[ET Net News Agency, 15 July 2024] The Hang Seng Index closed at 18,038 in the morning
session, down 254 points or 1.4%, with main board turnover of nearly HKD 50.8 billion. The
Hang Seng China Enterprises Index reported at 6,430, down 102 points or 1.6%. The Hang
Seng Tech Index reported at 3,689, down 92 points or 2.4%.
The three largest traded stocks in the Hang Seng Index were Tencent (00700), Alibaba
(09988) and Meituan (03690); Tencent reported HKD 391.4, down HKD 5.6 or 1.4%, with a
turnover of HKD 2.663 billion; Alibaba reported HKD 76.85, down HKD 1.55 or 2%, with a
turnover of HKD 1.54 billion; Meituan was at HKD 119.6, down HKD 2.2 or 1.8%, with a
turnover of HKD 1.208 billion. The three largest traded stocks on the Hang Seng China
Enterprises Index are Tencent, Alibaba and Meituan. The three largest traded stocks on the
Hang Seng Tech Index were Tencent, Alibaba and Meituan.

"Nip Chun Pong: If the Third Plenary Session of the CPC Central Committee lacks surprises,
the Hang Seng Index may cross the 18,000 mark"

The Mainland China's Third Plenary Session of the Central Committee of the Communist
Party of China starts today, and the market is waiting to see whether large-scale economic
stimulus policies will be introduced. However, this morning the Mainland China announced
that its second-quarter GDP grew by only 4.7% year-on-year, lower than the expected 5.1%
growth, and even lower than the 5.3% in the first quarter, the lowest in five quarters.
This dragged down the performance of Hong Kong stocks this morning, and the Hang Seng
Index fell over 250 points, hovering on the edge of 18,000.
Nip Chun Pong, the Chief Strategist at Blackwell Global Asset Management, told ET Net
News Agency that Hong Kong stock trading rebounded to nearly HKD 120 billion last Friday
(12th). The market expected that more news from the Third Plenary Session of the Central
Committee of the Communist Party of China will be announced. The HSI is expected to remain
at a similar level today. If there is a lack of surprises, the transaction volume will
most likely fall back to around HKD 100 billion; the initial support of the Hang Seng
Index is at 17,800.

"Li Ning may rebound in short term, but it is difficult to get favourable policy support"

The GDP growth was worse than expected, causing the domestic demand retail sector's rise
last week to be short-lived, with sporting goods, food and catering sectors generally
selling for half a day. Even though sporting goods stocks rebounded last week, they are
still at low levels. Nip Chun Pong believes that there is still room for a rebound in
current prices. He explained that the retail sector has been under pressure for a long
time, mainly due to the weakening of the RMB exchange rate. Last week, the RMB rebounded
due to the slowdown in U.S. inflation, and retail stocks followed suit. Since then, the
trend of the RMB is expected to stabilize, and related stocks are expected to receive
support at low levels. .
Nip Chun Pong pointed out that the Paris Olympics is about to open, which is expected to
have a positive effect on sporting goods stocks. Investors can take advantage of the
current price of Li Ning (02331), which is HKD 15 to 15.5. In the short term, the price is
expected to be HKD 17 to 17.5.
Although the market expects that the Third Plenary Session of the Central Committee of
the Communist Party of China may introduce policies to support the market, Nip Chun Pong
pointed out that the strength of the policies may not meet market expectations and may not
have a positive effect on the retail sector. He pointed out that on the contrary, the
investment, consumption, export data released monthly by the Mainland China Statistics
Department, including total retail sales, further affects the stock price trend of the
retail sector. If the data really improves, it will be beneficial to the relevant sectors.