🐻The Hang Seng Tech (HSTECH) Index is about to enter into bear market territory - defined as a 20% pullback from recent highs, following a 2.5% loss to 5,381 as of 1105AM. The index is down 19.5% from its 2 October high of 6,682.86
🏋♀️The gauge of Chinese technology shares is being dragged down by the likes of SMIC (-4.0% to HKD 62.10) Alibaba (-3.9% to HKD 142.80) and Baidu (-2.4% to HKD 115.80)
🔝Following today's drop, put warrants tracking Alibaba, HSTECH, HSI and SMIC crowd the top gainers table with gains between 25% to 100%, while HSI, HSTECH call warrants are amongst the day's top losers with -50% to -67% returns
💦Sentiment in Chinese names have been dampened by this week's economic data showing signs of economic weakness in China ranging from sluggish consumption to worsening factory deflation, and the reluctance of the Chinese government to introduce further stimulus
🔽Meanwhile, worries about Chinese technology stocks’ stretched valuations and profit-taking in high-flying names, such as Pop Mart, have added pressure (Bloomberg)
📈Notwithstanding the recent pullback, the HSTECH is still up 22% this year
Trending warrants tracking Alibaba, Baidu, SMIC, HSI and HSTECH:
Alibaba call $Alibaba MB eCW260505(WLWW.SI)$
Alibaba put $Alibaba MB ePW260303(IBBW.SI)$
Baidu call $Baidu MB eCW260505(9KEW.SI)$
Baidu put $Baidu MB ePW260203 105(LIJW.SI)$
SMIC call $SMIC MB eCW260402(NAAW.SI)$
SMIC put ONUW
HSI call RYNW
HSI put LKPW
HSTECH call ZNBW
HSTECH put HIJW
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