[ET Net News Agency, 20 February 2026] Escalating tensions in the Middle East weighed on
Wall Street overnight, with all three major US indices ending lower. The Hang Seng Index
(HSI) opened down by several dozen points, with losses widening to over 300 points at one
stage as technology stocks led the drop, leaving the HSI softer on the first trading day
of the Year of the Horse. By midday, the HSI stood at 26,544, down 161 points or 0.6%, on
main board turnover approaching HKD 91.8 billion. The Hang Seng China Enterprises Index
was down 53 points (0.6%) at 9,016, while the Hang Seng Tech Index slumped 122 points
(2.3%) to 5,245.

"Nip Chun Pong: Consider reducing exposure to China big tech, look at AI upstarts or metal
stocks"

On the Year of the Horse's first trading day, Hong Kong equities remained soft in early
deals, though the HSI's losses narrowed after breaching its 50-day moving average (26,423
points). Nip Chun Pong, the Chief Strategist at Solo Securities, told ET Net News Agency
there is still short-term downside risk. He believes the HSI is likely to lose the 50-day
line, as recent performance since 13 February has seen a pattern of lower lows. Data from
the last trading day (16 February) shows the proportion of outstanding Bull ETPs far
outweighing Bear ETPs (77.2% to 22.8%), suggesting the market is crowded with bullish
bets, a setup that increases the risk of further falls next week. He pointed to heavy Bull
ETP zones between 26,200 and 26,299 points (even the top end is below the 50-day line), so
a further slip to the 26,200 level is likely before the market stabilises.
Heavyweight stocks, such as Baidu (09888) and Alibaba (09988), dropped sharply in early
trade, amplifying pressure on the HSI. Nip noted both sold off after Hillhouse, a major
investment house, disclosed in its 13F filing that it had exited Baidu in Q4 2025,
fuelling fears of further foreign fund selling in large Chinese tech names. With Alibaba
and Baidu previously outperforming Tencent, their larger declines today are notable. He
sees money rotating into new AI leaders and expects big Chinese Tech to stay under
pressure in the near term, now is not the time to "buy the dip".
According to Bloomberg, the US now has its largest military build-up in the Middle East
since 2003. President Trump stated that Iran has at most 10-15 days to reach a nuclear
agreement, or face severe consequences. Nip commented that, with little positive news for
Hong Kong stocks right now, they are likely to take cues from US market movements. If
US-Iran tensions escalate, safe-haven demand could push up precious and base metals,
drawing funds into these sectors and triggering a rotation. Investors should consider
reducing their holdings in Chinese big tech, in favour of AI newcomers, or precious and
base metal stocks.

"RoboSense's can catch-up, with target of HKD 45"

Chinese humanoid robots stole the show at the 2026 CCTV Spring Festival Gala, with
dozens performing acrobatics, boxing, and nunchaku routines, grabbing global headlines and
sending related Hong Kong shares surging, including UBTECH (09880) and Dobot (02432). Nip
Chun Pong said while market sentiment is weak, capital is flowing towards stocks with
positive headlines. If the HSI doesn't recover meaningfully, robotics-related shares could
continue to attract investors and extend their gains.
Chinese media also reported that on Lunar New Year's Eve, JD.com put multiple types of
robots, including models seen in the Gala, on sale, and several sold out within minutes.
Brands involved included MagicLab, Unitree Robotics, and Noetix Robotics, all featured at
the Gala. Nip highlighted that these performances can obviously boost product sales for
these firms, though benefits for peers depend on whether their offerings actually appeal
to consumers. For supply chain companies, much depends on whether the featured brands
announce capacity expansions in the short term; only then will suppliers see meaningful
benefit.
As for the sector's prospects, Nip believes there is still short-term upside in humanoid
robot concept stocks, with a buy recommendation on RoboSense (02498). With the share price
below HKD 38, having lagged peers Dobot and Shoucheng (00697), Nip sees potential for it
to play catch-up. He suggests accumulating the stock between HKD 35-37, with a one-month
target range of HKD 42-45.