[ET Net News Agency, 27 June 2025] US stocks continue to climb, with the S&P and Nasdaq
both nearing record highs. Hong Kong stocks opened higher, boosted by a strong rally in
Xiaomi (01810), but the gains did not hold. The Hang Seng Index quickly reversed course
before midday, closing at 24,309 by lunchtime, down 15 points or less than 0.1%, with main
board turnover exceeding HKD 162.4 billion. The Hang Seng China Enterprises Index fell 26
points, or 0.3%, to 8,777. The Hang Seng Tech Index rose 7 points, or 0.1%, to 5,352.

"Wong Wai Hong: Ongoing capital outflows from the Hong Kong dollar make it difficult for
the Hang Seng Index to hold above 24,000"

The Hang Seng Index opened 125 points higher this morning, but after a choppy session,
turned down by nearly 16 points before the midday close, trending sideways overall. Wong
Wai Hong, the Chairman and CEO of Anli Holdings, told ET Net News Agency that US stocks
reached near-record highs overnight, improving sentiment in global equities and prompting
a rebound in Hong Kong stocks. However, with capital continuing to flow out of the Hong
Kong dollar, the Hong Kong Monetary Authority is expected to keep intervening in the
currency for some time. This suggests that even if the Hang Seng Index breaks above
24,000, it is unlikely to attract significant inflows of global capital into Hong Kong
equities.
Foreign media reported that US President Trump unilaterally claimed the signing of a
trade-related agreement with Mainland China. Wong Wai Hong believes this news should offer
some support to the Hong Kong market and that a sharp short-term correction is unlikely,
but breaking through to 25,000 will remain a challenge. Wong cautioned that rising
interbank rates could dampen investment sentiment in both the Hong Kong stock and property
markets. He also expects the US Fed is unlikely to cut rates in July, making it more
difficult for the Hang Seng Index to steady above 24,000. He forecasts that Hong Kong
stocks will weaken in the third quarter, with support at 23,200.

"Xiaomi's early 8% surge narrows; chasing at this stage carries higher risk"

Xiaomi Group (01810) held its "Human, Car, Home Full Ecosystem" launch event on Thursday
(26th), unveiling several new products. Notably, Xiaomi's first SUV, the YU7, is priced
from RMB 253,500. Xiaomi later announced via social media that orders for the YU7
surpassed 200,000 within three minutes of launch and exceeded 289,000 within an hour.
Xiaomi also launched its "Xiaomi AI Glasses," starting at RMB 1,999. The share price
opened 8% higher this morning, hitting a post-IPO high of HKD 61.45.
Wong Wai Hong noted that after Xiaomi's strong opening, the gains narrowed, possibly
reflecting investors taking profits. There have been several incidents involving Xiaomi's
earlier SU7 model, raising concerns about the sustainability of new vehicle sales. Wong
cautioned that buying Xiaomi shares at this stage is relatively risky and suggested
investors should adopt a wait-and-see approach.

"Laopu Gold: Fundamentals overhyped; take the rebound opportunity to sell"

Laopu Gold (06181) marks its first anniversary of listing in Hong Kong today, coinciding
with the largest release of restricted shares since listing. Twelve shareholders, together
holding around 143 million shares, representing over 80% of total share capital, will be
able to sell their shares. The share price was unaffected this morning, closing at HKD 872
at midday, up 0.403%. Wong Wai Hong believes this morning's gain was mainly driven by
speculation following the listing of Zhou Liu Fu (06168), but warned that the release of
restricted shares poses a risk.
Wong added that Laopu Gold's fundamentals have been overhyped, and its shareholding is
currently rather concentrated. If upcoming results miss expectations, the share price may
not sustain its current strength. Wong advised that investors not already holding shares
should not buy at this stage, while those already invested should take advantage of the
rebound fuelled by Zhou Liu Fu's listing to sell.