[ET Net News Agency, 03 December 2025] US equities rebounded on Tuesday, yet the Hong
Kong market opened sharply lower, dropping over 100 points and breaking below the 26,000
mark. The Hang Seng Index hovered around its 10-day moving average (approx. 25,837) for
much of the morning, closing the half-day session at 25,843, down 252 points or 1%. Main
board turnover was close to HKD 86.1 billion. The Hang Seng China Enterprises Index
slipped 115 points, or 1.3%, to 9,067. The Hang Seng Tech Index dropped 72 points, or
1.3%, to 5,551.

"Wan Kong Shing: In dull markets, focus on dividend stocks; US rate cuts offset BOJ hikes"

Hong Kong stocks remain stuck in a narrow range, with the HSI holding between 25,800 and
26,200 for the past week, a 400-point band. After two days of gains, the index fell back
by about 200 points this morning, erasing its previous advance. Wan Kong Shing, the Chief
Investment Officer of iFAST Global Markets, told ET Net News Agency that in such a
listless market, there is little to speculate on, and spare funds are better deployed in
dividend stocks. Despite many yield plays having already risen after a month-long rally,
dividend yields are still expected to outpace bank deposits under a rate-cutting cycle,
likely drawing further capital inflows.
Wan also noted that tech stocks have become more challenging to trade amid a decline in
global risk appetite. The recent sharp swings in Bitcoin prices, he said, are partly
linked to concerns over a possible BOJ rate hike, but these are still less significant in
impact than potential US rate cuts. He expects that after some short-term volatility,
Bitcoin will likely recover as dovish Fed expectations return. On cryptocurrencies, Wan
believes Bitcoin's choppy trading is not over, and sees a chance of it dropping below USD
80,000 in the near term, with initial support at USD 78,000. Should that level break, USD
70,000 would be the next target, but he would consider building positions if Bitcoin slips
to those levels. He added that, despite occasional reports of forced liquidations, major
institutions' exposure to crypto remains limited and systemic risk is not a concern.

"JINGDONG Industrials IPO fuelled by parent, but upside seen limited after debut"

JD.com (09618) has announced it has completed its acquisition of approximately 59.8% of
CECONOMY's equity, bringing its total stake to 85.2% and paving the way for CECONOMY's
delisting. However, JD's share price was little changed this morning, edging down less
than 1%. Wan said the market was clearly unmoved by the acquisition, as it remains within
the retail sector. The deal is reasonably priced but not considered a major growth story,
so the lack of a decline in JD's share price is already a decent result. He noted that,
despite JD's many moves, what matters is whether the market buys into the story,
otherwise, it's just "window dressing." Wan supports JD's overseas expansion, but so far
sees little synergy or re-rating potential, and expects the share price to track the
market, with support around HKD 105 and potential trading up to HKD 130 for range traders.
After several rounds of preparation, JD.com is formally launching the IPO of JINGDONG
Industrials (07618) today, planning to issue about 211 million shares, with 10% for public
offering in Hong Kong (no clawback mechanism) and the rest for international placement.
The indicative price range is HKD 12.7 to HKD 15.5 per share, for a maximum raise of about
HKD 3.27 billion. Minimum subscription for a board lot of 200 shares is HKD 3,131.26. Wan
said the listing is mainly a value-unlocking exercise for JD, taking advantage of ongoing
IPO enthusiasm to raise funds. While the business outlook for JINGDONG Industrials is not
particularly exciting, the IPO should still see some speculative interest due to the
parent company's backing, and could gain 20-30% post-listing.
However, Wan expects little trading excitement after the IPO window closes, drawing
parallels with Zijin Gold Intl (02259), another recent spin-off that traded sideways after
its initial pop, though it benefited from gold price themes. By contrast, JINGDONG
Industrials only has JD as a parent and is primarily a supply chain business without a hot
sector theme, making it hard to attract significant capital after the initial listing.