JD jumps 7.6% with 5x DLC up 38%; Alibaba, Tencent, SMIC, Meituan Earnings Due

$JD-SW(09618)$ rose as much as 7.6% in morning trade on Wednesday (13 May) after reporting better-than-expected earnings, with sentiment supported by expectations of a more disciplined competitive environment in China’s food delivery sector. The stock later trimmed gains to close the morning session up 7%.

The move lifted the JD 5x Long DLC by up to 38%, while the JD 5x Short DLC fell by a similar magnitude.

$MEITUAN-W(03690)$ lso advanced, ending the morning session up 4.75%. Correspondingly, the Meituan 5x Long DLC gained about 24%, while the Meituan 5x Short DLC declined by around the same magnitude.

Attention now turns to $BABA-W(09988)$ , which is due to report first-quarter results after market close on 13 May, ahead of a busy two-week earnings period for Hong Kong equities.

$TENCENT(00700)$ is also set to report on 13 May, with $SMIC(00981)$ reporting on 14 May and MEITUAN-W(03690) on 15 May, while Baidu and Bilibili are among the companies scheduled to announce results over the coming two weeks.

Investors can position ahead of or in response to earnings by using 5x Long and Short DLCs to amplify their directional view.

Long DLCs can be used to express a bullish view, or to take advantage of any potential price correction following a negative overreaction post-earnings. Short DLCs can be used to benefit from any price decline or to capitalise on any potential pullback following a positive overreaction.

See the full list of DLCs here.

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