[ET Net News Agency, 22 May 2026] There are market rumours that the US and Iran are close to reaching a peace agreement, cooling the Middle East conflict, with international oil prices and US Treasury yields both pulling back. While Hong Kong stocks suffered alone on Thursday, closing below the 250-day moving average (around 25,631), commonly known as the bull-bear line, for the first time in over a month and a half, the market opened up by over 200 points today to climb back above the bull-bear line. This immediately triggered selling pressure, narrowing the HSI's gains to less than 100 points at one stage. Fortunately, the strong performance of two blue chips that released their earnings helped Hong Kong stocks regain momentum. The HSI closed the morning session at 25,696, up 309 points or 1.2%, with mainboard turnover reaching nearly HKD 135.7 billion. The Hang Seng China Enterprises Index stood at 8,581, up 106 points or 1.3%. The Hang Seng Tech Index was at 4,868, up 99 points or 2.1%.
"Nip Chun Pong: HSI rebound lacks momentum, 250-day line remains crucial"
The US and Iran have reportedly reached a consensus on the final draft of the agreement. US Treasury yields retraced, with the 30-year Treasury yield currently at around 5.09% and the 10-year Treasury yield at around 4.57%. Nip Chun Pong, the Chief Strategist at Solo Securities, told ET Net News Agency that although the HSI staged a slight rebound in the morning session today, the momentum remains insufficient as it had already broken below the 250-day line at yesterday's close. If Hong Kong stocks can reclaim the 250-day line (around 25,630 points) at today's close, the conditions for a rebound will be more favourable.
Nip pointed out that current positive news could ease the selling pressure on the future outlook of Hong Kong stocks caused by global inflation. If the HSI can stay above 25,500 points at the close over the coming week, it will help maintain the index's sideways consolidation pattern within the 25,500 to 26,500 range seen since 8 Apr. He added that the HSI's current resistance level is at 26,000 points, and only by stabilising above this level can it break free from its recent weak trend. A stronger resistance level lies at 26,500 points, and breaking through this level would still require the backing of large-weight stocks like Tencent (00700) and Alibaba (09988).
"Get on board Lenovo at HKD 14 for the medium to long term"
Lenovo (00992) today released its fourth-quarter financial results for the period ended 31 Mar this year, recording a profit attributable to equity holders of USD 521 million, an increase of 4.79 times year-on-year. Earnings per share were 4.32 US cents, up 4.92 times year-on-year, significantly beating market expectations. Revenue during the period reached USD 21.588 billion, hitting a historic quarterly high and rising 27.1% year-on-year, marking its fastest growth rate in the past five years. Lenovo's share price surged over 17% in the morning session, hitting an all-time high of HKD 15.38 at one point.
Nip believes that Lenovo's share price had lagged previously due to a lack of market attention, and this quarterly result substantially exceeded market expectations, thereby driving a sharp rebound in the stock price. He stated that Lenovo has consistently maintained a leading position in the computer industry and is actively expanding its layout in the AI PC business. Complemented by the current market focus on the AI sector, its future financial performance is expected to have further room for growth.
Nip noted that Lenovo's price-to-earnings ratio has not yet touched 20 times, and based on its current share price, the valuation offers clear appeal. He suggested making a medium-to-long-term deployment, waiting for the price to retrace to HKD 14 to buy in, holding the stock for 3 to 4 months to observe, with an upside target price of HKD 19.
"Nip Chun Pong: HSI rebound lacks momentum, 250-day line remains crucial"
The US and Iran have reportedly reached a consensus on the final draft of the agreement. US Treasury yields retraced, with the 30-year Treasury yield currently at around 5.09% and the 10-year Treasury yield at around 4.57%. Nip Chun Pong, the Chief Strategist at Solo Securities, told ET Net News Agency that although the HSI staged a slight rebound in the morning session today, the momentum remains insufficient as it had already broken below the 250-day line at yesterday's close. If Hong Kong stocks can reclaim the 250-day line (around 25,630 points) at today's close, the conditions for a rebound will be more favourable.
Nip pointed out that current positive news could ease the selling pressure on the future outlook of Hong Kong stocks caused by global inflation. If the HSI can stay above 25,500 points at the close over the coming week, it will help maintain the index's sideways consolidation pattern within the 25,500 to 26,500 range seen since 8 Apr. He added that the HSI's current resistance level is at 26,000 points, and only by stabilising above this level can it break free from its recent weak trend. A stronger resistance level lies at 26,500 points, and breaking through this level would still require the backing of large-weight stocks like Tencent (00700) and Alibaba (09988).
"Get on board Lenovo at HKD 14 for the medium to long term"
Lenovo (00992) today released its fourth-quarter financial results for the period ended 31 Mar this year, recording a profit attributable to equity holders of USD 521 million, an increase of 4.79 times year-on-year. Earnings per share were 4.32 US cents, up 4.92 times year-on-year, significantly beating market expectations. Revenue during the period reached USD 21.588 billion, hitting a historic quarterly high and rising 27.1% year-on-year, marking its fastest growth rate in the past five years. Lenovo's share price surged over 17% in the morning session, hitting an all-time high of HKD 15.38 at one point.
Nip believes that Lenovo's share price had lagged previously due to a lack of market attention, and this quarterly result substantially exceeded market expectations, thereby driving a sharp rebound in the stock price. He stated that Lenovo has consistently maintained a leading position in the computer industry and is actively expanding its layout in the AI PC business. Complemented by the current market focus on the AI sector, its future financial performance is expected to have further room for growth.
Nip noted that Lenovo's price-to-earnings ratio has not yet touched 20 times, and based on its current share price, the valuation offers clear appeal. He suggested making a medium-to-long-term deployment, waiting for the price to retrace to HKD 14 to buy in, holding the stock for 3 to 4 months to observe, with an upside target price of HKD 19.
