[ET Net News Agency, 22 September 2025] US equities closed higher, supported by the
latest Federal Reserve rate cut. In addition, the China-US leaders' phone call concluded
smoothly, with Xinhua describing the conversation as pragmatic, positive and constructive.
However, Hong Kong stocks extended last week's losses this morning, with the HSI opening
85 points lower and continuing to weaken. By midday, the index stood at 26,281, down 263
points or 1 per cent, with main board turnover close to HKD 164.8 billion. The H-share
Index fell 122 points or 1.3 per cent to 9,349. The Tech Index dropped 74 points or 1.2
per cent to 6,220.

"Nip Chun Pong: Cautious stance from Mainland China after China-US call, HSI likely to
hold 26,000 pending economic data"

Following the China-US leaders' call, selling pressure emerged in Hong Kong stocks, with
the HSI falling over 200 points and hovering around the 26,300 level during the morning
session. Nip Chun Pong, the Chief Strategist at Blackwell Global Securities, told ET Net
News Agency that after the HSI broke above 25,000, it spent over a month consolidating.
Although the index later climbed to 27,000 after surpassing 26,000, he expects the HSI
will continue to consolidate above 26,000 for now, with an initial range of 26,000 to
26,800. He suggests investors need not rush to cut losses unless 26,000 is decisively
breached, noting that the current range-bound market is not particularly weak and
September's overall gains remain respectable.
President Xi Jinping's phone call with US President Trump was positive, but overall
there were no major surprises. Nip Chun Pong noted that with the Fed meeting and the
Policy Address in Hong Kong now out of the way, the market will turn its attention to
upcoming China-US economic data. He sees a lack of clear short-term direction, so expects
the market to remain in consolidation mode. However, he emphasised that uncertainties in
China-US relations remain. While Trump expressed strong optimism after the call and
thanked Xi for "approving" the TikTok deal, Mainland China's official response was more
cautious, and it would be premature to say all differences have been resolved. Investors
should continue to monitor the situation.

"iPhone 17 lacks AI but strong pent-up demand drives sales"

Apple's iPhone 17 officially went on sale over the weekend in Mainland China and Hong
Kong. Despite pre-launch feedback suggesting the new iPhone's features were somewhat
underwhelming, demand in both markets has been robust, with reports of scalpers offering
prices several hundred or even over a thousand HKD above retail. Reports indicate Apple
has urgently requested suppliers to boost production, with a 40 per cent increase in
output ordered as early as the 17th. Apple supply chain stocks outperformed the market in
the morning session, with Sunny Optical (02382) surging 6 per cent to lead blue chips.
Currently, investors are more focused on stock-picking than the broader market, and the
stronger than expected response to the iPhone 17 is likely to continue supporting
Apple-related stocks in the near term. Among the two major Apple blue chips, Sunny Optical
has already returned to its late March levels, with resistance seen around HKD 90, leaving
limited further upside. In contrast, BYD Electronic (00285) remains some distance from its
March resistance at HKD 51.5, and based on current prices still has potential upside of
around 20 per cent, making it relatively more attractive. A stable hold above HKD 40 would
provide a buying opportunity for further gains.
Regarding iPhone 17 sales prospects, Nip Chun Pong believes the initial response has
already outperformed the iPhone 16, and future sales are likely to remain stronger than
its predecessor. However, he emphasised that the lack of AI features in the iPhone 17 is a
disadvantage. Still, given that many consumers delayed upgrading last year due to the
underwhelming iPhone 16, the natural upgrade cycle one year later has resulted in
significant pent-up demand, driving the strong sales of the iPhone 17.