[ET Net News Agency, 10 October 2024] The three major U.S. stock indexes closed higher
overnight, with the Dow and S&P 500 both hitting new highs. The market is looking forward
to the press conference of the Ministry of Finance on Saturday. The Financial News, the
media under the People's Bank of China, quoted experts as predicting that the press
conference of the Ministry of Finance to be held on Saturday is more likely to increase
the issuance of special government bonds. Hong Kong stocks rose steadily today after
falling for two consecutive days. After the Hang Seng Index opened 400 points higher, it
followed the trend of A-shares in the early stage. Afterwards, A-shares rose steadily, and
the Hang Seng Index expanded its gains.
The Hang Seng Index closed at 21,508 in the half-day report, up 871 points or 4.2%, and
the main board transaction volume exceeded HKD 177.1 billion. The Hang Seng China
Enterprises Index reported at 7,728, up 362 points or 4.9%. The Hang Seng Tech Index
reported at 4,833, up 192 points or 4.1%.

"Wan Kong Shing: 20,000 points support of HSI has been achieved"

It is rumoured that the Ministry of Finance's press conference on Saturday will mention
issues such as the issuance of additional trillions of treasury bonds. Hong Kong stocks
are once again looking forward to it, and the Hang Seng Index rose by more than 800 points
in half a day. Market news is spreading. The official media "Financial News" published an
article quoting economists who believe that the issuance of special government bonds is
more likely; however, the market is not all optimistic. Societe Generale issued a
research report saying that it is unlikely to announce a one-time "super large-scale
fiscal stimulus" of RMB 5 trillion to RMB 10 trillion. Additional support measures of no
more than RMB 1 trillion may be announced. Wan Kong Shing, the Chief Investment Officer of
iFAST Global Markets, told ET Net News Agency that the Hang Seng Index has once again
surged to more than 800 points. He believes that no matter the scale of the additional
issuance of government bonds is, after today's sneak speculation, unless there is a very
big surprise in terms of scale, it will not increase again. There won't be much room for
upside. He believes that the additional issuance of 2 trillion treasury bonds is within
the current expected scale. Only when it exceeds 2 to 3 trillion will it start to be a
surprise. On the contrary, if it is less than 2 trillion or even 1 trillion, Hong Kong
stocks will retreat again.
However, he believes that since the Hang Seng Index retreated for several days, the
support of 20,000 has been established. At the same time, this level is the 61.8% level of
gold's correction ratio calculated since the rise in mid-September to the highest level of
23,241. It is expected that there will be no further policy stimulus in the market outlook
and it will wander around relevant levels.

"Haitong will have support only if it falls back to the conversion price, and GTJA is a
better choice"

GTJA (02611) and Haitong (06837) announced their merger plan. The AH shares plan to use
the same exchange ratio. Each Haitong Securities A share can be exchanged for 0.62 new
GTJA A shares, and each Haitong Securities H share can be exchanged for 0.62 shares of
GTJA's new H shares. The conversion price of each Haitong Securities H share is HKD 4.79,
a premium of approximately 32% from the suspension closing price of HKD 3.627. The two
stocks opened more than doubled this morning when trading resumed, but their intraday
gains narrowed considerably.
Wan Kong Shing believes that today's sharp rise in the two stocks reflects the positive
factors, and the market will be retreated in the future. Based on the conversion price of
HKD 4.79 per share, Haitong will have to fall back to HKD 5 to see initial support. Buying
at the current price will result in a loss. On the contrary, GTJA will be a better choice.
The positive factors after the merger will be further reflected in the business. The
market has initial support at HKD 12. In the short term, it is expected to rebound to HKD
14 to 14.5. The market outlook will be a wait-and-see situation just like other securities
stocks. It depends on the A-share trading performance.