[ET Net News Agency, 16 August 2024] The Hang Seng Index was at 17,397 in the morning
session, up 288 points or 1.7%, with main board turnover of nearly HKD 54.5 billion. The
Hang Seng China Enterprises Index was at 6150, up 115 points or 1.9%. The Hang Seng Tech
Index was at 3456, up 72 points or 2.1%.
The three largest traded stocks on the Hang Seng Index were Tencent (00700), Alibaba
(09988) and Meituan (03690); Tencent reported HKD 372.6, up HKD 4.2 or 1.1%, with a
turnover of HKD 3.285 billion; Alibaba reported HKD 79.5, up HKD 3.1 or 4.1%, with a
turnover of HKD 2.684 billion; Meituan reported at HKD 106.5, up HKD 4.1 or 4%, with a
turnover of HKD 1.889 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 are Tencent, Alibaba and Meituan.

"Jaseper Tsang: The Hang Seng Index can hold the 250-day moving average, but the 50-day
moving average still has great resistance"

Hong Kong stocks regained momentum, rising by more than 300 points in half a day and
back above the 250-day moving average. Jaseper Tsang, the investment director of Rafter
Capital, told the ET Net News Agency that the performance meets expectations. Hong Kong
stocks attracted some funds to return. In addition, the July CPI increase recently
announced by the United States was also at a stable level, and the market's worries about
economic recession have weakened. Although China's economic data is still weak, the
market's expectations for economic stimulus have increased, driving Hong Kong stocks to
rebound, and the 250-day line is expected to stabilize in the short term.
However, Jaseper Tsang believes that China's economic outlook is bleak, and it is still
difficult to be optimistic about the outlook for the second half of the year. Unless the
Mainland China launches "shocking" drastic policies, expectations for policies can only
have short-term benefits for Hong Kong stocks, and the resistance above the 50-day moving
average of the Hang Seng Index will be difficult to break through. .

"JD.com's supply chain management beats expectations, and HKD 140 is expected in the
medium and long term"

Several major companies announced their results, among which JD.com (09618) announced
that its second-quarter adjusted net profit. It rose 69% year-on-year to RMB 14.46
billion, beating expectations. The good results stimulated JD.com's stock price to rise by
about 9% in half a day, returning to the 250-day moving average for the first time in a
month. Jaseper Tsang explained that the market had earlier expected that JD.com's
performance would benefit from policies such as home appliance replacement and government
subsidies. However, JD.com not only achieved satisfactory sales of home appliances, but
also performed well in other parts of the business, which surprised the market.
Jaseper Tsang explained that JD.com's good performance reflects that the group has
established advantages in scale, and its rich and complete supply chain management is the
biggest highlight of this performance. He predicts that this good performance will improve
JD.com's profit prospects and will attract some long-term funds to be redeployed. At
present, JD.com's expected price-to-earnings ratio is only about 6 times, and its
valuation is very attractive. As the stock price was greatly underestimated earlier, it is
expected to be favoured by funds again. If it can break through the resistance of HKD 110
in the short term, it is expected to test HKD 115. For the medium to long term, he is
optimistic that the stock price is expected to improve buy capital flows and further
challenges HKD 140 within 6 to 12 months.

"JD Logistics will challenge HKD 9.8"

In addition, fellow company JD Logistics (02618) also recorded good results, with its
mid-term adjusted net profit soaring 1.97 times to RMB 2.456 billion. The stock price
soared by more than 17% in half a day, returning to the 250-day moving average for the
first time since mid-May. Jaseper Tsang pointed out that JD Logistics' good performance
also reflects JD's good supply chain management, especially JD Logistics' key role in the
supply chain, further consolidating JD's competitive moat. He pointed out that JD
Logistics' current forecast price-to-earnings ratio is about 21 times, which is expected
to attract funds to return for deployment. The chance of stabilizing the 250-day line in
the short term is high, and it is expected to challenge HKD 9.8 within 6 to 12 months.

"Galaxy Ent performs well but the stock price is expected to consolidate at low level"

On the other hand, blue-chip gambling stock Galaxy Ent (00027) also had surprises. Its
interim net profit increased by nearly 52% to HKD 4.387 billion, and its adjusted EBITDA
rose by 37% to HKD 6.01 billion. It resumed paying an interim dividend of HK 50 cents, It
delivered a special dividend of HK 20 cents in the same period last year. However, Jaseper
Tsang said frankly that recently, Macao gambling stocks have paid attention to the
intensity of policy supervision. Although it may not directly target casinos, the central
government's supervision of capital outflows will affect casino revenue. It is expected
that the Macao gambling stocks sector as a whole will not be able to escape the influence
of the general environment. Therefore, he believes that Galaxy Ent will continue to be
controlled by the 20-day moving average. It is expected that the good performance will
help the stock price to end its decline, and the market outlook will hover around HKD 28.5
to HKD 30.