Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

Equity Derivatives

<ul>
<li>Broad based weakness, less than ½ of optionable stocks were up on the week with the average size of losses larger than average size of gains.</li>
<li>Total single stock Put option volume the highest in the past 4 months pushing the Put/Call ratio to a local extreme. </li>
<li>Laggards from the rally holding on, rally leaders broadly weak.</li>
</ul>


Broad based weakness, less than ½ of optionable stocks were up on the week with the average size of losses larger than average size of gains.
Total single stock Put option volume the highest in the past 4 months pushing the Put/Call ratio to a local extreme. 
Laggards from the rally holding on, rally leaders broadly weak.


Hong Kong Single Stock Options Weekly (Feb 24 – 28): Broad Deterioration

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Gross SOUTHBOUND volumes cleared HK$800bn for the second week in a row. NET buying by SOUTHBOUND was HK$75bn which was perhaps a new record.</li>
<li>Notable again is the HUGE back-and-forth. If HK$865bn traded and SOUTHBOUND "only" bought HK$75bn, HK$395bn was round-tripped for short-term purposes.</li>
<li>Last week I flipped to short <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group Holding (9988 HK)</a>. Sentiment may worsen and there's lots to sell later this week. Staying short Alibaba for now. </li>
</ul>


Gross SOUTHBOUND volumes cleared HK$800bn for the second week in a row. NET buying by SOUTHBOUND was HK$75bn which was perhaps a new record.
Notable again is the HUGE back-and-forth. If HK$865bn traded and SOUTHBOUND "only" bought HK$75bn, HK$395bn was round-tripped for short-term purposes.
Last week I flipped to short Alibaba Group Holding (9988 HK). Sentiment may worsen and there's lots to sell later this week. Staying short Alibaba for now. 


HK Connect SOUTHBOUND Flows (To 28 Feb 2025); Big Volumes, HUGE Net Buys on Blue Chips, Tech-Y Names

<ul>
<li>This past week saw SOUTHBOUND Connect clear HK$800bn of gross value traded, and net value was near recent highs at +HK$51bn. Consumer and finance names continue to be the rage.</li>
<li>Notable is the HUGE back-and-forth. If HK$800bn traded and SOUTHBOUND only bought HK$51bn, HK$375bn was round-tripped for short-term purposes.</li>
<li>That is twice the "excess" traded seen for the past year. <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> saw US$14bn traded but net buying was US$121mm. </li>
</ul>


This past week saw SOUTHBOUND Connect clear HK$800bn of gross value traded, and net value was near recent highs at +HK$51bn. Consumer and finance names continue to be the rage.
Notable is the HUGE back-and-forth. If HK$800bn traded and SOUTHBOUND only bought HK$51bn, HK$375bn was round-tripped for short-term purposes.
That is twice the "excess" traded seen for the past year. Tencent (700 HK) saw US$14bn traded but net buying was US$121mm. 


HK Connect SOUTHBOUND Flows (To 21 Feb 2025); Another HUGE Jump in Value Traded, Consumer Still Bid

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>Many has cheered or felt relieved over Xi's weekend meeting with the top Chinese business community. We see a closer relationship between the state apparatus and private enterprises going forward;</li>
<li>January 2025 saw improvement in social financing, with meaningful recovery in corporate financing. Recovery for BOSS might be forthcoming;</li>
<li>BYD dropped the bombshell in populating autonomous driving service (ADS) in sub-Rmb100K vehicles. We view it as another DeepSeek moment. The biggest loser is Tesla. Fast ADS rollout supports AGI.</li>
</ul>


Many has cheered or felt relieved over Xi's weekend meeting with the top Chinese business community. We see a closer relationship between the state apparatus and private enterprises going forward;
January 2025 saw improvement in social financing, with meaningful recovery in corporate financing. Recovery for BOSS might be forthcoming;
BYD dropped the bombshell in populating autonomous driving service (ADS) in sub-Rmb100K vehicles. We view it as another DeepSeek moment. The biggest loser is Tesla. Fast ADS rollout supports AGI.


