---
title: "Goldman Sachs' L (Long) and S (Short) positions in XtalPi explained:"
type: "Topics"
locale: "zh-HK"
url: "https://longbridge.com/zh-HK/topics/33192191.md"
description: "201,531,068 shares (L) + 53,549,453 shares (S), 5.02% (L)/1.33% (S): The Goldman Sachs Group, Inc. $XTALPI(02228.HK) Brief conclusion: For institutions like Goldman Sachs engaged in market-making and client hedging, it's common to see both L (long positions) and S (short positions) simultaneously, which doesn't necessarily mean they are "wash trading." In most cases, it's to provide liquidity to clients and neutralize their own risks (delta-neutral)..."
datetime: "2025-08-21T03:16:47.000Z"
locales:
  - [en](https://longbridge.com/en/topics/33192191.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/33192191.md)
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author: "[老板的老板 AI Exec](https://longbridge.com/zh-HK/profiles/123.md)"
---

> 支持的語言: [English](https://longbridge.com/en/topics/33192191.md) | [简体中文](https://longbridge.com/zh-CN/topics/33192191.md)


# Goldman Sachs' L (Long) and S (Short) positions in XtalPi explained:

> 201,531,068 shares (L) + 53,549,453 shares (S), 5.02% (L)/1.33% (S): The Goldman Sachs Group, Inc. $XTALPI(02228.HK)

Short conclusion: For institutions like Goldman Sachs engaged in market-making and client hedging, the simultaneous appearance of **L (long positions)** and **S (short positions)** is common and does not necessarily indicate "wash trading." In most cases, it is to **provide liquidity to clients and neutralize their own risk (delta-neutral)**. Whether it is "necessary" depends on the nature of the business—**it is typically necessary for brokerage/market-making/issuing institutions**, but not for pure investors.

# Typical Scenarios (Why L and S Coexist)

**Market-making and hedging for structured products/warrants/bull-bear certificates**

Example: Selling call warrants (the broker is **short call**). To hedge the positive delta, the broker will **buy the underlying stock** → forming **L**.

At the same time, if reverse products (e.g., bear certificates or puts) are issued, the broker needs to **borrow shares to short** or use equivalent tools to **short** → forming **S**.

After multiple products are layered, the group-level disclosure will show both L and S.

**Prime Brokerage/Swap (TRS, CFD) Client Hedging**

Client A goes **long** through total return swaps, and the broker hedges by **buying the underlying stock** in the market → **L**.

Client B goes **short** through swaps or share borrowing, and the broker hedges by **shorting/holding short positions** → **S**.

When the same group consolidates different client positions for reporting, L and S appear simultaneously.

**Hedging Strategies for Convertible Bonds/M&A Arbitrage**

For example, **convertible bond arbitrage**: holding convertible bonds (or underwriting inventory) while **shorting the underlying stock** to hedge delta → **S**; meanwhile, other group businesses may need to **hold the underlying stock** → **L**.

**ETF/AP, Index/Basket Hedging and Inventory Management**

As an ETF market maker/redemption participant, the broker may **simultaneously hold long and short positions** in component stocks based on redemption and hedging needs.

Block trades, placements, and stabilization operations (e.g., greenshoe) may also involve coexisting **short/long positions** for hedging.

# How to Interpret This Table Correctly

Goldman Sachs disclosure: **L = 5.02%**, **S = 1.33%**, so **net position ≈ +3.69% (net long)**.

This does not necessarily express a directional view but is more of a **business-driven hedging outcome**; positions will also **adjust dynamically** with product inventory and client flow.

If needed, I can provide explanations for "why L+S exists" with a few diagrams (warrant hedging, TRS process, convertible bond arbitrage illustration) and a one-page summary of the current **net/gross exposure** for this stock, making it easier to sync internally.

* * *

If we set aside the motivation of "Goldman Sachs wanting to invest in XtalPi," the **sudden** appearance of **L and S positions** is most commonly driven by **business-driven hedging/market-making**, not directional bets. Below is a probability-ranked table of "causes—how L/S forms":

# More Likely Causes

**Prime Brokerage (Swap/CFD) Client Hedging & Fund/Ledger Migration**

Clients use TRS/CFD to go **long** on XtalPi → Goldman Sachs hedges by **buying the underlying stock** in the market, forming **L**.

Other clients go **short** through Goldman Sachs (share borrowing or swaps) → Goldman Sachs **shorts/holds equivalent short positions**, forming **S**.

If **clients migrate positions from other brokers to Goldman Sachs** or consolidate **accounts within the same group**, L may suddenly exceed **≥5%** on a given day, triggering **disclosure for the first time**, making it appear "sudden."

**Structured Products/OTC Options/Warrants (DW, Bull-Bear Certificates) Market-Making Hedging**

Selling call warrants/clients buying OTC options → Goldman Sachs hedges by **buying the underlying stock** (**L**).

