Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>
Context: Over the past five trading days, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> multi-leg option strategies showcased a variety of approaches. Strategy mix and positioning are dissected.</li>
<li>
Highlights: Diagonal Spreads enjoy increasing popularity. The strategy is analyzed with reference to the March earnings event, and current volatility dynamics.</li>
<li>
Why read: This drill-down into calendar strategies sheds light on strategies and positioning ahead of earnings. Detailed examples provide actionable insights that could inspire similar strategies,</li>
</ul>



Context: Over the past five trading days, Tencent (700 HK) multi-leg option strategies showcased a variety of approaches. Strategy mix and positioning are dissected.

Highlights: Diagonal Spreads enjoy increasing popularity. The strategy is analyzed with reference to the March earnings event, and current volatility dynamics.

Why read: This drill-down into calendar strategies sheds light on strategies and positioning ahead of earnings. Detailed examples provide actionable insights that could inspire similar strategies,


Tencent (700 HK) Top Trades: How Traders Use Diagonal Spreads Ahead of Earnings

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Equity Bottom-Up

<ul>
<li>China announced game approval for the January batch. The number of games approved remained at a higher level than in 2023 and 2024.</li>
<li>The pace of China game approval appears to have accelerated to the same level as pre-tightening.</li>
<li>Of the companies that we are monitoring, both Tencent and Netease got one approval.</li>
</ul>


China announced game approval for the January batch. The number of games approved remained at a higher level than in 2023 and 2024.
The pace of China game approval appears to have accelerated to the same level as pre-tightening.
Of the companies that we are monitoring, both Tencent and Netease got one approval.


Tencent/Netease: One Game for Each in Jan 2026

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>HK$101bn+/Day of gross SOUTHBOUND activity last week, and net buying of HK$23+bn. The gross volumes are down a bit but net continues strongly.</li>
<li>China Mobile was shellacked with net selling every day last week (actually net sold every day since 11 Dec). The numbers are very impressive.</li>
<li>ETFs were net purchased in some size last week which usually means a swing to stocks and sale of ETFs this week.</li>
</ul>


HK$101bn+/Day of gross SOUTHBOUND activity last week, and net buying of HK$23+bn. The gross volumes are down a bit but net continues strongly.
China Mobile was shellacked with net selling every day last week (actually net sold every day since 11 Dec). The numbers are very impressive.
ETFs were net purchased in some size last week which usually means a swing to stocks and sale of ETFs this week.


HK Connect SOUTHBOUND Flows (Week To 23 Jan 2026) - China Mobile Shellacked Again. Tech Bought Again

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Thematic (Sector/Industry)

<ul>
<li>We tracked AI models, infrastructure, and M&amp;A this week: Ox Alpha appeared on OpenRouter and Stripe agreed to buy OpenRouter.</li>
<li>DeepSeek added vision to V4 Flash, OpenAI paused Astra RL work, and Alibaba and Baidu reported faster AI-linked growth.</li>
<li>YMTC moved toward a Shanghai IPO, Nvidia backed OpenAI capacity, and Anthropic added IPO banks and credit capacity.</li>
</ul>


We tracked AI models, infrastructure, and M&amp;A this week: Ox Alpha appeared on OpenRouter and Stripe agreed to buy OpenRouter.
DeepSeek added vision to V4 Flash, OpenAI paused Astra RL work, and Alibaba and Baidu reported faster AI-linked growth.
YMTC moved toward a Shanghai IPO, Nvidia backed OpenAI capacity, and Anthropic added IPO banks and credit capacity.


