HSTECH Falls 0.6% on AI Warning, HSTECH 7x Short DLC Rises 4.2%

Hong Kong-listed AI-related stocks came under pressure in early trading on Monday (14 September), after major AI companies sounded a cautionary note over the weekend and called for a more measured pace of technological development.

Chipmaker $SMIC(00981.HK)  led declines among DLC-covered underlyings, falling as much as 2.8% as of 9:45am Singapore time.

Amplifying the move, the$SMIC 5xShortSG280524(9DFW.SG) gained up to approximately 14%, while the$SMIC 5xLongSG280316(WWZW.SG) declined by a similar magnitude.

Tech giant $BABA-W(09988.HK) also fell about 2.3%, lifting the$Alibaba 5xShortSG270907(RHDW.SG) by 11.5%, and the $Alibaba 5xLongSG280316(IWWW.SG) down a similar magnitude.

The broad declines dragged the $Hang Seng TECH Index(STECH.HK) down by about 0.6%.

Tracking the underlying, the $HSTECH 7xShortSG270309(9B2W.SG)  rose ~4.2%, while the $HSTECH 7xLongSG280316(XRXW.SG)  sank about the same magnitude.

Attention now turns to a packed central bank calendar this week. The Fed is expected to announce its rate decision on Wednesday (16 Sept), followed by the Bank of England (17 Sept), and Bank of Japan (18 Sept).

Investors with a bullish view can consider Long DLCs for leveraged exposure, while bearish investors can consider Short DLCs for inverse exposure across a broad range of U.S., Hong Kong and Singapore single stocks and index underlyings. 

View the full list of DLCs here. 

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