Simultaneously issuing reverse products (e.g., bear certificates/puts) or taking on clients' put exposure → **borrowing shares to short or holding equivalent S**.

After layering multiple products, the group's consolidated reporting naturally shows **L+S coexistence**.

**ETF/AP and Index/Basket Hedging**

As an ETF market maker or redemption participant, upon receiving redemption or hedging demands, the broker may **temporarily hold both L and S** in component stocks to hedge basket deviations.

If the stock is **recently added to an index/ETF pool**, related hedging may quickly amplify to disclosure thresholds.

**Placement/Block Trades/Underwriting and Stabilization Mechanisms (Including Greenshoe)**

When underwriting placements or block trades, the broker may **temporarily hold inventory** (**L**);

To stabilize prices, it may establish **hedging short positions** (**S**) or use greenshoe mechanisms to hedge tail risks.

Such positions are usually **temporary**, with L/S ratios adjusted repeatedly during the period.

**Convertible Bond/M&A Arbitrage-Related Hedging**

Holding convertible bonds or underwriting inventory, the broker commonly **shorts the underlying stock** (**S**) to hedge delta;

Meanwhile, other group businesses may need to **hold the underlying stock** (**L**), leading to coexistence.

# Why It "Appears Sudden"

**Threshold Effect**: Hong Kong disclosure uses **5% long positions** as the starting point for "becoming a major shareholder"; positions only appear on the list when they reach or cross this threshold. They may have been at 4.x% before, and a **single hedging/migration** pushes them to 5%, making them "suddenly appear."

**Denominator Changes**: The company's **additional issuance/repurchase/stock split** changes the issued share capital. Even if the number of shares remains largely unchanged, the **proportion may cross the line**.

**Group Consolidation**: The disclosure is based on **The Goldman Sachs Group, Inc. (group consolidation)**. Different subsidiaries (brokerage, market-making, swap desks) **consolidate reports** within the same day. Once the net position exceeds 5%, it is disclosed collectively.

# How to Read the Numbers in Your Table

You see Goldman Sachs **L = 5.02% (≈201.5 million shares)**, **S = 1.33% (≈53.55 million shares)**, **net long ≈ 3.69%**. This is more like a **liquidity-providing hedging portfolio** than a unilateral long or short.

# When Is It "Necessary" to Deploy This Way?

**For Market-Making/Hedging/Brokerage Institutions: Usually Necessary** (client and product-driven, aiming to reduce proprietary directional risk).

**For Pure Investors: Generally Unnecessary** (they tend to have only L or only S).

* * *

Great, I’ve provided the "checklist + timeline alignment" you requested in one go and directly placed Goldman Sachs' **L+S** positions into the rhythm.

# One-Sentence Conclusion

Over the past two weeks, XtalPi's intensive information flow (8/5 final agreement with DoveTree + receipt of US$51 million upfront payment; 8/12 "turnaround" earnings preview) triggered amplified trading volume and volatility, easily activating **broker/market-making/swap desk** hedging demands, resulting in **simultaneous L and S disclosures**. In your screenshot, Goldman Sachs disclosed on 8/14 **L=5.02% (201.5 million shares)/S=1.33% (53.55 million shares) → net long≈3.69% (147.98 million shares)**, timing closely aligned with these events. ([HKEX News](https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0805/2025080500993.pdf?utm_source=chatgpt.com), [Sohu](https://www.sohu.com/a/924018404_114984?utm_source=chatgpt.com))

* * *

# Event Checklist for the Past Two Weeks and Conclusion

(Time window: 8/5–8/21)

**A. Company-Level Announcements / Trading Events**

**8/5**: Announced the "final agreement" with **DoveTree** and confirmed receipt of a **US$51 million** upfront payment (with an additional US$49 million near-term payment arrangement & long-term payment path capped at ~**US$5.89–6 billion**). The market rose significantly on the same day. ([HKEX News](https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0805/2025080500993.pdf?utm_source=chatgpt.com), [Morningstar](https://www.morningstar.com/news/pr-newswire/20250806cn44811/xtalpi-and-dovetree-announce-landmark-6-billion-ai-drug-discovery-collaboration?utm_source=chatgpt.com), [Yicai Global](https://www.yicaiglobal.com/news/chinas-xtalpi-surges-on-usd6-billion-ai-driven-drug-discovery-deal-with-dovetree?utm_source=chatgpt.com))

**8/12**: Released a **positive profit preview**: 2025H1 revenue of no less than **RMB 500 million** and net profit of no less than **RMB 50 million** (the group's **first semi-annual profit**), explicitly attributing the improvement to the DoveTree collaboration and upfront payment.

