[ET Net News Agency, 30 December 2025] Hong Kong shares remained in a tight range ahead
of year-end, with half-day turnover barely reaching HKD 96.5 billion and only the AI
concept sector providing notable momentum. Ahead of futures settlement, the Hang Seng
Index rose 113 points or 0.4 per cent this morning, recovering both the 10-day moving
average (around 25,630) and the 20-day line (around 25,723), closing at 25,749 by midday.
The Hang Seng China Enterprises Index was up 59 points or 0.7 per cent at 8,950, while the
Hang Seng Tech Index advanced 57 points or 1 per cent to 5,540.

"Wan Kong Shing: Prolonged southbound outflows a bad sign, net inflow of HKD 4 billion per
day needed to support the market"

After the holiday, Hong Kong stocks opened higher but reversed course, and this morning
the Hang Seng Index managed to rebound by over 100 points. Wan Kong Shing, the Chief
Investment Officer of iFAST Global Markets, told ET Net News Agency that Mainland China
capital has become notably tighter at year-end. If today marks a third consecutive session
of net southbound outflows, it would set the largest such streak since May. Wan pointed
out that Hong Kong equities are sensitive to the direction of southbound flows, and he
does not shy away from warning that persistent outflows will sap upward momentum and could
trigger a market reversal.
Wan added that the Hang Seng Index faces resistance at 26,000, but has short-term
support at 25,500, and he expects the index to fluctuate within a narrow 500-point band in
the near term. He anticipates that Friday's session could bring renewed activity as funds
reposition for the new year. For the market's outlook to turn positive, he believes daily
net southbound inflows need to return to at least HKD 4 billion, which would indicate that
tight liquidity on the Mainland China is only temporary and help sustain optimism for Hong
Kong stocks.

"New GPU IPOs will rise but gains unlikely to be exaggerated"

China's capital market has seen a wave of new AI listings, with the "Four GPU Dragons"
making their debuts in Shanghai and Hong Kong. After Moore Threads (SHA: 688795) and MetaX
(SHA: 688802) both doubled on debut, Biren (06082) closed its Hong Kong IPO yesterday with
margin subscriptions reaching nearly HKD 460 billion and oversubscription by 1,893 times.
Meanwhile, TianShu Zhixin (09903) opened its Hong Kong IPO today, and AI unicorn Zhipu
(02513) is also launching its IPO, the first of the "Six AI Tigers" to list. Wan noted
that the likes of the Four GPU Dragons and Six AI Tigers will spark speculation in Hong
Kong, but the market should not expect the same multi-fold gains seen in Shanghai. He
forecasts initial gains of around 50 per cent for these hot AI IPOs, with actual
performance depending on market sentiment.
Wan does not oppose investors buying into new IPOs for short-term excitement, but from
an investment and fundamentals perspective, these AI listings are driven mainly by market
sentiment and expectations rather than profitability. On a global scale, the Four GPU
Dragons and Six AI Tigers are not considered cutting-edge technology leaders, as Chinese
AI firms still face challenges from international restrictions. As such, his outlook on
these stocks is neutral. He expects that, as with past IPO waves, only one or two out of
these ten companies will truly stand out. Real confirmation of their prospects will depend
on future product launches and actual earnings performance. Among the many new tech IPOs,
Wan said capital markets are most excited about Unitree Technology, which has attracted
foreign investor interest, though Unitree is still preparing for an A-share listing and
any future Hong Kong listing remains to be seen.
Wan added that with the momentum from multiple AI IPOs, next year's Hong Kong IPO market
should remain active. While some individual new listings have disappointed this year and
dented confidence, the outlook for AI-themed IPOs remains positive. As long as Mainland
China liquidity stays loose, both Hong Kong and A-share IPO markets are likely to stay
buoyant.