November 26th [BOC Guest] Hang Seng Index, Alibaba, Meituan, Xiaomi, Pop Mart

Simon: Niki, hello! It’s been a while since we last met. Thank you for joining us today.Could you share with us your insights on the recent performance of the Hang Seng Index and individual stocks? Let’s start with the Hang Seng Index. Have you observed any trends among investors recently?

Niki, Director of BOC International: Yes, during this period, the market has suddenly risen to near the 26,000-point level. Therefore, we can see that investors are generally using Hang Seng Index bull and bear contracts to position themselves for market volatility. Currently, the heavy accumulation zone for Hang Seng Index bull contracts is concentrated around 25,100 to 25,200 points, accounting for nearly 1,600 futures contracts. In other words, the overall increase in Hang Seng Index bull contracts accounts for approximately 63%, while bear contracts account for about 37%. It can be seen that the proportion of bull contracts remains quite significant, so investors are optimistic about a potential market rise.

In this regard, investors are using bull and bear contracts of the Hang Seng Index for deployment. For instance, in terms of product codes, the market has been experiencing relatively narrow fluctuations these two days, hovering around the 26,000-point level. As for selecting a bull contract for the Hang Seng Index, one may pay attention to product code 64550. $BI#HSI RC2808B.C (64550.HK)$ This particular Hang Seng Index bull contract has a stop-loss level around 25,800 points, which is slightly close, but it ultimately depends on the current position of the market. Our BOC International products have comprehensive coverage with offerings approximately every 50 to 100 points. As for bear contracts, one may look at code 55898. $BI#HSI RP2804X.P (55898.HK)$ This Hang Seng Index bear contract has a stop-loss level around 26,200 points and offers leverage of over sixty times.

Therefore, in addition to using Hang Seng Index bull and bear contracts for positioning, investors can also consider call and put warrants. Since call and put warrants do not carry stop-loss risks, they are suitable for investors who prefer less aggressive strategies but still want to engage in index trading. All our products are available on our website. For instance, when selecting call warrants, one can refer to code 19861. $BI-HSI @EC2602B.C (19861.HK)$ This warrant has an exercise price around 27,100 points and expires at the end of February next year, offering good leverage of approximately 14 times. $BI-HSI @EP2603C.P (21317.HK)$ As for put warrants, one can refer to code 21317, which has an exercise price around 25,670 points and expires at the end of March next year, with leverage approaching 10 times.

Simon: In fact, the range of products launched by BOC is quite comprehensive. Investors can refer to the BOC International website (www.bocifp.comWithin it, you can view products across all different strike prices and indeed access relevant information. If I were to provide some reference material, the current summary of technical signals is temporarily neutral. Therefore, I believe there are both bullish and bearish investors. Everyone can deploy strategies according to their own risk tolerance by referencing Bank of China International's website.

Simon:Now, let’s talk about individual stocks. The first stock I’d like to discuss with Niki is 9988 Alibaba. You can see that Alibaba’s share price has been relatively range-bound, trading sideways. For instance, looking at the derivatives market, what is the sentiment among investors?

Niki, Director of BOC International: Yes, Alibaba announced its quarterly results after the market close yesterday. The profit for the last quarter fell by 72% year-on-year, reaching RMB 10.4 billion, which was slightly below market expectations. Therefore, there has been some pressure on the share price, as it initially opened higher today but then declined. The market is anticipating future growth in AI-related businesses, so ahead of this earnings announcement, many investors took long positions in Alibaba. Currently, Alibaba's share price is around HKD 155, and investors have shown more interest in call warrants prior to the earnings release. For instance, in terms of derivative choices such as CBBCs, people are watching to see if there might be opportunities after the earnings announcement. Additionally, Ele.me remains in a loss-making state, drawing significant attention. Coupled with the share price dynamics, there is speculation about whether bad news may already be priced into the stock, leading to some capital inflows at lower price levels today focusing on long positions.

For Alibaba call warrants, you may consider product 20577. $BIALIBA@EC2604B.C (20577.HK)$ This Alibaba call warrant has a strike price of HKD 173.43 and expires at the end of April next year, offering leverage of approximately 5 times. For those who remain bearish, you may consider Alibaba put warrant 20718. $BIALIBA@EP2603A.P (20718.HK)$ This one has a strike price of HKD 142.78 and expires in early March next year, providing leverage of about 6 times.

Simon: Actually, if everyone visits the BOC International website, there are quite a number of Alibaba-related products available, with 30 call warrants to choose from. You can also visit the BOC International website and search for call warrants in the warrant search section to see different product options with varying terms, which can serve as a reference for you.

Simon:Another stock I would like to mention to Niki today is Meituan (stock code: 3690). You can see that Meituan's share price performance today has been fairly strong. So, how are investors in the derivatives market positioning themselves?

BOCI International Director Niki: Yes, many people have a big question. Why did Alibaba's stock fall today after announcing its earnings yesterday, while Meituan's rose? This is because Alibaba announced its earnings yesterday, and everyone has been focusing on the price wars among platforms like Ele.me, Meituan, and JD.com. Questions remain whether promotional activities, such as one-yuan cups of milk tea that occurred mid-year, will continue or if their intensity might decrease due to substantial losses, which exceeded 30 billion yuan. Based on the disclosed results this time, management indicated a slight slowdown in these efforts, with potential reductions in investment. Given the severity of the losses, related guidance from management has led investors to believe that the price war might be coming to an end. Thus, they perceive the worst news as being fully priced in, translating into good news. Consequently, Meituan performed very strongly today. Its share price rebounded significantly by nearly 6%, reaching around 104 yuan, close to the 105-yuan mark. Therefore, during this period for Meituan, the market was waiting to see if all negative news had been reflected. Once this news came out, there was strong excitement leading to buying activity, resulting in capital inflows into Meituan’s long positions today.

