[ET Net News Agency, 18 November 2025] Persistent worries over a potential AI bubble and
uncertainty regarding the Federal Reserve's interest rate trajectory have kept markets on
edge, putting pressure on asset prices from US equities to gold and cryptocurrencies. This
morning, a sudden intensification of selling hit Asia-Pacific markets: Tokyo's Nikkei 225
and Seoul's KOSPI each tumbled nearly 3%, while Taipei's TAIEX dropped more than 2%. Hong
Kong stocks faced multiple headwinds, with blue-chip China Hongqiao (01378) announcing a
heavily discounted fundraising of over HKD 10 billion, dragging market sentiment at the
open. The Hang Seng Index started over 200 points lower and continued to slide, breaching
the psychologically important 26,000 mark. By midday, the HSI stood at 25,997, down 387
points or 1.5%, with main board turnover approaching HKD 134.5 billion. The Hang Seng
China Enterprises Index closed at 9,206, down 122 points or 1.3%. The Hang Seng Tech Index
fell to 5,660, down 96 points or 1.7%.

"Nip Chun Pong: HSI faces pressure, watch 26,000 support; eyes on Alibaba results and
Mainland China PMI"

US tech stocks led the decline overnight, with a sharp drop in the Dow weighing on Hong
Kong's open and pushing the HSI briefly below 26,000 before a modest rebound. Nip Chun
Pong, the Chief Strategist at Solo Securities, told ET Net News Agency that market
turnover stood at just around HKD 90 billion, indicating that the selling pressure was not
particularly strong and that the main drag was external sentiment. He noted that as long
as US AI stocks remain under pressure, Hong Kong shares are likely to stay subdued. From a
technical standpoint, he suggests watching whether the HSI can hold above 26,000 by week's
end; if not, focus will shift to the 22,500 low seen on 5 November. Initial support is
seen between 25,800 and 26,000, with resistance at 26,300.
As Hong Kong enters earnings season, Nip Chun Pong said investors are mainly watching
two areas: firstly, Alibaba (09988) is set to announce results next week, and as a key HSI
constituent, its performance will influence the broader market. Secondly, China's official
PMI data due at the end of November will be crucial, as it will indicate whether the
manufacturing sector remains in contraction, something the market is watching closely.

"JD.com's new business poses limited threat to Meituan"

JD.com (09618) founder Richard Liu announced the launch of a standalone JD Delivery app,
alongside new features JD Dianping and JD True Rankings, aimed at challenging Meituan's
(03690) core local services business and its Dianping review platform.
The JD Delivery app will not only offer food delivery, but will also integrate instant
retail, reviews, hotel & travel, and shopping. Liu noted that the new app is designed to
better meet user needs, as customers previously had trouble finding the delivery function
without a dedicated app. As of now, JD Delivery is available only on Android and not yet
on iOS.
Nip Chun Pong commented that despite JD.com's expansion, Meituan shares fell just 2%,
showing a muted market reaction. The market had already priced in JD's entry into food
delivery back in February, and with the sector remaining fiercely competitive (including
the likes of Alibaba's Ele.me), JD.com is unlikely to have a significant short-term impact
on Meituan.
From a technical perspective, Nip Chun Pong noted that Meituan's share price has support
at HKD 98, with limited rebound strength and resistance in the HKD 108-110 range. He added
that focus should be on Meituan's Q3 results due later this month, as Q2 profits plunged
over 90%. The market hopes to see some improvement in the third quarter.

"Xiaomi's in-line results unlikely to lift share price"

Xiaomi (01810) will report third quarter results today. According to Bloomberg consensus
forecasts, Q3 revenue is expected at RMB 112.28 billion, up 21.4% year-on-year, and
adjusted net profit at RMB 10.07 billion, up 61.1%. Despite growth, the company faced
headwinds: smartphone gross margins and IoT were pressured by rising memory costs and
reduced government subsidies; demand for its EV business remains uncertain, though
management expects that segment to break even during the quarter.
Nip Chun Pong said Xiaomi shares have remained in a downtrend, and even if results meet
expectations, they are unlikely to provide a significant boost to the share price. Market
attention will instead be on management's guidance for future business development,
especially the outlook for next year. If management's plans spark market imagination, it
could help the stock, but for now, any rebound is likely to be limited and capped near HKD
45.
He added that while HKD 45 remains a target, if the market turns negative on Q4
prospects, Xiaomi shares could slip below HKD 40, so investors should be alert to downside
risks.