**8/27 (Preview)**: The company announced it will release interim results on **8/27** (after the Hong Kong market closes). This is another node that can drive market-making/hedging positions. ([Yahoo Finance](https://finance.yahoo.com/news/xtalpi-holdings-limited-announce-2025-103800444.html?utm_source=chatgpt.com))

**B. Is Trading Volume/Volatility "Abnormal"?**

**8/14**: Closed up **+11.61%**, with trading volume of approximately **HK$4.475 billion**, significantly higher than usual, marking a **high-volatility day post-event**. ([Sohu](https://www.sohu.com/a/924018404_114984?utm_source=chatgpt.com))  
↳ This was the day of the **Goldman Sachs disclosure** in your screenshot (8/14), aligning with the "typical timing" for market-making/hedging position adjustments (post-event, post-earnings preview, pre-earnings week).

**C. Index Inclusion/Reshuffling (May Trigger Passive/Hedging Flows)**

**Hang Seng Index Series Semi-Annual Review Results** will be announced on **8/22 (Friday)**, with changes expected to take effect on **9/8**; the list has not been announced yet, and it is unknown whether XtalPi is involved. If inclusion/weight changes are involved, market makers and hedging flows will adjust positions in advance or post-announcement. ([Sina Finance](https://finance.sina.com.cn/stock/hkstock/hkstocknews/2025-07-03/doc-infeeerr3652014.shtml?utm_source=chatgpt.com), [AInvest](https://www.ainvest.com/news/hang-seng-index-announce-2025-q2-review-results-august-22-effective-september-8-2507/?utm_source=chatgpt.com))

**D. Newly Listed Derivatives (DW/CBBC) Activity**

Multiple issuers have **continuously** issued warrants/bull-bear certificates for **02228** (example: HSBC Warrants has a dedicated underlying page for 02228, showing it as an active target). Periods of amplified volatility are often accompanied by **new issuances and inventory resets**, easily causing issuers/market makers to hold \*\*underlying (L) + hedging short positions (S)\*\* simultaneously. _(Precise "new issuance lists" require daily extraction from issuer notices/exchange product databases.)_. ([HSBC Warrants](https://www.warrants.hsbc.com.hk/en/tools/underlying/code/02228?utm_source=chatgpt.com))

**E. Any Placements/Block Trades in the Past Two Weeks?**

**No new placement/block trade announcements in the past two weeks**. The most recent was on **2/19**: XtalPi placed **342 million shares** at **HK$6.10** (≈**8.52%** of the enlarged share capital), at a discount of ≈**5.86%**, **raising ~HK$2.08 billion net** (for background context, not a trigger for this period). ([Stockstar](https://hk.stockstar.com/IG2025021900006172.shtml?utm_source=chatgpt.com), [AAStocks](https://www.aastocks.com/en/stocks/analysis/stock-aafn-con/02228/AAFN/NOW.1418280/hk-stock-news?utm_source=chatgpt.com))

* * *

# Aligning with Goldman Sachs (L+S) Rhythm

**8/12**: Company released a **positive profit preview** → triggered increased trading and derivatives demand.

**8/14**: Market **surged with high volume** (≈**HK$4.475 billion** trading volume) → market-making/hedging and client swap desks often **simultaneously adjust hedges** at this time. **On the same day**, your screenshot shows **Goldman Sachs disclosed L=5.02%/S=1.33%** (net long 3.69%). This strongly resembles issuance/market-making/Prime Brokerage **converging group net risk to a delta-neutral state** post-event. ([Sohu](https://www.sohu.com/a/924018404_114984?utm_source=chatgpt.com))

**8/22** (Pending): **Hang Seng Review Results**, if involving this stock, will further drive passive flows/hedging demands (may require another L/S adjustment). ([Sina Finance](https://finance.sina.com.cn/stock/hkstock/hkstocknews/2025-07-03/doc-infeeerr3652014.shtml?utm_source=chatgpt.com))

**8/27** (Announced Schedule): **Interim Results** are another typical period for issuers and hedging desks to **reposition intensively**. ([Yahoo Finance](https://finance.yahoo.com/news/xtalpi-holdings-limited-announce-2025-103800444.html?utm_source=chatgpt.com))

* * *

# Analysis (Why L+S "Suddenly" Appears)

**Event-Driven "Client + Product" Dual Demand**:

The DoveTree final agreement and upfront payment simultaneously elevated **fundamentals and expectations**;

The "turnaround" earnings preview was a **secondary catalyst**;

These activated demand for **OTC options/swaps (TRS/CFD)/DW/CBBC**. Issuers/market makers/Prime brokers hedged exposures by **building L in the underlying** and **forming S in derivatives or share borrowing**, resulting in **L+S coexistence** at the group level. ([HKEX News](https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0805/2025080500993.pdf?utm_source=chatgpt.com))

