[ET Net News Agency, 06 November 2025] Hong Kong stocks performed strongly in the
morning session, with the HSI opening 126 points higher and extending gains throughout the
session, finishing the half-day up 426 points or 1.6 percent at 26,362. Main board
turnover exceeded HKD 12.71 billion. The Hang Seng China Enterprises Index was at 9,315,
up 152 points or 1.7 percent. The Hang Seng Tech Index stood at 5,903, up 117 points or 2
percent.

"Cheung Chi Wai: HSI expected to fluctuate between 25,145 and 26,588"

Overnight, dovish signals from US Federal Reserve officials sparked a rebound across
global equity markets, with the HSI surging past the 26,000 level and rising more than 400
points in early trading. Cheung Chi Wai, a joint managing director at Prudential Brokerage
Ltd, told ET Net News Agency that, referencing recent HSI performance, the index has slid
from the 30 Oct high of 26,588 to the 5 Oct low of 25,496, with its gains halved. He
expects the HSI to remain volatile in the short term, fluctuating in a range between
25,145 and 26,588. He also noted that investors should watch for the upcoming US Supreme
Court ruling on the legality of Trump-era tariffs, which could provide a catalyst for Hong
Kong stocks.
On the much-discussed topic of an AI investment bubble, Cheung believes that valuations
in Hong Kong are not as stretched as in the US, so any impact from an AI bubble would be
limited. He attributes recent selling pressure on Hong Kong tech stocks more to funds
following the US market out of the sector, rather than to bubble concerns.

"XPeng's leverage at 62.1 percent raises fundraising pressure for Robotaxi development"

XPeng (09868) Chairman He Xiaopeng recently announced that AutoNavi will become XPeng
Robotaxi's first global ecosystem partner, with XPeng Robotaxi to be integrated into the
AutoNavi platform to provide users with L4 autonomous mobility services and jointly expand
into overseas markets. XPeng plans to launch three Robotaxi models in 2026, commencing
trial operations that year. The L4-level vehicles will feature dual redundant hardware
systems and be equipped with four Turing AI chips, boasting computing power of up to 3,000
TOPS.
However, the smart driving concept has failed to impress the market, with XPeng's share
price coming under pressure and registering three consecutive days of declines before
rebounding just ahead of the morning close. Similarly, all three newly listed smart
driving concept stocks, Pony AI (02026), WeRide (00800), and Joyson Electronics (00699),
opened below their IPO prices today. Cheung Chi Wai commented that XPeng is not the first
Mainland China company to enter the Robotaxi sector; Baidu (09888) has already made
significant headway, making the topic less novel. He pointed out that developing
autonomous driving is capital-intensive and profitability remains uncertain, especially
for XPeng, whose leverage stands at 62.1 percent, raising concerns that the company may
need to raise funds through share placements or other means. The lukewarm reception for
new smart driving listings reflects the same market scepticism facing XPeng.
Cheung believes that while L4 autonomous driving is essentially viable from a technical
standpoint, the main obstacles lie in regulation and safety. There are currently no clear
regulations governing autonomous vehicles, and if restrictions are relaxed, issues such as
accident liability remain unresolved. Recent safety incidents in new energy vehicles have
also made the market more cautious. He further noted that if autonomous driving is limited
to certain regions, business scale will be small and profitability even more challenging.
Cheung adds that XPeng's short-term support is around the 100-day moving average, near HKD
80.