The shares of the giant Chinese search engine closed at HK$214 in Hong Kong SAR on Friday, down 16.1% from its Tuesday debut. The daily turnover of listed derivative warrants (DWs) on the stock has halved to HK$407m and investors are shifting to lower strike levels.
The daily fund flow of Baidu DWs rose 28% to HK$8.28m on Thursday from Wednesday when they were introduced on the Hong Kong Stock Exchange (HKEX) – one day after Baidu’s IPO. The first-day figure represented approximately 15% of the flow of DWs on Kuaishou, a Chinese video sharing software, which were listed on 5 February. Having issued seven Baidu call DWs, J.P. Morgan saw their fund flow increase 3x to 4x with a concentration on the warrant with a strike level at 252.5
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