[ET Net News Agency, 15 April 2026] After US President Trump revealed receiving a call from Iran, a new round of Iran-US negotiations is expected to commence in Pakistan within the next two days. US stocks further reflected expectations for the talks, extending the previous night's rally. Asia-Pacific markets generally rose, with Hong Kong stocks regaining 26,000 at the opening, breaking through both the 50 day moving average (around 26,070) and the 100 day moving average (around 26,082) simultaneously for the first time in a month and a half. However, resistance remains strong at that level, and the gains narrowed. The HSI closed the midday session at 26,069, still below the 50 day and 100 day moving averages, up 197 points or 0.8%, with main board turnover nearing HKD 135 billion. The Hang Seng China Enterprises Index stood at 8,747, up 75 points or 0.9%. The Hang Seng Tech Index stood at 4,943, up 91 points or 1.9%.
"Mak Ka Ka: Market remains cautiously optimistic, HSI rebound strength limited"
According to US President Trump, the US and Iran may restart meetings in Pakistan within two days, raising hopes for a ceasefire. Brent crude oil futures dropped to the USD 95 dollar, and US inflation concerns eased. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), told ET Net News Agency that market expectations for a US-Iran ceasefire have risen, turning the atmosphere optimistic and boosting risk appetite, with falling oil prices driving equities up. However, the market remains in a wait and see mode regarding the progress of peace talks, and the HSI rebound strength is limited. Current resistance is at 26,500 with support at 25,500. Future trends depend on the negotiation results.
Recently, southbound inflow momentum has significantly weakened. From Friday 10 Apr to 14 Apr, the scale of net inflows and outflows was only around HKD 2 billion. Mak Ka Ka stated that the HSI currently lacks positive economic data and news to support an upward surge, causing southbound investors to adopt a wait and see attitude. With the HSI fluctuating in a narrow range, southbound performance has been quiet. She noted that whether southbound funds regain active inflows depends on whether more positive economic data and corporate profit surprises support Hong Kong stocks. Furthermore, a return to normal passage in the Strait of Hormuz would also benefit investment sentiment.
"Impact of share placements limited to individual stocks"
CATL (03750) is reportedly considering a new round of share placements in Hong Kong, planning to raise up to USD 5 billion, news of which caused its share price to drop over 7% yesterday. Following this, several listed companies also announced placements or stake reductions. For instance, TransThera (02617) intends to place 5.085 million shares at an 18% discount, raising approximately HKD 280 million net; CStone Pharma (02616) plans to raise over HKD 1.05 billion via a placement at a nearly 7% discount.
Mak Ka Ka believes today's placement actions by multiple firms mainly impact individual stocks, with limited impact on the overall market. Regarding individual stocks, she noted that while placements create downward pressure, stocks like CStone Pharma use the funds for R&D, leading to higher market tolerance. For large-cap firms like CATL, although the share price fell over 7% yesterday, the decline significantly narrowed today, reflecting that the market is gradually digesting the news, though time is still needed for full absorption.
"Undervalued pharmaceutical sector attracts capital"
The General Office of the State Council today issued "Several Opinions on Improving the Price Formation Mechanism for Medicines," proposing 14 measures to optimise the mechanism. Pharmaceutical stocks rose collectively, with Innovent Bio (01801) up about 4%; Fosun Pharma (02196) up over 3%; and CSPC Pharma (01093) up over 2%. However, Mak Ka Ka pointed out that the rise was primarily driven by the market's view that valuations in the healthcare sector are currently low, with news impact being relatively limited. Mak Ka Ka explained that the pharmaceutical sector is less sensitive to market volatility and performs stably, making it attractive for capital during volatile periods. As the market remains in wait and see mode, capital easily flows into this sector during periods lacking clear investment themes. She suggests investors build positions when the sector is at low levels.
Mak Ka Ka added that performance within the pharmaceutical sector is quite polarised. In terms of deployment, she suggests prioritising large-cap pharmaceutical stocks, such as Wuxi Bio (02269), whose recent pipeline status and overseas orders provide earnings certainty. She expects the stock to fluctuate between HKD 35.5 and 39 recently and suggests waiting for the price to pull back to the HKD 35.5 level before deploying.
"Mak Ka Ka: Market remains cautiously optimistic, HSI rebound strength limited"
According to US President Trump, the US and Iran may restart meetings in Pakistan within two days, raising hopes for a ceasefire. Brent crude oil futures dropped to the USD 95 dollar, and US inflation concerns eased. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), told ET Net News Agency that market expectations for a US-Iran ceasefire have risen, turning the atmosphere optimistic and boosting risk appetite, with falling oil prices driving equities up. However, the market remains in a wait and see mode regarding the progress of peace talks, and the HSI rebound strength is limited. Current resistance is at 26,500 with support at 25,500. Future trends depend on the negotiation results.
Recently, southbound inflow momentum has significantly weakened. From Friday 10 Apr to 14 Apr, the scale of net inflows and outflows was only around HKD 2 billion. Mak Ka Ka stated that the HSI currently lacks positive economic data and news to support an upward surge, causing southbound investors to adopt a wait and see attitude. With the HSI fluctuating in a narrow range, southbound performance has been quiet. She noted that whether southbound funds regain active inflows depends on whether more positive economic data and corporate profit surprises support Hong Kong stocks. Furthermore, a return to normal passage in the Strait of Hormuz would also benefit investment sentiment.
"Impact of share placements limited to individual stocks"
CATL (03750) is reportedly considering a new round of share placements in Hong Kong, planning to raise up to USD 5 billion, news of which caused its share price to drop over 7% yesterday. Following this, several listed companies also announced placements or stake reductions. For instance, TransThera (02617) intends to place 5.085 million shares at an 18% discount, raising approximately HKD 280 million net; CStone Pharma (02616) plans to raise over HKD 1.05 billion via a placement at a nearly 7% discount.
Mak Ka Ka believes today's placement actions by multiple firms mainly impact individual stocks, with limited impact on the overall market. Regarding individual stocks, she noted that while placements create downward pressure, stocks like CStone Pharma use the funds for R&D, leading to higher market tolerance. For large-cap firms like CATL, although the share price fell over 7% yesterday, the decline significantly narrowed today, reflecting that the market is gradually digesting the news, though time is still needed for full absorption.
"Undervalued pharmaceutical sector attracts capital"
The General Office of the State Council today issued "Several Opinions on Improving the Price Formation Mechanism for Medicines," proposing 14 measures to optimise the mechanism. Pharmaceutical stocks rose collectively, with Innovent Bio (01801) up about 4%; Fosun Pharma (02196) up over 3%; and CSPC Pharma (01093) up over 2%. However, Mak Ka Ka pointed out that the rise was primarily driven by the market's view that valuations in the healthcare sector are currently low, with news impact being relatively limited. Mak Ka Ka explained that the pharmaceutical sector is less sensitive to market volatility and performs stably, making it attractive for capital during volatile periods. As the market remains in wait and see mode, capital easily flows into this sector during periods lacking clear investment themes. She suggests investors build positions when the sector is at low levels.
Mak Ka Ka added that performance within the pharmaceutical sector is quite polarised. In terms of deployment, she suggests prioritising large-cap pharmaceutical stocks, such as Wuxi Bio (02269), whose recent pipeline status and overseas orders provide earnings certainty. She expects the stock to fluctuate between HKD 35.5 and 39 recently and suggests waiting for the price to pull back to the HKD 35.5 level before deploying.