[ET Net News Agency, 30 January 2026] Overnight, US tech shares delivered a mixed
performance, with the market increasingly concerned that free or low-cost AI tools could
disrupt traditional software companies. The Nasdaq at one point dropped as much as 2.6%.
Weakness spread across Asia-Pacific markets, with A-shares also retreating, the Shanghai
Composite briefly fell below 4,100 in early trading. The Hang Seng Index opened more than
100 points lower and continued to slide. By midday, the HSI was down 496 points, or 1.8%,
at 27,471, with main board turnover exceeding HKD 165.3 billion. The Hang Seng China
Enterprises Index lost 198 points, or 2.1%, to 9,354, and the Hang Seng Tech Index dropped
104 points, or 1.8%, to 5,736.

"Lee Wai Kit: HSI short-term support range at 27,200-27,400"

After a strong seven-day rally that saw the Hang Seng Index break above 28,000, the
market pulled back by more than 500 points today. Lee Wai Kit, a financial commentator of
TF International, told ET Net News Agency that this week's rally was mainly supported by a
weakening US dollar. As the US Dollar Index broke below 96, the HSI surged past 28,000,
but with the dollar now rebounding, the HSI is seeing a correction. Lee identified the
27,200-27,400 range as the short-term support zone. He expects the index to consolidate in
this area before regaining upward momentum. Sustaining a position above 28,000 in the
short term will depend on US market news, currency trends, and the performance of Mainland
China equities. If the index can consistently hold above 27,400, there is potential to
challenge 29,500 later this year.

"Cheng family's exit from New World becomes more likely"

According to Bloomberg, citing sources familiar with the matter, Blackstone Group is in
advanced negotiations to become the largest single shareholder of New World Dev (00017).
If the deal goes through, one of Hong Kong's wealthiest families would relinquish control
of this key asset. In response, New World Dev stated that Chow Tai Fook Enterprises has
been approached by potential investors regarding a possible investment in the group.
However, Chow Tai Fook Enterprises has not reached any agreement with any potential
investor, nor has it agreed on any investment amount, nature, or form, and there is no
guarantee that any deal will take place.
Lee Wai Kit commented that, in terms of price-to-book ratio, New World is trading at a
rather low valuation, which may attract financially strong consortiums to its quality
assets. Should a consortium take over, it could help resolve New World's debt issues in a
bundled fashion. However, Lee thinks the likelihood of Blackstone taking control is not
high, considering that many local banks have lent to New World, making a foreign takeover
less probable, though if no suitable buyer emerges, Blackstone cannot be ruled out
entirely.
He also noted that the ideal scenario would be for parent company Chow Tai Fook
Enterprises to step in. However, given their delay in intervening, the probability of Chow
Tai Fook giving up main control of New World is clearly rising.
The news saw New World's share price jump as high as HKD 12.45 today, for a gain of
nearly 12%, before paring gains to just over 3%. Lee said the news is not yet fully
reflected in the share price, but with such a sharp short-term rally and the 14-day RSI
entering overbought territory, investors should avoid chasing the stock at current levels.
Further upside will depend on whether there is concrete news or further developments.
Interested investors should consider waiting for a pullback to the 10-day moving average
(HKD 10.3) before reassessing.