[ET Net News Agency, 25 October 2024] After the Hang Seng Index opened higher in a
narrow range, driven by the photovoltaic and biomedical sectors during the session, the
Hang Seng Index clearly showed an upward trend. It rose 230 points or 1.1% to 20,720 in
the half day, regaining the 10-day line (20,552 points), and the main board turnover was
nearly HKD 89 billion. The Hang Seng China Enterprises Index was at 7,435, up 75 points or
1%. The Hang Seng Tech Index was at 4,567, up 83 points or 1.9%.

"Jaseper Tsang: the Hang Seng Index breaks through 21,500 points depends on the result of
the US election"

Jaseper Tsang, the investment director of Rafter Capital, told the ET Net News Agency
that the Hang Seng Index is currently in the technical consolidation stage after a sharp
rise. It is expected that the Hang Seng Index will fluctuate between 19,800 points and
21,200 points within this month. The bottom of 19,800 points is obtained by assuming of a
half falling back from the highest point of 23,241 points. He added that the market is now
awaiting two major macro factors. The first is the expectation that in early November, the
central government will announce the specific amount and implementation details of
measures to rescue domestic housing; the second is the results of the US election. The
market is worried that if Trump is elected, he will further introduce policies that are
unfavourable to China's trade, such as significantly increasing tariffs, then the Hang
Seng Index will see strong resistance at 21,500 points.

"Car stocks are just hype about Tesla's performance and it is difficult to continue to
rise"

Tesla's third-quarter results beat expectations. Thanks to Tesla's Cybertruck's first
profit, lower material costs, expansion of its energy business, and the sale of carbon
emission credits, CEO Musk also expects car sales to increase by up to 30% next year.
Tesla's third-quarter revenue reached USD 25.1 billion, an increase of 8% over the same
period last year. Earnings per share beat expectations, rising to USD 0.72, compared with
analysts' forecasts of USD 0.60.
Tesla's third-quarter results beat expectations, driving car stocks to generally rise:
Li Auto (02015) rose 4% to HKD 110; Xpeng (09868) fell 1.3% to HKD 42.05; NIO (09866) fell
0.4% , to HKD 39.5; BYD (01211) rose 3.1% to HKD 294.6; Leapmotor (09863) rose 3.3% to HKD
29.8; Geely Auto (00175) rose 7.1% to HKD 14.88; GW Motor (02333) rose 2.2% to HKD 14.04;
GAC (02238) rose 3.6% to HKD 2.86.
Regarding the general rise in car stocks, Jaseper Tsang believes that this round of rise
is only following Tesla's post-performance speculation, and the short-term increase is
limited. He continued to point out that since Li Auto's competitive advantage among many
auto stocks is not outstanding, whether it can hold the 250-day SMA (approximately HKD
110) within 5 trading days is still a major technical test. Jaseper Tsang also holds the
same view on Ganfeng Lithium (01772), which is also a Tesla concept stock. He believes
that the battery stock sector is subject to fierce market competition and it is difficult
to have the ability to raise prices, so he is not optimistic about the battery stock
sector.
Among car stocks, Jaseper Tsang recommends Geely Auto (00175). He believes that its
stock price is relatively attractive. Its expected price-to-earnings ratio is less than 10
times. Its sales volume in the past two months has also performed well. He sets a target
price of HKD 18.