[ET Net News Agency, 14 October 2024] The September CPI and September PPI indexes
released by the Mainland China yesterday (13th) were both lower than expected. The trend
of Hong Kong stocks was volatile in the early part. After the Hang Seng Index opened
slightly lower, it briefly rose by dozens of points. However, it turned downwards when it
encountered resistance at the high level and fell by more than 500 points at most.
Afterwards, A shares stopped falling and rebounded, and the Hang Seng Index narrowed its
decline.
The Hang Seng Index reported at 21,164, down 87 points or 0.4%, and the main board
turnover was nearly RMB 172.3 billion. The Hang Seng China Enterprises Index reported at
7,607, down 13 points or 0.2%. The Hang Seng Tech Index reported at 4,658, down 77 points
or 1.6%.

"Nip Chun Pong: 21,000 may not have support, and it will fall back to 20,000"

Mainland China's CPI increased by 0.4% year-on-year in September, lower than the
expected increase of 0.6%, and remained unchanged month-on-month; PPI fell by 2.8%
year-on-year in September, falling for 24 consecutive months and the largest decline in
six months, and also worse than market expectations of falling 2.6%. Coupled with the lack
of surprises at the Ministry of Finance press conference last Saturday, the Hang Seng
Index opened slightly this morning and continued to decline, falling by more than 500
points at most. The decline narrowed to less than 100 points before the lunch break. Nip
Chun Pong, the Chief Strategist at Blackwell Global Securities, told ET Net News Agency
that deflation concerns and the official press conference that once again disappointed the
market caused a large correction this morning. Although there was some support for the
Hang Seng Index at 21,000 this morning, if no further stimulation was seen, and the
short-term trend fell back to the bottom of the rising gap from26 to 27 September , around
the 20,000 level.

"If Mainland China's third-quarter GDP meets expectations, the Hang Seng Index is expected
to hold steady at 20,000"

The central government only announced a series of stimulus policies such as consumer
vouchers at the end of September before the National Day. Nip Chun Pong expected that the
relevant positive effects would not be reflected until the next month, and he expected the
data to be better than that in September. He expects the market this week to wait and see
the third-quarter GDP performance announced on Friday. Currently, the market has expected
that it will be difficult to "maintain 5", with an annual growth rate of approximately
4.6% to 4.7%. If it can ultimately meet market expectations, there will be greater hope
for it to "maintain 5" for the whole year. Earlier, the National Development and Reform
Commission still expressed confidence in maintaining the growth target. On the other hand,
if it is lower than expected, it will further weaken market confidence. The Hang Seng
Index may not be able to maintain 20,000 and may further fall to 19,000.
Inflation growth weakened further in September, and Hong Kong stocks were under overall
pressure on domestic demand retail stocks. Although looking forward to the economic data
in October, Nip Chun Pong admitted that retail stocks fell sharply today, especially Anta
(02020), which fell sharply after releasing its third quarter sales performance. In
addition, some catering stocks such as Haidilao (06862) have not stopped. It is
recommended to wait for another day or two until the stock price stabilizes before buying.