[ET Net News Agency, 10 April 2025] The US stock market experienced a "miracle day,"
prompting a surge in Asia-Pacific markets. Despite China remaining the primary target of
the US tariff war, market sentiment improved, leading to significant rebounds in export
stocks. The Hang Seng Index rose by 364 points, or 1.8%, to 20,628, with a turnover
exceeding HKD 245.4 billion. However, it is notable that buying interest from southbound
trading has weakened significantly, with a net inflow of only HKD 3.524 billion.
The Hang Seng China Enterprises Index stood at 7,641, up 106 points or 1.4%. The Hang
Seng Tech Index was at 4,800, rising by 110 points or 2.4%.

"Cheung Chi Wai: Optimism in the US-China tariff war remains difficult in the short-term;
the market will still be volatile"

US President Trump announced on Wednesday a 90-day delay in imposing tariffs on
non-retaliatory countries, significantly reducing corresponding tariffs to 10%, while
increasing tariffs on Chinese imports to 125%. This led to a substantial overnight rise in
US stocks, which Hong Kong stocks followed this morning. Cheung Chi Wai, a joint managing
director at Prudential Brokerage Ltd, told ET Net News Agency that the delay in tariffs on
other countries provides an additional channel for Chinese products, particularly
components, to enter the US via other countries, which is a positive development for the
market. Regarding further increases in tariffs on China, Cheung Chi Wai believes this is
merely a numbers game with little real significance. He cited an example where a product
originally sold for HKD 100, with a profit margin of about HKD 20-30, would become
unprofitable under a 34% tariff, and essentially unviable at 104%. Thus, the impact on the
market is expected to be limited.
Although the Hang Seng Index rebounded today and briefly rose over 900 points, Cheung
Chi Wai stated that this should not be interpreted as a sign of overall market optimism.
The US tariff policy itself is uncertain and subject to change. Currently, both sides in
the US-China rivalry are firmly entrenched, making it challenging to find a suitable way
out. Therefore, expecting a quick resolution to the tariff issue seems unrealistic. He
anticipates that the Hang Seng Index may experience significant fluctuations in the short
term. He expects support around the early-year low of 18,671, while the market must repair
the gap from the significant drop on Monday (7th) at 22,638 before becoming more
optimistic.

"Expecting oil prices to fall and gold prices to rise; recommends buying gold ETFs"

Following the announcement of a 90-day delay in tariffs on non-retaliatory countries,
both international oil and gold prices rebounded. New York crude oil closed up 4.65% at
USD 62.35 per barrel. Spot gold rose as much as 3.93% to USD 3,099.47 per ounce, nearing
the USD 3,100 level, and closed at USD 3,083.17, still up 3.39%.
In response to rising international oil prices, shares of the three major oil companies
rebounded, but the gains were moderate. For example, CNOOC (00883) initially rose nearly
5% but has since halved its gains. Cheung Chi Wai noted that despite recent announcements
of share buybacks by the three major oil companies, their stock prices remain low. Even
with today's rise due to oil prices, he maintains a bearish outlook in the long term. He
pointed out that there is limited room for significant growth in their businesses, and
with a weakening domestic economy and slowing foreign trade, demand for oil is expected to
decrease. Additionally, with the recent increase in US oil reserves and production, there
is still room for oil prices to fall. Given the inflation threat in the US, it is also
unlikely that they would want rising oil prices to add pressure on inflation. Therefore,
he does not have a positive outlook for oil prices or the three major oil companies.
Regarding gold prices, Cheung Chi Wai anticipates further increases. The uncertainty in
the global economy due to tariffs has heightened risk-averse sentiment, coupled with a
declining US dollar, which is expected to benefit gold prices. Gold mining stocks have had
mixed performances recently; for instance, Zijin Mining (02899) fell 15% on Monday (7th),
while SD Gold (01787) only dropped 7% on the same day. Cheung Chi Wai stated that Zijin
Mining has other metal mining operations in addition to gold, so its performance may not
be entirely dependent on gold prices. Furthermore, gold mining stocks could be affected by
factors such as share placements and bond issuance. He suggests that if investors are
optimistic about rising gold prices, purchasing SPDR Gold ETF (02840) may be a simpler and
more direct approach.