In today’s briefing:
- Tencent (700 HK): Strategic Insights and Top Trades from HKEX Options Trading
- Alibaba Cloud Goes Global With $52 Billion Bet on AI and Infrastructure
- Huawei Unveils HarmonyOS PCs in Challenge to Windows–MacOS Duopoly
- Xiaomi Unveils First Self-Developed 3nm System-on-Chip Rivaling Apple’s A18 Pro
- Xiaomi’s Own Mobile Chip Fairytale Is Back
- BYD (1211 HK) Outlook: Near-Term Upside Still Possible, but Rally Looks Stretched…
- Lucror Analytics – Morning Views Asia
Tencent (700 HK): Strategic Insights and Top Trades from HKEX Options Trading
- Over the past five trading days, Tencent (700 HK) multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.
- Calendar and Diagonal Spreads make up a quarter of all strategies. Several examples are presented incorporating upfront cost, upfront credit, or zero-cost combinations.
- While there is a bias towards bullish strategies, 26% of all strategies express a market-neutral view in the form of Straddles, Strangles, Butterflies or Condors.
Alibaba Cloud Goes Global With $52 Billion Bet on AI and Infrastructure
- Alibaba Cloud is doubling down on globalization with a bold new strategy and 380-billion-yuan ($52.7 billion) investment plan aimed at creating a unified global cloud network and accelerate the international rollout of its AI offerings.
- The initiative seeks to establish Alibaba Cloud as the digital backbone for China’s next generation of global companies.
- Speaking at the Alibaba Cloud “Go Global Summit” on Thursday, Wu Yongming, Alibaba Group CEO and Alibaba Cloud chairman, said China’s globalization is entering a new era — one led not just by product exports but by the global rise of Chinese technology, brands and advanced manufacturing.
Huawei Unveils HarmonyOS PCs in Challenge to Windows–MacOS Duopoly
- Huawei Technologies Co. Ltd. unveiled its first personal computers Monday in Chengdu, with machines powered by the company’s self-developed chips and HarmonyOS operating system in a direct challenge to the long-standing dominance of Windows-Intel (Wintel) and Apple’s macOS technology.
- The MateBook Fold, priced from 23,999 yuan ($3,328), features an 18-inch foldable screen and a split keyboard, while the lighter MateBook Pro, starting at 7,999 yuan, follows a more conventional laptop design with a 14.2-inch display.
- Huawei did not disclose the specific chip used in either model, but industry observers believe the devices are equipped with the company’s Kirin X90 processor built on an Arm architecture.
Xiaomi Unveils First Self-Developed 3nm System-on-Chip Rivaling Apple’s A18 Pro
- After four years of behind-the-scenes development, Xiaomi has officially joined the top tier of smartphone chipmakers with the launch of its first in-house 3-nanometer system-on-chip (SoC), the Surge Xuanjie O1, along with its first self-developed 4G baseband chip, the Xuanjie T1.
- The announcement came during the company’s product launch event in Beijing on Thursday, where Xiaomi also introduced its new flagship phone 15s Pro and 7Ultra tablet — both powered by the Xuanjie O1— as well as a smartwatch using the T1 chip.
- The Xuanjie O1 is built using TSMC’s second-generation 3nm N3E process the same advanced node used in Apple’s A18 chips and Qualcomm’s Snapdragon 8 Elite.
Xiaomi’s Own Mobile Chip Fairytale Is Back
- Xiaomi has its own smartphone chip! It’s the 4th announcement (2014, 2017, 2021, 2025)? Yes it is. Why it didn’t succeed before, will it work out now? It won’t.
- Mobile chip development costs US$800m-1bn, to be amortized on Xiaomi’s small volumes. The economics don’t work. It won’t give Xiaomi any performance / differentiation benefits.
- Why now? Computex was ongoing in Taipei with 10 big-size CEOs, Nvidia, AMD, Qualcomm, Mediatek, TSMC… maybe they felt lonely in Beijing? If you bought Xiaomi, please sell.
BYD (1211 HK) Outlook: Near-Term Upside Still Possible, but Rally Looks Stretched…
- BYD (1211 HK) has been rallying hard since its 309.80 bottom in early april, the stock closed at 465.20 last Friday, a +50% rally! Probably well deserved.
- This insight analyzes the short-term tactical outlook on a WEEKLY time period basis. Our model finds that the stock is currently very overbought, however some upside is still possible.
- You may want to consider hedging your bets with some puts (probably cheap at this point), 1-2 weeks expiry, to protect against a (probably mild), upcoming pullback.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Xiaomi Corp, China Hongqiao
- Treasury yields ended lower yesterday, after recovering from a bear-steepening move earlier in the day that pushed the 30Y yield to as high as 5.15%.
- The recovery could be driven by dip buyers, after the US Congress narrowly passed President Donald Trump’s signature tax bill.
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