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<Research>CICC: Passive Capital Flow Calculation Shows Index Adjustments Positive to J&T EXPRESS-W, NEW ORIENTAL-S & ASMPT
CICC has released an analysis report on the impact of the HSI and Southbound Stock Connect adjustments, in which the broker's focus was on the positive impact on J&T EXPRES...
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<Research>CICC: Passive Capital Flow Calculation Shows Index Adjustments Positive to J&T EXPRESS-W, NEW ORIENTAL-S & ASMPT
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CICC has released an analysis report on the impact of the HSI and Southbound Stock Connect adjustments, in which the broker's focus was on the positive impact on J&T EXPRESS-W (01519.HK)  +0.070 (+1.159%)    Short selling $24.50M; Ratio 22.622%   , NEW ORIENTAL-S (09901.HK)  +0.150 (+0.322%)    Short selling $16.68M; Ratio 12.722%   , and ASMPT (00522.HK)  -0.700 (-0.916%)    Short selling $50.72M; Ratio 19.896%   , and the negative impact on JD LOGISTICS (02618.HK)  -0.420 (-3.035%)    Short selling $3.75M; Ratio 4.027%   , SENSETIME-W (00020.HK)  -0.010 (-0.662%)    Short selling $140.70M; Ratio 24.904%   and PA GOODDOCTOR (01833.HK)  -0.120 (-1.840%)    Short selling $4.08M; Ratio 5.850%   .

As summarized by Bloomberg, the size of ETFs tracking the HSI was around US$25.89 billion, while the size of ETFs tracking the HSCEI and HSTECH reached around US$4.87 billion and US$14.71 billion, respectively. The potential passive fund flows were estimated after combining the above changes in constituent and shareholding weights. The possible impact of changes in passive capital was estimated after further combining the average daily trading volume of individual stocks over the past three months.

Related NewsJPM Ratings, TPs on HK Developers/ Banks (Table)
Although there were no changes to the HSI constituents this time, some of the target weights were reset. The most time-consuming passive capital inflows are expected to come from NEW WORLD DEV (00017.HK)  +0.020 (+0.386%)    Short selling $27.30M; Ratio 30.435%   (weight increased by 0.01 ppt) and HAIDILAO (06862.HK)  -0.100 (-0.584%)    Short selling $43.03M; Ratio 20.957%   (weight increased by 0.03 ppts), with an amount of US$2.59 million and US$7.77 million and an inflow time of about 0.4 days and 0.3 days, respectively. As for the capital outflows, the weight of SINO BIOPHARM (01177.HK)  -0.020 (-0.619%)    Short selling $29.81M; Ratio 30.501%   dropped slightly by 0.02 ppts, which is expected to bring about passive capital outflows of around US$5.18 million, with an outflow time of about 0.3 days.

With regard to the HSCEI, the most time-consuming passive capital inflows are expected to come from the newly admitted J&T EXPRESS-W and NEW ORIENTAL-S, with an amount of US$31.63 million and US$25.3 million and inflow time of about 2.2 days and 0.8 days respectively.

In terms of the HSTECH, the most time-consuming passive capital inflows are expected to come from the newly admitted ASMPT, with an amount of US$238 million and inflow time of about 9.3 days.

Related NewsBOCOMI: Alibaba (BABA.US) Intime Sale to Further Focus on Core Biz
In addition, regarding the adjustment of the Hong Kong Stock Connect, CICC pointed out that 33 stocks meet the inclusion criteria, while 27 stocks may be removed. In response to recent market concerns about whether BABA-SW (09988.HK)  -2.850 (-3.436%)    Short selling $1.70B; Ratio 15.943%   can be admitted, considering that the company has already met the other requirements for inclusion, if the company successfully completes the dual primary listing conversion at the end of August, it may still be able to catch up with the Hong Kong Stock Connect inspection date on September 5 and be included under the adjustment around September 9. However, it is reminded that if the dual primary listing conversion fails to be realized, there is a risk that the company will not be included.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-12-20 16:25.)

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