EETOP Communication Agency reported on the 6th that Morgan Stanley issued a report expressing optimism about SpaceX's prospects, stating its valuation remains relatively cheap. The news drove AI and technology sectors overnight to rise, shaking off the shadow of the U.S. bond market, with the Nasdaq Composite hitting an intraday high. Hong Kong stocks followed suit, rallying various popular tech sectors. The Hang Seng Index rose over 300 points at the opening but retreated before touching any major resistance moving averages, closing the morning session at 24,228, up 188 points or 0.8%. The Hang Seng China Enterprises Index stood at 8,118, up 66 points or 0.8%. The Hang Seng Tech Index closed at 4,220, up 36 points or 0.9%.
Southbound trading via Stock Connect remained suspended, with funds continuing to focus on individual stock picking rather than broad market exposure. Morning session turnover on the main board reached only HK$54 billion, similar to the same period on the previous day (5th).
*Ng Lai-yin: Short-term Hong Kong Market Movement Mainly Focused on Filling the Gap*
Overseas U.S. tech stocks performed well, driving notable rebounds in Hong Kong's tech-internet and biotech sectors. However, Ng Lai-yin, a securities strategist at Everbright Securities International, told EETOP Communication Agency that U.S. bond yields remain elevated, while Middle East tensions continue to be uncertain. U.S.-Iran talks have made no progress, and the U.S. recently deployed a third aircraft carrier to the region. Although oil prices have slightly retreated, they remain high, and these factors continue to weigh on global equities. A cooling in U.S. rate hike expectations has failed to offset these negative factors. He believes the recent rallies in U.S. and Hong Kong stocks are merely short-term technical rebounds, and the rebound strength may not be significant.
Ng Lai-yin noted that after last week's sharp decline, the Hang Seng Index has only stabilized to some extent. This morning's rebound was partly driven by anticipation of northbound trading resuming on Thursday (8th). However, some of the rebound strength may have already been "pre-priced" ahead of the resumption. He expects the short-term focus of Hong Kong stocks will be on filling the gap left last Friday (2nd), with significant resistance expected around 24,600 points above the gap, and it may not be able to return to previous highs. Additionally, since the Hang Seng Index hit a near three-month low of 23,835 yesterday, it remains crucial to observe whether it can stabilize above 23,800 points; otherwise, there remains a risk of further breakdown.
*Domestic AI Industry Clouded by Challenges Hindering Long-Term Growth*
According to mainland media reports, Amazon Bedrock, the large model service platform under Amazon Web Services, announced integration with Zhipu's (02513) GLM-5.3 model, with revenue sharing based on model usage volume. The report also noted that Zhipu has recently established revenue-sharing models with several overseas cloud providers and has signed similar agreements domestically with leading cloud platforms such as Alibaba Cloud's Bailian platform. Zhipu's share price performed well today, closing the morning session up 8% at HK$718.5.
Ng Lai-yin commented that Zhipu's business development is steady, and the emergence of such overseas monetization models is normal, providing some positive support to its overseas revenue. However, he warned that the current environment for the AI model industry in mainland China still imposes restrictions on sector development, such as concerns over user data leakage, increased regulatory scrutiny on the AI industry, and foreign accusations of "distillation" in Chinese AI models. These industry challenges persist and cannot be entirely eliminated by a single positive news item.
In the short term, Ng Lai-yin believes that under the constraints of regulation and competition, AI industry development may be slower, posing challenges to stock prices of companies like Zhipu. However, given that Zhipu's share price is currently at post-IPO lows, the current news-driven rally could be relatively strong, potentially lifting the stock to the HK$830 level, with support around HK$600, near its late-September bottom.
Ng Lai-yin added that Chinese AI companies have made significant contributions to the global AI industry, ranking second only to the U.S. However, the market capitalization of China's advanced models still lags behind foreign peers by several times, indicating substantial development potential remains for China's AI sector, and related companies may have considerable medium- to long-term growth prospects. (am)
Southbound trading via Stock Connect remained suspended, with funds continuing to focus on individual stock picking rather than broad market exposure. Morning session turnover on the main board reached only HK$54 billion, similar to the same period on the previous day (5th).
*Ng Lai-yin: Short-term Hong Kong Market Movement Mainly Focused on Filling the Gap*
Overseas U.S. tech stocks performed well, driving notable rebounds in Hong Kong's tech-internet and biotech sectors. However, Ng Lai-yin, a securities strategist at Everbright Securities International, told EETOP Communication Agency that U.S. bond yields remain elevated, while Middle East tensions continue to be uncertain. U.S.-Iran talks have made no progress, and the U.S. recently deployed a third aircraft carrier to the region. Although oil prices have slightly retreated, they remain high, and these factors continue to weigh on global equities. A cooling in U.S. rate hike expectations has failed to offset these negative factors. He believes the recent rallies in U.S. and Hong Kong stocks are merely short-term technical rebounds, and the rebound strength may not be significant.
Ng Lai-yin noted that after last week's sharp decline, the Hang Seng Index has only stabilized to some extent. This morning's rebound was partly driven by anticipation of northbound trading resuming on Thursday (8th). However, some of the rebound strength may have already been "pre-priced" ahead of the resumption. He expects the short-term focus of Hong Kong stocks will be on filling the gap left last Friday (2nd), with significant resistance expected around 24,600 points above the gap, and it may not be able to return to previous highs. Additionally, since the Hang Seng Index hit a near three-month low of 23,835 yesterday, it remains crucial to observe whether it can stabilize above 23,800 points; otherwise, there remains a risk of further breakdown.
*Domestic AI Industry Clouded by Challenges Hindering Long-Term Growth*
According to mainland media reports, Amazon Bedrock, the large model service platform under Amazon Web Services, announced integration with Zhipu's (02513) GLM-5.3 model, with revenue sharing based on model usage volume. The report also noted that Zhipu has recently established revenue-sharing models with several overseas cloud providers and has signed similar agreements domestically with leading cloud platforms such as Alibaba Cloud's Bailian platform. Zhipu's share price performed well today, closing the morning session up 8% at HK$718.5.
Ng Lai-yin commented that Zhipu's business development is steady, and the emergence of such overseas monetization models is normal, providing some positive support to its overseas revenue. However, he warned that the current environment for the AI model industry in mainland China still imposes restrictions on sector development, such as concerns over user data leakage, increased regulatory scrutiny on the AI industry, and foreign accusations of "distillation" in Chinese AI models. These industry challenges persist and cannot be entirely eliminated by a single positive news item.
In the short term, Ng Lai-yin believes that under the constraints of regulation and competition, AI industry development may be slower, posing challenges to stock prices of companies like Zhipu. However, given that Zhipu's share price is currently at post-IPO lows, the current news-driven rally could be relatively strong, potentially lifting the stock to the HK$830 level, with support around HK$600, near its late-September bottom.
Ng Lai-yin added that Chinese AI companies have made significant contributions to the global AI industry, ranking second only to the U.S. However, the market capitalization of China's advanced models still lags behind foreign peers by several times, indicating substantial development potential remains for China's AI sector, and related companies may have considerable medium- to long-term growth prospects. (am)