**Not a New Fundamental "Control" Type of L**:

Given the disclosed **net long≈3.69% and same-day high trading volume**, this is more like a **business-driven dynamic inventory hedge** than a unilateral long-term investment. ([Sohu](https://www.sohu.com/a/924018404_114984?utm_source=chatgpt.com))

* * *

# "Actionable Checklist" for Execution

> If you want to confirm/quantify whether this is a "hedging position," follow this evidence chain:

**Warrant/Bull-Bear Certificate New Issuances and Inventory Change Logs**

Search the exchange's **DW/CBBC database** for 02228 issuance/listing records over the past two weeks (issuer, strike price, expiry, street volume changes). **If new issuances are dense + street volume expands**, this almost directly explains the L+S from market-making hedging. ([Hong Kong Exchanges and Clearing](https://www.hkex.com.hk/eng/dwrc/search/listsearch.asp?utm_source=chatgpt.com))

**Daily Short Selling Volume and Covering Rhythm**

Compare **short selling volume/percentage** and **borrowing balance** (HKEX/broker terminals) for the 8/12–8/16 period. If **S proportion aligns with short selling/borrowing data spikes**, it matches Goldman Sachs' **S=1.33%**.

**Index Review Results (8/22)**

Immediately check if 02228 is involved (inclusion/category change/weight adjustment). If so, expect **passive flow adjustments** and issuer re-hedging. ([Sina Finance](https://finance.sina.com.cn/stock/hkstock/hkstocknews/2025-07-03/doc-infeeerr3652014.shtml?utm_source=chatgpt.com))

**Earnings (8/27) and Secondary Announcements**

3–5 trading days before/after earnings, continue monitoring **DI** for **position changes** and \*\*DW/CBBC street volume/sensitivity (Gamma)\*\* spikes—if observed, you’ll see another round of **L/S bilateral micro-adjustments** in disclosures. ([Yahoo Finance](https://finance.yahoo.com/news/xtalpi-holdings-limited-announce-2025-103800444.html?utm_source=chatgpt.com))

* * *

# Background Events for Reference (Not Recent Two Weeks, but Affects Denominator/Supply)

**2/19 Placement**: Up to **342 million shares**, at a discount of ≈**5.86%**, **raising ~HK$2.08 billion net**; this is the "old reason" for one-time incremental supply but **not** a direct trigger for the recent two weeks. ([Stockstar](https://hk.stockstar.com/IG2025021900006172.shtml?utm_source=chatgpt.com), [AAStocks](https://www.aastocks.com/en/stocks/analysis/stock-aafn-con/02228/AAFN/NOW.1418280/hk-stock-news?utm_source=chatgpt.com))

**(Completed) Stock Connect Inclusion**: Already included in Shanghai/Shenzhen-Hong Kong Stock Connect earlier, not new for this period, but it sets the baseline for \*\*"Northbound + passive flows"\*\* long-term participation. ([fortuneinsight.com](https://fortuneinsight.com/web/instant-news/6597554/%E8%B2%A1%E7%B6%93%EF%BD%9C%E6%99%B6%E6%B3%B0%E7%A7%91%E6%8A%8002228%E7%8D%B2%E7%B4%8D%E5%85%A5%E6%BB%AC%E6%B8%AF%E9%80%9A%E5%8F%8A%E6%B7%B1%E6%B8%AF%E9%80%9A/?utm_source=chatgpt.com))

* * *

## Summary for Decision-Makers

**This L+S is more like "hedging and market-making" inventory**, not a "directional heavy position."

Trigger sequence is clear: **8/5 final agreement → 8/12 turnaround earnings preview → 8/14 high-volume surge (same day as Goldman Sachs DI) → 8/22 Hang Seng review (pending) → 8/27 earnings**. ([HKEX News](https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0805/2025080500993.pdf?utm_source=chatgpt.com), [Sohu](https://www.sohu.com/a/924018404_114984?utm_source=chatgpt.com), [Sina Finance](https://finance.sina.com.cn/stock/hkstock/hkstocknews/2025-07-03/doc-infeeerr3652014.shtml?utm_source=chatgpt.com), [Yahoo Finance](https://finance.yahoo.com/news/xtalpi-holdings-limited-announce-2025-103800444.html?utm_source=chatgpt.com))

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## 評論 (6)

- **黑化的交易员 · 2025-08-21T05:17:30.000Z**: Learning
- **阿B仔 · 2025-08-21T04:10:55.000Z**: Thank you
- **泠夜辉 · 2025-08-21T04:00:26.000Z**: Too long, can't understand
- **博客 · 2025-08-21T03:50:35.000Z**: Short to lock in profits and trade the spread
- **博客 · 2025-08-21T03:35:22.000Z · 👍 1**: Seems to make sense now
- **海公牛 · 2025-08-21T03:18:11.000Z**: Makes a lot of sense