[ET Net News Agency, 08 September 2025] The US reported a much weaker-than-expected
increase in non-farm payrolls for August, which weighed on all three major US indices last
Friday (5th). However, sentiment across Asian markets remained positive. Despite the
approach of Typhoon Tapah, the Hang Seng Index closed the morning session at 25,508, up 90
points or 0.4%, with main board turnover exceeding HKD 165.9 billion. The Hang Seng China
Enterprises Index stood at 9,072, up 15 points or 0.2%. The Hang Seng Tech Index finished
at 5,702, up 15 points or 0.3%.

"Mak Ka Ka: Market awaits breakout, stock-picking remains the main theme"

Hong Kong stocks continued to find support following last Friday's rebound, with the HSI
gaining less than 100 points in the morning and hovering around the 25,500 level. Mak Ka
Ka, Head of Financial Products Trading and Research Department of SinoPac Securities
(Asia), told ET Net News Agency that the weaker-than-expected US employment data over the
weekend has reinforced market expectations of a Fed rate cut later this month. She expects
the HSI to remain range-bound in the near term, trading between 24,800 and 25,800. During
this period of sideways movement, the market is likely to favour selective stock-picking
over broad market trades. In line with rate cut expectations, resource-related sectors,
such as non-ferrous metals and gold miners, have attracted speculative interest since last
week, and any rate cut should further support these sectors.
The market is widely expecting a 25 basis point rate cut by the Fed later this month.
Mak notes that this expectation has already been largely priced in, but the disappointing
August payrolls and the upcoming inflation data have prompted bets on a further 25 basis
point cut within the year, which should lend further support to the market and related
mining stocks. As for when the HSI might break above 26,000, Mak believes there is not yet
enough momentum for an upward breakout, and expects the index to continue consolidating at
higher levels based on current news flow.


"IPO allocation reform favours institutional investors; autonomous driving sector still
requires selective approach"

Hesai Technology (02525), a US-listed LiDAR manufacturer, opened its Hong Kong IPO
today, with subscription closing this Thursday (11th). The offer price is capped at HKD
228 per share, aiming to raise up to HKD 3.876 billion. Each board lot is 20 shares, with
a minimum investment of HKD 4,605.99. The stock is scheduled to debut on 16 September and
has attracted six cornerstone investors, including Hillhouse's HHLR Advisors, Taikang
Insurance, and WT Asset Management.
Mak notes that with the recent lowering of the IPO clawback threshold, institutional
investors now have greater influence, which should support the post-listing share price,
but makes it more challenging for retail investors to secure allocations. However,
successful retail applicants may have a better chance of profiting. She highlights growing
market interest in autonomous driving, with the industry's compound annual growth rate
widely expected to exceed 30%. As a leading LiDAR supplier, Hesai's IPO is seen as
offering attractive value for those able to secure shares. Nevertheless, she suggests
investors take profits if allocations are successful, as post-listing volatility is
likely.
Discussing the recent market preference for the autonomous driving theme, Mak notes that
sector leader Horizon Robotics (09660) surged another 7% in the morning, reaching a new
high of HKD 10.5. In contrast, iMotion Automotive (01274), another sector peer, plummeted
nearly 30% after being removed from Stock Connect eligibility. Mak emphasises that as the
concept is still in the early stages of market acceptance, company market shares remain in
flux. As a result, medium- to long-term capital is currently gravitating towards companies
that have already achieved profitability, leading to a divergence in share price
performance. She advises investors to focus on company earnings when making stock
selections.