The Economic Information Daily reported on the 23rd that the situation between the U.S. and Iran continues to ease, with Saudi Arabia restoring its east-west oil pipeline, while U.S. President Trump said American officials had held about a three-hour meeting with Iranian representatives on the sidelines of the United Nations General Assembly, describing the talks as "very good" and constructive, with both sides arranging further contact later. On the eve of Chinese President Xi Jinping's visit to the U.S., turnover quickly shrank to HK$98.8 billion in half a day, tech stocks plunged, and the Hang Seng Index not only broke below its 100-day moving average (around 25,077), but immediately fell through the 25,000 level, closing at 24,896 in the morning session, down 191 points or 0.8%, finding support near the 10-day line (around 24,844). The Hang Seng China Enterprises Index stood at 8,301, down 60 points or 0.7%. The Hang Seng Tech Index was at 4,395, down 42 points or 1%.
*Wen Gangcheng: Even if Xi-Trump meeting disappoints, it won't necessarily trigger a sharp drop in HK stocks*
After three consecutive days of gains, Hong Kong stocks faced profit-taking pressure. Domestic authorities may investigate information security issues concerning large AI model companies, prompting a pullback in Hong Kong markets this morning. The HSI fell around 200 points in the morning session but found support at 24,800. Wen Gangcheng, Investment Director at iFAST Global Markets, told The Economic Information Daily that in the short term, Hong Kong stocks lack strong incentives to attract capital inflows. Although there is hope that the Xi-Trump meeting will bring some positive impact, attention will still turn afterward to overseas market performance, the Middle East situation, and mainland policies. He expects the HSI to trade mainly sideways between 24,500 and 25,400 in the short to medium term.
The market hopes the Xi-Trump meeting will bring positive news, yet investors remain cautious about expectations. Wen Gangcheng stated that limited positive impact is already a market consensus, but even if disappointment follows, it is unlikely to trigger a sharp decline in the broader Hong Kong market, as current U.S. interest rate hike expectations have already been priced in, and there are currently no major negative factors for Hong Kong stocks. Although the market is expected to trade sideways in the short to medium term, Wen still leans toward believing that the chance of a gradual upward trend remains greater than a downward one.
*Market waiting for Alibaba's AI applications to improve before increasing exposure*
Alibaba (09988) began its three-day Yunqi Conference yesterday. At the event, Alibaba's Pingtouge unveiled its new integrated AI training and inference chip, Zhenwu V900, reportedly three times more powerful than the Zhenwu M890, capable of meeting training and inference demands for trillion-parameter large models, with mass production and sales expected in the first quarter of 2027. However, Alibaba showed no momentum today and instead continued to retreat, with its share price falling about 3% in the morning session, hitting a low of HK$110.
In the short term, the market is still digesting the dilution effect following Alibaba's fundraising, and closely watching the effectiveness and results of its AI development using the raised capital. Wen Gangcheng believes the market is currently in an observation period, waiting for further evidence of Alibaba's AI progress, such as whether Qwen subscription numbers increase, to verify proper use of funds and improvements in profitability. Regarding the stock price, he expects stronger support near HK$108, where investors could consider entering, but notes that resistance at HK$120 remains significant in the short term, requiring more positive data to provide breakout momentum. (hc)
*Wen Gangcheng: Even if Xi-Trump meeting disappoints, it won't necessarily trigger a sharp drop in HK stocks*
After three consecutive days of gains, Hong Kong stocks faced profit-taking pressure. Domestic authorities may investigate information security issues concerning large AI model companies, prompting a pullback in Hong Kong markets this morning. The HSI fell around 200 points in the morning session but found support at 24,800. Wen Gangcheng, Investment Director at iFAST Global Markets, told The Economic Information Daily that in the short term, Hong Kong stocks lack strong incentives to attract capital inflows. Although there is hope that the Xi-Trump meeting will bring some positive impact, attention will still turn afterward to overseas market performance, the Middle East situation, and mainland policies. He expects the HSI to trade mainly sideways between 24,500 and 25,400 in the short to medium term.
The market hopes the Xi-Trump meeting will bring positive news, yet investors remain cautious about expectations. Wen Gangcheng stated that limited positive impact is already a market consensus, but even if disappointment follows, it is unlikely to trigger a sharp decline in the broader Hong Kong market, as current U.S. interest rate hike expectations have already been priced in, and there are currently no major negative factors for Hong Kong stocks. Although the market is expected to trade sideways in the short to medium term, Wen still leans toward believing that the chance of a gradual upward trend remains greater than a downward one.
*Market waiting for Alibaba's AI applications to improve before increasing exposure*
Alibaba (09988) began its three-day Yunqi Conference yesterday. At the event, Alibaba's Pingtouge unveiled its new integrated AI training and inference chip, Zhenwu V900, reportedly three times more powerful than the Zhenwu M890, capable of meeting training and inference demands for trillion-parameter large models, with mass production and sales expected in the first quarter of 2027. However, Alibaba showed no momentum today and instead continued to retreat, with its share price falling about 3% in the morning session, hitting a low of HK$110.
In the short term, the market is still digesting the dilution effect following Alibaba's fundraising, and closely watching the effectiveness and results of its AI development using the raised capital. Wen Gangcheng believes the market is currently in an observation period, waiting for further evidence of Alibaba's AI progress, such as whether Qwen subscription numbers increase, to verify proper use of funds and improvements in profitability. Regarding the stock price, he expects stronger support near HK$108, where investors could consider entering, but notes that resistance at HK$120 remains significant in the short term, requiring more positive data to provide breakout momentum. (hc)
