[ET Net News Agency, 14 May 2026] Driven by the Xi-Trump meeting and the earnings results of the two major Mainland China internet giants, Hong Kong stocks opened strongly with a gain of nearly 450 points, reaching a high of 26,844 points, marking a new high since 26 Feb this year. However, the market remains cautious about the 27,000 level. Selling pressure from southbound capital continued to rise, with a net outflow of nearly HKD 6 billion via the Stock Connect during the morning session. Currently, the Xi-Trump meeting has not released any unexpected positive signals. The HSI stood at 26,478 at midday, with the gain significantly narrowing to 90 points or 0.3%. The Hang Seng China Enterprises Index reported 8,889, up 13 points or 0.2%. The Hang Seng Tech Index reported 5,109, up 16 points or 0.3%. Trading activity was heavy, with main board turnover exceeding HKD 181.2 billion in the half day.
"Trade war framework to persist after Xi-Trump meeting"
Chinese President Xi Jinping and US President Donald Trump officially commenced talks today, marking Trump's second visit to Mainland China since 2017. The HSI saw its gains gradually narrow after a significant high opening today. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), told ET Net News Agency that the market held certain expectations for the Xi-Trump meeting. On one hand, there was hope for improved Sino-US relations; on the other, there were expectations for improvements at the corporate, economic, and supply chain levels. However, as the HSI gains narrowed after the high opening, Mak stated that further upside would require more substantial positive news. Currently, the HSI support level is at 26,200 points with resistance at 26,700 points, and a breakthrough depends on the outcome of the Sino-US talks.
Mak further noted that during the Xi-Trump meeting, the US side hoped Mainland China would increase purchases of Boeing aircraft and agricultural products such as soybeans and beef; Mainland China hoped for relaxation in tariffs and technology sectors, particularly semiconductor export controls. If the talks release positive signals, the semiconductor and food sectors may see short term growth. However, core US high-tech controls are unlikely to be loosened significantly, with only minor adjustments expected. The trade war framework is likely to persist, and the medium to long term impact is expected to be limited.
"Alibaba AI monetisation shows potential"
Alibaba (09988) announced its fourth-quarter results yesterday, in which adjusted profit plunged by 99.7%, far worse than expected. However, AI-related revenue exceeded HKD 35.8 billion (equivalent), continuing to maintain triple-digit high-speed growth. Alibaba rose over 5% this morning, breaking through the HKD 140 threshold.
Mak stated that the market sentiment towards Alibaba's results is positive. Although adjusted profit fell sharply, the market is currently focusing on its AI business capabilities. This set of results reflects that Alibaba's AI monetisation capability meets market expectations, and the AI cloud business is also satisfactory. Coupled with its future investment in large AI models, this provides confidence in its valuation. Alibaba's share price has been weak recently, hence the rebound today driven by positive news. However, due to Alibaba's large market capitalisation, Mak noted that further upward momentum might require more external capital inflows. She mentioned that if Alibaba can hold steady at the HKD 140 mark, it would help shift its share price volatility range from HKD 117 to HKD 140 up to HKD 138 to HKD 152.
"Tencent results merely passable"
Tencent (00700) also announced its results yesterday, with first-quarter adjusted net profit rising 11% year on year and revenue up 9%. After opening more than 2% higher today, Tencent's gains continued to narrow, and it is currently down less than 0.1%.
Mak evaluated the performance as mediocre. With game grossing maintaining double-digit growth and AI driving stellar advertising performance, its cash flow and future gross margins are "passable" despite the large capital expenditure required for AI development. However, she believes Tencent's AI business development is slower than other AI enterprises and has not achieved the ideal catalyst effect expected by the market, leading to capital being diverted to other stocks and weighing on today's share price. Mak holds a neutral to cautious stance on Tencent, predicting its current key support level at HKD 450. Holding steady at that level would be considered good, as short term upward momentum is limited.
"Trade war framework to persist after Xi-Trump meeting"
Chinese President Xi Jinping and US President Donald Trump officially commenced talks today, marking Trump's second visit to Mainland China since 2017. The HSI saw its gains gradually narrow after a significant high opening today. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), told ET Net News Agency that the market held certain expectations for the Xi-Trump meeting. On one hand, there was hope for improved Sino-US relations; on the other, there were expectations for improvements at the corporate, economic, and supply chain levels. However, as the HSI gains narrowed after the high opening, Mak stated that further upside would require more substantial positive news. Currently, the HSI support level is at 26,200 points with resistance at 26,700 points, and a breakthrough depends on the outcome of the Sino-US talks.
Mak further noted that during the Xi-Trump meeting, the US side hoped Mainland China would increase purchases of Boeing aircraft and agricultural products such as soybeans and beef; Mainland China hoped for relaxation in tariffs and technology sectors, particularly semiconductor export controls. If the talks release positive signals, the semiconductor and food sectors may see short term growth. However, core US high-tech controls are unlikely to be loosened significantly, with only minor adjustments expected. The trade war framework is likely to persist, and the medium to long term impact is expected to be limited.
"Alibaba AI monetisation shows potential"
Alibaba (09988) announced its fourth-quarter results yesterday, in which adjusted profit plunged by 99.7%, far worse than expected. However, AI-related revenue exceeded HKD 35.8 billion (equivalent), continuing to maintain triple-digit high-speed growth. Alibaba rose over 5% this morning, breaking through the HKD 140 threshold.
Mak stated that the market sentiment towards Alibaba's results is positive. Although adjusted profit fell sharply, the market is currently focusing on its AI business capabilities. This set of results reflects that Alibaba's AI monetisation capability meets market expectations, and the AI cloud business is also satisfactory. Coupled with its future investment in large AI models, this provides confidence in its valuation. Alibaba's share price has been weak recently, hence the rebound today driven by positive news. However, due to Alibaba's large market capitalisation, Mak noted that further upward momentum might require more external capital inflows. She mentioned that if Alibaba can hold steady at the HKD 140 mark, it would help shift its share price volatility range from HKD 117 to HKD 140 up to HKD 138 to HKD 152.
"Tencent results merely passable"
Tencent (00700) also announced its results yesterday, with first-quarter adjusted net profit rising 11% year on year and revenue up 9%. After opening more than 2% higher today, Tencent's gains continued to narrow, and it is currently down less than 0.1%.
Mak evaluated the performance as mediocre. With game grossing maintaining double-digit growth and AI driving stellar advertising performance, its cash flow and future gross margins are "passable" despite the large capital expenditure required for AI development. However, she believes Tencent's AI business development is slower than other AI enterprises and has not achieved the ideal catalyst effect expected by the market, leading to capital being diverted to other stocks and weighing on today's share price. Mak holds a neutral to cautious stance on Tencent, predicting its current key support level at HKD 450. Holding steady at that level would be considered good, as short term upward momentum is limited.
