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 highlights are provided.</li>
<li>
Highlights: Market sentiment is evenly balanced between bullish and bearish strategies, with diagonal spreads accounting for 25% of all trades.</li>
<li>
Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. 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 highlights are provided.

Highlights: Market sentiment is evenly balanced between bullish and bearish strategies, with diagonal spreads accounting for 25% of all trades.

Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies,


Tencent (700 HK): Top Option Trades Reveal a Split in Market Sentiment

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>HK$100bn a day of gross SOUTHBOUND activity with US$600mm+ of net buying on average. Net flows continue to be impressive. SOEs/Energy/Financials dominate.</li>
<li>Watch for news on the Dual Counter (RMB) Trading eligibility for SOUTHBOUND near-term. That could up the pace of things.</li>
<li>The data tables below update on a daily basis 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$100bn a day of gross SOUTHBOUND activity with US$600mm+ of net buying on average. Net flows continue to be impressive. SOEs/Energy/Financials dominate.
Watch for news on the Dual Counter (RMB) Trading eligibility for SOUTHBOUND near-term. That could up the pace of things.
The data tables below update on a daily basis 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 (Wk To 21 Nov 2025) - BIG Net Buy on Lower Gross Flows. BABA Bought

HK Connect SOUTHBOUND Flows (Wk To 14 Nov 2025) - Strong SOE/Energy/Financials Buying on BABA Sales

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Tencent reported 3Q25 results: total revenue grew by 15% YoY to RMB192.9bn, 2/4% ahead of Bloomberg consensus/our estimate, mainly thanks to the solid games revenue growth (+23% YoY); non-IFRS operating income increased by 18% YoY to RMB72.6bn, largely in line with consensus/our estimate, despite the high-than-expected opex growth.</li><li>The company lowered FY25 capex guidance due to supply chain constraints, but remains committed to accelerating AI applications in areas such as ads, games, e-commerce and agentic AI within Weixin.</li><li>We remain constructive on Tencent’s long-term opportunities in AI, given its diversified use cases and massive user base. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Tencent reported 3Q25 results: total revenue grew by 15% YoY to RMB192.9bn, 2/4% ahead of Bloomberg consensus/our estimate, mainly thanks to the solid games revenue growth (+23% YoY); non-IFRS operating income increased by 18% YoY to RMB72.6bn, largely in line with consensus/our estimate, despite the high-than-expected opex growth.The company lowered FY25 capex guidance due to supply chain constraints, but remains committed to accelerating AI applications in areas such as ads, games, e-commerce and agentic AI within Weixin.We remain constructive on Tencent’s long-term opportunities in AI, given its diversified use cases and massive user base. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Tencent (700 HK) - 3Q25 Results: Solid Growth Across Business Lines...

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>The revenue growth accelerated for the fourth quarter in 3Q25.</li>
<li>In 3Q25, the gross margins of all business lines improved year over year.</li>
<li>Tencent’s operating margin had improved year over year for thirteen quarters.</li>
</ul>


The revenue growth accelerated for the fourth quarter in 3Q25.
In 3Q25, the gross margins of all business lines improved year over year.
Tencent’s operating margin had improved year over year for thirteen quarters.


Tencent (700 HK): 3Q25, Continuous Revenue Acceleration & Margin Improvement, 40% Upside

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.

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Tencent (700 HK)

Tencent (700 HK): Top Option Trades Reveal a Split in Market Sentiment

Tencent's multi-leg option strategies highlight evenly split bullish and bearish sentiment, with diagonal spreads making up 25% of trades....

Gaudenz Schneider

HK Connect SOUTHBOUND Flows (Wk To 21 Nov 2025) - BIG Net Buy on Lower Gross Flows. BABA Bought

BIG Net flows - averaging US$1bn a day - as HK shares fall sharply on the week. Alibaba and Info Tech see renewed big inflows. Some ETF buying last...

Travis Lundy

HK Connect SOUTHBOUND Flows (Wk To 14 Nov 2025) - Strong SOE/Energy/Financials Buying on BABA Sales

SOUTHBOUND gross activity remains decent, net buying remains strong. SOUTHBOUND buying may pick up on Dual Counter SB eligibility, due by year-end.

Travis Lundy

Tencent (700 HK) - 3Q25 Results: Solid Growth Across Business Lines...

Tencent reported 3Q25 results: total revenue grew by 15% YoY to RMB192.9bn, 2/4% ahead of Bloomberg consensus/our estimate, mainly thanks to the...

CMB International

Tencent (700 HK): 3Q25, Continuous Revenue Acceleration & Margin Improvement, 40% Upside

The revenue growth accelerated for the fourth quarter to 15% YoY in 3Q25. In 3Q25, the gross margins of all business lines improved. Tencent’s...

Ming Lu

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Tencent (700 HK): Top Option Trades Reveal a Split in Market Sentiment

​Tencent's multi-leg option strategies highlight evenly split bullish and bearish sentiment, with diagonal spreads making up 25% of trades....

Gaudenz Schneider

HK Connect SOUTHBOUND Flows (Wk To 21 Nov 2025) - BIG Net Buy on Lower Gross Flows. BABA Bought

BIG Net flows - averaging US$1bn a day - as HK shares fall sharply on the week. Alibaba and Info Tech see renewed big inflows. Some ETF buying last...

Travis Lundy

HK Connect SOUTHBOUND Flows (Wk To 14 Nov 2025) - Strong SOE/Energy/Financials Buying on BABA Sales

SOUTHBOUND gross activity remains decent, net buying remains strong. SOUTHBOUND buying may pick up on Dual Counter SB eligibility, due by year-end.

Travis Lundy

Tencent (700 HK) - 3Q25 Results: Solid Growth Across Business Lines...

Tencent reported 3Q25 results: total revenue grew by 15% YoY to RMB192.9bn, 2/4% ahead of Bloomberg consensus/our estimate, mainly thanks to the...

CMB International

Tencent (700 HK): 3Q25, Continuous Revenue Acceleration & Margin Improvement, 40% Upside

The revenue growth accelerated for the fourth quarter to 15% YoY in 3Q25. In 3Q25, the gross margins of all business lines improved. Tencent’s...

Ming Lu

Tencent's multi-leg option strategies highlight evenly split bullish and bearish sentiment, with diagonal spreads making up 25% of trades....