[ET Net News Agency, 23 October 2025] US Treasury Secretary Bessent has confirmed that
the White House is considering restricting exports of US software products to China, while
also revealing that US President Trump is planning to expand sanctions against Russia. US
stocks came under pressure overnight. After failing to reclaim the 50-day moving average
yesterday, Hong Kong shares remained soft this morning, hovering around the 25,800 mark
and hitting a low of 25,591. The HSI closed the morning session at 25,759, down 22 points
or less than 0.1 percent, with main board turnover close to HKD 13.48 billion. The Hang
Seng China Enterprises Index was at 9,206, down 17 points or 0.2 percent, while the Hang
Seng Tech Index stood at 5,875, down 47 points or 0.8 percent.

"Nip Chun Pong: HSI range-bound, 50-day moving average offers weak reference value"

The HSI has spent two consecutive days below the 50-day moving average (around 25,900).
Nip Chun Pong, the Chief Strategist at Blackwell Global Securities, told ET Net News
Agency that the HSI's short-term trend remains news-driven. Trump's recent comments that
the upcoming meeting with his Chinese counterpart may not happen at the end of the month
have dampened risk appetite. Nip pointed out that as the 50-day moving average is trending
upwards, if the HSI continues to drift sideways, it will only move further away from this
level. The immediate support is now at 25,500; as long as this key level holds, any
positive news could trigger another rebound, possibly pushing the HSI back up to fill the
downside gap from 10-13 October, around 26,200 to 26,300.
Regarding the prospects for the China-US summit at the end of the month, Nip said that
if the two leaders do meet as scheduled, some progress in trade negotiations is likely,
with China potentially making modest concessions on rare earth export restrictions.

"Oil's return to USD 60 seen as technical rebound; 'three oil majors' offer defensive
appeal as special state-owned enterprises"

US Treasury Secretary Bessent stated that President Trump is planning to expand
sanctions against Russia, including adding state-owned Rosneft and private Lukoil to the
blacklist, calling it "one of the largest sanctions ever imposed by the US on Russia." He
also expressed disappointment in ceasefire talks with Russia, describing them as
"dishonest and insincere." Meanwhile, US EIA data showed declines in crude, gasoline, and
distillate inventories last week, driving international oil prices higher. NYMEX crude
futures rose 2.2 percent overnight, with further gains in the Asian session, pushing
prices back above USD 60 per barrel.
Nip Chun Pong believes this surge in oil prices is more likely a short-term technical
rebound. He noted that on Monday, oil fell to as low as USD 56 per barrel, a rare low last
seen in early May, so any positive catalyst would easily spark a technical bounce. In
reality, he said, the overriding trend is for OPEC and Russia to further increase
production, while the global economy shows little improvement. In the near term, even in a
more optimistic scenario, oil prices may only reach around USD 63, and by year-end, USD 65
at most.
While international oil prices appear to have limited upside, Nip said the "Three Oil
Majors" in Hong Kong, PetroChina, Sinopec, and CNOOC, not only benefit from minor rebounds
in oil prices but are also classified as "Special State-Owned Enterprises" under the
"China Characteristic Valuation" theme. In the current environment of heightened China-US
tensions, their defensive value is highlighted, a dynamic also supporting interest in
Mainland China insurers, banks, and telecoms.
Nip pointed out that CNOOC (00883) and PetroChina (00857) both saw sharp corrections
this morning after hitting new highs. He recommends investors look to buy on dips at
around HKD 19 for CNOOC and HKD 7.4 for PetroChina. For Sinopec (00386), which has lagged
behind, the next resistance is at HKD 4.5. Current levels are relatively low-risk for
entry, or, for more cautious investors, consider buying around HKD 4.1.