebalancing Preview: SK IE Tech, SK Bioscience, Krafton, Kakao Games, & Pearl Abyss

Passive Flow Estimations of Two TIGER ETFs on SK IE Tech on Rebalancing Implementation Day

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

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

Index overviewThe WISE rechargeable battery theme index uses stocks that include the 'Secondary Battery' keyword through AI keyword analysis among stocks included in the report of the local brokerages. It is a float-adjusted market capitalization-weighted index.Screening criteria
The index first analyzes the keywords of local brokerage reports published during the last two years from the stock screening base date. It then selects the stock with 'Secondary Battery' within the top 5 of the main keyword rankings.
After checking the sales composition specified in the business report submitted at the time of the previous regular change, stocks generating sales in the following business areas are selected as index constituents.

Product production: A company that produces secondary batteries
Raw material production: A company that produces and distributes raw materials for secondary battery production
Equipment manufacturing: A company that produces and distributes equipment and machinery for secondary battery production


Stocks with total sales of ₩200B or less or those with 50% or less of the above-related sales are excluded.
Screening schedule
The index undergoes a regular rebalancing every January, April, July, and October on the trading day following the option expiration date.The screening base date for quarterly regular rebalancing is the last trading day of the month preceding the month of regular rebalancing.Therefore, the screening base date for the upcoming rebalancing is June 30, and July 9 is the implementation date. That is, we should expect a rebalancing trading at the close on July 8.





Rebalancing schedule

Rebalancing cycle
Quarterly


Rebalancing month
January, April, July, and October


Implementation date
The trading day following the option expiration dates


Next implementation date
July 9, 2021


Rebalancing trading
At the close on July 8, 2021


Screening base date
The last trading day of the month preceding the date of regular rebalancing

Source: KRX &amp; WISE Index

Index weight, as of June 18, 2021Below is the index weight of the constituent stocks based on last Friday's closing price.









WISE Secondary Cell Index tracking ETFs
Ticker
Weight
Market cap
30-day average daily trade value


SK Innovation Co Ltd
096770
11.19%
₩25,613.0B
₩228.0B


SKC Co Ltd
011790
10.25%
₩5,509.8B
₩50.1B


Samsung SDI Co Ltd
006400
9.67%
₩46,347.3B
₩181.5B


LG Chem Ltd
051910
9.53%
₩58,026.9B
₩254.2B


Posco Chemical Co Ltd
003670
8.63%
₩9,117.7B
₩38.9B


Ecopro BM Co Ltd
247540
7.39%
₩4,546.1B
₩26.3B


L&amp;F Co., Ltd.
066970
6.35%
₩2,625.4B
₩41.6B


Iljin Materials Co Ltd
020150
6.19%
₩3,255.4B
₩15.5B


SoulBrain Co Ltd
357780
5.61%
₩2,568.5B
₩9.4B


Chunbo Co Ltd
278280
3.15%
₩1,853.0B
₩9.2B


Ecopro Co., Ltd.
086520
2.83%
₩836.9B
₩14.1B


Creative &amp; IS
222080
2.33%
₩687.0B
₩11.6B


Cosmo Advanced M&amp;T
005070
2.30%
₩798.1B
₩18.7B


Foosung Co Ltd
093370
2.05%
₩990.9B
₩5.3B


Solus Advanced Materials
336370
2.05%
₩1,602.9B
₩17.4B


Daejoo Electronic Materials
078600
2.04%
₩747.8B
₩11.8B


Ecopro HN Co Ltd
383310
1.82%
₩538.7B
₩12.1B


People &amp; Technology Inc
137400
1.60%
₩515.1B
₩4.0B


Dongwha Enterprise Co Ltd
025900
0.93%
₩1,414.1B
₩7.8B


Wonik PNE Co Ltd
131390
0.87%
₩327.5B
₩3.3B


Youlchon Chemical Co. Ltd.
008730
0.80%
₩550.6B
₩2.5B


CowinTech Co Ltd
282880
0.68%
₩224.6B
₩1.4B


Shin Heung Energy &amp; Elec
243840
0.53%
₩377.2B
₩4.2B


mPlus Corp
259630
0.48%
₩171.0B
₩3.9B


Innometry Co Ltd
302430
0.39%
₩169.1B
₩0.5B


Daebo Magnetic Co Ltd
290670
0.28%
₩257.4B
₩0.6B

Source: KRX



WISE Battery Index Rebalancing Preview (Implementation on July 9): SK IE Tech, Ecopro HN & Soulbrain

SK IE Technology

WISE Battery Index Rebalancing Preview (Implementation on July 9): SK IE Tech, Ecopro HN & Soulbrain