[ET Net News Agency, 24 April 2024] The Hang Seng Index reported a rise of 281 points or
1.7% in the morning session, reaching 17,110. The main board turnover is approximately HKD
70.9 billion. The Hang Seng China Enterprises Index reported a rise of 107 points or 1.8%
at 6,061. The Hang Seng Tech Index reported a rise of 90 points or 2.6% at 3,539.
The top three traded stocks on the Hang Seng Index are Tencent (00700), Meituan (03690),
and Alibaba (09988). Tencent closed at HKD 339.8, up HKD 7.4 or 2.2%, with a turnover of
HKD 7.818 billion. Meituan closed at HKD 111.1, up HKD 2.5 or 2.3%, with a turnover of HKD
4.261 billion. Alibaba closed at HKD 72.4, up HKD 2.6 or 3.7%, with a turnover of HKD
2.266 billion. The top three traded stocks on the Hang Seng China Enterprises Index are
Tencent, Meituan, and Alibaba. The top three traded stocks on the Hang Seng Tech Index are
Tencent, Meituan, and Alibaba.

"Yip Sheung Chi: HSI has the potential to challenge 17,740"

The global political situation remains relatively stable, with all three major US stock
indices rising overnight. The Hang Seng Index opened high this morning and continued to
rise, quickly surpassing the 17,000 level. Yip Sheung Chi, the Chief Strategist of First
Shanghai Securities, told ET Net News Agency that the five cooperative measures between
the China Securities Regulatory Commission and the Hong Kong market announced earlier have
continued to show effectiveness. These measures have expanded the scope of mutual access
and helped guide funds into Hong Kong stocks. Following the announcement of these
measures, some China concept stocks took advantage of the momentum and experienced a
surge. However, in addition to them, technology stocks in the Hong Kong market, such as
Tencent (00700), Meituan (03690), and Alibaba (09988), are also scarce in the A-share
market. Therefore, the second wave of upward momentum is primarily driven by these
heavyweight technology stocks.
Although the Hang Seng Index has risen for the third consecutive day, accumulating an
increase of nearly 900 points, Yip Sheung Chi believes that the HSI has the ability to
continue moving upward, with the initial target being 17,200 to 17,300. Recently, Tencent
and Meituan have successively surpassed the 250-day moving average. If taking this as a
reference, then there is a chance for the HSI to challenge the 250-day moving average
(around 17,740).

"Low stock prices do not necessarily attract investors"

Tianqi Lithium (09696) issued a profit warning, expecting a net loss of RMB 3.6 billion
to 4.3 billion for the first quarter ended 31 March, compared to a net profit of
approximately RMB 4.88 billion in the same period last year. The stock price of the
company plummeted nearly 20% this morning, reaching a new low since its listing in Hong
Kong at HKD 28.25. In addition, the profit warning from the company has drawn the
attention of the Shenzhen Stock Exchange, which has issued an inquiry letter to Tianqi
Lithium, requesting an explanation for the reasons behind the losses and clarification on
the existence of continued loss risks. Regarding the Shenzhen Stock Exchange's proactive
involvement in the event, Yip Sheung Chi stated that although such situations are rare,
they are not surprising, as Mainland China regulatory authorities continue to enhance
supervision and risk prevention measures.
Regarding the significant expected losses for the first quarter of Tianqi Lithium, Yip
Sheung Chi believes that the main reason is the decline in lithium prices. When the
company went public in Hong Kong in 2022, it coincided with the rise of electric vehicles
and high lithium prices, leading to high expectations for lithium battery companies in the
market. Therefore, the market easily accepted higher stock prices. Although the stock
price reached a new low today, it is relative to the high stock prices in the past, and it
does not mean that the current price is cheap. Yip Sheung Chi predicts that the stock
price will continue to seek a bottoming pattern in the short term.