[ET Net News Agency, 13 November 2025] The HSI encountered resistance at the 27,000
level, retreating after three consecutive gains. Sentiment was further dampened by
Mainland China media reports suggesting a lacklustre atmosphere for Double 11. By midday,
the HSI stood at 26,766, down 156 points or 0.6 percent, with main board turnover close to
HKD 12.71 billion. The Hang Seng China Enterprises Index was at 9,477, down 61 points or
0.6 percent. The Hang Seng Tech Index was at 5,888, down 45 points or 0.8 percent.

"Mak Ka Ka: HSI expected to consolidate between 26,500 and 27,000 in the near term"

The HSI broke above 27,000 yesterday but failed to hold, with today's session proving
volatile and generally weaker. Mak Ka Ka, Head of Financial Products Trading and Research
Department of SinoPac Securities (Asia), told ET Net News Agency that today's correction
was mainly dragged by weakness in the tech and property sectors. She noted that there has
been no significant influx of funds recently, making it difficult for the HSI to sustain a
rally. In her view, the index is unlikely to retake the 27,000 level in the short term,
and is expected to consolidate in the 26,500-27,000 range. Mak advises closely monitoring
overall market turnover and sector rotation trends.
Tencent (00700) is set to announce results after the market close today, and there is
market expectation that this could provide a short-term boost to the HSI. However, Mak
points out that only a significant earnings beat from heavyweight stocks, coupled with a
marked improvement in market liquidity, would allow the HSI to reclaim the 27,000 level.

"CR Land's stake sale aims to boost liquidity"

China Res Land (01109) announced this morning that it plans to sell approximately 49.5
million shares of its subsidiary China Res Mixc (01209), representing about 2.17% of
Mixc's total issued shares. The placement price is set at HKD 41.70 per share,
representing a discount of about 9.58% to Mixc's last closing price of HKD 46.12. Upon
completion, China Resources Land's stake in Mixc will fall from around 72.29% to
approximately 70.12%, but Mixc will remain a subsidiary.
Mak commented that CR Land's decision to reduce its stake is a reflection of the tight
funding conditions facing the Mainland China real estate sector. With property prices and
transaction volumes remaining subdued, and debt restructuring issues still unresolved, CR
Land is raising funds to shore up its balance sheet. While Mak maintains a neutral view on
the Mainland China property sector, she notes that although CR Land, as an SOE, has a
funding advantage over other developers, it remains subject to the overall pace of sector
recovery and common industry challenges.
CR Land expects to raise net proceeds of around HKD 2.061 billion from the sale, which
it says will be used for land bank acquisitions, development costs, and general working
capital. Mak remarks that such explanations are standard for property developers, and does
not expect any major strategic moves, with the funds likely to be used for day-to-day
operations.
China Res Mixc's share price came under pressure today, falling to a low of HKD 41.90.
Mak expects support for Mixc at HKD 39.60.

"Tencent expected to trade between HKD 648 and HKD 668 post-results"

Both Tencent and JD.com (09618) will announce third quarter results after the close
today, but both stocks came under selling pressure in the morning session. Mak said the
market will be focusing on three areas for Tencent: cloud business growth, video account
advertising revenue, and game IP extensions. Bloomberg forecasts a 13 percent year-on-year
rise in Tencent's third quarter revenue, driven mainly by AI applications and advertising.
Mak believes further cloud business growth could lift profitability, but given the HSI's
current consolidation at high levels, unless Tencent delivers a significant earnings beat,
the share price is likely to remain capped by the index and fluctuate between HKD 648 and
HKD 668.
As for JD.com, Mak notes that the market expects revenue to rise 12.9 percent
year-on-year, but given fierce industry competition and ongoing e-commerce subsidies,
profit margins remain under pressure. She takes a cautious view on JD.com and advises
investors to avoid the stock for now, with support seen at HKD 120.