SMIC: Newly listed warrants to trade 23% pullback from 134% rally since June 2025
🆕Macquarie has listed a pair of call and put warrants tracking $SMIC(00981)$ shares listed on the Hong Kong Exchange
🖥SMIC is China's largest semiconductor foundry and plays a critical role in the global semiconductor industry
💫Its shares rallied 134% from 19 June 2025 to a record high of HKD 91.05 on 6 October, on optimism that SMIC can benefit from ongoing shifts in global supply chains and new strategic partnerships.
🍰There is a sense that the company is positioned to capture a bigger slice of the market at a time when China focuses on domestic chip production and secure supply (Simply Wall Street)
📉The shares however, tumbled 23% over the past month after Chinese brokerages halted margin financing, due to a rule which bars investors from using stocks with a high price-earnings (P/E) ratio above 300 as collateral to borrow funds for buying shares
🏷SMIC's current P/E ratio is 137.73 based on Bloomberg data as of 945AM this morning
📢In its upcoming 3Q25 results estimated to be released on 13 November, analysts are expected SMIC to report sales growth at the high end of 5-7% guidance
✳✴ Macquarie's newly listed SMIC call warrant $SMIC MB eCW260402(NAAW.SI)$ (https://warrants.com.sg/tools/livematrix/NAAW) is trading at SGD 0.036 vis-a-vis SMIC's share price at HKD 70.50, while newly listed put warrant $SMIC MB ePW260203(ONUW.SI)$ (https://warrants.com.sg/tools/livematrix/ONUW) is priced at SGD 0.043. Both will move approximately 4.5 times more than SMIC shares based on their effective gearing levels.
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