[ET Net News Agency, 27 June 2025] US stocks continue to climb, with the S&P and Nasdaq both nearing record highs. Hong Kong stocks opened higher, boosted by a strong rally in Xiaomi (01810), but the gains did not hold. The Hang Seng Index quickly reversed course before midday, closing at 24,309 by lunchtime, down 15 points or less than 0.1%, with main board turnover exceeding HKD 162.4 billion. The Hang Seng China Enterprises Index fell 26 points, or 0.3%, to 8,777. The Hang Seng Tech Index rose 7 points, or 0.1%, to 5,352.
"Wong Wai Hong: Ongoing capital outflows from the Hong Kong dollar make it difficult for the Hang Seng Index to hold above 24,000"
The Hang Seng Index opened 125 points higher this morning, but after a choppy session, turned down by nearly 16 points before the midday close, trending sideways overall. Wong Wai Hong, the Chairman and CEO of Anli Holdings, told ET Net News Agency that US stocks reached near-record highs overnight, improving sentiment in global equities and prompting a rebound in Hong Kong stocks. However, with capital continuing to flow out of the Hong Kong dollar, the Hong Kong Monetary Authority is expected to keep intervening in the currency for some time. This suggests that even if the Hang Seng Index breaks above 24,000, it is unlikely to attract significant inflows of global capital into Hong Kong equities.
Foreign media reported that US President Trump unilaterally claimed the signing of a trade-related agreement with Mainland China. Wong Wai Hong believes this news should offer some support to the Hong Kong market and that a sharp short-term correction is unlikely, but breaking through to 25,000 will remain a challenge. Wong cautioned that rising interbank rates could dampen investment sentiment in both the Hong Kong stock and property markets. He also expects the US Fed is unlikely to cut rates in July, making it more difficult for the Hang Seng Index to steady above 24,000. He forecasts that Hong Kong stocks will weaken in the third quarter, with support at 23,200.
"Xiaomi's early 8% surge narrows; chasing at this stage carries higher risk"
Xiaomi Group (01810) held its "Human, Car, Home Full Ecosystem" launch event on Thursday (26th), unveiling several new products. Notably, Xiaomi's first SUV, the YU7, is priced from RMB 253,500. Xiaomi later announced via social media that orders for the YU7 surpassed 200,000 within three minutes of launch and exceeded 289,000 within an hour. Xiaomi also launched its "Xiaomi AI Glasses," starting at RMB 1,999. The share price opened 8% higher this morning, hitting a post-IPO high of HKD 61.45.
Wong Wai Hong noted that after Xiaomi's strong opening, the gains narrowed, possibly reflecting investors taking profits. There have been several incidents involving Xiaomi's earlier SU7 model, raising concerns about the sustainability of new vehicle sales. Wong cautioned that buying Xiaomi shares at this stage is relatively risky and suggested investors should adopt a wait-and-see approach.
"Laopu Gold: Fundamentals overhyped; take the rebound opportunity to sell"
Laopu Gold (06181) marks its first anniversary of listing in Hong Kong today, coinciding with the largest release of restricted shares since listing. Twelve shareholders, together holding around 143 million shares, representing over 80% of total share capital, will be able to sell their shares. The share price was unaffected this morning, closing at HKD 872 at midday, up 0.403%. Wong Wai Hong believes this morning's gain was mainly driven by speculation following the listing of Zhou Liu Fu (06168), but warned that the release of restricted shares poses a risk.
Wong added that Laopu Gold's fundamentals have been overhyped, and its shareholding is currently rather concentrated. If upcoming results miss expectations, the share price may not sustain its current strength. Wong advised that investors not already holding shares should not buy at this stage, while those already invested should take advantage of the rebound fuelled by Zhou Liu Fu's listing to sell.
"Wong Wai Hong: Ongoing capital outflows from the Hong Kong dollar make it difficult for the Hang Seng Index to hold above 24,000"
The Hang Seng Index opened 125 points higher this morning, but after a choppy session, turned down by nearly 16 points before the midday close, trending sideways overall. Wong Wai Hong, the Chairman and CEO of Anli Holdings, told ET Net News Agency that US stocks reached near-record highs overnight, improving sentiment in global equities and prompting a rebound in Hong Kong stocks. However, with capital continuing to flow out of the Hong Kong dollar, the Hong Kong Monetary Authority is expected to keep intervening in the currency for some time. This suggests that even if the Hang Seng Index breaks above 24,000, it is unlikely to attract significant inflows of global capital into Hong Kong equities.
Foreign media reported that US President Trump unilaterally claimed the signing of a trade-related agreement with Mainland China. Wong Wai Hong believes this news should offer some support to the Hong Kong market and that a sharp short-term correction is unlikely, but breaking through to 25,000 will remain a challenge. Wong cautioned that rising interbank rates could dampen investment sentiment in both the Hong Kong stock and property markets. He also expects the US Fed is unlikely to cut rates in July, making it more difficult for the Hang Seng Index to steady above 24,000. He forecasts that Hong Kong stocks will weaken in the third quarter, with support at 23,200.
"Xiaomi's early 8% surge narrows; chasing at this stage carries higher risk"
Xiaomi Group (01810) held its "Human, Car, Home Full Ecosystem" launch event on Thursday (26th), unveiling several new products. Notably, Xiaomi's first SUV, the YU7, is priced from RMB 253,500. Xiaomi later announced via social media that orders for the YU7 surpassed 200,000 within three minutes of launch and exceeded 289,000 within an hour. Xiaomi also launched its "Xiaomi AI Glasses," starting at RMB 1,999. The share price opened 8% higher this morning, hitting a post-IPO high of HKD 61.45.
Wong Wai Hong noted that after Xiaomi's strong opening, the gains narrowed, possibly reflecting investors taking profits. There have been several incidents involving Xiaomi's earlier SU7 model, raising concerns about the sustainability of new vehicle sales. Wong cautioned that buying Xiaomi shares at this stage is relatively risky and suggested investors should adopt a wait-and-see approach.
"Laopu Gold: Fundamentals overhyped; take the rebound opportunity to sell"
Laopu Gold (06181) marks its first anniversary of listing in Hong Kong today, coinciding with the largest release of restricted shares since listing. Twelve shareholders, together holding around 143 million shares, representing over 80% of total share capital, will be able to sell their shares. The share price was unaffected this morning, closing at HKD 872 at midday, up 0.403%. Wong Wai Hong believes this morning's gain was mainly driven by speculation following the listing of Zhou Liu Fu (06168), but warned that the release of restricted shares poses a risk.
Wong added that Laopu Gold's fundamentals have been overhyped, and its shareholding is currently rather concentrated. If upcoming results miss expectations, the share price may not sustain its current strength. Wong advised that investors not already holding shares should not buy at this stage, while those already invested should take advantage of the rebound fuelled by Zhou Liu Fu's listing to sell.