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Check out the key picks for this week by SaxoStrats team

STOCK FOCUS

MEGA IPOs 'XIAOMI (1810.HK) We mentioned Xiaomi in our trading ideas last week and what a listing week it was for 1810.hk': 

  • Monday Xiaomi touched lows of HKD16.00, a full dollar below its HK17.00 listing price and closed at HKD16.80.
  • Tuesday however saw constructive price action due to the news that Xiaomi would be included in a range of FTSE indices from July 23rd and in the Hang Seng Index from July 16th. As a result by Tuesday market close 1810.hk had rallied to HKD19.00, up 13% on the day and 11% above its listing price. 
  • Option traders may also now be turning their attention to Xiaomi options listed on HKEX either positioning for further upside with call option strategies of protecting downside risks with put options.
  • Trade your view in stock or options with Saxo - stock code 01810.xhk. 

CHINA TOWER

  • China Tower is one of the next Mega IPOs given the green light to list in Hong Kong. The  mobile tower operator reportedly has commenced gauging investor appetite and seek to raise up to USD10 billion.
  • Unlike the recently listed Xiaomi (1810.HK) China Tower could be considered very much ‘old economy’ and 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 China’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 will be available for trading with Saxo from listing date.

STOCK FOCUS – BHP AU hovering multi-year highs  

  • Australian Iron Ore Champion BHP is hovering around multi-year highs, with a recent high of AUD 34.63 made at the end of Jun. A break of this level could make for a break away higher case for the bulls. The bears on the other hand could potentially be justified on the 3-4 tops that we have so far failed to break through since mid-May.
  • Trade your view with Saxo. BHP AU Equity.

FX IDEAS – EURUSD

  • EURUSD bulls could look for a confirmation break of 118.52, with a targeted move towards 121.48. Conversely the bears could look to be shorting from 1.1750 to 1.1850 with a target range of 115.00 to 115.50. 
  • EURUSD may be a very range bound currency pair until we either get a more assertive Draghi and/or US smacking auto tariffs on European autos. 
  • Trade your view long or short with Saxo.

Most Traded A shares via Stock Connect

Stock CodeStock NameAverage Daily Value traded RMB *(5-11 jul)
601318PING AN INSURANCE GROUP CO-A3.5b
000839CITIC GUOAN INFORMATION-A3.0b
000651GREE ELECTRIC APPLIANCES I-A2.8b
600519KWEICHOW MOUTAI CO LTD-A2.6b
000877XINJIANG TIANSHAN CEMENT-A2.5b
002302CHINA WEST CONSTRUCTION GR-A2.1b
002460JIANGXI GANFENG LITHIUM CO-A1.9b
000725BOE TECHNOLOGY GROUP CO LT-A1.6b
600276JIANGSU HENGRUI MEDICINE C-A1.5b
600309WANHUA CHEMICAL GROUP CO -A1.5b

Source: Bloomberg