[ET Net News Agency, 20 August 2024] The Hang Seng Index closed at 17,506 in the morning
session, down 63 points or 0.4%, with main board turnover of nearly HKD 40.3 billion. The
Hang Seng China Enterprises Index was at 6,192, down 33 points or 0.5%. The Hang Seng Tech
Index was at 3,502, down 14 points or 0.4%.
The two largest decliners in the Hang Seng Index were China Res Beer (00291) and Hengan
Int'l (01044); China Res Beer reported at HKD 22.45, down HKD 1.55 or 6.5%, with a
turnover of HKD 280 million. It was as low as HKD 22.4 during the session and as high as
HKD 24.3; Hengan Int'l reported HKD 24.05, down HKD 1.5 or 5.9%, with a transaction volume
of HKD 38.19 million. The two largest gainers in the Hang Seng Index were Li Auto (02015)
and BOC Hong Kong (02388); Li Auto reported at HKD 82.25, up 1.6 Hong Kong dollars or 2%,
with a turnover of HKD 529 million, with an intraday high of HKD 83.8 and a low of HKD
81.75; BOC Hong Kong reported HKD 23.7, up HKD 0.45 or 1.9%, with turnover of HKD 119
million.

"Nip Chun Pong: Meituan's performance may not be able to replicate JD.com's positive
effect on the market"

The trading volume of Hong Kong stocks was light in the half-day. The Hang Seng Index
continued to be controlled by the 100-day moving average. It opened higher in the half-day
and then fell by less than 100 points. Nip Chun Pong, the Chief Strategist at Blackwell
Global Securities, told the ET Net News Agency that Hong Kong stocks rebounded last week
due to better-than-expected performance of heavyweight stocks. Last Friday (16th), trading
volume exceeded HKD 100 billion, and yesterday it exceeded HKD 90 billion. The market
outlook will continue to wait and see the market turnover. If it can maintain above HKD 90
billion, the market outlook will not be too pessimistic. He pointed out that the Hang Seng
Index was restricted to 17,500 from the end of July to mid-August. It has been hovering at
the relevant level since yesterday's breakthrough. If the market outlook fails to
stabilize and returns below 17,500, there is a greater chance of it being 17,000 to 17,500
for the rest of this month.
Hong Kong stocks were overjoyed last week after the announcement of the results of
Alibaba (09988) and JD.com (09618). As for whether Meituan (03690), which will announce
its results next week, can replicate the positive effect, Nip Chun Pong believes that
Meituan's share price has risen for four consecutive days. The market expectations of
Meituan results are greater than those of Alibaba and JD.com, and there may be a greater
chance of a post-performance selling like Tencent. He predicts that if the market relies
on Meituan to drive the trend, Meituan will need to break through the resistance of HKD
112 in order for the Hang Seng Index to challenge 17,800.

"Coal stocks still have room to fall"

Yancoal Aus (03668) announced its interim results for the period ended 30 June. Net
profit fell 56.8% year-on-year to HKD 420 million. It also suspended the distribution of
interim dividends, causing the stock price to fall by more than 20% in half a day. The
decline narrowed to about 15% before the lunch break. Coal stocks were sold across the
board, with Yancoal Aus' parent company Yankuang Energy (01171) falling more than 8% in
half a day, and blue chip China Shenhua (01088) falling more than 2%.
Nip Chun Pong pointed out that coal stocks have accumulated a certain amount of gains
since August, but began to retreat yesterday. Today, they were dragged down by Yancoal
Aus' performance and fell sharply. He believes that coal stocks are mainly affected by the
market's pessimism about the economic prospects of the Mainland China. If the PMI to be
announced fails to return above 50, it will be difficult to change the market view.
However, he mentioned that the current overall selling pressure in the market is not
strong, and it is expected that the coal sector still has room for a correction of about 5
to 8%.
The fall of Yancoal Aus' mid-term net profit affect dividend payments, but Nip Chun Pong
believes that even if Yankuang Energy and China Shenhua's performance may not be good,
there will be no suspension of dividends for the time being.