Despite the impressive earnings report from U.S. chip giant NVIDIA, the S&amp;P 500 index experienced its largest intraday reversal since April on Thursday (November 20), dropping over 3.5% from its high, which also dragged the Hang Seng Index down by more than 600 points on Friday morning. Concerns about external risks may weigh on the Hang Seng Index, and for hedging or bearish strategies, one may consider put warrants (20877) with an exercise price of 24,875 points, expiring in March 2026, with an actual leverage of 9.2 times. Conversely, the Hang Seng Index has seen six consecutive days of bearish candles, accumulating a 6% decline. For those looking to capitalize on a rebound, call warrants (19661) with an exercise price of 29,145 points, expiring in February 2026, and an actual leverage of 15.6 times may be considered.Mainland chip leader SMIC (981) was also dragged down by the U.S. stock market, falling nearly 5% on Friday. However, looking back at its third-quarter earnings report, it performed excellently, with operating revenue increasing by 6.9% quarter-on-quarter to 17.16 billion yuan, and net profit soaring by 43.1% to 1.52 billion yuan. This was mainly due to strong AI demand and tight chip production capacity, with the utilization rate in the third quarter soaring to 95.8%. For those optimistic about SMIC, call warrants (22511) with an exercise price of 88.05 yuan, expiring in June 2026, and an actual leverage of 4 times may be of interest. Conversely, for those bearish, put warrants (21090) with an exercise price of 62.81 yuan, expiring in July 2026, and an actual leverage of 3.1 times may be considered.One of the mainland AI leaders, Alibaba (9988), will announce its earnings next Wednesday. Earlier, it officially released the open-source model Qwen3 and launched the Qianwen APP. With a free strategy and strong technology, Qianwen is challenging OpenAI, quickly rising to third place on the App Store's free chart within just two days, aiming to create an AI lifestyle portal. If optimistic about AI driving Alibaba's performance next week, bullish investors may focus on call warrants (14761) with an exercise price of 182.09 yuan, expiring in March 2026, and an actual leverage of 6.4 times. Conversely, the company's stock price has also been dragged down by the U.S. stock market, falling below the 150 yuan mark. For those continuing to be bearish, put warrants (20775) with an exercise price of 137.9 yuan, expiring in March 2026, and an actual leverage of 5.4 times may be considered.DisclaimerThis structured product is not secured. 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If needed, they should consult professional advice. The Bank and its appointed liquidity providers may be the only market participants for structured products, and the secondary market for structured products may be limitedPlease note that the knock-in and knock-out warrants have a mandatory redemption mechanism, which means they may be terminated early. In this case, (i) investors in N-type warrants will lose their entire investment in the warrants; and (ii) the remaining value of R-type warrants may be zero.Trading structured products linked to U.S. indices may carry additional risks, including: (a) risks related to differences in trading days and trading hours; (b) less publicly available information regarding the index, or the absence of a Chinese version; (c) political and economic risks related to the index (e.g., the United States); (d) exchange rate risks; (e) potential delays in settlement; (f) publication of index levels when there is no trading in the constituent stocks; and (g) mandatory redemption events for U.S. index knock-in and knock-out warrants occurring during non-trading hours.The author is a licensed person under the Hong Kong Monetary Authority and the Securities and Futures Commission and does not hold any direct or indirect interests in structured products or related assets.Information / UseUnless otherwise specified, the information in this article is provided by our institution, established, operated, and/or maintained for Hong Kong residents (&#34;Hong Kong residents&#34;) to provide financial, market, or other information and data (&#34;Information&#34;). 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The decline of U.S. chip stocks has affected the Hong Kong stock market, with the Hang Seng Index dropping over 600 points on Friday morning. Investors may consider Hang Seng Index call or put warrants to cope with market volatility. SMIC's third-quarter financial report showed good performance, with significant growth in operating revenue and net profit. Alibaba will announce its earnings next Wednesday and launch the open-source model Qwen3 and the Qianwen APP. Investors may pay attention to Alibaba call or put warrants. Be aware of the risks associated with structured products

- Despite strong earnings from Nvidia, the S&P 500 experienced its largest intraday reversal since April, dropping over 3.5%, which negatively impacted the Hang Seng Index, falling more than 600 points.  
- Semiconductor leader SMIC reported a 6.9% quarterly revenue increase and a 43.1% rise in net profit, driven by strong AI demand, but its stock fell nearly 5% due to U.S. market pressures.  
- Alibaba is set to announce earnings next week, with its new Qwen3 model gaining traction, but its stock has also been affected by U.S. market declines, prompting options for both bullish and bearish strategies.

𣾀豐輪證點評

SMIC

BABA-W

Alibaba

[Chips] US chip stocks decline dragging down Hong Kong stocks, take the opportunity to bet on a rebound, pay attention to SMIC call 22511 / Alibaba call 14761