Traders Are Betting on Tencent Over Alibaba as Stocks Swing

(Bloomberg) — Traders looking to cash in on the wild swings in Chinese internet stocks this week are betting that the two biggest firms will run in opposite directions.A strategy of matching a bid on Tencent Holdings Ltd. with a short position on Alibaba Group Holding Ltd. would have gained 13% this month in Hong Kong, excluding fees and dividends. That would be the biggest monthly return since June. The so-called pair trade strategy combines opposing positions in stocks that are typically highly correlated.Beijing last week abruptly halted the initial public offering of Jack Ma’s Ant Group Co., casting a …read more

Source:: Yahoo Finance

      

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