[ET Net News Agency, 26 September 2024] The Mainland China has distributed subsidies to
people in need, and Shanghai has distributed more than RMB 500 million in consumer
vouchers. The market has interpreted it as instructive. It is expected that various
provinces and cities will follow to raise the National Day consumption. This will lead to
a huge explosion in domestic demand consumer stocks, driving Hang Seng Index to its high
of 19,572 in the half-day, close to the previous day's opening high of 19,592 points. It
closed up 443 points or 2.3% in the half-day. Trading continued to be busy, with the main
board turnover exceeding HKD 117.1 billion.

"Cheung Chi Wai: The settlement day will end at 19,500. It will be difficult to test
20,000 next week due to lack of southbound funds."

After the People's Bank of China released a combination of measures, the Mainland China
launched another major measure before the National Day holiday. The Shanghai Development
and Reform Commission announced that in order to promote service consumption, the
municipal government decided to distribute more than RMB 500 million of consumption
coupons to the catering, accommodation, films, and sports sectors. The news drove Hong
Kong stocks to recover from the previous day's losses, with the Hang Seng Index returning
to the 19,500 level in the half-day.
Cheung Chi Wai, a joint managing director at Prudential Brokerage Ltd, told ET Net News
Agency that tomorrow (27th) is the Hong Kong stock index futures settlement day. Today's
trend is obviously driven by the intentions of large investors, and it seems to end at a
level near 19,500. As for whether the Hang Seng Index can challenge the 20,000 mark after
the end of the period, he has reservations about this, mainly because next week is the
National Day Golden Week holiday in the Mainland China and the southbound funds will stop.
He believes that it will be difficult for Hong Kong stocks to have huge momentum to push
up to 20,000. It is expected that there will be repeated adjustments during the week, but
the support of 19,000 is expected to be strong, and the adjustment will not be too large.
The recent rescue measures introduced by the Mainland China are not unprecedented in the
past, but this time the market has reacted fiercely. Cheung Chi Wai believes that it is
related to market confidence. He pointed out that in the past, the measures introduced by
the Mainland China were not very powerful, which made the market weak in confidence and
believed that the central government had no intention of supporting the market. This time
it was different. The "three major financial giants" of the People's Bank of China, the
China Securities Regulatory Commission and the State Financial Supervisory Authority
jointly took the lead in helping the market. This gives the market confidence and expands
expectations for future performance, and the recovery of relevant confidence is reflected
in the stock market.

"Xiabuxiabu can be considered, and the worst catering stocks is the first choice for
rebounds"

Shanghai's 500 million consumer vouchers are the first stimulus news. The market expects
that major cities will follow suit in the future by distributing consumer vouchers to
promote consumption. The domestic demand retail sector has surged in volume, especially
the extremely low-priced catering sector and the sports sector. In half a day, Helens
(09869) soared by 30%, and Xiabuxiabu (00520) soared by 25%. In terms of the proportion of
Shanghai's 500 million consumer vouchers, the Mainland China seems to be interested in
providing greater support to the catering industry. More than 70% of the consumer vouchers
are limited to catering. Also, the trend of catering stocks can be described as "the worst
among the worst", driving today's strong early rise.
Cheung Chi Wai said that judging from the current upward trend, investors may wish to
pay more attention to low-priced stocks with strong gains. Even if Xiabuxiabu has soared
by 25%, hot pot stocks can be bullish in the autumn, and there are still great
opportunities in the short term. It will rise further upward, with the target of HKD 1.36
of the 100-day line, and the potential increase in current prices will also exceed 30%.
Sports stocks also rose sharply this morning, but Cheung Chi Wai prefers catering
stocks, mainly because the latter's previous cumulative decline was larger, and the future
rebound will be relatively larger, and the lower the price, the stronger the rebound.