[ET Net News Agency, 15 September 2025] US stocks were mixed on Friday, but enthusiasm
for Hong Kong equities remained intact. Investors are hoping the central bank's post
meeting remarks will offer fresh guidance on interest rate trends, while the China-US
trade talks and the Hong Kong Policy Address may act as potential catalysts. Even though
Mainland China released August macro data that missed expectations, the HSI quickly
reversed early losses after a lower open. By midday the index was at 26,463, up 75 points
or 0.3%, with main board turnover over HKD 162 billion. The Hang Seng China Enterprises
Index was at 9,396, up 31 points or 0.3%. The Hang Seng Tech Index was at 6,055, up 66
points or 1.1%.

"Nip Chun Pong: HSI has stabilised at 26,000, likely to consolidate 800 points above
26,000 before attempting 27,000"

After breaking above 26,000 last Friday, helped by optimism in tech names, the HSI
pushed further to 26,500. This morning it opened down by less than 100 points then turned
higher, hovering near 26,500. Nip Chun Pong, the Chief Strategist at Blackwell Global
Securities, told ET Net News Agency that last week's rise in Hong Kong stocks was driven
by hopes around tech names such as Alibaba (09988) and Baidu (09888). Similarly, the
recent gains in US stocks were led by tech names such as Oracle and Tesla, showing similar
patterns in the China and US markets lately. He expects that after a pre-meeting rally, US
stocks are likely to see a pullback once the rate decision is released, though he sees
notable support for the Nasdaq at 21,800, about 300 points from last Friday. Even if Hong
Kong follows lower, he expects solid support near 26,000, roughly 400 to 500 points below
current levels.
He expects the HSI to consolidate mostly between 26,000 and 26,800 after the rate
decision. Before breaking 26,000, the index consolidated between 25,000 and 25,800 for
about two to three weeks before gaining momentum. He noted the HSI closed above 26,000 for
three straight days last week, suggesting that level is now confirmed as support. The
index is likely to base above 26,000, then look for momentum to break 27,000.

"Labubu resale price slump weakens Pop Mart valuation, likely capped at HKD 300 until a
new catalyst emerges"

Pop Mart (09992) extended its decline after being added to the blue chip index, mainly
because resale prices for the new Mini Labubu fell sharply, dragging the share down more
than 25% in just over half a month. JPMorgan's latest report also turned bearish, cutting
its rating and slashing the target price by 25% to 300. Actual demand for the Mini Labubu
after launch was not bad, but the scalper price plunged soon after, falling by more than
half at the peak. While resale prices do not directly affect Pop Mart's revenue, Nip Chun
Pong explained that falling resale prices reduce the market's room for imagination.
Investors may infer that future price hike room for products is implicitly constrained,
which in turn affects how the market values Labubu and Pop Mart going forward, leading to
persistent pressure on the share price.
Nip believes the scope for boosting revenue purely by hyping Labubu product sales is now
limited. Future expectations for Pop Mart will likely extend from Labubu and other IPs.
Maintaining core IP product sales while expanding into peripherals such as Labubu doll
clothing, and even the previously rumoured plan to produce a Labubu led film in Hollywood,
are IP driven new opportunities that can restore a greater imagination premium and help
the share price break higher.
If Pop Mart does not develop more new businesses around the Labubu IP as above, there is
a good chance the stock will be capped near HKD 300 in the absence of catalysts as some
brokers predict. Near term it is only suitable for short term trading. Support is expected
around HKD 230 to 235, where bottom fishing for a short trade may be considered.