14th July 2021 (Wednesday)
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Market Commentary
Technology stocks stage for rebound after Tencent deal gets approval

Earlier this week, the news of approval granted for Tencent to purchase Sogou helped relieve the investor pessimism on Chinese technology sector crackdown. Hang Seng TECH Index is forming a new uptrend from recent trough of around 7,200 points last week and finding support at around 7,600 points. After dropping as much as 10% in first half of July, the Hang Seng TECH Index had jumped 1.9% yesterday and registered the biggest gain in nearly three weeks.

Some notable advancers of the Hang Seng TECH Index on Wednesday open include JD.com, Ming Yuan Cloud and NetEase.
DJCW
JD 5xLongSG230615
9618.HK 5x Long
Last Price1
0.173 +0.015
(+9.52%)
Last Update: 14/07/2021 13:00
 
DJBW
JD 5xShortSG230907
9618.HK 5x Short
Last Price1
0.125 -0.023
(-15.50%)
Last Update: 14/07/2021 13:00
Last Price1: The DLC price displayed is based on the 'bid price' instead of the 'traded price'. This is to provide a more accurate representation of the DLC value at each particular point in time and a more accurate reflection of DLC price changes. DLCs do not trade as frequently as shares and sometimes may not record a trade for a long period of time though the bid/offer prices quoted by the Designated Market Maker may continue to move, therefore using the bid price is usually the best indicator of a DLC value.
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DLC Expiry Notice

Please note the below DLCs will expire in one month. Please refer to the expiry announcement here.

Should you wish to continue expressing the same view, please stay tuned for the upcoming issuance of DLCs with the same underlying assets.

Code DLC Name  Type Leverage Expiry Date
JYIW HSI 7xLongSG210723 Daily Long 7x 07/23/2021
9HSW HSCEI 7xLongSG210723 Daily Long 7x 07/23/2021
New Issuance

New DLCs on Kingsoft Corporation Limited, Ping An Insurance, Xiaomi are available for selection.
Stock
Code		 DLC
Name		 Underlying Leverage
Factor		 Listing
Date
DCCW Xiaomi 5xShortSG220705 Xiaomi Corporation -5x 07/07/2021
DHMW PingAn 5xShortSG230705 Ping An Insurance Group Co-H -5x 07/07/2021
DQPW PingAn 5xLongSG230705 Ping An Insurance Group Co-H 5x 07/07/2021
DTQW Xiaomi 5xLongSG220705 Xiaomi Corporation 5x 07/07/2021
DZIW Kingsof 5xLongSG220705 Kingsoft Corporation Limited 5x 07/07/2021
  CHECK OUT THE NEWLY LAUNCHED DLCs  
Latest Events
SGX Trading Hours Series

We would speak alongside the SGX Academy Speaker on Overview of DLCs in the session scheduled below. 

Date Time   Topic (Registration Link) Guest Speaker
7/22/2021 7-8pm Top SG and HK Stocks to Watch in 2H 2012 Joey Choy
This newsletter may contain links to other websites which are not operated by Société Générale, Singapore Branch (“SG Singapore”). We have no control over the information referred to on these sites or the products or services on them, and therefore makes no representations and accepts no responsibility regarding the accuracy or suitability of the information, services or products described on them. You are advised to make your own enquiries in relation to third parties described or linked on this internet site. Inclusion of a link to a third party site should not be construed as an endorsement of such third party site by us or that party's endorsement of this Website.
Education
How to calculate the fair value of a DLC from the underlying price?

Issuers determine the issue price that strikes a balance between tighter spread and higher sensitivity.

Because DLC issue price is arbitrary, for two DLCs of the same underlying asset, direction and leverage but of different prices, the lower-priced DLC should not be considered as more cost-effective than the higher-priced one. In fact, the higher-priced DLC will be more sensitive than the lower-priced DLC and hence will be a better product from short-term trading perspective.

After a DLC is launched, its fair value is calculated according to the pricing formula, i.e. (daily percentage performance of the underlying asset x leverage) minus costs and fees applicable. Investors can check the latest intrinsic closing values on Product Terms page, or can refer to the relevant Supplemental Listing Document published on the same website or SGX's website.
DLC Funds Flow Chart
Each DLC’s funds flow for the previous trading day on 13/07/2021 is calculated by change in the DLC’s outstanding units for the period from 12/07/2021 to 13/07/2021 (positive if there is increase in outstanding units, i.e. investors net bought DLCs from Designated Market Makers) multiplied by the last intrinsic close of such DLCs. The DLC funds flow is the aggregate of the funds flow of DLCs referencing the same Underlying Asset and same direction.
 
