[ET Net News Agency, 28 March 2025] Tariffs remain a concern for financial markets, with
all three major US indices falling overnight. Hong Kong stocks continue to focus on
earnings results, with the Hang Seng Index opening nearly 100 points higher this morning
and briefly rising by nearly 200 points. However, the downward trend in A-shares this
morning dragged the Hang Seng Index down from its high. The Hang Seng Index reported
23,368 at midday, down 210 points or 0.9%, with turnover exceeding HKD 131.7 billion. The
Hang Seng China Enterprises Index stood at 8,582, down 95 points or 1.1%, while the Hang
Seng Tech Index reported 5,495, down 93 points or 1.7%.

"Jaseper Tsang: Hang Seng Index is likely to continue falling as it remains pressured by
the 20-day moving average"

US President Trump confirmed a 25% tariff on all imported cars starting 2 April,
reigniting concerns about the economic outlook in the US stock market, leading to further
declines. Hong Kong stocks continue to see a tug-of-war between bulls and bears; after
rising above the 20-day moving average the previous day, they continued to retreat this
morning, falling over 200 points at midday. Jaseper Tsang, the investment director of
Rafter Capital, told ET Net News Agency that the Hang Seng Index has been constrained by
the 20-day moving average for four consecutive days, effectively establishing a technical
correction pattern that is likely to test the 22,500 level.
Recently, there have been several placements in car stocks, including BYD (01211),
Xiaomi (01810), and the latest from NIO (09866). Jaseper Tsang believes that the placement
actions of key stocks will continue, and the resulting dilution effect will create
negative sentiment in the market, weighing on future performance. Additionally, Trump's
tariff policy appears to be spreading, causing global markets to worry about further
escalation and increasing risk aversion in various stock markets, putting pressure on Hong
Kong stocks. He suggests that the Hang Seng Index may find stronger support at 22,500, but
this does not necessarily mean that reaching this level will lead to a rebound; the market
still needs to watch for any policy-driven momentum.

"Haier Smart Home lacks new prospects and is limited by tariff wars"

Haier Smart Home reported a 13% increase in profit last year to RMB 18.74 billion yuan,
with a final dividend of RMB 0.965 per share, representing a 20% annual increase. The
company also announced plans to spend at least RMB 1 billion to repurchase A-shares;
however, its stock price was sold off after the results, dropping over 7% at midday.
Jaseper Tsang explained that while Haier's results were acceptable, there were
insufficient highlights overall, failing to provide the market with additional growth
expectations. With a projected price-to-earnings ratio of around 12 times, which is not
attractive, this has triggered capital to flow out after the earnings report.
Moreover, Jaseper Tsang emphasised that home appliance stocks are currently focusing on
overseas strategies, but Trump's aggressive tariff policies further damage the
opportunities for Chinese companies to expand internationally, which has also affected
Haier's stock performance today. He noted that although home appliance stocks benefit from
the old-for-new policy, this policy has been in place for some time, and all its benefits
have already been priced in. It is unlikely to provide upward momentum for stock prices in
the future. He expects that after digesting today's selling pressure, the stock price will
fluctuate between HKD 23.8 and 27.7.