[ET Net News Agency, 12 January 2024] The Hang Seng Index reported 16,307 in the morning
session, up 5 points or less than 0.1%. The main board's turnover exceeded HKD 40.5
billion. The Hang Seng China Enterprises Index reported 5,508, up 14 points or 0.3%. The
Hang Seng Tech Index reported 3,492, down 10 points or 0.3%.
The top three traded stocks in the HSI were Tencent (00700), Meituan (03690), and AIA
(01299). Tencent closed at HKD 290.8, up HKD 3.4 or 1.2%, with a turnover of HKD 2.607
billion. Meituan closed at HKD 76.6, up HKD 1 or 1.3%, with a turnover of HKD 1.294
billion. AIA closed at HKD 63.4, up HKD 0.35 or 0.6%, with a turnover of HKD 1.118
billion. The top three traded stocks in the Hang Seng China Enterprises Index were
Tencent, Meituan, and Alibaba (09988). Alibaba closed at HKD 71.2, up HKD 0.35 or 0.5%,
with a turnover of HKD 870 million. The top three traded stocks in the Hang Seng Tech
Index were Tencent, Meituan, and Alibaba.

"Kingston Lin: market expectations for interest rate cut remain unchanged despite US
inflation heating up"

The Hang Seng Index achieved its first day of gains for the year yesterday and continued
to rise this morning, but the trend remains uncertain, with relatively small fluctuations
in the first half of the day. Kingston Lin, a director of the The Hong Kong Institute of
Financial Analysts and Professional Commentators Limited, told ET Net News Agency that
even though US inflation in December was higher than expected, the reaction in the US
stock market was not significant. This reflects that inflation data has little impact on
the market, and the market's expectation of an interest rate cut by the Federal Reserve in
the March meeting remains unchanged. With the release of December CPI data in the US and
Mainland China, it is expected that market conditions will be relatively calm this month,
and the trend is likely to be similar to the current situation.
He predicts that the Hang Seng Index will need to test below 16,000 before rebounding,
as 16,500 has already presented significant resistance. He is also pessimistic about the
possibility of the Hang Seng Index breaking through 17,000 without any supporting news.

"The decline in HSBC's stock is purely due to profit-taking"

After the US released inflation data, HSBC (00005) was significantly pressured, with
intraday losses expanding to nearly 3%. Kingston Lin noted that it is rare for HSBC to
drop over 2% at the opening, but he believes that the decline is not related to the US
December CPI, and there are no significant news events at the moment. He estimates that
the decline is mostly due to profit-taking. He mentioned that HSBC had previously
accumulated significant gains, so it is normal for it to experience a pullback to the
levels of the 50-day and 100-day moving averages.
Kingston Lin also mentioned that HSBC had been consolidating around HKD 60 earlier. If
HSBC falls back to that range, it may be worth considering buying and holding until the
announcement of full-year results.