Top Gainers / Losers
Code Name Bid Change1
(%)
DKJW BYD 5xShortSG220216 +0.05
(+27.72%)
DEIW Lenovo 5xShortSG220316 +0.125
(+26.60%)
DOFW CSPC 5xLongSG220315 +0.22
(+22.10%)
DUFW CSPC 5xLongSG221208 +0.011
(+19.76%)
DWQW Nongfu 5xLongSG220316 +0.106
(+15.95%)
Code Name Bid Change1
(%)
DLIW Sunac 5xLongSG230420 -0.01
(-85.25%)
DLSW Kingsof 5xShortSG231220 -0.009
(-80.28%)
DCDW Geely 5xShortSG231214 -0.008
(-77.72%)
DOOW Kingdee 5xShortSG231220 -0.01
(-57.64%)
DCMW Alibaba 5xShortSG230627 -0.01
(-40.68%)
Bid Change (%)1: Data calculated based on the percentage change in last intrinsic closing value on 13/07/2021 and last bid price on 14/07/2021 13:00.
  READ MORE  
Top 10 traded DLCs
Code Name Underlying1
Chg (%)		 Bid Change2
(%)		 Sensitivity Value traded
DJFW BYD 5xLongSG220315 -4.95% -0.343
(-29.13%)		 0.199 485K
DVPW Geely 5xLongSG230331 -2.56% -0.065
(-22.82%)		 0.089 182K
DMUW OCBC 5xLongSG221201 0.00% -0.002
(-0.17%)		 0.011 158K
DMBW Alibaba 5xLongSG230627 +0.39% +0.002
(+3.49%)		 0.717 127K
DDEW Geely 5xShortSG230126 -2.56% -0.002
(-0.63%)		 0.080 113K
DAHW Sunny 5xShortSG220621 +1.34% -0.059
(-6.22%)		 0.235 92K
DZHW Meituan 5xLongSG220331 -2.03% -0.033
(-10.70%)		 0.956 88K
DSNW Sunny 5xLongSG220630 +1.34% +0.008
(+3.96%)		 1.103 85K
DDWW UOB 5xLongSG211105 +0.11% +0.004
(+0.44%)		 0.029 73K
DCAW DBS 5xShortSG220331 -0.40% +0.007
(+0.86%)		 0.037 65K
Underlying Chg (%)1 : Data calculated based on the percentage change in underlying asset price between 13/07/2021 and 14/07/2021 13:00.
Bid Change (%)2: Data calculated based on the percentage change in last intrinsic closing value on 13/07/2021 and last bid price on 14/07/2021 13:00.
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DISCLAIMER

This advertisement has not been reviewed by the Monetary Authority of Singapore (“MAS”). This advertisement is distributed in Singapore by MAS licensed representatives of Société Générale, Singapore Branch. If you wish to discuss this advertisement, you should do so with your financial adviser, authorised broker or with MAS licensed representatives of Société Générale, Singapore Branch. This advertisement does not constitute or form part of any offer, or invitation, to subscribe for or to sell, or solicitation of any offer to subscribe for or to purchase, any certificates on indices/equities (the “Certificates” or “Daily Leverage Certificates”), warrants or other securities. Nothing herein should be considered as investment or financial advice or any form of recommendation to purchase or sell the Certificates/Daily Leverage Certificates, warrants or other securities mentioned. Information herein is intended as general information only and does not take into account the specific investment objectives, financial situation and the particular needs of any particular person. The price of Certificates/Daily Leverage Certificates, warrants or other securities and/or the price of the underlying asset may fall in value as rapidly as it may rise and holders may sustain a total loss of their investment. Investments in the Certificates/Daily Leverage Certificates, warrants or other securities carry risks. Any past performance of the Certificates/Daily Leverage Certificates, warrants or other securities, or past performance of an underlying asset, is not indicative of future performance. This document does not constitute a full disclosure of the risks involved. Members of the Société Générale group and/or its connected persons may take proprietary positions and may have long or short positions or other interests in the Certificates/Daily Leverage Certificates, warrants or other securities and may purchase and/or sell the Certificates/Daily Leverage Certificates, warrants/ or other securities at any time in the open market or otherwise, in each case whether as principal, agent or market maker.

The Certificates/Daily Leverage Certificates are for specified investment products (SIP) qualified investors only.

