SenseTime and Kingsoft are currently pulling back; Alibaba may start charging heavy users of its AI models

The broader market has been rebounding since July, and recently turned volatile after reaching the 26,000 level, fluctuating around the 250-day moving average. As of yesterday (the 6th), Citi's warrant and CBBC open interest distribution chart shows $Hang Seng Index (800000.HK)$ a bull/bear open interest ratio of approximately 52.2:47.8. Investors bullish on the Hang Seng Index may consider $CT#HSI RC2807V.C (67656.HK)$ , with a call price of 24,900 points, leverage ratio of 41.1x, conversion ratio of 10,000:1, and expiry date of July 28, 2028; those bearish may consider $CT#HSI RP2812N.P (55008.HK)$ , with a put price of 26,000 points, leverage ratio of 40.4x, conversion ratio of 10,000:1, and expiry date of December 28, 2028.

According to a Reuters report, $BABA-W (09988.HK)$ will start charging large users of its next-generation open-source AI models, becoming another Chinese large-model company—following ByteDance—to announce a monetization plan. Its share price previously began rising from around HK$90, reclaiming multiple moving averages consecutively, and has recently been consolidating below the HK$130 level. Investors bullish on Alibaba may consider $CTALIBA@EC2611B.C (29940.HK)$ , with a strike price of HK$133.88, effective leverage of 6.3x, conversion ratio of 100:1, and expiry date of November 26, 2026; those bearish may consider $CTALIBA@EP2612A.P (28022.HK)$ , with a strike price of HK$99.88, effective leverage of 5.3x, conversion ratio of 50:1, and expiry date of December 24, 2026.

$SENSETIME-W (00020.HK)$ The stock failed to follow the broader market’s rebound in July, instead consolidating near HK$1.28. In August, it advanced toward the HK$1.50 level but saw a notable pullback today (the 7th). Investors bullish on SenseTime may consider $CTSENTM@EC2703A.C (15335.HK)$ , with a strike price of HK$1.699, effective leverage of 3.1x, conversion ratio of 2:1, and expiry date of March 31, 2027.

Software stocks remained weak in the first half of the year amid the AI wave, but their performance finally stabilized in June and July. Entering August, $KINGSOFT (03888.HK)$ the stock broke above the HK$26 level, before pulling back near its 250-day moving average. Investors bullish on Kingsoft may consider $CTKSOFT@EC2612A.C (13388.HK)$ a structured product with a strike price of HK$36, effective leverage of 6.1x, a conversion ratio of 10-to-1, and expiry on December 7, 2026.

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