Core Viewpoint - The semiconductor sector, particularly companies like SMIC (00981) and Hua Hong Semiconductor (01347), is currently a market focus due to their recent merger and acquisition activities aimed at strengthening their positions in the industry [1][2]. Company Analysis SMIC (00981) - SMIC's stock price is fluctuating between 66.4 HKD and 84.3 HKD, with key support at 66.4 HKD and resistance at 84.3 HKD. A breakthrough above 84.3 HKD could target 89.6 HKD [2]. - Technical indicators show mixed signals: the RSI is at a neutral level of 50, while the stochastic oscillator indicates a buy signal, but the momentum indicator suggests a sell signal [2][6]. - Recent trading saw a significant drop of 10% in stock price, indicating potential for adjustment after reaching historical highs [1]. Hua Hong Semiconductor (01347) - Hua Hong's stock is trading within a wider range of 65.7 HKD to 91.6 HKD, with a bullish short-term trend indicated by the 10-day moving average being above the 30-day moving average [4]. - Key support is at 65.7 HKD, with resistance at 91.6 HKD, and a potential challenge to 105.6 HKD if the resistance is broken [4]. - The stock has shown a 31.2% volatility over the past five days, suggesting opportunities for short-term trading [4][15]. Derivative Products SMIC Derivatives - SMIC offers a variety of derivative products with high leverage, such as the Bank of China call option (21314) with a strike price of 134.7 HKD and a leverage of approximately 3 times [1]. - Other notable options include a call option with a strike price of 95.05 HKD and a leverage of 3 times, and a put option with a strike price of 75.88 HKD and a leverage of 2 times [1][6]. Hua Hong Derivatives - Hua Hong has fewer but distinctive derivative options, such as a call option with a strike price of 96.08 HKD and a leverage of 2.8 times, which is noted for its low premium and implied volatility [11]. - The put options available include one with a strike price of 70 HKD and a leverage of 1.9 times, reflecting a conservative risk management approach [11][15].