[ET Net News Agency, 19 May 2026] The yield on US 30-year Treasuries hovered near its highest level since 2023, and Morgan Stanley warned that if long-term interest rates continue to rise, the stock market is expected to face its first "meaningful correction" since bottoming out at the end of March. The three major US stock indexes showed mixed performance overnight. Following a three-day losing streak, the HSI staged a rebound this morning. Led by Tencent (00700) and financial stocks, the HSI recovered to 25,774 at midday, encountering resistance at the 50-day moving average (around 25,774), and closed up 98 points, or 0.4%, with main board turnover approaching HKD 145.2 billion. Southbound trading recorded a net inflow of approximately HKD 2 billion. The Hang Seng China Enterprises Index stood at 8,631, up 33 points, or 0.4%. The Hang Seng Tech Index stood at 4,839, down 5 points, or 0.1%.
"Jaseper Tsang: Volatile and weak in the short term, goal is to hold firm above the 250-day moving average"
Jaseper Tsang, Vice-Chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators Limited, told ET Net News Agency that whether the HSI can stay above the 250-day moving average (around 25,604 points) mainly depends on whether the correction in overseas stock markets is only short-term. He pointed out that the continuous rise in US long-term bond yields, combined with persistently high oil prices, has deepened market worries over stagflation, increasing the profit-taking and selling pressure on US stocks and Asia-Pacific markets dominated by AI concept stocks. In addition, Jaseper Tsang mentioned that the Federal Reserve is currently in a transition period for its chair. The new chair Warsh's monetary philosophy tends towards balance sheet reduction, and the market is worried that future liquidity will continue to contract, further depressing the valuations of AI-themed shares.
Jaseper Tsang stated that the current goal for the HSI is to hold firm above 25,500 points. He expects the HSI to continuously test the support of the 250-day moving average in the near term, but given the current weakness in overseas stock markets, he believes it will be quite difficult to hold firm.
"Baidu's AI business monetisation capability remains to be seen"
Baidu (09888) announced its first-quarter results yesterday, with adjusted net profit falling 33% to RMB 4.3 billion, beating expectations, while revenue from its core new AI business rose 49% year on year. Robin Li, Co-founder and CEO of Baidu, stated in the earnings report that revenue from the group's core new AI business accounted for more than half of Baidu's general business revenue for the first time in the first quarter, clearly demonstrating that AI has become Baidu's core driving force, and he expects AI to generate more value for Baidu in the coming quarters.
Jaseper Tsang expressed that although the revenue growth of Baidu's AI business is a major highlight of these results, reflecting that the company is accelerating its transformation towards AI and that its business model is recognized by the market, its AI business currently remains largely at the foundational model application stage. An explosive "earnings inflection point" targeting practical corporate applications has yet to appear. Neither the gross margin nor the profit margin data showed a significant improvement in AI monetisation capability, and marginal revenue has not yet exceeded marginal cost.
Jaseper Tsang believes that investors should adopt a wait-and-see approach towards the stock for now, suggesting that further deployment and consideration should wait until Baidu shows a clearer earnings inflection point.
"Jaseper Tsang: Volatile and weak in the short term, goal is to hold firm above the 250-day moving average"
Jaseper Tsang, Vice-Chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators Limited, told ET Net News Agency that whether the HSI can stay above the 250-day moving average (around 25,604 points) mainly depends on whether the correction in overseas stock markets is only short-term. He pointed out that the continuous rise in US long-term bond yields, combined with persistently high oil prices, has deepened market worries over stagflation, increasing the profit-taking and selling pressure on US stocks and Asia-Pacific markets dominated by AI concept stocks. In addition, Jaseper Tsang mentioned that the Federal Reserve is currently in a transition period for its chair. The new chair Warsh's monetary philosophy tends towards balance sheet reduction, and the market is worried that future liquidity will continue to contract, further depressing the valuations of AI-themed shares.
Jaseper Tsang stated that the current goal for the HSI is to hold firm above 25,500 points. He expects the HSI to continuously test the support of the 250-day moving average in the near term, but given the current weakness in overseas stock markets, he believes it will be quite difficult to hold firm.
"Baidu's AI business monetisation capability remains to be seen"
Baidu (09888) announced its first-quarter results yesterday, with adjusted net profit falling 33% to RMB 4.3 billion, beating expectations, while revenue from its core new AI business rose 49% year on year. Robin Li, Co-founder and CEO of Baidu, stated in the earnings report that revenue from the group's core new AI business accounted for more than half of Baidu's general business revenue for the first time in the first quarter, clearly demonstrating that AI has become Baidu's core driving force, and he expects AI to generate more value for Baidu in the coming quarters.
Jaseper Tsang expressed that although the revenue growth of Baidu's AI business is a major highlight of these results, reflecting that the company is accelerating its transformation towards AI and that its business model is recognized by the market, its AI business currently remains largely at the foundational model application stage. An explosive "earnings inflection point" targeting practical corporate applications has yet to appear. Neither the gross margin nor the profit margin data showed a significant improvement in AI monetisation capability, and marginal revenue has not yet exceeded marginal cost.
Jaseper Tsang believes that investors should adopt a wait-and-see approach towards the stock for now, suggesting that further deployment and consideration should wait until Baidu shows a clearer earnings inflection point.
