In today’s briefing:
- Fengxiang (9977 HK): PAG’s Preconditional Privatisation Offer at HK$2.00
- HSCEI Index Options Weekly (Apr 7-11): Vol Reset, Skew Reprices, and 8,000 Strike in Focus
- HSI Index Options Weekly (Apr 07–11): Vol Shifts and Early Signs of USD Toxicity
- Hong Kong Single Stock Options Weekly (Apr 07–11): Vol Spikes, Breadth Cracks & ETF Activity Surges
Fengxiang (9977 HK): PAG’s Preconditional Privatisation Offer at HK$2.00
- Shandong Fengxiang (9977 HK) has disclosed a preconditional privatisation offer from PAG, the controlling shareholder, at HK$2.00 per H share, a 33.3% premium to the undisturbed price.
- The precondition relates to regulatory approvals. The key conditions for the privatisation will be approval by at least 75% independent H Shareholders (<10% of all independent H Shareholders rejection).
- The shareholders with blocking stakes which have not provided irrevocables will likely be supportive as the offer is reasonable and there is a potential scrip alternative.
HSCEI Index Options Weekly (Apr 7-11): Vol Reset, Skew Reprices, and 8,000 Strike in Focus
- Brutal start to the week, with the holiday-shortened calendar and continued global weakness weighing on Monday’s open.
- Implied vol surged early, with skew steepening and tail demand reflected in out-of-the-money Put pricing
- We highlight significant activity at the 8,000 strike and its implications for near-term spot and vol dynamics.
HSI Index Options Weekly (Apr 07–11): Vol Shifts and Early Signs of USD Toxicity
- A volatile week for HSI, with sharp moves in price, volume, and implied volatility concentrated around Monday’s gap lower.
- We discuss the shift in spot-vol dynamics and how it may influence short-term vol trading.
- Changes in open interest and vol structure are examined in the context of ongoing global tensions.
Hong Kong Single Stock Options Weekly (Apr 07–11): Vol Spikes, Breadth Cracks & ETF Activity Surges
- A challenging week for HK single stocks, with weak breadth and sharp losses punctuated by a gap lower to start the week.
- Monday marked the highest options volume day of the year, with a spike in the Put/Call ratio and unusual ETF option activity.
- Implied vols surged, with the average implied vol percentile at very elevated levels.
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