[ET Net News Agency, 19 September 2025] The US Federal Reserve's 0.25 percentage point
rate cut matched expectations, but the Fed Chair Jerome Powell struck a hawkish tone,
leading to a sharp pullback in Hong Kong stocks yesterday. This morning, Hong Kong
equities digested the previous day's negative factors while awaiting an imminent China-US
leaders' call on TikTok. The HSI hovered around the 26,500 level in early trading, closing
the morning at 26,576, up 31 points or 0.1 per cent, with main board turnover exceeding
HKD 179 billion. The Hang Seng China Enterprises Index finished at 9,489, up 32 points or
0.3 per cent. The Hang Seng Tech Index ended at 6,310, up 38 points or 0.6 per cent.

"Kwok Ka Yiu: HSI unlikely to correct significantly in the short term, 26,300 offers
support"

The HSI opened at 26,583 this morning and saw a choppy session due to profit-taking at
higher levels. Kwok Ka Yiu, the Director of Business Development at Harbour Family Office,
told ET Net News Agency that after the rate cut was confirmed, the US market remained
stable and saw no major pullback. In contrast, the HSI has rallied quickly in recent weeks
and subsequently tracked adjustments in Mainland China markets, but overall valuations
remain reasonable, without significant deviation. He believes a major correction is
unlikely in the short term, and after consolidation, the HSI could move above 27,000. For
now, he sees investors mainly taking profit at higher levels.
He noted that 26,300 is regarded as a key support for the HSI. After briefly touching
this level previously, Hong Kong stocks rebounded quickly. Although most market
participants are currently holding or increasing positions today, he observed that
southbound capital inflows remain active, offering support for Hong Kong stocks. The
market is now waiting to see if Mainland China will roll out further new policies,
including measures to boost consumption and investment, as well as the possibility of bank
rate cuts or reserve requirement reductions. Any of these could provide further impetus to
the market.

"Trip.com's record high driven by rising travel demand, not just AI"

Trip.com (09961) earlier launched an AI-powered travel assistant, available both on its
website and mobile app. Users can input travel dates and number of passengers, and the
system recommends suitable flights using real-time data, automatically matches
airport-to-hotel transfers, and integrates itinerary planning, flexible adjustments,
product bookings, and order management.
Trip.com reached an intraday high of around HKD 613 this morning, a new record since
listing. Kwok Ka Yiu pointed out that the market is optimistic about Trip.com's business
growth outlook. The share price surge is not only driven by the AI concept, but more
importantly by the surge in travel demand, which offers significant business
opportunities. Previous concerns over economic conditions and intense industry competition
have not materially affected Trip.com's results, which remain robust. The AI concept has
further supported the share price rally.

"Gaming sector transformation effective, Galaxy Entertainment stands out for broad
business layout"

Macao gaming revenue has steadily rebounded month-on-month. Several major brokers have
turned more positive on Macao casino stocks. A recent CLSA report noted that investors are
mainly focused on the sustainability of Macao's recent revenue momentum. The report
believes current revenue growth in Macao gaming is sustainable, based on their latest
currency views, but the next upgrade cycle may be driven by factors boosting Chinese
consumer confidence, such as property prices.
The report highlighted that Galaxy Entertainment (00027) and MGM China (02282) remain
competitive in market share, with robust balance sheets and strong dividends. Sands China
is catching up in terms of promotional activities and, over a two-year period, its
dividends are increasing.
Kwok Ka Yiu said gaming companies have largely completed business transformation, now
focusing on mass-market and non-gaming segments. Hotel demand in Macao is very strong,
with tight supply. He noted this reflects high travel demand, and Macao's tourism products
meet the needs of Mainland China visitors. He is confident there is room for further
earnings growth. While there was pessimism over casino stocks at the start of the year,
the actual situation has significantly improved, and the market now anticipates stronger
11th November gaming revenue than last year.
He believes Galaxy Entertainment is a top performer among casino stocks, with a core
advantage in rational and sustained property layout, enabling it to cater to different
types of customers. The company's strong competitiveness in both visitor numbers and
gaming revenue allows it to stand out from peers.