Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>
<a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> is set to announce 2024 results after the close on 18 March. </li>
<li>Options markets imply a price movement in excess of historic averages, creating trading opportunities through calendar spreads and short straddles that capitalize on March's elevated implied volatility.</li>
<li>
<a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> is a major constituent in key Hong Kong indices (<a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">HSI Index</a>, <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">HSCEI Index</a>, and <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">HSTECH Index</a>). Its post-results move will likely impact the broader market.</li>
</ul>



Xiaomi Corp (1810 HK) is set to announce 2024 results after the close on 18 March. 
Options markets imply a price movement in excess of historic averages, creating trading opportunities through calendar spreads and short straddles that capitalize on March's elevated implied volatility.

Xiaomi Corp (1810 HK) is a major constituent in key Hong Kong indices (HSI Index, HSCEI Index, and HSTECH Index). Its post-results move will likely impact the broader market.


Xiaomi (1810 HK): Overpriced Volatility Ahead of 2024 Results

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Cross Asset Strategy

<ul>
<li>A review of recent events/data impacting our investment themes or outlook</li>
<li>More evidence emerging of a regime change in global markets</li>
<li>What is different this time around from previous bear markets</li>
</ul>


A review of recent events/data impacting our investment themes or outlook
More evidence emerging of a regime change in global markets
What is different this time around from previous bear markets


Overview #19 – Don’t Buy the D@nm Dip!

Taiwan Stock Exchange Weighted Index / Equity Derivatives

<ul>
<li>Central Bank Focus: Nine Central banks decide on monetary policy next week. Among them the BoJ, the BoE, the SNB, and the Fed.</li>
<li>Earnings Wave: major Hong Kong stocks reporting, including Tencent, Xiaomi, China Mobile, and Meituan.</li>
<li>Triple Witching: Quarterly derivatives expiration hits multiple markets - Australia, Taiwan , and the US - alongside index rebalancing in both Australia and the US.</li>
</ul>


Central Bank Focus: Nine Central banks decide on monetary policy next week. Among them the BoJ, the BoE, the SNB, and the Fed.
Earnings Wave: major Hong Kong stocks reporting, including Tencent, Xiaomi, China Mobile, and Meituan.
Triple Witching: Quarterly derivatives expiration hits multiple markets - Australia, Taiwan , and the US - alongside index rebalancing in both Australia and the US.


Market Movers: Key Dates at a Glance (March 17-21)

<ul>
<li>Over a dozen <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hang Seng Index</a> companies (31% of index weight) report next week, along with significant portions of <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">HSCEI</a> (38%) and <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng TECH Index</a> (32%) components.</li>
<li>The four index heavy-weights <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp</a>, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent</a>, <a href="https://www.smartkarma.com/entities/china-mobile-ltd" target="_blank" data-smartkarma-citation="entities:27:1" rel="noopener">China Mobile</a>, and <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan</a> all report next week.</li>
<li>Weekly options expiring March 21 provide targeted instruments for traders looking to capitalize on earnings-related price movements.</li>
</ul>


Over a dozen Hang Seng Index companies (31% of index weight) report next week, along with significant portions of HSCEI (38%) and Hang Seng TECH Index (32%) components.
The four index heavy-weights Xiaomi Corp, Tencent, China Mobile, and Meituan all report next week.
Weekly options expiring March 21 provide targeted instruments for traders looking to capitalize on earnings-related price movements.


Dividends, Volatility, and Profits: HSI and HSCEI Heavyweights Reveal Results, 17 - 21 March

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>We look at the performance of the index rebalance strategy over the year using weekly forecasts. In short, it has been a mixed bag for Asia.</li>
<li>India and China have been among the worst performing markets in the region while Australia and Korea have been among the better performers.</li>
<li>A lot of the outperformance appears to be front loaded, so getting the forecasts right early in the review period is of paramount importance.</li>
</ul>


We look at the performance of the index rebalance strategy over the year using weekly forecasts. In short, it has been a mixed bag for Asia.
India and China have been among the worst performing markets in the region while Australia and Korea have been among the better performers.
A lot of the outperformance appears to be front loaded, so getting the forecasts right early in the review period is of paramount importance.


Index Rebalance Strategy YTD Performance: Not Many Places to Hide in Asia

China

The Hang Seng China Enterprises Index is a free-float capitalization-weighted index comprised of H-Shares listed on the Hong Kong Stock Exchange and included in the Hang Seng Mainland Composite Index. The base value of this index is 2000 as of Jan 3, 2000. This index replaced the old HSCE index on Oct. 3, 2001.

Hang Seng China Enterprises Index (HSCEI INDEX)

Hang Seng China Enterprises Index (HSCEI INDEX)

Xiaomi (1810 HK): Overpriced Volatility Ahead of 2024 Results

Xiaomi Corp (1810 HK) to announce 2024 results with options markets indicating potential trading opportunities. Potential impact on key Hong Kong...

Gaudenz Schneider

Overview #19 – Don’t Buy the D@nm Dip!

A review of recent events/data impacting our investment themes and outlook. How will the incoming bear market in the US impact Asia

Rikki Malik

Market Movers: Key Dates at a Glance (March 17-21)

Central banks to decide on monetary policy, Hong Kong stocks results, and quarterly derivatives expiration hitting multiple markets.

Gaudenz Schneider

Dividends, Volatility, and Profits: HSI and HSCEI Heavyweights Reveal Results, 17 - 21 March

Key Hang Seng Index companies reporting next week, including heavyweights Xiaomi, Tencent, China Mobile, and Meituan, offer trading opportunities.

Gaudenz Schneider

Index Rebalance Strategy YTD Performance: Not Many Places to Hide in Asia

A positive start to the year for Asia index rebals has turned negative as the momentum/ value unwind began a few weeks ago. Higher volatility and a...

Brian Freitas

Xiaomi (1810 HK): Overpriced Volatility Ahead of 2024 Results

​Xiaomi Corp (1810 HK) to announce 2024 results with options markets indicating potential trading opportunities. Potential impact on key Hong Kong...

Gaudenz Schneider

Overview #19 – Don’t Buy the D@nm Dip!

A review of recent events/data impacting our investment themes and outlook. How will the incoming bear market in the US impact Asia

Rikki Malik

Market Movers: Key Dates at a Glance (March 17-21)

​Central banks to decide on monetary policy, Hong Kong stocks results, and quarterly derivatives expiration hitting multiple markets.

Gaudenz Schneider

Dividends, Volatility, and Profits: HSI and HSCEI Heavyweights Reveal Results, 17 - 21 March

​Key Hang Seng Index companies reporting next week, including heavyweights Xiaomi, Tencent, China Mobile, and Meituan, offer trading opportunities.

Gaudenz Schneider

Index Rebalance Strategy YTD Performance: Not Many Places to Hide in Asia

A positive start to the year for Asia index rebals has turned negative as the momentum/ value unwind began a few weeks ago. Higher volatility and a...

Brian Freitas

Xiaomi Corp (1810 HK) to announce 2024 results with options markets indicating potential trading opportunities. Potential impact on key Hong Kong...

Central banks to decide on monetary policy, Hong Kong stocks results, and quarterly derivatives expiration hitting multiple markets.

Key Hang Seng Index companies reporting next week, including heavyweights Xiaomi, Tencent, China Mobile, and Meituan, offer trading opportunities.