[ET Net News Agency, 11 November 2025] Market optimism over an imminent end to the US government shutdown lifted US stocks overnight. Yesterday (10 Nov), the HSI broke through the 26,500 level, but there was no significant turnover to support the move this morning. The HSI opened nearly 100 points higher, rising as much as 139 points to 26,788 after the open, but quickly lost ground, ending the morning down 53 points or 0.2 percent at 26,595. Main board turnover exceeded HKD 11.83 billion. The Hang Seng China Enterprises Index was at 9,412, down 30 points or 0.3 percent. The Hang Seng Tech Index stood at 5,900, down 14 points or 0.2 percent.
"Jaseper Tsang: Whether HSI can break 26,700 is key"
Hong Kong stocks were boosted yesterday by news of an impending resolution to the US government shutdown, which helped the HSI break through 26,500. The momentum continued at the open, with the HSI starting at 26,748, but the market soon reversed. Jaseper Tsang, Vice-Chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators Limited, told ET Net News Agency that yesterday's gains were mainly driven by bipartisan consensus in the US Senate and hopes the shutdown risk will soon end. Improved sentiment lifted US index futures, which in turn boosted Hong Kong index futures and related derivatives. However, whether the HSI can break and hold above 26,700 is the key to determining if the short-term trend will turn stronger.
He noted that the market is watching for further signs of a US economic slowdown. With year-end approaching and global equity markets having performed well so far this year, investors are inclined to take profits early, resulting in a lack of sustained buying momentum in the short term. He expects the HSI to continue fluctuating between 26,000 and 26,700 for now, with support at 26,000 if 26,500 is breached on the downside.
"Mainland China CPI turns positive but deflationary pressures remain"
According to the National Bureau of Statistics, Mainland China China's consumer price index (CPI) in October rose 0.2 percent year-on-year after a 0.3 percent decline in September, beating market expectations of no change. This ended two consecutive months of deflation and marked a nine-month high, helping new consumption concept stocks surge yesterday. Jaseper Tsang believes that the October CPI is only a single data point and does not change the bigger picture of deflationary pressure across China. The market will need to monitor three to four more months of data before making any substantive judgement. Technically, he sees the rebound in new consumption shares as mainly a reaction after sharp earlier declines, and remains concerned about high valuations. He advises investors to lock in profits rather than chase hot new consumption stocks, especially those lacking fundamental support and with excessive gains, such as Mixue Group (02097).
"Pop Mart's lower valuation now looks attractive"
However, Tsang highlights that among new consumption stocks, Pop Mart (09992) is worth watching. The company has multiple brands with market appeal and solid earnings growth potential. With the share price now below HKD 220, its forward P/E is about 25 times. If its core brands can maintain sales and profit growth, the HKD 200 level should offer valuation support.
He adds, however, that while Pop Mart's fundamentals are relatively strong, the market has noticed a cooling trend for its core brand LABUBU in the secondary market. Whether the LABUBU craze can continue is something to watch, and the share price is still likely to face resistance around the HKD 240 level in the near term.
"Jaseper Tsang: Whether HSI can break 26,700 is key"
Hong Kong stocks were boosted yesterday by news of an impending resolution to the US government shutdown, which helped the HSI break through 26,500. The momentum continued at the open, with the HSI starting at 26,748, but the market soon reversed. Jaseper Tsang, Vice-Chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators Limited, told ET Net News Agency that yesterday's gains were mainly driven by bipartisan consensus in the US Senate and hopes the shutdown risk will soon end. Improved sentiment lifted US index futures, which in turn boosted Hong Kong index futures and related derivatives. However, whether the HSI can break and hold above 26,700 is the key to determining if the short-term trend will turn stronger.
He noted that the market is watching for further signs of a US economic slowdown. With year-end approaching and global equity markets having performed well so far this year, investors are inclined to take profits early, resulting in a lack of sustained buying momentum in the short term. He expects the HSI to continue fluctuating between 26,000 and 26,700 for now, with support at 26,000 if 26,500 is breached on the downside.
"Mainland China CPI turns positive but deflationary pressures remain"
According to the National Bureau of Statistics, Mainland China China's consumer price index (CPI) in October rose 0.2 percent year-on-year after a 0.3 percent decline in September, beating market expectations of no change. This ended two consecutive months of deflation and marked a nine-month high, helping new consumption concept stocks surge yesterday. Jaseper Tsang believes that the October CPI is only a single data point and does not change the bigger picture of deflationary pressure across China. The market will need to monitor three to four more months of data before making any substantive judgement. Technically, he sees the rebound in new consumption shares as mainly a reaction after sharp earlier declines, and remains concerned about high valuations. He advises investors to lock in profits rather than chase hot new consumption stocks, especially those lacking fundamental support and with excessive gains, such as Mixue Group (02097).
"Pop Mart's lower valuation now looks attractive"
However, Tsang highlights that among new consumption stocks, Pop Mart (09992) is worth watching. The company has multiple brands with market appeal and solid earnings growth potential. With the share price now below HKD 220, its forward P/E is about 25 times. If its core brands can maintain sales and profit growth, the HKD 200 level should offer valuation support.
He adds, however, that while Pop Mart's fundamentals are relatively strong, the market has noticed a cooling trend for its core brand LABUBU in the secondary market. Whether the LABUBU craze can continue is something to watch, and the share price is still likely to face resistance around the HKD 240 level in the near term.