[ET Net News Agency, 26 June 2025] Federal Reserve Chair Powell reiterated a cautious
stance on rate cuts in his testimony before the Senate yesterday, leading to mixed
performance in US stocks. After rising for four consecutive days, the Hang Seng Index
pulled back today, closing at 24,357 at midday, down 117 points or 0.5%. Main board
turnover was close to HKD 142.1 billion. The Hang Seng China Enterprises Index stood at
8,814, down 45 points or 0.5%. The Hang Seng Tech Index was at 5,358, down less than one
point.

"Lee Wai Kit: Short-term resistance for the Hang Seng Index at 24,500 to 24,800"

The Hang Seng Index reached a three-month high yesterday, but today saw a wave of share
placements. ZA Online (06060) raised around HKD 3.9 billion through a share placement at
an 8.5% discount. SF Holdings (06936) raised nearly HKD 5.5 billion via convertible bonds
and a share placement at a 9% discount, while Innovent Bio (01801) raised HKD 4.3 billion
at a 5% discount. Lee Wai Kit, a director of the Brokerage Department of TF International
Securities, told ET Net News Agency that the Hang Seng Index is indeed at a high level,
with resistance at 24,500 to 24,800. He further pointed out that the recent rally has been
driven mainly by Mainland China financial stocks. With these stocks having already posted
significant gains, and a wave of share placements affecting market sentiment, it is
natural for the Hang Seng Index to consolidate at these high levels in the short term. A
further breakthrough would require positive news from major technology stocks as a
catalyst.
Regarding whether a spate of share placements will continue in the short term, Lee Wai
Kit said this is difficult to predict but suggested keeping an eye on recently surging
sectors, such as biotechnology and pharmaceuticals, as well as companies with funding
needs. He also noted that investors should not be overly pessimistic about share
placements; if companies make good use of the funds raised, the negative impact can be
offset.

"FWD worth considering for cash application if oversubscribed more than ten times on
debut"

Hong Kong's IPO market has continued to heat up recently, with eight new listings this
week alone and five more scheduled for next week, including Anjoy Foods (02648), IFBH
(06603), and the much-anticipated FWD Group (01828), which will list on 7 Jul. Lee Wai Kit
said his overall view of current IPOs is neutral. He pointed out that although many IPOs
have been well received during subscription, their post-listing performance has been
average. To assess an IPO, investors should consider whether the sector is unique and
whether the company is a market leader.
FWD Group, the insurance company chaired by Richard Li, is open for subscription from
today until next Wednesday (2 Jul), offering 91.34 million shares, 10% for Hong Kong
public offer and the rest for international placement, at HKD 38 per share, with 100
shares per lot and an entry fee of HKD 3,838.32. Morgan Stanley and Goldman Sachs are
joint sponsors. Notably, the company has brought in two cornerstone investors: Mubadala
Capital (Abu Dhabi sovereign fund) and T&D Holdings (Japanese life insurer).
Lee Wai Kit noted that FWD's fundraising size is just over HKD 3 billion, which is not
large, and the sponsor team is strong, with Goldman Sachs and Morgan Stanley.
Fundamentally, FWD is a well-known brand in Hong Kong and has been actively expanding its
retail insurance network in recent years, giving it a unique position. Investors can wait
for tomorrow's over-subscription figures; if the IPO is oversubscribed by more than ten to
twenty times, it could be worth applying. However, he stressed that investors should take
care with their investment amounts and consider applying with cash, as such stocks may
need to be held for a longer period.
Lee Wai Kit also mentioned IFBH, the Thai food and beverage company selling "if" brand
coconut water. He noted that, based on price-to-earnings ratio, IFBH is not cheaply priced
and investors should watch for new capital inflows after listing.
IFBH Limited is open for subscription from the 20th to the 25th, planning to offer 41.67
million shares globally, with 10% for the Hong Kong public offer and the rest via
international placement, with a 15% over-allotment option. The offer price is set between
HKD 25.3 and HKD 27.8 per share, with 200 shares per lot and an entry fee of HKD 5,616.07.
Listing is expected on 31 Jun (Monday). CITIC Securities is the sole sponsor.