[ET Net News Agency, 29 October 2024] As the futures index settlement day approaches,
Hong Kong stocks rose first and then fell this morning, reaching a maximum of nearly 300
points. However, A-shares have been repeatedly weak, dragging down all gains in the Hang
Seng Index this morning. The Hang Seng Index closed at 20,593 for half a day, down 6
points or less than 0.1%, and the main board turnover exceeded HKD 90.7 billion. The Hang
Seng China Enterprises Index was at 7,385, down 5 points or less than 0.1%. The Hang Seng
Tech Index reported at 4,613, up 39 points or 0.9%.

"Wan Kong Shing: Hang Seng Index hopes to hold steady at 20,000 this week"

U.S. media reported that Huawei suspected of acquiring TSMC chip technology from a
Chinese-funded company. U.S. stocks rose sharply overnight. Hong Kong stocks benefited
this morning. After the Hang Seng Index exceeded 100 points, it once expanded its gains to
more than 200 points, and then profit-taking triggered a retreat, falling 6 points in half
a day. Wan Kong Shing, the Chief Investment Officer of iFAST Global Markets, told the ET
Net News Agency that the market is waiting for the release of a number of news recently.
In addition to the Mainland China's October PMI, there are also the results of the US
election on the outside. All these factors have created a strong wait-and-see atmosphere
in the market. He expects the Hang Seng Index to maintain a narrow range between 20,000
and 21,000 in the short term, and hopes to hold steady at 20,000 and close around 20,300
this week.

"Apple's new phone may not trigger a large-scale replacement wave, Sunny expects HKD 56"

Apple launched the first phase of artificial intelligence Apple Intelligence and
released a new iMac desktop computer equipped with an M4 chip. The new iMac is priced at
the same USD 1,299 as the previous model and will be officially launched next Friday (8
November). Apple's supply chain stocks were stirred up this morning. Sunny (02382) once
rose by more than 5%, and Cowell (01415) once rose by more than 10%. Wan Kong Shing
pointed out that Apple has recently launched new models of different products. Although
the new selling point is AI, it is nothing new and may not trigger a large-scale
replacement wave as expected. However, he believes that in the short-term, Apple concept
stocks can be considered for speculation. After the recent adjustment, Sunny has shown an
upward trend. The initial price is expected to be about HKD 52.8 of the 20 SMA. If the
market trend is good, it is expected to challenge HKD 55 to 56.

"It is difficult for Huawei to fully apply TSMC technology"

Yesterday, it was reported that TSMC had stopped supplying Chinese chip developer SOPHGO
Technologies after Huawei's AI processor was revealed to have used TSMC chips, leading the
market to speculate that Huawei may have obtained TSMC chip technology through different
channels. Wan Kong Shing analysed that this reflects that the United States and other
parties have not completely closed the loopholes with China. However, he believes that
even if the rumours are true, it is expected that Huawei will not be able to fully obtain
TSMC technology and will not be able to fully apply it. The US government will always pay
close attention to it. It is expected that China Investment companies may use TSMC chips
as prototypes to develop their own products. In this regard, he believes that chip stocks
can only be speculated based on news. SMIC (00981) has a downward trend recently, and the
daily upper shadow line on the daily chart is longer, reflecting insufficient purchasing
power. It is not advisable to be overly optimistic in the short term. Investors can wait
and see whether there will be greater support for the 20 SMA. If not, they should sell it.