[ET Net News Agency, 04 August 2025] US equities slumped sharply last Friday (1st),
dragging Asia-Pacific markets lower at the open this morning. However, chipmakers, tech
stocks, and Mainland China banks provided support during the session, with the Hang Seng
Index rebounding by midday to close at 24,627, up 119 points or 0.5%. Main board turnover
exceeded HKD 126.5 billion. Notably, there was a net southbound outflow of HKD 9.1
billion. The Hang Seng China Enterprises Index rose 44 points or 0.5% to 8,849, while the
Hang Seng Tech Index advanced 50 points or 0.9% to 5,447.

"Wong Wai Ho: Prolonged China-US Talks add to uncertainties"

After four consecutive days of declines last week, Hong Kong stocks rebounded, with the
HSI initially falling but recovering to gain around 100 points by midday. Wong Wai Ho, the
First Vice President of the Yan Yun Family Office (HK) Limited, told ET Net News Agency
that the HSI has notched up significant gains since April, but sentiment has clearly
turned more cautious after hitting a high of 25,700 last month, particularly as external
factors weigh on the market. Earlier optimism around tariffs has faded now that the US has
settled tariffs with several countries, and the continued extension of China-US talks has
heightened market uncertainty, prompting a more wait-and-see approach.
With Hong Kong stocks now entering the results season, Wong noted that after a rally
driven by anticipation, the market now needs concrete numbers for support. Corporate
earnings performance will be critical for assessing the outlook. However, heavyweight
results announced last week, such as HSBC (00005), disappointed, dragging on broader
sentiment. He believes the market needs more positive earnings surprises to drive a
sustained recovery. In the short term, Wong expects the HSI still has room for further
consolidation, with investors watching for support at the 50-day moving average or the
24,000 psychological level. If this support holds, the index may consolidate sideways as
it awaits a catalyst.

"BYD short-term weakness, but fundamentals still outperform peers"

BYD (01211) reported sales of around 344,300 vehicles last month, up just 0.56%
year-on-year and down about 10% month-on-month. BYD's share price came under pressure this
morning, falling about 2% by midday, a correction of more than 15% from the late-July high
of HKD 136.3. Wong commented that BYD's share price has been weak recently, though the
company's monthly deliveries still exceed 300,000 units and its leading position remains
unchallenged. However, the launch of new models by several emerging brands last month
inevitably weighed on BYD's monthly delivery figures, contributing to recent share price
softness.
He added that sentiment towards auto stocks has become more cautious lately. Based on
BYD's recent price action, there is a significant chance the share could test its 250-day
moving average in the short term. However, as the leader in the EV sector, the likelihood
of a substantial break below the 250-day moving average remains low.