[ET Net News Agency, 22 August 2025] Market attention is focused on whether Fed Chair
Jerome Powell will hint at an interest rate cut as soon as September during his speech at
the global central bank symposium in Jackson Hole on Friday. Asia-Pacific markets were
mixed, with Japanese and Korean stocks edging higher while Taiwanese and Australian
markets declined. Both Mainland China A-share markets advanced. The HSI performed well,
closing the morning session at 25,184, up 80 points or 0.3 per cent, with main board
turnover close to HKD 149.8 billion. The Hang Seng China Enterprises Index stood at 9,022,
up 47 points or 0.5 per cent. The Hang Seng Tech Index climbed to 5,586, up 88 points or
1.6 per cent.

"Wong Wai Ho: HSI range-bound, awaiting breakout; 25,700 key resistance"

The HSI opened 100 points higher at 25,205 this morning. Wong Wai Ho, the First Vice
President of the Yan Yun Family Office (HK) Limited, told ET Net News Agency that Hong
Kong equities remain choppy and directionless overall, with the HSI trading within a broad
range. He expects the HSI to fluctuate between 24,600 and 25,700 in the near term, with
25,700 as a key resistance level. A break above this level would be needed to sustain the
uptrend, while the 50-day moving average around 24,600 should provide support on the
downside.

"US PMI hits year-high; Powell's speech seen as key rate-cut indicator"

The US August composite Purchasing Managers' Index (PMI) flash reading rose to 55.4, up
from July's final reading of 55.1 and the highest since the end of last year, signalling
continued economic momentum. Wong Wai Ho noted that the market is watching Powell's
remarks closely for any signs of a shift towards rate cuts. With US economic data sending
mixed signals, uncertainty remains over the timing of any rate cuts. Given the current
environment and the need for stability at the Fed, a major policy shift in the short term
appears unlikely. The US economy has not deteriorated enough to justify aggressive easing.
While any dovish hints from the Fed would theoretically be positive for Hong Kong
equities, the impact is expected to be limited, and no significant volatility in the HSI
is anticipated for now.

"Kuaishou's slowing user growth a concern, but Kling AI contribution emerges as new growth
engine"

Kuaishou (01024) reported quarterly results with revenue up 13.1 per cent to RMB 35.05
billion. Non-IFRS profit rose 20.1 per cent year-on-year to RMB 5.62 billion, with an
adjusted net profit margin of 16 per cent, a record high for a single quarter. Net profit
for the period was RMB 4.92 billion, up 23.7 per cent. The company declared its first-ever
special dividend of HKD 0.46 per share, citing confidence in its long-term growth outlook
and robust financial position, as well as a continued commitment to enhancing shareholder
returns. Wong Wai Ho commented that Kuaishou's latest results beat expectations, with
rapid growth in certain segments supporting its valuation. The special dividend is also
positive for the share price. He believes that if Kuaishou holds above HKD 75 in the short
term, it could challenge the early August high of HKD 81 in the third quarter.
Kuaishou's online marketing services revenue reached RMB 19.8 billion, up 12.8 per cent
year-on-year, while e-commerce GMV grew 17.6 per cent to RMB 358.9 billion. Wong Wai Ho
sees potential for continued e-commerce growth in Q3, contingent on the pace of expansion.
He cautioned that user growth should be monitored, as the number of active users rose by
only around 3 per cent in Q2. Slower user growth could limit e-commerce potential.
Nevertheless, Kuaishou's unique business model gives it an advantage in the e-commerce
sector, particularly with its investment in Kling AI. With the market favouring technology
companies, especially those involved in AI, Kuaishou stands to benefit, and there is
optimism that it can outperform peers in the e-commerce space.