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.

Equity Bottom-Up

<ul>
<li>Tencent’s stock price has risen by 35% since our last buy rating. Downgrade to Hold.</li>
<li>Our EPS estimate for 2025 is 12% over the market consensus.</li>
<li>We believe both revenue growth and margin will improve in the coming 4Q24 results.</li>
</ul>


Tencent’s stock price has risen by 35% since our last buy rating. Downgrade to Hold.
Our EPS estimate for 2025 is 12% over the market consensus.
We believe both revenue growth and margin will improve in the coming 4Q24 results.


Tencent (700 HK): Risen 35% Since Our Last Buy, Good Preview for 4Q24

Derivatives and Quantitative Strategist

Gaudenz Schneider

Event-Driven

<ul>
<li>During yesterday's Option expiration day, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> experienced an intra-day swing of 4.1%.</li>
<li>Trading in the afternoon oscillated around the prominent 500 strike level. Around 66% of calls and 2% of puts expired in the money.</li>
<li>Volume was lower than in the preceding days; a total of 38 million shares were traded, with the morning session accounting for 53% of the volume.</li>
</ul>


During yesterday's Option expiration day, Tencent (700 HK) experienced an intra-day swing of 4.1%.
Trading in the afternoon oscillated around the prominent 500 strike level. Around 66% of calls and 2% of puts expired in the money.
Volume was lower than in the preceding days; a total of 38 million shares were traded, with the morning session accounting for 53% of the volume.


Tencent (700 HK): Expiry-Day Recap; Intra-Day Swing of 4.1%.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> stock options expiring on Thursday, February 27, show a concentration of approximately 40,000 open contracts at the 500 strike price, currently at the money. 
</li>
<li>The open interest at the 500 strike may increase volatility and trading activity near expiry if the stock price hovers around 500, possibly leading to amplified intraday price swings.</li>
<li>At the last monthly expiry in January the stock experienced intraday price swings of 2.5%.</li>
</ul>



Tencent (700 HK) stock options expiring on Thursday, February 27, show a concentration of approximately 40,000 open contracts at the 500 strike price, currently at the money. 

The open interest at the 500 strike may increase volatility and trading activity near expiry if the stock price hovers around 500, possibly leading to amplified intraday price swings.
At the last monthly expiry in January the stock experienced intraday price swings of 2.5%.


Tencent - 27 Feb Options Expiry: Potentially Volatile Session Due to 500 Strike Open Interest

Equity Derivatives

<ul>
<li>This Insight analyses <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>tailor-made option strategies traded over the last five trading days on the Hong Kong Exchange. Strategy highlights and volatility context are provided.</li>
<li>These traders tailor structures to risk budgets and take calculated bets. Diagonal call spreads are popular, many self-financing (0% premium). This strategy can play the 18 March earnings date.
</li>
<li>Call spreads can indicate where bullish traders see limits to the upside. The most bullish trade suggests a peak of up to 710 HKD by the end of March.</li>
</ul>


This Insight analyses Tencent (700 HK)tailor-made option strategies traded over the last five trading days on the Hong Kong Exchange. Strategy highlights and volatility context are provided.
These traders tailor structures to risk budgets and take calculated bets. Diagonal call spreads are popular, many self-financing (0% premium). This strategy can play the 18 March earnings date.

Call spreads can indicate where bullish traders see limits to the upside. The most bullish trade suggests a peak of up to 710 HKD by the end of March.


