[ET Net News Agency, 05 February 2026] Overnight, US tech stocks were once again sold
off, with leading chipmaker Nvidia extending its decline to a fourth straight session.
Advanced Micro Devices (AMD) plunged after issuing earnings guidance that fell short of
market expectations. The Nasdaq registered its second consecutive day of declines.
Asia-Pacific stock markets followed the negative lead, with Korea's KOSPI slumping nearly
4% and the two main onshore Chinese exchanges each falling more than 1%. In Hong Kong, the
Hang Seng Index (HSI) opened 220 points lower and continued to weaken, at one point
dropping over 400 points. By midday, the HSI was down 340 points, or 1.3%, at 26,506, with
main board turnover nearing HKD 168.3 billion. The Hang Seng China Enterprises Index lost
87 points, or 1%, to 8,960, while the Hang Seng Tech Index declined 62 points, or 1.2%, to
5,304.

"Wan Kong Shing: HSI expected to trade between 26,400 and 27,200 in the near term"

The HSI opened more than 200 points lower today, briefly touching 26,410 before
narrowing its loss and finding support near the 26,500 level. Wan Kong Shing, the Chief
Investment Officer of iFAST Global Markets, told ET Net News Agency that the index has
recently shown a tendency to fall more than rise, and the current pullback was broadly
anticipated. If the index does not clearly break below 26,400, that area can serve as
near-term support, with the next support level at the 50-day moving average (around
26,200). For investors not currently holding positions, Wan suggested considering
deployments around the 26,400 mark, with the HSI likely to fluctuate between 26,400 and
27,200 near term.
The Nasdaq and S&P 500 have now fallen two days in a row as funds rotate from tech
stocks into more traditional and defensive sectors, pressuring linked segments in Hong
Kong. Wan noted that given the high valuations of US tech stocks and the uncertain outlook
for data centre profits, tech underperformance on Wall Street is likely to persist through
the rest of the month. Short-term corrections in Hong Kong tech shares are thus to be
expected. He predicts Tencent (00700) will trade in the HKD 530-592 range. For Alibaba
(09988), watch support near HKD 155; as long as it does not breach HKD 153, it can be
held, though if that level falls, the next test may be HKD 142. In the medium to longer
term, anticipation of an IPO for Alibaba's chip unit Pingtouge could lift shares towards
HKD 200 over the year.

"Yum China expected to maintain mid-single-digit profit growth"

Yum China (09987) reported net profit of USD 140 million for the fourth quarter ended 31
December last year, up 24%, with earnings per share of USD 0.40 ahead of expectations for
USD 0.37. The company will pay a quarterly dividend of USD 0.29 per share, up 21%
year-on-year. The group anticipates a net addition of over 1,900 stores this year, aiming
to exceed a total of 20,000 outlets by year end, and plans to surpass 30,000 stores by
2030.
Wan commented that Yum China's quarterly results were solid, and the company's
aggressive expansion reflects management's confidence in long-term earnings growth and
underlying market demand. He believes Yum China can sustain mid- to low-single-digit
profit and same-store sales growth. Wan further observed that the Mainland China's new
consumption pattern is increasingly focused on value for money, with a decline in high-end
spending such as business banquets and a shift towards frugality in daily dining habits.
This "consumption downgrade" trend is actually beneficial for Yum China's fast-food
businesses. Additionally, the company's continued rollout of localised menu items, such as
Sichuan flavour products, shows a deepening engagement with local tastes.
Regarding its share price, Wan noted that Yum China broke through multiple highs today,
with short-term resistance to watch at HKD 450 and a medium-term target of HKD 490. For
those considering entry, Wan suggested a two-tranche buying approach: take an initial
position near current levels, and add a second tranche if the share price retreats below
HKD 400.