[AI] Tech stocks will announce their earnings next week. Pre-earnings good positions can pay attention to Tencent call 26110 / Alibaba call 26604

Regarding the Hang Seng Index, mainland regulatory authorities have taken multiple actions against OpenClaw ("Little Lobster" AI intelligence) due to safety risks, requiring state-owned enterprises, banks, and government agencies to restrict or ban its use in office environments, and to inspect and uninstall already installed devices. The Hang Seng Index has seen a short-term decline, dropping nearly 300 points this morning. If you are bearish, you may consider the put warrant (23321) with an exercise price of 24,875 points, expiring in May 2026, with an actual leverage of 11 times. Conversely, if you are optimistic about the development of AI in mainland China, you may pay attention to the call warrant (23723) with an exercise price of 26,733 points, expiring in May 2026, with an actual leverage of 16 times. As for Tencent (0700), the market is simultaneously focusing on the stock price rebound brought by its participation in the OpenClaw ecosystem, while also paying attention to the risk repricing under stricter regulations. Recent reports indicate that Tencent has launched its own AI intelligence WorkBuddy through cloud and enterprise scenarios, emphasizing deployment within Tencent's secure cloud platform and integration with the QQ and WeChat ecosystems, which can be seen as a relatively "safer" domestic alternative in China. Analysts point out that Tencent still holds a monopolistic advantage in the social and mini-program ecosystem, and is expected to transform the original demand of "raising lobsters locally" into enterprise-level Agent services operating within Tencent's closed environment. If you are optimistic about its long-term AI monetization capabilities, you may consider the Tencent call warrant (26110) with an exercise price of 680.5 yuan, expiring in July 2026, with an actual leverage of 9.2 times. Conversely, Tencent will announce its earnings next week, and if you are bearish before the results, you may consider the Tencent put warrant (26222) with an exercise price of 466.46 yuan, expiring in August 2026, with an actual leverage of 7.5 times. Alibaba (9988) has exposed frontier risks on another AI agency front. The Alibaba research team disclosed that agents attempted to break out of the sandbox and access internal network resources without task instructions, even utilizing GPU resources for cryptocurrency mining, triggering severe alerts from the cloud firewall. This incident highlights that large language model agents may evolve unauthorized and harmful behaviors, posing substantial challenges to cloud security and compliance. If you believe Alibaba needs to strengthen its design in terms of security, protection, controllability, and trustworthiness, and are bearish on Alibaba, you may consider the put warrant (20573) with an exercise price of 129.9 yuan, expiring in June 2026, with an actual leverage of 5 times. Conversely, Alibaba will release its earnings next week, and if you are optimistic about AI development, you may consider the call warrant (26604) with an exercise price of 150.09 yuan, expiring in August 2026, with an actual leverage of 5.6 times. Disclaimer This structured product is not secured by collateral. If the issuer is unable to repay or defaults, investors may not recover part or all of the receivables. This article is issued by The Hongkong and Shanghai Banking Corporation Limited ("the Bank" or "the Issuer") (including any reference terms) for reference only and does not constitute an invitation, solicitation, or recommendation to sell or purchase structured products Structured products are complex products, and investors must act with caution. Unless investors fully understand and are willing to bear the risks involved, they should not invest in this product. The prices of structured products can rise or fall sharply, and investors may lose all or most of their investment. Past performance does not reflect future performance. Before investing, one should understand the nature and risks of structured products and carefully read the relevant W market documents to independently determine if it is suitable for them. If needed, they should seek professional advice. Our bank and its appointed liquidity providers may be the only market participants for structured products, and the secondary market for structured products may be limited. Please note that bull and bear certificates have a mandatory redemption mechanism, which may lead to early termination. In this case, (i) investors in N-type bull and bear certificates will lose their entire investment in the certificates; and (ii) the remaining value of R-type bull and bear certificates 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 no Chinese version provided; (c) political and economic risks related to the index (e.g., the United States); (d) exchange rate risks; (e) potential settlement delays; (f) publication of index levels when there is no trading in the constituent stocks; and (g) mandatory redemption events for U.S. index bull and bear certificates occurring during non-trading hours. The author is a licensed person under the Monetary Authority and the Securities and Futures Commission and holds no direct or indirect interests in structured products or related assets. Information / Use Unless specifically stated, the information in this article is provided by our bank to Hong Kong residents ("Hong Kong residents") for financial, market, or other information and data ("Information"). Non-Hong Kong residents should not rely on or make any decisions based on the information in this article. If you are not a Hong Kong resident and use this article, you may be in violation of the laws applicable to you. Our bank and all HSBC Group companies shall not be liable for any and all responsibilities arising from your use of the article as a non-Hong Kong resident. "HSBC Group companies" refer to HSBC Holdings plc and any subsidiaries or affiliated companies