The Pentagon indicated on Monday (8 June) that it plans to add $BABA-W(09988)$ , $BYD COMPANY(01211)$ , $BIDU-SW(09888)$ and several other Chinese companies to a list of entities it identifies as having links to China’s military.
Since the announcement on Monday, Alibaba has declined by around 5.9%. Reflecting the move in the underlying stock in the past two trading days, the Alibaba 5x Short DLC rose around +27%, while the Alibaba 5x Long DLC fell by around -23%.
BYD and Baidu also came under pressure, falling 3.9% and 1% respectively since 8 June.
Separately, additional units of the $Alibaba 5xLongSG270712(ZVNW.SI)$ were issued on 10 June, allowing Societe Generale as the Designated Market Maker, to be able to quote full size on the Ask quotations to meet strong investor demand.
Investors with a bullish view on Alibaba may consider ZVNW, which offers leveraged exposure to potential gains in Alibaba’s share price. Conversely, those who expect further downside may consider the Alibaba 5x Short DLC (RHDW) to potentially benefit from a pullback in the stock.
See the full list of DLCs on dlc.socgen.com.
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
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