[ET Net News Agency, 03 May 2024] The Hang Seng Index reported 18,413 in the morning
session, up 206 points or 1.1%, with a turnover of nearly HKD 69 billion. The Hang Seng
China Enterprises Index reported 6,520, up 82 points or 1.3%. The Hang Seng Tech Index
reported 3,945, up 80 points or 2.1%.
The three most actively traded stocks on the Hang Seng Index were Tencent (00700),
Alibaba (09988), and Meituan (03690). Tencent closed at HKD 363.2, up HKD 2.8 or 0.8%,
with a turnover of HKD 5.327 billion. Alibaba closed at HKD 78.75, up HKD 2.65 or 3.5%,
with a turnover of HKD 3.784 billion. Meituan closed at HKD 119.3, up HKD 0.2 or 0.2%,
with a turnover of HKD 3.58 billion. The three most actively traded stocks on the Hang
Seng China Enterprises Index were Tencent, Alibaba, and Meituan. The three most actively
traded stocks on the Hang Seng Tech Index were also Tencent, Alibaba, and Meituan.

"Jaseper Tsang: central government taking steps to address property market issues boosts
market confidence"

It is rumoured that foreign capital has been significantly increasing positions in the
Hong Kong stock market during the recent rebound. The strong performance of the Nasdaq
Golden Dragon China Index, which rose 6% in the U.S. market overnight, drove several
technology stocks to open high this morning. The Hang Seng Index also opened more than 300
points higher, but the gains narrowed to around 200 points after the market opened.
Jaseper Tsang, the investment director of Rafter Capital, told ET Net News Agency that the
Hang Seng Index has rebounded by approximately 2,500 points from its low of 16,044 last
month. Apart from foreign capital buying, there is a significant amount of capital that
needs to be deployed, providing upward momentum for the Hong Kong stock market.
He pointed out that foreign investors had significantly underweighted Hong Kong stocks
previously. With the improvement in China's economic prospects and the recent news that
the Central Political Bureau has made addressing the issue of existing housing inventory a
key task, it is viewed as the central government finally taking steps to address the core
problem of the property market. This has also boosted the performance of property stocks
and the overall market sentiment. He mentioned that if there are further targeted measures
in the future, he expects the Hang Seng Index to continue challenging higher levels in the
next three to six months. Therefore, he believes that the current downward adjustment is
limited, and 18,200 would provide significant support.

"Pullback in the global AI sector favours accumulating Baidu at low levels"

The rebound in the U.S. stock market last night led to significant gains in various
Chinese technology stocks, and several U.S.-listed Chinese stocks opened high in the Hong
Kong stock market this morning. Jaseper Tsang stated that foreign investors had sold off
Chinese technology stocks before, resulting in significant valuation reductions for many
stocks. With the improvement in China's economic prospects, more funds are expected to
gradually flow back into Chinese stocks.
Among them, Jaseper Tsang's top pick is Baidu (09888). Previously, there were concerns
in the market about U.S. sanctions on Chinese AI and chip companies, which also led to a
valuation reduction for Baidu. However, in reality, Baidu has an advantage in developing
autonomous driving technology. Moreover, AI stocks in the United States, Taiwan, South
Korea, and other regions have recently experienced a trend of decline, and it is expected
that undervalued Baidu will rebound with the trend. It is expected to challenge the
250-day moving average within three months, but the preferred entry position for the
medium to long term is around HKD 108.
Additionally, Jaseper Tsang believes that Alibaba is also a good choice for investing in
technology stocks. Its subsidiary, Taotian Group, has a business model that aligns with
the current performance of China's economy. Furthermore, Alibaba's international business
has shown significant growth recently. Calculated at the current expected P/E ratio of
approximately 16 times, it is expected to attract funds to flow back and deploy. The
initial target is to stabilize above the 250-day moving average, and if successful, it can
aim for HKD 86.