[ET Net News Agency, 23 December 2025] The Dow Jones and S&P 500 both climbed closer to
their recent record highs, while Asia-Pacific markets posted modest gains. After four
consecutive days of advances, the Hang Seng Index continued to challenge multiple key
moving averages. The index briefly surged over 100 points, breaking above its 100-day
moving average (around 25,879) and testing the 50-day line (around 25,956). However, with
turnover thinning ahead of the holidays, the HSI was unable to sustain its gains above
these technical resistance levels. By midday, the index's advance had narrowed to just 47
points, or 0.2%, closing at 25,848 with main board turnover near HKD 87.3 billion. The
Hang Seng China Enterprises Index rose 9 points, or 0.1%, to 8,949. The Hang Seng Tech
Index slipped 22 points, or 0.4%, to 5,503.

"Nip Chun Pong: Holding the 100-day moving average increases odds of HSI breakout; new
consumption sector offers high value opportunities"

Foreign media report that Nvidia will begin supplying H200 chips to Chinese customers
around Lunar New Year, with shipments expected to range from 40,000 to 80,000 units,
supporting gains in US stocks overnight. Asia-Pacific markets followed suit this morning,
with Hong Kong equities also firming. The HSI broke above its short-term descending
trendline, but remained in a narrow range for the morning session. Nip Chun Pong, the
Chief Strategist at Solo Securities, told ET Net News Agency that pre-Christmas turnover
in Hong Kong has dropped off significantly. He expects the HSI to oscillate around the
100-day moving average in the near term. If, post-holiday, turnover rebounds to around HKD
20 billion and the index holds above the 100-day line, the chances of an upside breakout
will improve, with potential to challenge the 26,000-26,200 range.
With January marking the start of a new year, Nip noted that the Hong Kong market has
often performed well at the beginning of the calendar year. Anticipation of Mainland China
consumption stimulus, coupled with stability in US stocks, could bode well for Hong Kong
equities next month. He sees the new consumption sector, following sharp corrections, as
having strong rebound potential in January. Besides Pop Mart (09992) and Laopu Gold
(06181), which have completed corrections and are attractive for bargain-hunting, he also
highlights Bloks (00325) as a notable laggard worth attention.

"Cathay Pacific's passenger growth to remain robust next year, but elevated share price
calls for caution"

Cathay Pacific (00293) issued a profit alert, forecasting that second-half results will
surpass those of the first half, with full-year earnings expected to exceed last year's
total. The company attributed the strong second-half performance to increased capacity,
solid passenger load factors, and resilient cargo demand, as well as a one-off gain of
approximately HKD 900 million, which further boosted results. The news sent Cathay shares
surging over 7% in the morning, hitting a high of HKD 12.95.
Reviewing monthly data, passenger volumes have maintained year-on-year growth of around
20% since the second half began. Nip analysed that Cathay's passenger volume for the first
eleven months rose 27% year-on-year. With Hong Kong's economic outlook for next year
expected to marginally improve, he forecasts monthly average passenger volumes will
continue to grow by at least 15% annually. For cargo, volumes grew 10% in the first eleven
months, with stable growth likely to continue next year. He believes that much of the
optimism for the second half was already priced in by October, and today's profit alert
acted as a further catalyst. However, with the share price now at elevated levels,
resistance at HKD 13 is significant. Even if it breaks this level, further gains above HKD
14 could face renewed selling pressure. Investors are advised to wait for a pullback below
HKD 12 before considering entry.