[ET Net News Agency, 15 January 2026] US stocks continued to fall on Wednesday amid
rising geopolitical tensions, with the tech-heavy Nasdaq leading the declines, down 1 per
cent to 23,471 points, as both the Dow and S&P 500 softened. The Hang Seng Index also
failed to break above 27,000, as Mainland China authorities sounded a note of caution over
excessive A-share speculation and stepped up anti-monopoly efforts for internet platforms.
The HSI ended the morning session at 26,852, down 147 points or 0.5 per cent, although
trading remained active with main board turnover close to HKD 163.9 billion, slightly
higher than the same period yesterday. The Hang Seng China Enterprises Index slipped 64
points or 0.7 per cent to 9,251, while the Hang Seng Tech Index fell 107 points or 1.8 per
cent to 5,800.

"Nip Chun Pong: Program selling by big players caps HSI at 27,000"

After four consecutive days of gains, the HSI saw a choppy session today. It was up over
200 points in early trading, reaching as high as 27,206, its highest level since early
October last year, but ended the morning below 27,000. Nip Chun Pong, the Chief Strategist
at Solo Securities, told ET Net News Agency that since 26 July 2021, the HSI has only
closed above 27,000 on three occasions, making it a formidable barrier. He noted that
major players have set up program sell orders around the 27,000 to 27,100 region, which
automatically trigger selling as the index approaches these levels. Nip added that a
sustained move would require the HSI to close above 27,000 for at least two consecutive
days.
Despite yesterday's measures to cool A-shares, Nip said the impact has largely been
digested. He expects the HSI to remain range-bound at elevated levels in the short term,
with stronger support around 26,600 in the event of a pullback.
With the market's focus shifting to domestic AI themes, Alibaba has found support as its
Qwen large language model receives an update. However, Nip pointed out that Alibaba has
already seen considerable gains, and even if it rises further, there will be resistance
around its October high of HKD 175. He believes that if Alibaba can hold above HKD 170 and
consolidate at that level, it would help the HSI to stabilise above 27,000.

"SAMR likely to set industry rules, Trip's H1 sales expected to take a hit"

At 4pm yesterday, China's State Administration for Market Regulation (SAMR) announced an
antitrust investigation into Trip.com Group (09961) for allegedly abusing its dominant
market position. The company promptly responded that it will fully cooperate with
regulators, implement all requirements, and work with industry peers to foster a
sustainable market. Trip.com also stated that its operations remain normal.
Mainland China media reported that Trip.com required hotel partners to use a "price
adjustment assistant" tool, and several hotels claimed Trip.com unilaterally changed room
rates in the backend without their consent, undermining their pricing autonomy and
squeezing profits.
Trip.com shares plunged as much as 21.6 per cent to HKD 446, their lowest since late
June last year. The stock had already fallen 6.5 per cent the previous day, and was down
as much as 26.8 per cent over two days. Tongcheng Travel (00780), in which Trip.com holds
a stake, dropped as much as 12.3 per cent.
Nip noted that with SAMR stepping in, the market is speculating that the maximum fine
could reach RMB 3.9 billion, up to 10 per cent of Trip.com's revenue for the first three
quarters, or 8 per cent for the full year. While this would have some impact, it is not
considered a serious threat to the group. However, he stressed that this is only market
speculation and concrete penalties are unlikely to be announced in the near term. If a
fine is imposed, it would not only affect earnings but also likely prompt the company to
adopt a more conservative sales strategy, impacting sales in the first half of this year.
As a result, Nip expects funds to steer clear of the OTA sector for now, rotating instead
into other domestic demand themes such as restaurant and sportswear stocks.
He added that Trip.com found initial support after breaking below HKD 450, narrowing the
losses, but further volatility is likely as the investigation continues, though any swings
should be limited. Nip reckons Trip.com's bottom is in the HKD 430-450 range, and advises
investors to wait for the price to fall below HKD 450 before considering entry.