[ET Net News Agency, 22 July 2026] AI hardware concepts have regained strength once again. Unfazed by the escalation in the US-Iran situation, US equities rose in unison across the three major indices. This morning, Korean stocks surged 5%, while Japanese and Mainland China A-shares all recorded gains. The Hong Kong stock market alone faced selling pressure once more. The HSI closed the half-day down 208 points, or 0.8%, at 24,923, with main board turnover exceeding HKD 169.3 billion. The Hang Seng China Enterprises Index stood at 8,266, down 94 points, or 1.1%. The Hang Seng Tech Index reported 4,713, down 101 points, or 2.1%.
"Wan Kong Shing: If capital returns to AI hardware stocks, the HSI could see 23,800 points in the worst-case scenario"
The HSI made unsuccessful attempts to challenge the 25,200-point level, where the 100-day moving average and the 0.618 Golden Ratio intersect, for four consecutive trading days, before immediately heading downwards today to contend around the 25,000 mark during the morning session. Wan Kong Shing, the Chief Investment Officer of iFAST Global Markets, told ET Net News Agency that if the HSI closes below the 25,000 level today, it may indicate that the rebound wave that began on 26 June has peaked, with downside support at 24,500 points. He pointed out that AI hardware stocks have recently recaptured capital attention, a situation that is unfavourable for the performance of the Hong Kong stock index. Investors should focus on Google's earnings report tomorrow; if capital expenditure continues to expand, funds will be drawn into AI hardware stocks, and the worst-case scenario for the HSI falling back to 23,800 points cannot be ruled out. On the other hand, Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), takes a more optimistic view. She believes that after the HSI's cumulative large gains, a brief market adjustment is a normal phenomenon, but market conditions remain positive, with downside support at the 50-day moving average (around 24,685 points).
"Mak Ka Ka: Medium-to-long-term allocation value of gold is prominent, but neutral view on gold mining stocks as sharp rises are unlikely"
The US Central Command has continued to launch air strikes against Iran for several consecutive nights recently, while Tehran retaliated against US military facilities in the Middle East, maintaining geopolitical risks. Overnight, both oil and gold prices rose by about 2%, with gold breaking above USD 4,100 during Asian trading hours. Wan Kong Shing stated directly that with oil and gold prices rising in tandem, the market has certainly "misjudged" one side, and he tends to believe that it is the trend in gold prices that is mistaken. He explained that a surge in oil prices pushes up inflation, which in turn forces the Federal Reserve to raise interest rates to combat inflation, subsequently dealing a blow to gold, which offers no interest yield.
Regarding the trend of gold prices, Wan Kong Shing expects resistance at USD 4,180 and the outlook will only become more optimistic if it consolidates firmly above USD 4,200. Meanwhile, Mak Ka Ka believes that under the long-term buying pressure from central bank gold purchases and foreign exchange reserve diversification, gold has established preliminary support around USD 4,000, significantly reducing the risk of a sharp breakdown in the short term. Looking at the medium-to-long term, with the interest rate cycle drawing to a close, central banks continuing to hoard gold, and the trend towards reserve diversification, gold's allocation value as a safe-haven and risk-diversifying asset remains prominent, targeting USD 4,300 within the year first.
Gold mining stocks have been very strong recently, with shares such as Zijin Gold Intl (02259) and Zijin Mining (02899) rising for three consecutive trading days. Mak Ka Ka further pointed out that although gold prices are bottoming out near USD 4,000, subsequent gains are unlikely to replicate the previous strong trajectory; therefore, she maintains a "neutral" rating on gold mining stocks and advises against chasing the rally. She explained that while mining stocks will follow the strength of gold prices in the short term for a wave of rebound, against the backdrop of limited upside space for gold prices, the upward momentum for mining stocks is also quite constrained, making it difficult to achieve significant gains.
As for gold jewellery-related stocks, Mak Ka Ka considers that although such shares rose alongside gold prices today, their share price performance is driven more by capital flows. Since the operating profitability of gold jewellery enterprises is more directly impacted by gold price volatility, their share price fluctuations are correspondingly greater, making them suitable only for short-term trading.
"Wan Kong Shing: If capital returns to AI hardware stocks, the HSI could see 23,800 points in the worst-case scenario"
The HSI made unsuccessful attempts to challenge the 25,200-point level, where the 100-day moving average and the 0.618 Golden Ratio intersect, for four consecutive trading days, before immediately heading downwards today to contend around the 25,000 mark during the morning session. Wan Kong Shing, the Chief Investment Officer of iFAST Global Markets, told ET Net News Agency that if the HSI closes below the 25,000 level today, it may indicate that the rebound wave that began on 26 June has peaked, with downside support at 24,500 points. He pointed out that AI hardware stocks have recently recaptured capital attention, a situation that is unfavourable for the performance of the Hong Kong stock index. Investors should focus on Google's earnings report tomorrow; if capital expenditure continues to expand, funds will be drawn into AI hardware stocks, and the worst-case scenario for the HSI falling back to 23,800 points cannot be ruled out. On the other hand, Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), takes a more optimistic view. She believes that after the HSI's cumulative large gains, a brief market adjustment is a normal phenomenon, but market conditions remain positive, with downside support at the 50-day moving average (around 24,685 points).
"Mak Ka Ka: Medium-to-long-term allocation value of gold is prominent, but neutral view on gold mining stocks as sharp rises are unlikely"
The US Central Command has continued to launch air strikes against Iran for several consecutive nights recently, while Tehran retaliated against US military facilities in the Middle East, maintaining geopolitical risks. Overnight, both oil and gold prices rose by about 2%, with gold breaking above USD 4,100 during Asian trading hours. Wan Kong Shing stated directly that with oil and gold prices rising in tandem, the market has certainly "misjudged" one side, and he tends to believe that it is the trend in gold prices that is mistaken. He explained that a surge in oil prices pushes up inflation, which in turn forces the Federal Reserve to raise interest rates to combat inflation, subsequently dealing a blow to gold, which offers no interest yield.
Regarding the trend of gold prices, Wan Kong Shing expects resistance at USD 4,180 and the outlook will only become more optimistic if it consolidates firmly above USD 4,200. Meanwhile, Mak Ka Ka believes that under the long-term buying pressure from central bank gold purchases and foreign exchange reserve diversification, gold has established preliminary support around USD 4,000, significantly reducing the risk of a sharp breakdown in the short term. Looking at the medium-to-long term, with the interest rate cycle drawing to a close, central banks continuing to hoard gold, and the trend towards reserve diversification, gold's allocation value as a safe-haven and risk-diversifying asset remains prominent, targeting USD 4,300 within the year first.
Gold mining stocks have been very strong recently, with shares such as Zijin Gold Intl (02259) and Zijin Mining (02899) rising for three consecutive trading days. Mak Ka Ka further pointed out that although gold prices are bottoming out near USD 4,000, subsequent gains are unlikely to replicate the previous strong trajectory; therefore, she maintains a "neutral" rating on gold mining stocks and advises against chasing the rally. She explained that while mining stocks will follow the strength of gold prices in the short term for a wave of rebound, against the backdrop of limited upside space for gold prices, the upward momentum for mining stocks is also quite constrained, making it difficult to achieve significant gains.
As for gold jewellery-related stocks, Mak Ka Ka considers that although such shares rose alongside gold prices today, their share price performance is driven more by capital flows. Since the operating profitability of gold jewellery enterprises is more directly impacted by gold price volatility, their share price fluctuations are correspondingly greater, making them suitable only for short-term trading.
