[ET Net News Agency, 30 June 2025] The US core price index slightly exceeded market
expectations, and with no progress yet in trade talks, interest rate futures now show less
than a 20% chance of a July rate cut by the Federal Reserve. After peaking last week, the
Hang Seng Index has continued to trade within a narrow downward range, closing at 24,182
at midday, down 101 points or 0.4%, with main board turnover exceeding HKD 118.1 billion.
The Hang Seng China Enterprises Index fell 43 points or 0.5% to 8,719, while the Hang Seng
Tech Index rose 6 points or 0.1% to 5,347.

"Kwok Ka Yiu: High risk appetite makes a major market correction unlikely"

Last month, US core PCE rose 2.7% year-on-year, slightly above expectations, prompting
further pullback in Hong Kong equities, though overall selling pressure remained mild,
with the Hang Seng Index dropping just over a hundred points at midday. Kwok Ka Yiu, the
Director of Business Development at Harbour Family Office, told ET Net News Agency that
recent market focus has been on trade negotiations. The breakdown in talks between the US
and Canada may have dampened sentiment, and pressure on major blue chips has weighed on
the index. However, he noted there has been a surge in interest in new consumption and
stablecoin concepts, anything with a "concept" has seen speculative trading. This
indirectly reflects that market risk appetite remains robust. Even when sentiment
temporarily weakens, overall liquidity remains supportive, and he expects strong support
for the Hang Seng Index at the 23,500 level.

"A-to-H listings are hard to rally, new IPOs with new consumption or stablecoin concepts
are better bets"

Hong Kong's IPO market remains buoyant, with six new stocks opening for subscription
today, including two A-share to H-share listings: Fortior Technology (01304) and Lens
Technology (06613). Recent A-to-H IPOs have tended to see limited price gains, Kwok noted,
as A-share prices serve as a reference. Unless there is a significant discount between A
and H shares, new H-share IPOs generally struggle to rally sharply. With so many new
listings, he recommends focusing on recent market trends and paying more attention to new
IPOs with new consumption or stablecoin concepts. For example, today's surging "coconut
water concept" stock IFBH (06603) fits the new consumption theme. However, he also noted
that IFBH has already started to pull back after its sharp rise, so those holding shares
should consider taking profits, while those without should remain on the sidelines.
As for FWD (01828), which is currently open for subscription, Kwok said demand has not
been as strong as expected. He explained that the fundraising size is not very large, and
with local insurance stocks performing well recently, investors may prefer established
names over new entrants. He suggested interested investors may be better off waiting to
observe the stock's performance after listing.