[ET Net News Agency, 09 April 2026] US President Donald Trump posted a latest message
stating that all US naval vessels and aircraft, as well as military personnel and
equipment, will remain around Iran until a genuine ceasefire agreement is reached. He also
re-emphasised that Iran is not allowed to possess nuclear weapons and that the Strait of
Hormuz must remain open. Iran and the US have their own interpretations of the ceasefire
agreement, making it currently difficult to judge whether negotiations can yield results.
Market reaction is cautious, with the HSI reporting 25,801 at midday, retreating 91 points
or 0.4%, with main board turnover of nearly HKD 126.7 billion and southbound capital
recording a temporary net inflow of HKD 3.7 billion. The Hang Seng China Enterprises Index
reported 8,638, down 38 points or 0.4%. The Hang Seng Tech Index reported 4,861, down 62
points or 1.3%.

"Nip Chun Pong: HSI expected to rebound in April, looking towards 26,200 to 26,800 points"

The Federal Reserve previously released the March meeting minutes, noting that rising
oil prices would push up inflation in the short term and delay the process of inflation
falling back to the 2% target, with many officials beginning to consider interest rate
hikes to combat inflation. Wan Kong Shing, the Chief Investment Officer of iFAST Global
Markets, told ET Net News Agency that with the market facing high oil prices and high
inflation, interest rate hikes have long been expected, and since the Federal Reserve's
interest rate meetings in the past mainly focused on maintaining interest rates unchanged,
the impact of geopolitics and Iran-US negotiations on the market remains significant.
The central parity rate of the Renminbi against the US dollar has recently risen for
three consecutive days, continuing to see a three year high. Nip Chun Pong, the Chief
Strategist at Solo Securities, told ET Net News Agency that as the situation in the Middle
East shows signs of cooling, the US dollar has begun to be invested in other assets,
driving the Renminbi stronger and indirectly pushing up the share prices of Mainland China
enterprises, which has a certain positive effect on Hong Kong stocks. However, he stated
that investors in Mainland China remain highly wary of Trump's attitude, and yesterday
southbound capital also recorded a net outflow of approximately HKD 21.5 billion,
reflecting that investors in Mainland China are still maintaining a wait and see attitude,
limiting the rally of Hong Kong stocks.
Regarding the current situation, Nip Chun Pong believes the positive effect on the stock
market is significant and expects the HSI performance in April to be superior to that of
March, with a chance to return to the 26,200 to 26,800 level in April. Meanwhile, Wan Kong
Shing believes 25,300 points is the first support level for the HSI. If Iran-US
negotiations stall in the future and the Strait of Hormuz remains blocked, there is a
chance it could break lower and fall to the next low of 24,400, at which point the low for
this year could fall to 24,203 points.

"HSBC rebound allows for staggered positioning"

HSBC (00005) has significant business in the Middle East, and when the Middle East
situation was tense in March, its share price was considerably under pressure. As the
Middle East situation shows signs of cooling, HSBC's share price has risen for two
consecutive days, currently sitting at the HKD 139 level with a cumulative gain of about
7%, returning to a relatively high level since March. Nip Chun Pong believes that HSBC's
current price is close to its historical high of HKD 148, leaving less room for upside,
and suggests waiting for the share price to adjust to around HKD 135 before positioning.
Wan Kong Shing also suggests staggered positioning, noting that one tranche can be
purchased now, with further positioning when the share price pulls back to the HKD 133
level.