[Blue Lotus China New Consumer Weekly, 7/52] Xi's Meeting with Ma Closed the Anti-Monopoly Chapter

Singapore Market Roundup, Singapore Market Roundup

Singapore Market Roundup

<ul><li>Analysts are bullish on FEHT due to strong second half fiscal year 2024 hotel revenue per available room (RevPAR) and merger and acquisition (M&amp;A) prospects. </li><li>DBS is cautious about the long-term market gains from China's AI breakthrough, expressing skepticism about its potential impact on boosting the market. </li><li>CGSI has upgraded ISDN to 'add' and raised their target price to 35 cents, citing an industrial automation-led recovery as the reason for the upgrade.</li></ul>

Analysts are bullish on FEHT due to strong second half fiscal year 2024 hotel revenue per available room (RevPAR) and merger and acquisition (M&amp;A) prospects. DBS is cautious about the long-term market gains from China's AI breakthrough, expressing skepticism about its potential impact on boosting the market. CGSI has upgraded ISDN to 'add' and raised their target price to 35 cents, citing an industrial automation-led recovery as the reason for the upgrade.

Singapore Market Roundup (13-Feb-2025): FEHT favored for strong RevPAR and M&A in 2HFY2024.

China

BYD Electronic International Co., Ltd. researches, develops, manufactures handset components such as handset casings and handset keypads and modules for handset manufacturers.  The Company also provides assembly services comprising assembly service and PCB assembly service to global handset manufacturers.

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BYD Electronics (285 HK)

Hong Kong Single Stock Options Weekly (Feb 24 – 28): Broad Deterioration

The market saw broad weakness with less than half of optionable stocks up for the week. Put option volumes at 4-month high, pushing Put/Call ratio...

John Ley

HK Connect SOUTHBOUND Flows (To 28 Feb 2025); Big Volumes, HUGE Net Buys on Blue Chips, Tech-Y Names

HK SOUTHBOUND Connect flows were again huge, both short-term trading and actual net buying. Last week flipped to short Alibaba. This week stays...

Travis Lundy

HK Connect SOUTHBOUND Flows (To 21 Feb 2025); Another HUGE Jump in Value Traded, Consumer Still Bid

SOUTHBOUND volumes have popped significantly. Lots of day-trading. Still-strong net buying. Tech/Consumer and Finance are still the big net buys.

Travis Lundy

[Blue Lotus China New Consumer Weekly, 7/52] Xi's Meeting with Ma Closed the Anti-Monopoly Chapter

Xi's meeting with Chinese business leaders signals a closer relationship going forward. Social financing data improved in January 2025. BYD's...

Blue Lotus Research Institute

Singapore Market Roundup (13-Feb-2025): FEHT favored for strong RevPAR and M&A in 2HFY2024.

FEHT is favored by analysts for strong hotel RevPAR, DBS is skeptical of China's AI breakthrough, and CGSI upgrades ISDN on industrial automation...

Singapore Market Roundup

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hong Kong Single Stock Options Weekly (Feb 24 – 28): Broad Deterioration

​The market saw broad weakness with less than half of optionable stocks up for the week. Put option volumes at 4-month high, pushing Put/Call ratio...

John Ley

HK Connect SOUTHBOUND Flows (To 28 Feb 2025); Big Volumes, HUGE Net Buys on Blue Chips, Tech-Y Names

HK SOUTHBOUND Connect flows were again huge, both short-term trading and actual net buying. Last week flipped to short Alibaba. This week stays...

Travis Lundy

HK Connect SOUTHBOUND Flows (To 21 Feb 2025); Another HUGE Jump in Value Traded, Consumer Still Bid

SOUTHBOUND volumes have popped significantly. Lots of day-trading. Still-strong net buying. Tech/Consumer and Finance are still the big net buys.

Travis Lundy

[Blue Lotus China New Consumer Weekly, 7/52] Xi's Meeting with Ma Closed the Anti-Monopoly Chapter

​Xi's meeting with Chinese business leaders signals a closer relationship going forward. Social financing data improved in January 2025. BYD's...

Blue Lotus Research Institute

Singapore Market Roundup (13-Feb-2025): FEHT favored for strong RevPAR and M&A in 2HFY2024.

FEHT is favored by analysts for strong hotel RevPAR, DBS is skeptical of China's AI breakthrough, and CGSI upgrades ISDN on industrial automation...

Singapore Market Roundup

The market saw broad weakness with less than half of optionable stocks up for the week. Put option volumes at 4-month high, pushing Put/Call ratio...

Xi's meeting with Chinese business leaders signals a closer relationship going forward. Social financing data improved in January 2025. BYD's...