[ET Net News Agency, 22 July 2024] The Hang Seng Index was at 17,560 in the morning
session, up 142 points or 0.8%, with main board turnover of nearly HKD 53.7 billion. The
Hang Seng China Enterprises Index was at 6,226, up 61 points or 1%. The Hang Seng Tech
Index was at 3,596, up 59 points or 1.7%.
The three largest traded stocks on the Hang Seng Index were Tencent (00700), CNOOC
(00883) and Meituan (03690); Tencent reported HKD 373, up HKD 9 or 2.5%, with a turnover
of HKD 3.168 billion; CNOOC reported 20.55 HKD, up HKD 0.05 or 0.2%, with a turnover of
HKD 2.339 billion; Meituan was at HKD 120.9, up HKD 3.4 or 2.9%, with a turnover of HKD
2.006 billion. The three largest traded stocks on the Hang Seng China Enterprises Index
are Tencent, CNOOC and Meituan. The three largest traded stocks on the Hang Seng Tech
Index were Tencent, Meituan and Alibaba (09988); Alibaba reported HKD 74.7, up HKD 0.9 or
1.2%, with a turnover of HKD 1.276 billion.

"Lee Wai Kit: not much is said about the China characteristics stocks"

The People's Bank of China suddenly announced an interest rate cut, and both the
one-year and five-year LPR were lowered by 0.1%. The Hang Seng Index came under pressure
in the early stage, and then rebounded repeatedly, rising by more than 140 points in half
a day. Lee Wai Kit, a director of the brokerage department at Huasheng Securities, told
the ET net News Agency that the rebound in Hong Kong stocks after opening low this morning
was mainly due to technology stocks. Although the performance of China characteristics
stocks stabilized this morning, there has not been much policy focus. The pressure to fall
has not completely subsided, and the focus of Hong Kong stocks this week will be on
technology stocks. He expects that the Hang Seng Index can challenge the 18,000 mark this
week at its most optimistic, with the lower support at 17,200. Whether it can break
through further depends on the adjustment of the China characteristics stocks.

"Many may buy Xiaomi's new foldable phones, and the stock price is expected to be HKD 18.5
in the short term"

Xiaomi (01810) last Friday (19th) released a new generation of folding screen mobile
phone "Xiaomi MIX Fold 4" and the brand's first small folding phone "MIX Flip". The 12GB
RAM + 256GB ROM version of MIX Flip is available for RMB 5999, and 12+512GB is priced at
RMB 6499. Xiaomi Hong Kong announced that it will accept user pre-orders simultaneously
with the Mainland China. Hong Kong currently only sells the 12+512GB version, priced at
HKD 7699, which is about 10% more expensive than the Mainland China price.
The high price of new phones has led the market to expect an increase in the gross
profit margin of Xiaomi phones, causing the stock price to rise by nearly 4% in half a
day. Lee Wai Kit pointed out that the market is indeed looking forward to Xiaomi's
profitability. The previous generation of Xiaomi's foldable phones was not very popular,
but this time the configuration has been significantly improved. Compared with Samsung's
foldable phones, the price/performance ratio is expected to attract consumers to buy it.
He also pointed out that the sales of Xiaomi's SU7 have maintained steady growth, and the
dual-line development has given Xiaomi's share price more potential to rise, and the
market is more willing to give a higher valuation.
In terms of trend, Lee Wai Kit pointed out that Xiaomi has been consolidating along the
100-day moving average last week. Today's rebound on the good news also makes the trend
more optimistic. It can initially target HKD 18.5, but it will be more difficult to regain
HKD 20. In May, the market reached as high as 19,700. Now that the market is relatively
lax, it is unlikely that it will have such momentum.