[ET Net News Agency, 01 December 2025] Following the Thanksgiving break, US markets
reopened for a half-day session on Black Friday (28th), finishing November on a positive
note. Hong Kong stocks opened 86 points higher this morning, with the Hang Seng Index's
gains expanding to over 300 points within the first half hour. After breaking through the
20-day moving average (around 26,157), selling pressure emerged, quickly dragging the
index below this key level. By midday, the HSI was up 209 points or 0.8% at 26,068, with
main board turnover close to HKD 115 billion. The Hang Seng China Enterprises Index rose
58 points, or 0.6%, to 9,188, while the Hang Seng Tech Index climbed 55 points, or 1%, to
5,654.

"Mak Ka Ka: HSI could target 26,800 if new Fed chair is appointed"

The HSI broke above 26,000 in early trading but was capped by resistance at the 20-day
moving average. Mak Ka Ka, Head of Financial Products Trading and Research Department of
SinoPac Securities (Asia), told ET Net News Agency that investor sentiment remains
cautious, and she expects the HSI to trade between 25,650 and the 20-day moving average
until the US Fed's policy meeting on 10 December.
Rumours are circulating that Fed Chair Powell may announce his resignation at an
emergency meeting scheduled for 7pm US Eastern Time on 1 December, with White House
National Economic Council Director Hassett tipped as his successor. Mak said the next Fed
chair is likely to align with Trump's camp and support more aggressive rate cuts, which
would benefit tech stocks. In this scenario, she sees the HSI targeting 26,800 in the
medium term.

"Meituan expected to consolidate around HKD 100 in the near term"

Meituan (03690) reported a net loss of RMB 18.63 billion for the third quarter ended
September 2024, compared with a net profit of RMB 12.86 billion a year earlier. On a
non-IFRS basis, the adjusted loss was RMB 16.01 billion, also reversing from last year's
adjusted profit of RMB 12.83 billion, and wider than the RMB 14.34 billion loss expected
by the market. Revenue was RMB 95.49 billion, up 2% year-on-year but below expectations.
By business segment, core local commerce revenue fell 2.8% year-on-year to RMB 67.4
billion, while new initiatives rose 15.9% to RMB 28 billion.
Mak noted that Meituan's food delivery market share has slipped from 70% previously to
about 50% after recent price wars, but its order volume remains high, so its losses are
smaller than rivals Alibaba (09988) and JD.com (09618). She pointed out that Meituan's
average loss per food delivery order narrowed from RMB 1.8 in September to RMB 1.4 in
October, and is expected to improve further to around RMB 1.2 in November.
Earlier, Alibaba Group CFO Toby Xu said in its Q3 earnings call that spending on Taobao
Flash Sale peaked in the September quarter and is expected to contract significantly this
quarter. Mak expects the intensity of industry price wars to moderate somewhat, meaning
Meituan's most difficult period may have passed, with subsidies gradually reduced going
forward. However, Meituan still faces strong competition from Alibaba's food delivery and
instant retail businesses, as well as the Gaode Street Ranking, and continues to feel
pressure from rising cost structures.
Meituan itself stated that competition remains fierce, so operating losses in its core
local commerce segment and at the group level are likely to continue into Q4. Mak said the
timeline for Meituan's return to profitability is still hard to predict and will require
at least several more quarters.
In terms of share price, Meituan hovered around HKD 100 today. Mak believes that while
the worst of the price war may be over and per-order losses are narrowing, the company has
yet to see a meaningful improvement in profitability. As a result, the share price rebound
is likely to be limited, and she recommends investors adopt a wait-and-see approach,
expecting Meituan to trade sideways around the HKD 100 level in the near term.