Kuaishou Leads Tech Stock Declines on Tax Concerns; Capitalise using 5x Long and Short DLCs

SG DLC News
02-04

Chinese technology stocks listed in Hong Kong were broadly weaker on Tuesday (3 Feb), following concerns that the sector could face higher value‑added tax after the government raised VAT rates for domestic telecommunications companies.

$KUAISHOU-W(01024)$ closed down 4.61%, after falling as much as 7.7% intraday. Correspondingly, the Kuaishou 5x Short DLC rose about 21%, while the $Kuaisho 5xLongSG261217(VLLW.SI)$ declined by a similar magnitude, in line with the underlying price movement.

Other major tech names also recorded losses, with $BIDU-SW(09888)$ ,$TENCENT(00700)$ , $BILIBILI-W(09626)$ , and $BABA-W(09988)$ declining approximately 3.6%, 2.9%, 2.5%, and 1.4% respectively.

Meanwhile, the $HSTECH(HSTECH)$ reversed earlier gains to end the session down about 1.1%, after dropping as much as 3.4% intraday. The index briefly extended its decline to around 20% from its October peak, placing it near the threshold commonly used to define a bear‑market move. Tracking the index, the $HSTECH 7xShortSG270309(9B2W.SI)$ rose more than 7%, while the $HSTECH 7xLongSG270331(YPCW.SI)$ fell about the same amount.

Investors can continue to position themselves directionally in anticipation of future market moves using our DLCs.

Visit dlc.socgen.com to view the full list of DLCs.

This advertisement has not been reviewed by the Monetary Authority of Singapore. This advertisement is distributed by Société Générale, Singapore Branch. This advertisement does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.

Modified in.02-04
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment