[ET Net News Agency, 26 August 2026] Iran and Oman announced on Tuesday plans to establish a joint temporary shipping channel, with reports that both sides plan to negotiate and finalise a new permanent route within 30 to 60 days. Oil prices and US long-term bond yields both fell, which, alongside a 1% rise in Alibaba (09988), drove the HSI up 174 points or 0.7% by midday to close at 25,685, reclaiming the 20-day moving average (around 25,655). The Hang Seng China Enterprises Index stood at 8,549, up 104 points or 1.2%. The Hang Seng Tech Index stood at 4,660, up 72 points or 1.6%. Mainboard turnover exceeded HKD 139.9 billion, and southbound net inflows were HKD 1.3 billion.
"Wong Wai Ho: Earnings season is passable, major banks expected to follow up with upward revisions to Hong Kong stock valuations; US-Iran situation expected to ease before US mid-term elections"
It is reported that the US will send diplomats back to Middle East countries, and Iran also intends to follow up with Oman on mine clearance. The market is anticipating a cooling of US-Iran relations, leading to a sharp drop in oil prices and a continued decline in US Treasury yields. Hong Kong stocks were generally favoured this morning, with the midday high rising by nearly 300 points to touch 25800. Wong Wai Ho, the First Vice President of the Yan Yun Family Office (HK) Limited, told ET Net News Agency that following the rebound of Hong Kong stocks from June to July, the market has precisely entered the earnings reporting season. For over half a month, the overall market has maintained a wait-and-see attitude, which, combined with external factors such as US-Iran relations and interest rates, makes funds less likely to make rash moves. As the earnings season reaches its final stage, although Meituan (03690) and mainland China banking stocks have yet to announce their results, looking at the performance of this earnings season overall, it can be described as mediocre, neither containing huge surprises nor major risks. While it cannot yet be confirmed whether funds will increase their positions in Hong Kong stocks after the earnings season, Hong Kong stocks have not shown major adverse factors in their earnings, raising expectations that major banks have some room to revise valuations upwards, which will also be more favourable for the performance of Hong Kong stocks.
Wong Wai Ho also pointed out that although the US-Iran situation remains volatile, the US mid-term elections are approaching at the end of the year, and it is expected that US President Trump will tend to maintain a positive relationship with the Iranian side beforehand to aid his election campaign. It is anticipated that from September onwards, the US-Iran situation is expected to ease, which will be more favourable for global fund risk appetite. In the short term, he emphasised the need to focus on the earnings performance of Meituan and mainland China banking stocks, while tonight's US PCE release will also influence judgements on the subsequent market direction. In the short term, the HSI will use the consolidation range as support and resistance, ranging from the 100-day moving average of around 25,200 to 26,100, with more critical support at 24,800, which represents the 0.382 Fibonacci retracement level calculated from the highs and lows of the rally from late June to early this month.
"Innovent Biologics posts exceptional profits; strong business execution capability expected to keep performance at a high standard"
Blue-chip pharmaceutical stock Innovent Biologics (01801) announced that its interim net profit increased by 50% year-on-year to HKD 1.253 billion, adjusted net profit increased by 40% year-on-year to HKD 1.704 billion, and revenue increased by 45% year-on-year to HKD 8.618 billion. Net profit grew even faster than revenue, and the gross profit margin remained at a high level of 85%. Wong Wai Ho analysed that Innovent Biologics, as one of the earliest batches of "B-share" companies listed in Hong Kong and among the first to shed the "B" tag in biotech stocks, has long secured guarantees for its revenue and profits. Judging by its business execution capabilities over the past period, one can have confidence in the company's ability to maintain high profit performance, and its performance in the second half of the year is expected to remain strong. He noted that Innovent Biologics has developed dual tracks in recent years through both self-developed product sales and licensing, with both developing strongly in parallel. It has achieved solid results in both cancer treatment drugs and weight-loss drugs, with diversified launched products. This substantial increase in net profit precisely illustrates that Innovent Biologics outperforms its peers in profitability.
Wong Wai Ho believes that Innovent Biologics' low price-to-earnings ratio is a major factor driving funds to chase the stock at high levels until the share price hit record highs. However, technically, the share price has already accumulated a certain gain, and the current price has missed the optimal buying point. Those wishing to chase the rally must set a good stop-loss, using the current 10-day moving average at around HKD 100 as a baseline, representing a pullback of about 10%, with a target of HKD 120. Other strong pharmaceutical stocks can similarly reference a 10% pullback as a stop-loss level.
"Wong Wai Ho: Earnings season is passable, major banks expected to follow up with upward revisions to Hong Kong stock valuations; US-Iran situation expected to ease before US mid-term elections"
It is reported that the US will send diplomats back to Middle East countries, and Iran also intends to follow up with Oman on mine clearance. The market is anticipating a cooling of US-Iran relations, leading to a sharp drop in oil prices and a continued decline in US Treasury yields. Hong Kong stocks were generally favoured this morning, with the midday high rising by nearly 300 points to touch 25800. Wong Wai Ho, the First Vice President of the Yan Yun Family Office (HK) Limited, told ET Net News Agency that following the rebound of Hong Kong stocks from June to July, the market has precisely entered the earnings reporting season. For over half a month, the overall market has maintained a wait-and-see attitude, which, combined with external factors such as US-Iran relations and interest rates, makes funds less likely to make rash moves. As the earnings season reaches its final stage, although Meituan (03690) and mainland China banking stocks have yet to announce their results, looking at the performance of this earnings season overall, it can be described as mediocre, neither containing huge surprises nor major risks. While it cannot yet be confirmed whether funds will increase their positions in Hong Kong stocks after the earnings season, Hong Kong stocks have not shown major adverse factors in their earnings, raising expectations that major banks have some room to revise valuations upwards, which will also be more favourable for the performance of Hong Kong stocks.
Wong Wai Ho also pointed out that although the US-Iran situation remains volatile, the US mid-term elections are approaching at the end of the year, and it is expected that US President Trump will tend to maintain a positive relationship with the Iranian side beforehand to aid his election campaign. It is anticipated that from September onwards, the US-Iran situation is expected to ease, which will be more favourable for global fund risk appetite. In the short term, he emphasised the need to focus on the earnings performance of Meituan and mainland China banking stocks, while tonight's US PCE release will also influence judgements on the subsequent market direction. In the short term, the HSI will use the consolidation range as support and resistance, ranging from the 100-day moving average of around 25,200 to 26,100, with more critical support at 24,800, which represents the 0.382 Fibonacci retracement level calculated from the highs and lows of the rally from late June to early this month.
"Innovent Biologics posts exceptional profits; strong business execution capability expected to keep performance at a high standard"
Blue-chip pharmaceutical stock Innovent Biologics (01801) announced that its interim net profit increased by 50% year-on-year to HKD 1.253 billion, adjusted net profit increased by 40% year-on-year to HKD 1.704 billion, and revenue increased by 45% year-on-year to HKD 8.618 billion. Net profit grew even faster than revenue, and the gross profit margin remained at a high level of 85%. Wong Wai Ho analysed that Innovent Biologics, as one of the earliest batches of "B-share" companies listed in Hong Kong and among the first to shed the "B" tag in biotech stocks, has long secured guarantees for its revenue and profits. Judging by its business execution capabilities over the past period, one can have confidence in the company's ability to maintain high profit performance, and its performance in the second half of the year is expected to remain strong. He noted that Innovent Biologics has developed dual tracks in recent years through both self-developed product sales and licensing, with both developing strongly in parallel. It has achieved solid results in both cancer treatment drugs and weight-loss drugs, with diversified launched products. This substantial increase in net profit precisely illustrates that Innovent Biologics outperforms its peers in profitability.
Wong Wai Ho believes that Innovent Biologics' low price-to-earnings ratio is a major factor driving funds to chase the stock at high levels until the share price hit record highs. However, technically, the share price has already accumulated a certain gain, and the current price has missed the optimal buying point. Those wishing to chase the rally must set a good stop-loss, using the current 10-day moving average at around HKD 100 as a baseline, representing a pullback of about 10%, with a target of HKD 120. Other strong pharmaceutical stocks can similarly reference a 10% pullback as a stop-loss level.
