[ET Net News Agency, 08 July 2025] US President Trump also announced the imposition of
tariffs on multiple countries including Japan, South Korea, Malaysia, Serbia and South
Africa. The news caused US stocks to deepen their losses intraday, but the Asia-Pacific
markets showed little volatility. In fact, Japanese and South Korean markets moved higher.
Hong Kong stocks opened uncertain but export stocks rallied during the session,
photovoltaic and selected tech stocks rebounded, and the HSI broke above 24,000 to close
the morning at 24,073, up 185 points or 0.8 percent, with main board turnover close to HKD
117.2 billion. The Hang Seng China Enterprises Index was at 8,681, up 72 points or 0.8
percent. The Hang Seng Tech Index was at 5,297, up 67 points or 1.3 percent.

"Ryan Chan: third quarter political and economic uncertainty dampens risk appetite, but
market not overly bearish"

US tariff measures are being implemented, but for most countries that have received
notification, the tariff rates imposed by the US have not changed much compared to the
terms before negotiations. Even Japan and South Korea have seen little change. Overnight,
the Dow once plunged 600 points. However, Asia-Pacific markets proved resilient, with the
HSI rebounding by over 200 points at one stage in the morning and breaking above 24,000.
Ryan Chan, an executive director of Eddid Financial, told ET Net News Agency that Hong
Kong stocks remain in high-level consolidation in the short term. With political and
economic uncertainty expected in the third quarter, some investors are choosing to take
profits to manage risk, capping the performance of Hong Kong stocks recently.
US tariffs on Mainland China have yet to be finalised, but Chan believes the market has
long anticipated the China-US relationship, so the overall trend remains unchanged and he
does not believe the market is particularly optimistic about China-US relations. In
particular, the announced tariffs on ASEAN countries are not low, which is likely related
to re-export trade with Mainland China and reflects comprehensive US restrictions on
China. Chan considers that current market performance has already priced in expectations
for tariff rates. He noted there are no signs of fundamental deterioration, and after
consolidation, the HSI has a better chance of moving up. The 50-day moving average is key
support below, while the first resistance to watch on the upside is the 10-day moving
average around 24,100, with the next level at the year's high of 24,874. Successive
breakthroughs would be positive for Hong Kong stocks going forward.

"HKEX upside now limited, watch the HKD 420 level as key"

Recently, turnover in Hong Kong stocks has remained high, with average daily market
turnover generally around HKD 200 billion. HKEX (00388) announced that in June this year,
average daily turnover reached HKD 230.2 billion, a 107 percent increase from HKD 111.2
billion in the same period last year. For the first six months, average daily turnover was
HKD 240.2 billion, up 118 percent from HKD 110.4 billion a year earlier. The market
rebound has already lifted HKEX shares to above HKD 400 for the first time in three years.
Ryan Chan noted that HKEX's recent performance has already priced in the positive impact
of strong turnover and is now largely moving in sync with the HSI, consolidating at a high
level.
Technically, he believes the key is to watch the HKD 400 level. The consolidation range
is about HKD 400 to 430, so upside from the bottom of this range is less than 10 percent,
making short-term trading less attractive. Therefore, he suggests using the midpoint of
HKD 420 as a reference; if HKEX cannot hold above HKD 420 for several consecutive days,
investors should be ready to take profits.

"FWD has solid fundamentals, medium to long-term funds are interested, worth a punt on
return to profitability"

A busy IPO market is also a key factor driving HKEX shares. Chan pointed out that more
companies rush to list before the half-year close, making last month's IPO scene lively,
but the number of new listings has cooled somewhat in July. After years of preparation,
FWD (01828) finally achieved its target and listed on 7 Jul, though the overall response
to the offering was not particularly strong, with only about 36 times oversubscription.
The share price briefly fell below the offer price on debut, but capital quickly supported
the stock around the HKD 38 issue price, and from the afternoon session yesterday through
this morning, it has not dropped below HKD 38.
Chan believes that retail participation in FWD's IPO was not especially enthusiastic,
but as a traditional insurance stock, its fundamentals are transparent, making it easier
for institutional investors to assess. As a result, he does not take a particularly
bearish view and expects the share price to remain relatively stable. Based on
fundamentals, FWD's loss narrowed by 90 percent last year, and he is optimistic about a
return to profitability this year. The valuation is also attractive compared to peers, so
he sees medium-term potential in the share price, and the current level offers speculative
value.