Alibaba 5x Short DLC Gains +50% as Alibaba Shares Plunge -10%
$BABA-W(09988)$ fell 10% on Monday (24 August) morning after announcing plans to raise approximately HK$80 billion through a share sale. The placement is expected to dilute earnings and weigh on the stock’s near-term performance.
Amplifying the move, the $Alibaba 5xShortSG270907(RHDW.SI)$ rose 50% in early trading, while the $Alibaba 5xLongSG270712(ZVNW.SI)$ fell a similar magnitude.
The weakness spilled into the broader technology sector, pushing the $HSTECH(HSTECH)$ down approximately 3.5%. Correspondingly, the $HSTECH 7xShortSG270309(9B2W.SI)$ rose 24.5%, while the HSTECH 7x Long (SYHW) fell by a similar magnitude.
With a packed earnings calendar ahead, Asia’s busiest reporting week could provide the next major test for the AI rally.
Investors who are bullish can consider the Long DLCs for leveraged exposure, while those who are bearish can look at the Short DLCs for inverse exposure to Hong Kong, Singapore, and US underlyings.
View the full list of DLCs on dlc.socgen.com
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- zuzu99·13:03This drop is not just about the placement. Feels more like the market finally pricing in slowing core commerce growth, and that part hurts way longer than one share sale lolLikeReport