[ET Net News Agency, 02 October 2025] Mainland China's Golden Week holiday has begun,
with both A-shares and Stock Connect closed until next Thursday (the 9th). However, even
without southbound flows, Hong Kong equities remain buoyant: on the first trading day of
both the fourth quarter and October, the Hang Seng Index surged over 300 points, broke
back above 27,000, and set a new four-year high. At midday, the Hang Seng Index stood at
27,245, up 390 points or 1.5%, with main board turnover close to HKD 124 billion. The Hang
Seng China Enterprises Index was at 9,711, up 155 points or 1.6%. The Hang Seng Tech Index
rose 171 points or 2.7% to 6,637.

"Lee Wai Kit: HSI targeting 28,000; tech remains in focus"

A-shares are closed over National Day until next Thursday (the 9th), but Hong Kong
stocks have performed well despite the absence of southbound funds, quickly breaking
27,000 and setting a fresh four-year high on the first day of Q4 and October. Lee Wai Kit,
a financial commentator of TF International, told ET Net News Agency that from an
operational perspective, if Hong Kong equities keep rising during Golden Week, it would be
normal for investors to take profit after southbound flows resume. The extent of any
pullback will depend on how much the market has gained by 9 October. Now that the HSI has
broken through the key 27,000 resistance, the next upside target is 28,000. He noted that
large-cap tech stocks have outperformed in this period, drawing strong capital flows.
Compared to US tech shares, Hong Kong-listed large tech companies trade at about 20 times
earnings, which is not excessive and leaves them room to catch up with market
expectations. The key growth areas, AI, advanced technology, and robotics, remain the
market's focus, so the outlook stays optimistic.
Because the US Congress failed to reach a budget agreement, the federal government
partially shut down from 1 October US time, the first time in nearly seven years. Lee Wai
Kit said the shutdown, caused by partisan disputes, mainly affects some public services
and has little impact on finance or the stock market. There has been no obvious volatility
in US equities, and the impact on Hong Kong stocks is even smaller. In fact, Hong Kong may
even benefit as funds look for alternatives.

"China-US meeting expectations positive, market watching policy direction"

US President Trump said he will meet Chinese President Xi Jinping at the upcoming APEC
summit, where he will push US soybean exports to China. Lee Wai Kit said the market is
optimistic about the meeting; past China-US leader summits have generally had a positive
tone. The key, however, is the policy direction that follows. Trump previously imposed
large tariffs after meeting with Chinese leaders. This time, there is a high chance that
both sides will reduce differences and reach consensus before moving forward. If all goes
smoothly, it would provide positive support for both the Mainland China and Hong Kong
stock markets, improve China-US relations, and boost bilateral trade.

"Stablecoin licences still at early stage, real impact yet to be seen"

A spokesperson for the Hong Kong Monetary Authority said that as of 30 September, 36
organisations had applied for stablecoin licences, including banks, tech firms, securities
and asset managers, e-commerce companies, payment institutions, start-ups, and Web3
companies.
Lee Wai Kit said the number of stablecoin licences issued by the HKMA remains in single
digits at this early stage. Even if some organisations obtain licences, it remains to be
seen whether market implementation can meet expectations set before August. The addition
of stablecoins makes the Hong Kong market more complete, but it may be too soon to expect
a significant impact.

"NIO's strong sales ease market pessimism; Geely's flying vehicle project shows potential"

NIO (09866) reported deliveries of about 34,700 vehicles in September, a record high and
up 64.1% year-on-year. This included 13,700 NIO-branded EVs, 15,200 vehicles under the
Onvo brand, and 5,775 small electric cars under the Firefly brand. The group delivered
87,000 vehicles in the third quarter, another record and up 40.8%. As of 30 September,
cumulative deliveries stood at about 873,000. On 20 September, NIO's new ES8 SUV was
officially launched and immediately started deliveries.
Lee Wai Kit said NIO's strong September sales have helped ease previous market concerns
about industry competition and price wars. While there is not yet a significant reversal
of investment sentiment in auto stocks, their share prices are expected to continue
trending upwards along their 10-day and 20-day moving averages.
He also said Geely (00175) is worth watching in the fourth quarter. Geely recently
announced a new manned flying vehicle project, highlighting its strong tech credentials
and industry expansion. If Geely and Aerofugia's large passenger-carrying vehicles achieve
mass production or widespread adoption, it would open a new business area for Geely and is
something the market should look forward to.