[ET Net News Agency, 11 November 2025] Market optimism over an imminent end to the US
government shutdown lifted US stocks overnight. Yesterday (10 Nov), the HSI broke through
the 26,500 level, but there was no significant turnover to support the move this morning.
The HSI opened nearly 100 points higher, rising as much as 139 points to 26,788 after the
open, but quickly lost ground, ending the morning down 53 points or 0.2 percent at 26,595.
Main board turnover exceeded HKD 11.83 billion. The Hang Seng China Enterprises Index was
at 9,412, down 30 points or 0.3 percent. The Hang Seng Tech Index stood at 5,900, down 14
points or 0.2 percent.

"Jaseper Tsang: Whether HSI can break 26,700 is key"

Hong Kong stocks were boosted yesterday by news of an impending resolution to the US
government shutdown, which helped the HSI break through 26,500. The momentum continued at
the open, with the HSI starting at 26,748, but the market soon reversed. Jaseper Tsang,
Vice-Chairman of the Hong Kong Institute of Financial Analysts and Professional
Commentators Limited, told ET Net News Agency that yesterday's gains were mainly driven by
bipartisan consensus in the US Senate and hopes the shutdown risk will soon end. Improved
sentiment lifted US index futures, which in turn boosted Hong Kong index futures and
related derivatives. However, whether the HSI can break and hold above 26,700 is the key
to determining if the short-term trend will turn stronger.
He noted that the market is watching for further signs of a US economic slowdown. With
year-end approaching and global equity markets having performed well so far this year,
investors are inclined to take profits early, resulting in a lack of sustained buying
momentum in the short term. He expects the HSI to continue fluctuating between 26,000 and
26,700 for now, with support at 26,000 if 26,500 is breached on the downside.

"Mainland China CPI turns positive but deflationary pressures remain"

According to the National Bureau of Statistics, Mainland China China's consumer price
index (CPI) in October rose 0.2 percent year-on-year after a 0.3 percent decline in
September, beating market expectations of no change. This ended two consecutive months of
deflation and marked a nine-month high, helping new consumption concept stocks surge
yesterday. Jaseper Tsang believes that the October CPI is only a single data point and
does not change the bigger picture of deflationary pressure across China. The market will
need to monitor three to four more months of data before making any substantive judgement.
Technically, he sees the rebound in new consumption shares as mainly a reaction after
sharp earlier declines, and remains concerned about high valuations. He advises investors
to lock in profits rather than chase hot new consumption stocks, especially those lacking
fundamental support and with excessive gains, such as Mixue Group (02097).

"Pop Mart's lower valuation now looks attractive"

However, Tsang highlights that among new consumption stocks, Pop Mart (09992) is worth
watching. The company has multiple brands with market appeal and solid earnings growth
potential. With the share price now below HKD 220, its forward P/E is about 25 times. If
its core brands can maintain sales and profit growth, the HKD 200 level should offer
valuation support.
He adds, however, that while Pop Mart's fundamentals are relatively strong, the market
has noticed a cooling trend for its core brand LABUBU in the secondary market. Whether the
LABUBU craze can continue is something to watch, and the share price is still likely to
face resistance around the HKD 240 level in the near term.