[ET Net News Agency, 14 April 2025] China's total exports in March reached USD 313.91
billion, a remarkable increase of 12.4%, marking the highest growth rate since October
last year and exceeding market expectations. This reflects overseas buyers intensifying
their procurement from China to avoid tariff impacts. Driven by the HKEX (00388), export
stocks, and tech shares, the Hang Seng Index reported 21,419, up 504 points or 2.4%, with
a turnover of nearly HKD 154.3 billion. The Hang Seng China Enterprises Index stood at
7,970, up 168 points or 2.2%. The Hang Seng Tech Index was at 5,032, rising by 131 points
or 2.7%.

"Lee Wai Kit: The Hang Seng Index faces resistance at the ten-day moving average and will
consolidate, with a downward target of 20,500"

As the US-China tariff war continues, the US has clarified that tariffs on China have
reached 145%, while China has raised tariffs on US imports to 125%. The US Federal Reserve
has indicated it will take necessary measures to prevent chaos in financial markets, which
contributed to a rebound in US stocks last Friday (11th). Over the past weekend, President
Trump announced a delay in imposing tariffs on electronic products, but later clarified
that these products would be taxed under "sector tariffs" along with semiconductors,
effectively providing short-term relief while still imposing a 20% "fentanyl tariff".
The delayed tariffs improved market sentiment, leading to Hong Kong stocks rising by
over 500 points this morning. Lee Wai Kit, a director of the Brokerage Department of TF
International Securities, told ET Net News Agency that after the oversold rebound, the
first resistance level to watch is the ten-day moving average (around 21,561). The Hang
Seng Index faced resistance at this level, and with the holiday approaching, it is
expected to consolidate downwards, targeting 20,500, while facing resistance at 21,500,
forming a consolidation range.

"Order volumes for equipment stocks are expected to remain under pressure"

With the tariff news being inconsistent, the tariffs on electronic products were
initially thought to be exempt but have now been reinstated, Lee Wai Kit acknowledged that
the confusion caused by the tariff war is expected, and ongoing monitoring of tariff
changes is necessary. He believes that tariff changes are significant because Trump can
arbitrarily adjust tariff policies. The US will also adjust tariffs based on its own
interests and needs, with electronic products and pharmaceuticals being postponed due to
necessity. Therefore, Lee Wai Kit estimates that more products may receive lower tariffs
based on actual needs in the future. He expects that the separate taxation of electronic
products and pharmaceuticals under "sector tariffs" is due to the high demand for these
sectors in the US, resulting in lower likely tariff rates compared to equivalent tariffs,
which has driven related stocks up today. However, he emphasises that even if lower rates
are anticipated, they won't be excessively low, as the US aims to force production lines
reliant on China to relocate to the US. Ongoing negotiations between the US and China are
likely to reveal more indications in the short term.
Nevertheless, he stresses that although there is a greater chance for electronic
equipment products to be subjected to lower tariffs, the uncertainty surrounding tariffs
means that US customers will be hesitant to place orders. Thus, order volumes for
electronic equipment stocks in the second half of the year remain concerning, which will
affect performance in the first half of this year. He does not recommend that investors
rush to buy during the rebound; instead, waiting for a pullback would be more prudent. For
example, Sunny Optical (02382) and AAC Tech (02018) have filled recent gaps today but then
experienced a pullback. He suggests waiting for prices to fall to the 250-day moving
average for a safer entry point, while those holding shares should consider reducing their
positions. Similarly, Lenovo (00992) has not filled its gap today but is expected to
follow the broader market and consolidate before making a stronger upward move.