The terms and conditions of any Certificates/Daily Leverage Certificates, warrants or other securities must be read in conjunction with the base listing documents for those Certificates/Daily Leverage Certificates, warrants or other securities and the relevant supplemental listing document. Investors should therefore ensure that they understand the nature of the Certificates/Daily Leverage Certificates, warrants or other securities and carefully study the risk factors set out in the base listing document and the relevant supplemental listing documents and, where necessary, seek professional advice before investors invest in the Certificates/Daily Leverage Certificates, warrants or other securities. Copies of the base listing document, which contains financial and other information relating to the Issuer and any addenda thereto and the relevant supplemental listing documents, which contain details of the Certificates/Daily Leverage Certificates, warrants or other securities, can be obtained from the Allen & Gledhill LLP at One Marina Boulevard #28-00, Singapore 018989. Investors should read these documents in their entirety before agreeing to invest in the Certificates/Daily Leverage Certificates, warrants or other securities. This is a structured product which involves derivatives and investors should not invest without fully understanding and being willing to assume all risks associated with the Certificates/Daily Leverage Certificates, warrants or other securities. Investors should ensure they understand the risks, nature, terms and conditions of the Certificates/Daily Leverage Certificates, warrants or other securities and consult their own legal, financial, tax and professional advisers regarding the suitability and risks before committing to any investment.

Investors risk the loss of part or all of their investment. Investment in the Certificates/Daily Leverage Certificates, warrants or other securities involves significant levels of risks and the Certificates/Daily Leverage Certificates, warrants or other securities should only be purchased by investors who are knowledgeable in investment matters or who have obtained appropriate investment advice.

Société Générale and its affiliates (the “SG Group”) act in different capacities in relation to the issue of the Certificates/Daily Leverage Certificates, warrants or other securities. SG Issuer is the issuer of the Certificates/Daily Leverage Certificates, warrants or other securities (the “Issuer”), Société Générale acts as designated market maker for the Certificates/Daily Leverage Certificates, warrants or other securities. Société Générale, Singapore Branch is also authorized to distribute and market the Certificates/Daily Leverage Certificates, warrants or other securities to its customers. For the avoidance of doubt and as an independent stipulation, investors agree that by purchasing the Certificates/Daily Leverage Certificates, warrants or other securities, the SG Group may provide different services and/or perform different roles in relation to the issuance, offer and/or dealing in the Certificates/Daily Leverage Certificates, warrants or other securities. The investor acknowledges and agrees that the provision of such services or the undertaking of such roles may not always be consistent with the interests of the issuer and/or the investors. The investor agrees that subject to mandatory applicable law which the SG Group cannot derogate from, no implied duties or obligations shall be imposed on SG Group to the investor under the Certificates/Daily Leverage Certificates, warrants or other securities, and in connection with or as a result of the investor’s subscription or purchase of the Certificates/Daily Leverage Certificates, warrants or other securities.

The Issuer or Société Générale may have a position or a material interest in any underlying asset.

The Issuer, Société Générale or any of their affiliates may engage in transactions involving the underlying asset for their own account for business reasons or in connection with hedging of the obligation under this Certificates/Daily Leverage Certificates, warrant or other securities. Conflicts of interest may arise as a result of such transactions within the SG Group and with the interest of investors. The Issuer, Société Générale and their affiliates are not required to consider any investors’ interests in connection with entering into any of the above mentioned transactions.

The Issuer, Société Générale and their affiliates may receive benefits and/or profits as a result of its multiple roles as designated market maker and/or distributor (whether in the nature of a fiduciary, similar or additional duty or relationship or otherwise) and fully consents to the retention of such benefits and/or profits for their own account. Each investor acknowledges and agrees that none of the Issuer, Société Générale and their affiliates is obliged to notify, and is liable to account to, an investor or any other person for (and each investor or such other person shall not be entitled to ask for disclosure of the fact or the amount of, any fees resulting from any of the aforementioned roles, other than is already disclosed in the offering documents for the Certificates/Daily Leverage Certificates, warrants or other securities. Each investor agrees that the investor will have no claim against the Issuer, Société Générale and their affiliates for, and the investor consents to the receipt, acceptance and retention by the Issuer, Société Générale and their affiliates of, such fees arising from any such multiple roles.

Société Générale does not make any warranty, express or implied, as to the accuracy or completeness of the information contained herein. No responsibility or liability is accepted by Société Générale for any inaccuracies, omissions, mistakes or errors of Société Générale in the computation of the cash settlement amount or for any economic or other loss which may be directly or indirectly sustained by any broker or holder of the Certificates/Daily Leverage Certificates, warrants or other securities or any other person dealing with the Certificates/Daily Leverage Certificates, warrants or other securities as a result thereof and no claims, actions or legal proceedings may be brought against Société Générale in connection with the Certificates/Daily Leverage Certificates, warrants or other securities in any manner whatsoever by any broker, holder or other person dealing with the Certificates/Daily Leverage Certificates, warrants or other securities. Any broker, holder or other person dealing with the Certificates/Daily Leverage Certificates, warrants or other securities does so therefore in full knowledge of this disclaimer and can place no reliance whatsoever on Société Générale. For the avoidance of doubt, this disclaimer does not create any contractual or quasi-contractual relationship between any broker, holder or other person and Société Générale and must not be construed to have created such relationship.

The Certificates/Daily Leverage Certificates, warrants or other securities are not deposits placed with Société Générale.
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