[ET Net News Agency, 30 October 2024] Today is the settlement day of the Hang Seng
Index. After opening lower than 100 points this morning, the Hang Seng Index continued to
trend downward. Near noon, A-share losses expanded, further dragging the Hang Seng Index
lower. The Hang Seng Index reported at 20,316, down 384 points or 1.9%, and the main board
turnover exceeded HKD 86.8 billion. The Hang Seng China Enterprises Index reported 7,263,
down 154 points or 2.1%. The Hang Seng Tech Index reported at 4,502, down 121 points or
2.6%.

"Wong Wai Ho: investors will continue to wait and see ahead of many major news next week"

Investors continue to wait and see for Hong Kong stocks. Hong Kong stocks were
relatively volatile during today's futures settlement day. After an up-and-down in the
morning market, the decline expanded to more than 300 points before the lunch break.
Independent stock commentator Wong Wai Ho told the ET Net News Agency that Hong Kong
stocks have no general direction at the moment and will continue to maintain an upward or
downward range, with a target of 20,000 to 21,000. He mentioned that next week will be the
debut of many "major events" in the global market. On the Mainland China, there will be a
National Congress Standing Committee meeting. On the outside, there will be the US
election and the results of the Federal Reserve's interest rate meeting. Funds will not
dare to act rashly this week, so the transaction volume has also decreased significantly
in recent days. The market outlook still needs a direction.

"It is expected that the photovoltaic industry will be difficult to turn around in the
first quarter of next year. The news has not yet been implemented and it is not suitable
for mid-line deployment"

Photovoltaic stocks have been hotly speculated recently. Yesterday, Flat Glass (06865)
and Xinte Energy (01799) both announced their results for the first three quarters
respectively. The former's net profit fell 34% to approximately RMB 1.3 billion during the
period, while the latter's profit turned to a loss of RMB 1.4 billion. The two stocks
opened lower this morning and retreated, but they once rose during the session and turned
back down again before the lunch break. Flat Glass and Xinte Energy both fell less than 1%
in half day. Wong Wai Ho admitted frankly that he does not recommend buying photovoltaic
stocks at this time. The short-term speculation is strong and the basic factors still fail
to support the market outlook. It is expected that the oversupply and demand problem in
the industry will not be reversed from the fourth quarter of this year to the first
quarter of next year. Just like Xinte Energy, losses were still recorded in the first
three quarters, so investors can only view photovoltaic stocks from a speculative
perspective and cannot start from a medium- to long-term investment perspective.
He believes that the price guidance announced by the industry association earlier is
just a suggestion and has not been truly implemented. The reduction of tariffs on
Chinese-made photovoltaic modules planned by the White House is more difficult to
implement. It has always suppressed China as a means to win votes for the two major
parties in the United States. There is no real implementation timetable in the short term.
Therefore, the current speculation in photovoltaic stocks is only based on news, and it is
not advisable for investment.

"The SPAC market has already turned quiet. The trading volume of Synagistics is weak and
it is not suitable to follow suit."

HK Acquisition Corporation (07841), a special purpose acquisition company (SPAC)
initiated by former President of the Hong Kong Monetary Authority, Norman Chan, and former
Chief Executive Donald Tsang's sister, Katherine Tsang, has earlier acquired the
e-commerce solution platform Synagistics, which was approved by the extraordinary general
meeting of shareholders and completed today. The completion was the first completed M&A
transaction (De-SPAC) in Hong Kong. Starting today, HK Acquisition Corporation changed its
name to Synagistics (02562) and went public. The trading unit per lot was changed from
115,000 shares to 500 shares, and the listing price was HKD 10 yuan. After the stock went
public this morning, it once reached a high of HKD 50.05, four times higher than the
listing price. However, the trading price spread of the stock was large, and the half-day
turnover was only about HKD 5.77 million. The stock price has also fallen back to HKD
24.9, giving up about half of its highest price.
Wong Wai Ho's analysis pointed out that regardless of whether the shares are the first
de-SPAC, the recent Hong Kong IPO market has not been as hot as September, resulting in
low trading after the listing of Synagistics. Moreover, SPAC is not very active in the
Hong Kong market, and the related market in the United States, where it originated, has
already cooled down. As a result, de-SPAC, the first de-SPAC in Hong Kong stocks, has not
received much attention from the market. He continued that due to the inactive trading of
the shares, the price difference is too large and the intraday price is extremely
volatile, so it is not recommended for ordinary investors to buy. He also believes that
SPAC still needs time to develop in the Hong Kong stock market, and it is difficult to
attract a lot of financial attention in the short term.