[ET Net News Agency, 16 September 2024] The "Troika" data released by China (exports,
investment, and consumption) were all lower than expected, and even the financing data
were not good, making it difficult to maintain economic growth at 5%. Southbound funds
closed the gate. The Hang Seng Index fell first and then stabilized. There was support for
17,000. It fell 50 points or 0.3% at 17,318 in the half day. There was a strong
wait-and-see atmosphere. The main board transaction only recorded nearly HKD 26.4 billion.
The Hang Seng China Enterprises Index reported at 6,049, down 21 points or 0.4%. The
Hang Seng Tech Index was at 3,467, down 12 points or 0.3%.

"Cheung Chi Wai: pay attention to Powell's statement after the meeting"

The Mainland China has started the Mid-Autumn Festival holiday, and southbound funds has
temporarily left Hong Kong stocks for two trading days. Since this morning, the trading
volume of Hong Kong stocks has become even more miserable, with half-day trading volume of
only HKD 26.3 billion. Cheung Chi Wai, a joint managing director at Prudential Brokerage
Ltd, told ET Net News Agency that the Mainland China has recently strengthened supervision
of capital flows, and the economic data released at the weekend were worse than expected.
The market is waiting to see the outcome of the Federal Reserve's interest rate
discussion, which has caused the market transactions to weaken further. He pointed out
that before the interest rate meeting results and Federal Reserve Chairman Powell's
post-meeting statement, the Hang Seng Index is more likely to remain around the 250-day
moving average (approximately 17,233). He believes that when the southbound funds return
on Thursday (19th), it will depend on how the market interprets Federal Reserve Chairman
Powell's remarks, and the financial response will have a greater indicator effect on the
market outlook.

"Unfavourable online sales of drugs after returning to normal"

The pharmaceutical sector has rebounded recently, but online medical stocks have been
weak and their stock prices have underperformed the sector. China Business Network
published an analysis on online medical stocks, saying that the sales of self-operated
products of JD Health (06618) and Ali Health (00241) have entered a bottleneck period of
growth. In the past, annual revenue has grown by double digits or even multiples. However,
as the market approaches saturation, this momentum will inevitably be interrupted. Cheung
Chi Wai agrees that the fundamentals of online medical stocks have weakened. Since the
return to normal in the Mainland China, consumers have reduced their reliance on online
pharmacies and have tended to receive more medical care in person than online medical
services. This has weakened the income of online medical companies and caused the trend of
online medical stocks to weaken.
He pointed out that although JD.com (09618) has strong interim results, its main home
appliance series has benefited from preferential policies to drive revenue. On the
contrary, JD Health specializing in pharmaceutical series and will have limited profits.
Investors are not recommended to buy online medical stocks in the short term.