This Week in AI (Aug 16-22): Mysterious Ox Alpha Model; Stripe Buys OpenRouter; YMTC's IPO

<ul>
<li>HK$128bn+/Day of gross SOUTHBOUND activity the first two weeks of the year, and net buying of HK$43bn.</li>
<li>Relatively high div low vol SOEs were net sold. Again. China Mobile shellacked with net selling every day for 10 days (actually net sold every day since 11 Dec). </li>
<li>The data tables below update daily in the <a href="https://www.smartkarma.com/tools" target="_blank" rel="noopener">Tools</a> section of Smartkarma. The <a href="https://www.smartkarma.com/tools/quiddity/south-flow-monitor" target="_blank" rel="noopener">Southbound Flow Monitor</a> and <a href="https://www.smartkarma.com/tools/quiddity/ah-shares-monitor" target="_blank" rel="noopener">AH Pairs Monitor</a> are both there - free - for all SK readers.</li>
</ul>


HK$128bn+/Day of gross SOUTHBOUND activity the first two weeks of the year, and net buying of HK$43bn.
Relatively high div low vol SOEs were net sold. Again. China Mobile shellacked with net selling every day for 10 days (actually net sold every day since 11 Dec). 
The data tables below update daily in the Tools section of Smartkarma. The Southbound Flow Monitor and AH Pairs Monitor are both there - free - for all SK readers.


HK Connect SOUTHBOUND Flows (2Wks To 16 Jan 2026) - China Mobile Sold Heavily, Tech Bought Heavily

China

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Tencent Holdings (ADR) (TCEHY US)

Tencent (700 HK) Top Trades: How Traders Use Diagonal Spreads Ahead of Earnings

Tencent (700 HK) options flow reveals rising use of diagonal spreads to manage earnings exposure as implied volatility trades near its median.

Gaudenz Schneider

Tencent/Netease: One Game for Each in Jan 2026

We analyzed China's game approvals in January 2026. While momentum is picking up, we note that both Tencent and Netease received approval for one...

Ke Yan, CFA, FRM

HK Connect SOUTHBOUND Flows (Week To 23 Jan 2026) - China Mobile Shellacked Again. Tech Bought Again

SOUTHBOUND investors continued net buying HK stocks last week at a similar pace to the previous two weeks. They sold China Mobile at an even faster...

Travis Lundy

This Week in AI (Aug 16-22): Mysterious Ox Alpha Model; Stripe Buys OpenRouter; YMTC's IPO

This week in AI: Ox Alpha appears on OpenRouter; Stripe buys OpenRouter for over USD 7bn; OpenAI pauses Astra RL; YMTC files Shanghai IPO.

Ke Yan, CFA, FRM

HK Connect SOUTHBOUND Flows (2Wks To 16 Jan 2026) - China Mobile Sold Heavily, Tech Bought Heavily

SOUTHBOUND started the year with net buying. Except for China Mobile. That has been net sold by SB every day since 11 Dec 2025. A bit mixed but...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Tencent (700 HK) Top Trades: How Traders Use Diagonal Spreads Ahead of Earnings

Tencent (700 HK) options flow reveals rising use of diagonal spreads to manage earnings exposure as implied volatility trades near its median.

Gaudenz Schneider

Tencent/Netease: One Game for Each in Jan 2026

We analyzed ​China's game approvals in January 2026. While momentum is picking up, we note that both Tencent and Netease received approval for one...

Ke Yan, CFA, FRM

HK Connect SOUTHBOUND Flows (Week To 23 Jan 2026) - China Mobile Shellacked Again. Tech Bought Again

SOUTHBOUND investors continued net buying HK stocks last week at a similar pace to the previous two weeks. They sold China Mobile at an even faster...

Travis Lundy

This Week in AI (Aug 16-22): Mysterious Ox Alpha Model; Stripe Buys OpenRouter; YMTC's IPO

This week in AI: Ox Alpha appears on OpenRouter; Stripe buys OpenRouter for over USD 7bn; OpenAI pauses Astra RL; YMTC files Shanghai IPO.

Ke Yan, CFA, FRM

HK Connect SOUTHBOUND Flows (2Wks To 16 Jan 2026) - China Mobile Sold Heavily, Tech Bought Heavily

SOUTHBOUND started the year with net buying. Except for China Mobile. That has been net sold by SB every day since 11 Dec 2025. A bit mixed but...

Travis Lundy

We analyzed China's game approvals in January 2026. While momentum is picking up, we note that both Tencent and Netease received approval for one...