[ET Net News Agency, 04 June 2025] The Hang Seng Index surged by 354 points yesterday (3
Jun), recovering multiple major moving averages. This morning, it opened slightly lower
but stabilised. During the session, automobile stocks were stimulated by beneficial rural
policies, while pharmaceutical stocks received speculative interest. Major stock Meituan
(03690) also rose, leading the Hang Seng Index to gain 168 points or 0.7% at midday,
reaching 23,680, a new high in over a week, with a turnover exceeding HKD 119 billion. The
Hang Seng China Enterprises Index stood at 8,594, up 74 points or 0.9%. The Hang Seng Tech
Index reported 5,241, up 52 points or 1%.

"Hong Kong stock market shows support at low levels"

The Hang Seng Index opened slightly lower this morning but quickly turned upwards. Ryan
Chan, an executive director of Eddid Financial, told ET Net News Agency that the recent
overall performance of Hong Kong stocks has been strong, and any declines are quickly
recovered. For example, on Monday, the index dropped over 600 points due to Trump's
comments regarding China violating the Geneva trade agreement, falling below the 50-day
moving average. However, by the end of the day, the decline narrowed significantly, and
yesterday it recovered both the 10-day and 20-day moving averages, indicating a robust
market bottom. Ryan Chan believes the current trend of the Hang Seng Index is similar to
that of the Dow, with an overall positive outlook.
Yesterday, five departments, including the Ministry of Industry and Information
Technology, launched a rural programme for new energy vehicles aimed at 2025. Ryan Chan
pointed out that this initiative mainly targets the purchasing power of lower-tier
markets, but its impact is expected to be limited. Due to changes in the demographic
structure on the Mainland China, marriage and birth rates have declined in recent years,
affecting future purchasing power. Therefore, the central government frequently introduces
short- to medium-term stimulus measures, which, although their effectiveness may not be
substantial, help to boost market confidence. He anticipates that the overall trend of the
Hang Seng Index in June will not be poor, and as long as there are no significant negative
external factors, it may challenge this year's high of 24,874 and even aim for 25,000
points.

"Low correlation between HK nuclear power sector and US nuclear plants"

In response to the surge in power demand driven by AI applications, Meta has signed a
20-year nuclear power supply agreement with energy giant Constellation Energy, which has
boosted other energy stocks. Today, Hong Kong nuclear mining stocks are being speculated,
with CGN Mining (01164) seeing its price surge, reaching a seven-month high with a rise of
up to 31% at one point.
Morgan Stanley's latest research report indicates that the US government plans to
increase nuclear power capacity to 400 gigawatts by 2050, reflecting strong support for
nuclear energy development under the Trump administration. It is expected that uranium
prices will remain positive in 2025. The report states that while the expansion of the US
nuclear power industry will have limited short-term impact on uranium demand, it is
expected to stimulate investor interest in uranium-related ETFs. Earlier, Goldman Sachs
warned of significant challenges in global uranium supply, predicting a supply gap of 130
million pounds by 2040.
Ryan Chan pointed out that Hong Kong nuclear-related stocks have weak correlation with
US stocks. Although the US intends to further increase the share of nuclear power in its
energy mix, the specific increase in uranium demand remains difficult to predict. Even if
there is a rise in US uranium demand, due to uranium being a sensitive resource, it is
expected that growth will mainly rely on enhancing domestic supply or traditional supply
sources, with minimal impact on the supply and demand of Mainland China uranium. The only
influence would be a rise in international uranium prices benefiting uranium mining
stocks. However, Ryan Chan believes that the recent sharp rise in CGN Mining's stock price
has made its valuation relatively expensive. While there is a chance the price could test
last October's high of HKD 2.4, the significant cumulative rise may lead some investors to
take profits, making it less likely to return to last June's historical high of HKD 3.09.