[ET Net News Agency, 02 July 2024] The Hang Seng Index closed at 17,819 in the morning
session, up 100 points or 0.6%, and the main board turnover exceeded HKD 68.6 billion. The
Hang Seng China Enterprises Index was at 6,392, up 60 points or 1%. The Hang Seng Tech
Index was at 3,549, down 5 points or 0.1%.
The three largest traded stocks in the Hang Seng Index were Tencent (00700), China
Construction Bank (00939) and Alibaba (09988); Tencent reported HKD 368.8, down HKD 3.6 or
1%, with a turnover of HKD 5.614 billion; China Construction Bank reported HKD 5.88, up
HKD 0.11 or 1.9 %, with a transaction volume of HKD 2.192 billion; Alibaba reported HKD
70.85, up HKD 0.35 or 0.5%, with a transaction volume of HKD 1.926 billion. The three
largest traded stocks on the Hang Seng China Enterprises Index are Tencent, China
Construction Bank and Alibaba. The three largest traded stocks on the Hang Seng China
Enterprises Index were Tencent, Alibaba and Meituan (03690); Meituan was quoted at HKD
111.5, up HKD 0.4 or 0.4%, with a turnover of HKD 1.618 billion.

"Cheung Chi Wai: funds will return after half-year end, but there is still selling
pressure in the short term"

Hong Kong stocks had a good start on the first trading day of the second half of the
year, with half-day market turnover approaching HKD 70 billion. However, the Hang Seng
Index once rose by more than 250 points and then retreated, ultimately rising by only 100
points in half-day. Cheung Chi Wai, a joint managing director at Prudential Brokerage Ltd,
told ET Net News Agency that after the half-year end of the Hong Kong stock market, the
market expects money to become looser, and has traditionally been supported by the "seven
turnarounds", so the capital performance has obviously become more active this morning.
However, the market has fallen from its high level in half a day. Cheung Chi Wai explained
that the proportion of bull contracts in the Hang Seng Index is still overwhelming, and it
is expected that the short-term selling pressure on the market will still be heavy.
He said that the market is still waiting to see the news of the Third Plenary Session of
the Central Committee of the Communist Party of China. It is expected that the market
situation will remain on the wait-and-see before. The Hang Seng Index may first fall and
then rise in July, with the greater support below located at 17,300.

"Longfor's big debt repayment is good, but sales are still weak"

Hong Kong stocks rebounded across the board this morning, with China characteristics
stocks, automobile stocks and Mainland China real estate stocks generally reporting gains.
Among them, Longfor (00960) repaid a number of debts over the past weekend, including the
repurchase of two US dollar bonds and a mortgage-backed security. The total repayment
amount is more than RMB 7 billion, driving the stock price to rise by more than 8% this
morning. Longfor rose 5.4% in half a day to HKD 11.3. The stock traded about 12.5 million
shares, involving HKD 141 million, with an intraday high of HKD 11.64 and a low of HKD
11.06.
Cheung Chi Wai pointed out that Longfor's big debt repayment is positive news for the
stock, but it can only be a short-term positive. The outlook for the Mainland China's
property market is still bleak, and housing demand continues to decline. It is expected
that the current stock of housing and undeveloped land will take several years to be
gradually digested. There will be pressure on the overall growth space of properties, so
it is not recommended to get involved now.