[ET Net News Agency, 04 October 2024] War clouds are gathering in the Middle East, and
Hong Kong stocks are also uncertain in the early hours. Meituan (03690) opened lower and
this affected the Hang Seng Index. The HSI opened 98 points lower this morning, although
it once fell below 22,000 points and reached a low of 21,824, the buying momentum of funds
soon returned. Hong Kong stocks turned upward, with an increase of more than 500 points,
touching 22,650 points, close to the high on Tuesday (2nd), but it is expected that the
Hong Kong stock market will still have strong resistance at the peak of 22,700 of January
last year. The Hang Seng Index subsequently retreated and closed at 22,500 for half a day,
up 386 points or 1.7%. The main board turnover was nearly HKD 145.1 billion.
The Hang Seng China Enterprises Index reported at 8,073, up 159 points or 2%. The Hang
Seng Tech Index reported at 5,154, up 176 points or 3.5%.

"Wan Kong Shing: southbound funds continue to buy stocks, the strongest support below is
20,000 for the Hang Seng Index"

Hong Kong stocks experienced a rare strong rally. The Hang Seng Index fell more than 200
points this morning and then rebounded upward. It rose to more than 500 points at most,
but the gain narrowed again to only about 200 points before the lunch break. Bloomberg
quoted a Nomura report as saying that the strongest rebound in China's stock market in 16
years may turn into a collapse, saying that China's economic foundation is now much weaker
than before, and investors need to make a more sober assessment.
Wan Kong Shing, the Chief Investment Officer of iFAST Global Markets, told ET Net News
Agency that the RMB continues to weaken under the recent surge. If the RMB exchange rate
continues to fall, it is not a good thing for the market. However, the market is currently
booming and we dare not be bearish.
He pointed out that after the A-share market resumes next Tuesday and southbound funds
returns, they may not be willing to continue buying stocks. It is possible that the
Mainland China is not willing to see a "losing reason" stock market atmosphere, but it is
unknown whether further actions will be taken. He also mentioned that the U.S. dollar has
gradually strengthened recently. A strong U.S. dollar and a weak RMB will be less
favourable for further easing in the Mainland China.
The buy and sell in the market is fierce. Wan Kong Shing believes that the shortest line
is to look at yesterday's low of 21,422. If it falls below this low, the market should
start to be careful about the risk of retreat. It may first go back to the bottom of the
rising gap from 26 to 27 September, about 20,000. The lower support is 19,706, the top
level of the May rise; as for the upper level, let's look at 22,700. If it can stabilize,
it will go up further.

"Meituan can challenge HKD 240"

According to Hong Kong Stock Exchange documents, Meituan co-founder, executive director
and senior vice president Mu Rongjun reduced his holdings of 2 million Meituan Hong Kong
shares at a price of HKD 171.8055 per share on 30 September, totalling approximately HKD
344 million. After Mu Rongjun reduced his holdings, he held approximately 56.31 million
shares.
Meituan's stock price was under pressure for a time this morning. Later, the market
rebounded, and Meituan also recovered upwards, rising nearly 3% before noon. Wan Kong
Shing said frankly that after Meituan's rise for many days, it is absolutely not
surprising that shareholders took advantage of the situation and sold stocks. He believes
that Meituan's earlier announcement of results has given the market enough confidence,
making investors more willing to buy it. He believes that Meituan will continue to rise in
the future. Although there will be some resistance in the middle, there is a good chance
that it will challenge the high level of about HKD 240 of January 2022.