Tencent (700 HK): Top Trades: Strategies That Stand Out

Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

<ul>
<li>We believe in 2025 HK/China shall outperform EM. While the undervalued and under-owned characteristic of the China market is well-known, monetizability of China’s technological capabilities has become apparent only recently.</li>
<li>Policy stimuli during the upcoming NPC could catalyze consumer sentiment and market performance. China’s structural hurdles, Debt, Demographics and Deflation, remain. But correct stock and sector selection can generate alpha.</li>
<li>We prefer the internet platforms, consumer discretionary and high dividend yield, the latter largely SOEs. Our “China Twelve” are mostly reasonably valued (low teen PE), with double digit EPS growth.</li>
</ul>


We believe in 2025 HK/China shall outperform EM. While the undervalued and under-owned characteristic of the China market is well-known, monetizability of China’s technological capabilities has become apparent only recently.
Policy stimuli during the upcoming NPC could catalyze consumer sentiment and market performance. China’s structural hurdles, Debt, Demographics and Deflation, remain. But correct stock and sector selection can generate alpha.
We prefer the internet platforms, consumer discretionary and high dividend yield, the latter largely SOEs. Our “China Twelve” are mostly reasonably valued (low teen PE), with double digit EPS growth.


Asian Equities: It's China's Year - Our "China Twelve" In the Year of the Snake

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
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P/E	0.00
Dividend (Yield)	0.00

Tencent (700 HK)

Tencent (700 HK): Risen 35% Since Our Last Buy, Good Preview for 4Q24

Tencent’s stock price has risen by 35% since our last buy rating. However, we believe both revenue growth and margin will improve in following...

Ming Lu

Tencent (700 HK): Expiry-Day Recap; Intra-Day Swing of 4.1%.

Tencent (700 HK) saw a 4.1% swing on option expiration day, with trading around the 500 strike level and majority of calls expiring in the money....

Gaudenz Schneider

Tencent - 27 Feb Options Expiry: Potentially Volatile Session Due to 500 Strike Open Interest

Tencent (700 HK) stock options expiring 27 Feb show a concentration of open contracts at the 500 strike price, potentially leading to increased...

Gaudenz Schneider

Tencent (700 HK): Top Trades: Strategies That Stand Out

Analysis of option strategies for Tencent (700 HK) on the Hong Kong Exchange in the context of upcoming earnings. Bullish traders eyeing a...

Gaudenz Schneider

Asian Equities: It's China's Year - Our "China Twelve" In the Year of the Snake

In 25 HK/China should outperform. Monetization of China's tech capability, policy stimulus during NPC are catalysts. Structural issues- Debt,...

Manishi Raychaudhuri

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Tencent (700 HK): Risen 35% Since Our Last Buy, Good Preview for 4Q24

Tencent’s stock price has risen by 35% since our last buy rating. However, we believe both revenue growth and margin will improve in following...

Ming Lu

Tencent (700 HK): Expiry-Day Recap; Intra-Day Swing of 4.1%.

​Tencent (700 HK) saw a 4.1% swing on option expiration day, with trading around the 500 strike level and majority of calls expiring in the money....

Gaudenz Schneider

Tencent - 27 Feb Options Expiry: Potentially Volatile Session Due to 500 Strike Open Interest

​Tencent (700 HK) stock options expiring 27 Feb show a concentration of open contracts at the 500 strike price, potentially leading to increased...

Gaudenz Schneider

Tencent (700 HK): Top Trades: Strategies That Stand Out

​Analysis of option strategies for Tencent (700 HK) on the Hong Kong Exchange in the context of upcoming earnings. Bullish traders eyeing a...

Gaudenz Schneider

Asian Equities: It's China's Year - Our "China Twelve" In the Year of the Snake

​In 25 HK/China should outperform. Monetization of China's tech capability, policy stimulus during NPC are catalysts. Structural issues- Debt,...

Manishi Raychaudhuri

Tencent (700 HK) saw a 4.1% swing on option expiration day, with trading around the 500 strike level and majority of calls expiring in the money....

Tencent (700 HK) stock options expiring 27 Feb show a concentration of open contracts at the 500 strike price, potentially leading to increased...

Analysis of option strategies for Tencent (700 HK) on the Hong Kong Exchange in the context of upcoming earnings. Bullish traders eyeing a...

In 25 HK/China should outperform. Monetization of China's tech capability, policy stimulus during NPC are catalysts. Structural issues- Debt,...