In today’s briefing:
- Market Sell-Off (Oct 10): How Asian Index ETFs Responded to Market Slide
- HSI Tactical Outlook: Maybe It Is a Large Pullback…
- ImmuneOnco(1541 HK): No Near Term Triggers, Commercialization Still Far Away, Placement Unattractive
- [IO Technicals] Near-Term Rally Fuelled by Restocking and Planned Output Cuts
- Hong Kong Single Stock Options Weekly (Oct 06 – 10): Options Calm But Stormy Seas Ahead
- Lucror Analytics – Morning Views Asia
- Chery Automobile Raises $1.2 Billion in Hong Kong’s Biggest Carmaker IPO of 2025
Market Sell-Off (Oct 10): How Asian Index ETFs Responded to Market Slide
- A renewed tariff threat from Trump sparked a sharp, sell-off across North American Equity markets.
- The sell off was broad based and accordingly we look at the performance of Asian Index ETF’s that trade in North America to help prepare for Monday’s price action.
- Implied volatility, price and option volume are displayed for each symbol.
HSI Tactical Outlook: Maybe It Is a Large Pullback…
- In our previous insight dedicated to the Hang Seng Index we formulated a key question: is this going to be a small pullback or a large pullback?
- The HSI pulled back just for 1 week, small pullback, our models were reset. But this week the index pulled back again, almost reaching Q2 support (mildly oversold).
- Then, on Friday, Trump tweeted something against China, after the Asian markets closed and all hell broke loose. The HSI Oct. futures tanked to 25300. Let’s discuss support zones…
ImmuneOnco(1541 HK): No Near Term Triggers, Commercialization Still Far Away, Placement Unattractive
- ImmuneOnco Biopharmaceuticals (Shanghai) (IOB HK) announced the placement of 24.2M shares for subscription at HK$14.5 per share.
- The company intends to use most of the net proceeds for further research and development of drug candidates IMM01, IMM2510 and IMM27M.
- The current market price of the stock makes the placement offer unattractive. Concerns remain with no drugs commercialized yet and the only possible commercialization expected to happen not before 2027.
[IO Technicals] Near-Term Rally Fuelled by Restocking and Planned Output Cuts
- Iron ore futures rallied as Chinese steel mills restocked post-Golden Week holiday, despite weak margins and persisting trade policy uncertainty.
- Managed money participants expanded net long positions, signalling sustained bullish conviction.
- The 65%-62% spread fell sharply while the 62%-58% spread surged, marking pronounced divergence in grade spreads following the post-holiday sessions.
Hong Kong Single Stock Options Weekly (Oct 06 – 10): Options Calm But Stormy Seas Ahead
- Hong Kong equities erased last week’s gains, with further losses on Monday likely after Trump’s social media post Friday morning.
- Weakness was not widespread, though there was a sharp reversal in breadth week over week.
- Option volumes and ratios suggest there’s little concern in the market at this point.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Greentown China, Sunny Optical
- UST yields rose 1-2 bps across the curve yesterday, amid a soft auction of 30Y notes that tailed marginally by 0.4 bps despite strong bidding metrics.
- The yield on the 2Y UST rose 1 bp to 3.59%, while that on the 10Y UST was up 2 bps at 4.14%. Equities retreated, with the S&P 500 and Nasdaq declining 0.3% and 0.1%, respectively.
Chery Automobile Raises $1.2 Billion in Hong Kong’s Biggest Carmaker IPO of 2025
- Chery Automobile Co. Ltd. made a strong debut on the Hong Kong Stock Exchange Thursday, raising HK$9.2 billion ($1.2 billion) in the city’s largest carmaker IPO of the year and seeing its shares soar as much as 11.2%.
- Shares closed at HK$31.90, up 3.7% from the IPO price of HK$30.80, giving the company a market capitalization of HK$184 billion — placing it nearly on par with rival Geely Automobile Holdings Ltd.
- The listing marks a major milestone for the state-owned automaker, founded in 1997, after several failed attempts to go public.
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