[ET Net News Agency, 09 June 2026] Strategists at several major Wall Street banks believe that last Friday's tech stock correction was a healthy adjustment and that the US stock bull market pattern remains unchanged. This week's focus for US stocks is on the rebound of the semiconductor sector after last week's sharp drop, as well as the mega IPO of SpaceX, performing upwards on Monday. However, the Pentagon plans to include dozens of Chinese enterprises on an entity list supporting Mainland China's military, causing Hong Kong stocks to fail to follow regional stock markets upward today. Nevertheless, AI hardware concepts saw renewed speculation during the session, Tencent (00700) surged strongly, and coupled with Mainland China's positive import and export data, the HSI's loss gradually narrowed after opening 100 points lower. The HSI stood at 24,620 at midday, down 36 points or 0.1%, with main board turnover exceeding HKD 155.7 billion. The Hang Seng China Enterprises Index stood at 8,348, up 7 points or less than 0.1%. The Hang Seng Tech Index stood at 4,785, up 29 points or 0.6%.
"Mak Ka Ka: HSI expected to maintain range-bound volatility, 24,200 points at end of March becomes initial support"
Since the three major US stock indices suffered heavy losses last Friday, the US, Korea, and Japanese stock markets have all rebounded at the market opening this week, but the performance of the HSI has been slightly inferior, showing a downward trend. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), told ET Net News Agency that the decline in US stocks last Friday was mainly due to heavy correction pressure on related AI or hardware stocks. However, the components of the HSI itself are not the hardware stocks heavily hyped by the market, so the correction pressure is relatively smaller. External US stocks, or even Korea stocks, will have some technical rebounds, while the rebound momentum of Hong Kong stocks failed to fully keep up. The components of the HSI and the preferences of capital towards certain sectors will be the main reasons why the HSI has shown no improvement.
Mak stated that the external US 10-year bond yield remains above 4.5%, and long-term bond yields are at a relatively high level, which will bring valuation pressure to tech stocks. In addition, with recent Mainland China sanctions on cross-border investment, the market inevitably worries that the speed of southbound capital flowing into Hong Kong stocks will slow down, affecting the rebound momentum of the HSI. Mak believes that the HSI's low of around 24,200 points at the end of March will be the initial major support level. The actual direction of the HSI still depends on the performance of other macroeconomic data. As to whether the HSI has a chance to rise back to the 25,000 level, Mak bluntly stated that it is not very difficult, but it requires waiting for negative factors to fade first. Currently, Hong Kong stocks will fluctuate up and down within the 24,200 to 25,000 range.
"WuXi AppTec worried about pressure on overseas cooperation, cash flow also affected"
According to reports, documents to be published by the US Department of War in the Federal Register on 10 June show that dozens of Chinese enterprises have been newly added to the "military enterprises list". Among them, WuXi AppTec (02359), which was included in the list, is currently trading down 5.7% at HKD 114.4. Mak stated that such policy expectations and list risks have always been prone to touching market sentiment and valuation pricing. WuXi AppTec has always focused on cooperation with foreign enterprises in the past, and its inclusion in the military-related list by the US this time will have a negative impact on its short-term overseas cooperation or product progress, putting pressure on the share price.
In terms of share price, WuXi AppTec has lost its 100-day moving average (around HKD 119.66) and has a chance to return to the bottom of the sideways range from February to April. It cannot be ruled out that it will fall to the level of HKD 100, and investors should be more careful and prudent. Although WuXi AppTec had already taken some containment measures earlier, its inclusion in the military enterprises list still causes a certain impact on its project scheduling and cash return. Mak also pointed out that WuXi Bio (02269) and WuXi XDC (02268) within the same group will both be affected. Now is not a good time to buy on dips, and it is recommended that investors carefully monitor market news before making decisions.
"Mak Ka Ka: HSI expected to maintain range-bound volatility, 24,200 points at end of March becomes initial support"
Since the three major US stock indices suffered heavy losses last Friday, the US, Korea, and Japanese stock markets have all rebounded at the market opening this week, but the performance of the HSI has been slightly inferior, showing a downward trend. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), told ET Net News Agency that the decline in US stocks last Friday was mainly due to heavy correction pressure on related AI or hardware stocks. However, the components of the HSI itself are not the hardware stocks heavily hyped by the market, so the correction pressure is relatively smaller. External US stocks, or even Korea stocks, will have some technical rebounds, while the rebound momentum of Hong Kong stocks failed to fully keep up. The components of the HSI and the preferences of capital towards certain sectors will be the main reasons why the HSI has shown no improvement.
Mak stated that the external US 10-year bond yield remains above 4.5%, and long-term bond yields are at a relatively high level, which will bring valuation pressure to tech stocks. In addition, with recent Mainland China sanctions on cross-border investment, the market inevitably worries that the speed of southbound capital flowing into Hong Kong stocks will slow down, affecting the rebound momentum of the HSI. Mak believes that the HSI's low of around 24,200 points at the end of March will be the initial major support level. The actual direction of the HSI still depends on the performance of other macroeconomic data. As to whether the HSI has a chance to rise back to the 25,000 level, Mak bluntly stated that it is not very difficult, but it requires waiting for negative factors to fade first. Currently, Hong Kong stocks will fluctuate up and down within the 24,200 to 25,000 range.
"WuXi AppTec worried about pressure on overseas cooperation, cash flow also affected"
According to reports, documents to be published by the US Department of War in the Federal Register on 10 June show that dozens of Chinese enterprises have been newly added to the "military enterprises list". Among them, WuXi AppTec (02359), which was included in the list, is currently trading down 5.7% at HKD 114.4. Mak stated that such policy expectations and list risks have always been prone to touching market sentiment and valuation pricing. WuXi AppTec has always focused on cooperation with foreign enterprises in the past, and its inclusion in the military-related list by the US this time will have a negative impact on its short-term overseas cooperation or product progress, putting pressure on the share price.
In terms of share price, WuXi AppTec has lost its 100-day moving average (around HKD 119.66) and has a chance to return to the bottom of the sideways range from February to April. It cannot be ruled out that it will fall to the level of HKD 100, and investors should be more careful and prudent. Although WuXi AppTec had already taken some containment measures earlier, its inclusion in the military enterprises list still causes a certain impact on its project scheduling and cash return. Mak also pointed out that WuXi Bio (02269) and WuXi XDC (02268) within the same group will both be affected. Now is not a good time to buy on dips, and it is recommended that investors carefully monitor market news before making decisions.
