[ET Net News Agency, 04 September 2025] Hong Kong stocks opened higher for the second
consecutive day before reversing lower. The Hang Seng Index tracked gains in other Asian
markets at the open, but as A-shares confirmed their downtrend with the Shanghai Composite
falling below the 3,800 level, the Hang Seng Tech Index came under pressure, dragging the
broader market down. By midday, the HSI was down 305 points at 25,037, with turnover of
HKD 169.2 billion.

"HSI likely to hold above 25,000; 50-day moving average remains key support"

The HSI opened 145 points higher but quickly reversed, with losses exceeding 300 points
and hitting an intraday low of 25,030. Wong Wai Ho, the First Vice President of the Yan
Yun Family Office (HK) Limited, told ET Net News Agency that Hong Kong stocks have been
volatile recently, with early gains giving way to pullbacks. Technically, the index has
lost support at the 20-day moving average, but it is highly likely to hold above 25,000.
If the HSI can recover to 25,260, it may continue to trade within the previous high range.
The 50-day moving average (around 24,900) is a critical support level; if the market falls
further, it will be important to watch whether this level can hold. Wong noted that there
is significant resistance near 26,000, given the substantial gains in recent months and a
lack of fresh catalysts.
He added that the market is in a wait-and-see mode regarding potential changes in US
Federal Reserve interest rates, with rate expectations still uncertain. In addition,
increased geopolitical uncertainty between China and the US, and concerns rising after
military parades on the Mainland, have contributed to a cautious, range-bound market in
the short term.

"Market anticipates further major contracts for UBTECH; avoid chasing highs, wait for
pullback"

UBTECH (09880) announced last night that it has secured a RMB 250 million contract from
a well-known domestic company for embodied intelligent humanoid robots and solutions. Wong
said the market is hopeful that more major contracts will follow, but whether UBTECH can
continue to secure such deals depends on its business development. The stock gapped up
6.38% at the open to HKD 110, marking a new high since March this year. He believes that
most robotics companies are not yet profitable, and their share prices are driven largely
by market sentiment. UBTECH's price is likely to remain volatile with an upward bias in
the short term. Chasing at current high levels is not recommended; instead, investors
should wait for a pullback to a key support level, around the 10-day moving average (HKD
98.5), and only consider entry once the price stabilises.

"Caution advised on Shoucheng; best to reassess if price drops to HKD 2"

Shoucheng (00697), whose subsidiary holds shares in Unitree Robotics, has announced a
placement of approximately 277 million new shares to no fewer than six independent third
parties, representing about 3.37% of the enlarged share capital, at HKD 2.17 per share, a
5.65% discount to the previous closing price of HKD 2.30, raising net proceeds of HKD 597
million.
The company said the placement is intended to provide further funding for the group's
core strategic business, with 70% of net proceeds earmarked for the opening of around 20
new technology experience stores and expansion into new asset management businesses. The
remainder will be used for general working capital, including management expenses,
business development, and debt repayment, with plans to fully utilise the funds by the end
of 2027. The move is expected to help expand market share and consolidate the group's
position in intelligent infrastructure.
Wong advised caution on Shoucheng in the short term. The stock surged earlier, but the
announcement of a 5% placement is negative for the share price, and the recent rally has
been substantial. While its car park business remains stable and its funds invest in
robotics-related companies, he recommends waiting for the share price to fall back and
stabilise near HKD 2 before reassessing its investment value. He added that, while there
may be attempts to push investment budgets in Q4, there is no clear timetable, and with
some time to go before Q4, speculative trading is not recommended.
Regarding other robotics stocks, Wong said the strategy should depend on overall market
sentiment. If sentiment is weak, investors should be cautious. He noted that Dobot (02432)
is of reasonable quality, but the investment approach should be the same as for UBTECH and
Shoucheng: wait for a correction to lower levels before considering entry, do not chase at
current highs.