[ET Net News Agency, 16 April 2025] Although the first quarter economic data from the
Mainland China showed strong performance, the prospects of a trade war, along with the US
tightening export controls on AI chips and increased competition among domestic internet
companies, have weighed heavily on the Hang Seng Index this morning. The index fell by
over 500 points, reporting a midday value of 20,922, down 543 points or 2.5%, breaching
both the ten-day moving average (approximately 21,167 points) and the hundred-day moving
average (approximately 21,244 points), with a turnover exceeding HKD 118.1 billion. The
Hang Seng China Enterprises Index stood at 7,735, down 247 points or 3.1%. The Hang Seng
Tech Index was at 4,755, down 225 points or 4.5%.

"Kingston Lin: If the market fails to hold above the hundred-day moving average, it may
test the 20,000 level"

Recently, the White House announced an investigation into the import of chips and
electronic products, paving the way for new industry tariffs. Concurrently, an
investigation into the imports of critical minerals such as rare earths and uranium was
initiated, and Nvidia was required to obtain a licence before exporting H20 chips to
China. Restrictions on chip exports to China have led to a decline in technology stocks,
dragging the Hong Kong market down by over 500 points at midday. Kingston Lin, a director
at the Hong Kong Stock Analysts Association, stated that the main contributors to today's
decline were AI-related stocks, primarily affected by the US restrictions on Nvidia's
exports to China. He expects the market to hover around 21,000 in the short term, but if
it continues to fail to hold above the hundred-day moving average, a deeper adjustment
would not be surprising. While it may not drop to the bottom at the 250-day moving
average, the 20,000 level is certainly not out of the question.

"For Laopu Gold, it can be considered when it is below HKD 700, but be aware of
shareholder cash-out risks"

The ongoing US-China tariff tensions have created an unstable outlook, driving demand
for safe-haven assets and causing a surge in gold prices. After several days of
consolidation, gold prices began to rise sharply in the Asian session this morning, with
New York futures expanding gains to over 1.5%, hovering above USD 3,290 and nearing the
USD 3,300 mark. During the session, the SPDR Gold ETF (02840) rose by over 1%, and gold
mining stocks, excluding blue-chip Zijin Mining (02899), performed well. Kingston Lin
noted that a month ago, everyone had set a target of USD 3,300 for gold prices for the
year, but that target is now nearly achieved. He pointed out that global uncertainties due
to tariffs, along with a weakening US dollar, continue to support rising gold prices,
suggesting that prices could break through USD 3,400 or even USD 3,500, with the potential
to reach those targets in the second quarter.
Investors can continue to hold the SPDR Gold ETF (02840), and Kingston Lin recommends
that investors take advantage of dips to buy. Regarding gold stocks, he highlighted the
strong performance of Laopu Gold (06181), but acknowledged that its high price is
concerning, advising against chasing it at current levels. He suggested that buying on
price dips may be prudent, given that Laopu Gold has not been listed for a year and
carries high risks at elevated prices; he recommends watching for opportunities below HKD
700, but only for short-term trading, and to take profits before key moments like the
one-year listing anniversary.
For gold mining stocks, it is important to consider each company's extraction costs.
Kingston Lin indicated that significant increases in gold prices will likely be reflected
in their earnings, expecting mid-year results to reflect this. Companies like Zhaojin
Mining (01818) and Shandong Gold (01787) focus on pure gold mining operations, unlike
Zijin, which has diversified interests that dilute gold price benefits, presenting an
opportunity for investors to profit from both capital gains and dividends.