JPMorgan-Asia Pacific Equity Derivatives Highlights HKChina 4Q23 ear...-107109099

JPMORGANGlobalQuantitative&DerivativesStrategy19March2024AsiaPacificEquityDerivativesGlobalQuantitativeandDerivativesStrategyHighlightsTonySKLeeACHK/China4Q23earningsupdate,impliedmoveandoptionstrades(852)2800-8857tony.sk.lee@jpmorgan.com•4Q23EarningsUpdateforHSCEI/HSIConstituents:Wereview4Q23J.P.MorganSecurities(AsiaPacific)Limited/J.P.MorganBroking(HongKong)LimitedearningstrendsamongHongKong-listedcompanies,providinganupdateofearningssurprisesrelativetoconsensusestimates,thesubsequentstockpriceHaoshunLiuACreactions,andacomparisonoftheseearningsmovesagainsthistoricalpatterns.Notably,animpressive86%/60%ofreportedcompaniesinHSCEI/(852)2800-7736HSIhavesurpassedconsensusexpectations.Thestockmarket'sresponsetohaoshun.liu@jpmorgan.comearningsgenerallymirrorsthedirectionoftheearningssurprise,withtheJ.P.MorganSecurities(AsiaPacific)Limited/J.P.magnitudeofthesemovesbeingproportionaltothedegreeofearningsMorganBroking(HongKong)Limitedsurprises.Furthermore,weobservethatonthedayofearningsannouncements,single-stockmoveshavesignificantlyexceededhistoricalaverages,withXipuHanACsectorssuchasConsumerDiscretionary,InformationTechnologyandFinancialsdemonstratingparticularlypronouncedvolatility.Consideringthe(852)2800-1029ongoingdebatessurroundingapotentialendtothethree-yearEPSdownwardxipu.han@jpmorgan.comrevisioncycleinChina,c...