In terms of warrant selection, Meituan’s call warrant 20815 can be considered. $BIMTUAN@EC2606C.C (20815.HK)$ This Meituan call warrant has an exercise price of 123.79 yuan and expires in mid-June next year, offering leverage of approximately five times. As for Meituan’s put warrants, for your reference, you can look at 20135. $BIMTUAN@EP2603B.P (20135.HK)$ This Meituan put warrant has an exercise price of 67.88 yuan, expiring in early March next year, with leverage reaching 8 times.

Simon: I would also like to ask Niki, for instance, the stock price of 3690 rose quite sharply today. Often, the terms of products may change after the market opens. If investors really want to call and consult with your team, which number can they call to inquire about product terms?

Niki, Director of BOCI: This is an excellent question, as market conditions do change rapidly. Therefore, if visitors find it time-consuming to search on our website (www.bocifp.com) and wish to obtain quick answers, they can call (Warrant Hotline: 00+852 3988 6909) to reach our Warrant Team at BOC International. They can consult our team with any questions, and we will respond to inquiries as soon as possible.

Simon: Excellent. Whether checking the website or calling the hotline, it is quite convenient for investors. Let’s discuss another stock with Niki. I’d like to explore stock 1810 Xiaomi with Niki. We can see that Xiaomi's share price has risen over the past few days. From the perspective of the derivatives market, will investor sentiment become more optimistic?

Niki, Director of BOCI: That’s correct. Investor sentiment improved significantly. Why? Because Mr. Lei Jun invested 100 million yuan to increase his stake in Xiaomi. This led many to believe that Xiaomi’s stock price may have bottomed out, with the previous low of 36.6 yuan potentially representing a near-term bottom. As a result, the share price rebounded for several consecutive days to around 40 yuan. Lei Jun’s decision to invest 100 million yuan to purchase additional shares demonstrates management’s confidence in Xiaomi’s future growth potential—a vote of confidence backed by capital. Consequently, investors are following suit, considering Xiaomi’s stock and bullish instruments like its call warrants. Today, we also recommend a pair of products for strategic deployment. If you believe that the recent low of around 36 yuan may already mark the bottom, you can consider Xiaomi’s call warrant 22713. $BIXIAMI@EC2605A.C (22713.HK)$ This Xiaomi call warrant has an exercise price of RMB 62.05 and expires in mid-May next year, with leverage reaching approximately 6 times. As for Xiaomi’s put warrant options, you can also take note of 22168. $BIXIAMI@EP2606C.P (22168.HK)$ This Xiaomi put warrant has an exercise price of RMB 32.18 and expires at the end of June next year, offering leverage of about 4 times.

Simon: In fact, if you visit BOCI’s website, you’ll see that there are over 30 call warrants available for Xiaomi (stock code: 1810). Thus, you can always refer to BOCI’s website to select products that meet your desired terms. Of course, if you find the 30-plus options overwhelming, you can choose based on your risk tolerance. If you wish to consult further, you can contact the team via the Warrant Hotline: 00+852 3988 6909.

Simon: Before we conclude today, let’s take a look at another stock that we’ve previously discussed. I’d like to ask Niki to share her insights on its recent performance and assess the current investment sentiment. The stock I’m referring to is Pop Mart (stock code: 9992), whose share price has seen some upward movement recently. So, Niki, what do investors think about this in the derivatives market?

Niki, Director of BOCI: Yes, Pop Mart has been on an upward trend for several days after hitting a recent low of around 192 yuan. The price has now rebounded to nearly 205 yuan. Investors feel that the adjustment in the stock price has been sufficiently deep, as it fell from a previous high of over 340 yuan to around 192 yuan—a substantial decline. At this point, investors are deploying strategies using both the underlying stock and its call warrants to capitalize on the rebound. For instance, when selecting products related to Pop Mart, investors may consider its call warrant 22285. $BIPOMRT@EC2604B.C (22285.HK)$ This Pop Mart call warrant has an exercise price of RMB 260.12, expiring in mid-April next year, with leverage of roughly 5 times. As for Pop Mart’s put warrant options, you may refer to product 20663. $BIPOMRT@EP2602B.P (20663.HK)$ This warrant has an exercise price of 199.9 yuan and expires around early February next year, offering a leverage of approximately 5 times.

Simon: There are quite a few call warrants on 9992 Pop Mart issued by BOCI, more than ten in total, providing various choices with different exercise prices and expiration dates. Therefore, we encourage everyone to make full use of the BOCI website and check other relevant information in the warrant search section, which we hope can help you obtain updated information for your daily trading. Thank you very much to Niki today. We look forward to speaking with Niki again next week. Thank you very much, Niki.

This article does not constitute any investment advice.

This article is for reference only and does not constitute any investment advice. The market data, opinions, and analysis contained herein may change at any time without prior notice. We shall not be liable for any loss or damage arising from reliance on the information in this article. Technical analysis merely indicates whether certain technical conditions are met; a comprehensive evaluation of asset performance should incorporate additional data. Trading decisions should not be based solely on the content of this article. Please note that past performance is not indicative of future results.

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