Check out the key picks for this week by SaxoStrats team

FX FOCUS – Renminbi still in focus

USDCNH

  • After eight weeks of depreciation the Renminbi remains on everyone’s mind and seems likely to continue offering trading opportunities in spot and options
  • The PBOC stepped in on Friday 3rd to make shorting of the currency more expensive and seemingly on Monday urged banks to prevent “herd behaviour”
  • The media also reported several officials saying the yuan won’t slide past 7.0
  • Bloomberg released results of a survey on last Wednesday 7th showing only one in 20 traders and analysts surveyed believe the yuan will fall below 7per dollar in the next three months Their median year-end estimate was 6.7750, opportunity to trade one’s own opinion there
  • TRADE YOUR VIEW WITH SAXO – USDCNH spot and options

STOCK FOCUS – NASDAQ FANG Futures

  • Due to client demand, as well as being incredibly thematic & important for the plus 9yr bull market, Saxo has added the FANG futures onto its trading platform
  • The FANG futures are based on a basket of the hottest equity names in the tech space, including Alphabet (google), Amazon, Apple, Nvidia [These first 4 make up +40% of the weighting], Baidu, Alibaba, Facebook, Netflix, Tesla & Twitter
  • A lot of different strategies as well as hedges can be put together using these futures – for instance, one may be long the Nasdaq or the S&P 500 but wants to limit their exposure to the FANGs
  • As well as just outright directional views; a long if one thinks the space has sold off too much, or a short if one thinks there is a lot more downside to come
  • TRADE YOUR VIEW WITH SAXO - FAANG:xcbf

STOCK FOCUS – After lukewarm raising China Tower avoids listing day fiasco

  • China Tower (00788:xhkg) listed on 8/8/18 raising HKD54.32billion on an IPO price per share HKD 1.26 which was at the very low end of pricing range. The market suggested retail demand was at very mundane levels which was not surprising given the utility-like nature of the company
  • This raising made the IPO the world’s largest in two years.
  • Despite the lacklustre raising and IPO pricing China Tower avoided a listing day fiasco with the stock closing out listing day at $1.26
  • China Tower was formed by combining the transmission facility assets of China Mobile, China Unicom, and China Telecom in 2015 as part of a broader plan to reform the nation’s state-dominated wireless industry. The company is the world’s largest owner of telecom tower infrastructure, per the prospectus
  • TRADE YOUR VIEW WITH SAXO - China Tower (00788.xhkg) shares and options

 

Weekly Most Traded A shares*

Stock CodeStock NameSaxo CodeAverage Daily Value Traded RMB (2-8 Aug)
600519 CH EquityKWEICHOW MOUTA-A600519:xssc2,954,233,131
601318 CH EquityPING AN INSURA-A601318:xssc2,812,633,192
000651 CH EquityGREE ELECTRIC-A000651:xsec2,684,795,267
000333 CH EquityMIDEA GROUP CO-A000333:xsec2,437,300,717
600309 CH EquityWANHUA CHEMIC-A600309:xssc1,937,442,938
000858 CH EquityWULIANGYE YIBI-A000858:xsec1,811,071,869
600887 CH EquityINNER MONG YIL-A600887:xssc1,644,716,349
002415 CH EquityHANGZHOU HIKVI-A002415:xsec1,620,949,830
603799 CH EquityZHEJIANG HUAYO-A603799:xssc1,593,265,994
000063 CH EquityZTE CORP-A000063:xsec1,586,262,478

* Source: Bloomberg