[ET Net News Agency, 05 December 2025] US initial jobless claims fell by 27,000 to
191,000 last week, the lowest in three years and below expectations of 220,000. US stocks
ended mixed, with the Dow retreating while the S&P 500 and Nasdaq edged higher. After
rebounding yesterday, Hong Kong stocks softened today. The Hang Seng Index opened over 100
points lower and traded in a narrow band, with a morning high-low swing of just 147
points. By midday, the HSI stood at 25,872, down 63 points or 0.2%, with main board
turnover near HKD 81.7 billion. The Hang Seng China Enterprises Index lost 12 points, or
0.1%, to 9,094, while the Hang Seng Tech Index dipped 11 points, or 0.2%, to 5,604.

"Ryan Chan: No surprises expected from Central Economic Work Conference"

The HSI hovered near its 100-day moving average (c. 25,818) today. Ryan Chan, an
executive director of Eddid Financial, told ET Net News Agency that the HSI is currently
trading within a consolidation range, bounded by the upper (c. 27,000) and lower (c.
25,200) limits of the Bollinger Band, a range of some 1,800 points. He expects the index
to oscillate within this band for the rest of the month. In the short term, major
resistance lies at the prior high of 26,200, with support at 25,200. Chan noted that while
market sentiment is not negative, there is strong support at the lower end and little
chance of a downside break, but there is also insufficient momentum to push higher.
Both the upcoming US Federal Reserve meeting and China's Central Economic Work
Conference are in focus next week. Chan does not expect surprises from the Central
Economic Work Conference, as such meetings tend to outline broad policy directions rather
than specific measures. Only tangible signs of economic momentum will be able to lift
market confidence in a meaningful way. As for the Fed, Chan said the market hopes there
will be no unexpected moves. With rate cut expectations now at 90%, unless the Fed
delivers a much larger-than-expected cut, it is unlikely to spur the HSI significantly.
Even if the Fed cuts as expected, Chan sees the HSI remaining rangebound between 25,200
and 26,200 in the near term.

"Innovent Bio commercialisation could double the valuation"

Innovent Bio (01801) announced yesterday it had completed all conditions for its global
strategic partnership with Takeda, including all required licence, option and
collaboration agreements. It also issued approximately 6.91 million new shares to Takeda,
representing about 0.4% of its issued capital, at HKD 112.56 per share, a 20.3% premium to
the previous close, with a one-year lock-up. The deal, valued at about HKD 778 million,
forms part of Takeda's upfront payment of USD 1.2 billion. Innovent may receive up to an
additional USD 10.2 billion in milestone payments, plus ex-Greater China sales royalties.
The partnership aims to accelerate the global development and commercialisation of
next-generation immuno-oncology and ADC therapies. Chan views the deal positively,
highlighting Takeda's global leadership and motivation to secure long-term overseas sales.
The agreement demonstrates Takeda's confidence in Innovent's R&D and commercial
capabilities, a clear win-win. Looking ahead, Chan believes commercialisation could see
Innovent's valuation double. However, he cautions investors about inherent sector risks,
such as slower-than-expected commercial progress or underwhelming drug efficacy.
The partnership was first announced pre-market on 22 October, yet Innovent's share price
saw significant profit-taking that day and has since failed to break above its 8 October
high of HKD 105. Chan notes the deal effectively ties Takeda's commercial interests to
Innovent, with no apparent downside for the latter.
Innovent will also enter the Hang Seng Index as a blue chip following the latest
quarterly review, effective next Monday (8th). Chan suggests investors may consider buying
on today's weakness, but should be mindful of their own risk appetite. He also notes that
the partnership binds Innovent's fate somewhat with Takeda, and investors should consider
if they are comfortable with this. In the short term, Chan expects Innovent's share price
to fluctuate between HKD 85 and HKD 98.