[ET Net News Agency, 04 November 2024] There will be an election in the United States
this week. The Federal Reserve will also discuss interest rates, and the Standing
Committee of the National People's Congress will hold a meeting. Before major events are
finalized, the market does not dare to act rashly. The Hang Seng Index went back and forth
for half a day. After the market opened, it rose 127 points to 20,633, and fell again. It
once fell 60 points, and the overall market conditions were dull. It closed up 21 points
or 0.1% in half a day, at 20,528, with a main board turnover of RMB 63.9 billion.
The Hang Seng China Enterprises Index reported at 7,349, up 6 points or less than 0.1%.
The Hang Seng Tech Index reported at 4,523, up 39 points or 0.9%.

"Lee Wai Kit: expects intraday fluctuations on Wednesday between 20,000 and 21,000"

The National People's Congress Standing Committee meeting was held in Beijing today.
There are rumours that there may be an RMB 10 trillion rescue plan, but everything has to
be implemented after the meeting. Hong Kong stocks remained on the sidelines this morning,
holding within a narrow range for half a day. Lee Wai Kit, a director of the brokerage
department at Huasheng Securities, told ET Net News Agency that the National People's
Congress Standing Committee meeting will not be completed until this Friday (8th). It is
expected that there will be no more hype themes during this period, so we should wait and
see the US elections results this week and the Federal Reserve's interest rate.
He expects that there is almost no suspense that the Federal Reserve will cut interest
rates by 0.25%, but the U.S. presidential election is relatively difficult to predict. It
is expected that the counting time will be around Wednesday (6th) in Hong Kong. The market
will be more volatile due to the counting situation, but it will not break through the
recent range of 20,000 to 21,000 in Hong Kong stocks. Lee Wai Kit pointed out that if
Trump wins the election, he is expected to have a greater chance of maintaining extremely
high tariffs, which will be more detrimental to China and even the trend of the RMB.
Moreover, Trump's victory will have more themes for the market. However, Trump had been a
president before, the market will have expectations for his tough policies.

"Weekly stock options reduce option premium requirements and reduce time value loss"

The Hong Kong Stock Exchange (00388) launches a weekly stock options series today. The
series has been approved by the Securities and Futures Commission and is available for
trading by market participants today. The stock options contracts applicable to the weekly
options series include ten blue chips, including Tencent (00700), Meituan (03690), Alibaba
(09988), BYD (01211), JD.com (09618), Hong Kong Stock Exchange, Ping An (02318), HSBC
(00005), Kuaishou (01024) and Baidu (09888).
David Lutz, Senior Vice President, Equities Product Development, HKEX, said that
investors currently have more demand for short-term individual stock options. Weekly index
or stock options have higher efficiency, more accuracy and more flexible characteristics,
including shorter expiration time and a smaller premium. It can also accurately hedge
short-term and specific time risks.
Lee Wai Kit believes that following the launch of weekly index options earlier, weekly
stock options will be more beneficial to investors or who need more flexible options for
hedging capital. Moreover, the premium required for weekly options is lower, and the
option premium is reduced due to risk of substantial loss of time value.

"The active options market still needs public education. Should pay attention to whether
the risks are controllable"

The U.S. stock options market is active, and investors can often purchase call or put
options to profit from the derivative volatility of the stock or index's future
performance. However, compared with the Hong Kong stock options market, which is less
active, Lee Wai Kit believes that the transactions in the options market have begun to
gradually expand earlier, and now the option premium required for weekly options is less,
which is expected to increase market participation. However, he also admitted that the
options market needs more investor education to increase market participation. Only when
the market matures further and ordinary investors understand the hedging role of options
can investors participate in the options market and at the same time reduce risks.
Controllability is also one of the key points in promoting the options market.