[ET Net News Agency, 23 September 2024] U.S. stocks took profits last Friday (20th), but
Hong Kong stocks still have sufficient confidence. The Hang Seng Index opened lower in a
narrow range at first, and then started to rise again. With the cooperation of a higher
level, it stabilized at its high level since 20th June, but now It is difficult to find a
breakthrough at this stage. It closed at 18,359 in half a day, up 100 points or 0.6%, and
the main board turnover exceeded HKD 66.7 billion.
The Hang Seng China Enterprises Index reported at 6,428, up 47 points or 0.7%. The Hang
Seng Tech Index was at 3,730, up 26 points or 0.7%.

"Lee Wai Kit: The Hang Seng Index is expected to consolidate at 18,000 points first with
support"

Although the Hang Seng Index opened slightly lower this morning, it quickly turned
upward after the market opened, reaching a high of 18,410. Lee Wai Kit, a director of the
brokerage department at Huasheng Securities, told the ET Net News Agency that since the
United States announced a massive half-percent interest rate cut last week, the overall
sentiment in the Hong Kong stock market has improved. In particular, Hong Kong's major
banks unexpectedly and immediately cut the prime interest rate by 0.25%, further boosting
Hong Kong stocks. Interest rate cuts have increased the appeal of high-dividend stocks,
especially China characteristics stocks. Companies with high debt levels also benefit from
the low-interest environment, while real estate stocks benefit more directly. Overall,
this interest rate cut is a big boost to Hong Kong stocks. However, high-dividend stocks
have risen a lot in the past few days. Therefore, it is understandable that individual
stock prices have retreated from high levels. Especially for individual local
dividend-earning stocks, their interest rates are lower than the China characteristics
stocks. The stock prices have been soft recently, and investors cannot be ruled out from
changing horses.
Lee Wai Kit pointed out that the Hang Seng Index began to rebound from this month's low
of around 17,000 points and has risen for the seventh consecutive day, rising by more than
a thousand points. It is expected that there will be resistance from 18,300 to 18,400 in
the short term, or it may consolidate first. However, he does not expect the correction to
be too deep. The Hang Seng Index is expected to have initial support near 18,000 points.
As long as it holds 18,000 points, the market outlook is expected to reach as high as
19,000 points.


"Xiaomi's August sales surpassed Apple's and ranked second"

Xiaomi (01810) stock price outperformed the market today, temporarily rising by about
4%. According to data provided by market research firm Counterpoint, Xiaomi's global
mobile phone sales surpassed Apple's in August, ranking second behind Samsung. Mainly
because its low-priced mobile phone products such as the Redmi 13C and Redmi Note 13
series have performed well in emerging markets such as India, South America, and Southeast
Asia. However, Lee Wai Kit said that as Apple launches new mobile phones this month, the
sales ranking this month may change. But the market is not just looking at one month's
data, but has higher expectations for Xiaomi's overall development. Xiaomi has
continuously innovated its products in the past (such as launching foldable phones) and
catered to different markets with different models. Its products have certain advantages
in emerging markets such as India and Southeast Asia.
In addition, Xiaomi Group founder, chairman and CEO Lei Jun posted on Weibo that the
Note 14 series of products will be released at 7 pm on Thursday (26th).
Lee Wai Kit believes that in addition to mobile phones, Xiaomi's advantages are also in
the two fields of Internet of Things and consumer products, and new energy vehicles. The
three fields not only produce synergy, but also disperse risks and are defensive. Among
them, IoT and consumer products currently account for more than 28% of the group's total
revenue. As for the new energy vehicle business, it is estimated that as new vehicles are
delivered one after another, the proportion will become increasingly important. However,
Xiaomi's stock price has started to rise since the low of around HKD 12 at the beginning
of this year, and has risen by more than 60% so far. If investors are out of stock, they
can wait until the stock price slightly pulls back to the 10-day moving average (around
HKD 19) before considering buying it. This will be more defensive and the short-term stock
price is expected to rise to HKD 22.