[ET Net News Agency, 12 June 2026] Tensions in the Middle East have cooled down, with US President Trump claiming that a major truce agreement has just been reached with Iran. Although details have not yet been finalised, it is expected to be officially signed within the next few days. External stock markets all performed well, with Korea stocks rising over 8%, while Japan and Taiwan stock markets also advanced significantly. After opening higher by over 200 points, the HSI trended erratically upwards, closing the half-day up 490 points, or 2%, at 24,739, with main board turnover exceeding HKD 156.7 billion. The Hang Seng China Enterprises Index stood at 8,384, up 167 points, or 2%. The Hang Seng Tech Index stood at 4,735, up 79 points, or 1.7%.
"Kimmy Tong: Only a complete end to the US-Iran war would be a genuine positive"
Following a seven-day losing streak, during which it even fell below the psychological barrier of 24,000 yesterday, the HSI finally staged a rebound today (12 Jun), rising by more than 500 points at its peak during the session. However, Kimmy Tong, Global Markets and FX Strategist of Everbright Securities International, pointed out in an interview with ET Net News Agency that after dropping for several consecutive days from a high of 26,045 points in early June, the HSI's recovery to the 24,500-point level today is purely a technical rebound, and the overall market investment sentiment remains bleak.
Kimmy Tong explained that the non-farm payroll growth for May announced earlier by the US far exceeded market expectations, coupled with the European Central Bank's interest rate hike announcement yesterday. Various factors have intensified market concerns over potential future interest rate hike policies by the Federal Reserve, dampening investment sentiment. On the other hand, although US President Trump previously threatened aggressive strikes against Iran, he subsequently announced the cancellation of the action and conversely stated that a US-Iran agreement could be signed in Europe as early as this weekend. However, Kimmy Tong believes that the market generally adopts a wait-and-see attitude towards such volatile news. She emphasised that only when the war ends completely and the situation in the Middle East restores total stability can substantive positive support be truly brought to the market, by which time the HSI can be expected to stabilise and truly rebound.
Kimmy Tong expects the short-term rebound resistance level for the HSI to be at 25,200 points; however, for the market to truly turn danger into safety and break out of its current downward trajectory, it must technically first rise and stabilise above 26,200 points.
"Meituan lacks hotly-traded themes to attract attention, burning cash only damages valuation"
Technology and internet stocks generally rebounded, with Meituan (03690) alone showing lacklustre performance, continuing to hover at low levels below HKD 80, which is not far from its IPO price of HKD 69 back then. Although Meituan announced in February the acquisition of the fresh food delivery business "Dingdong Maicai" for USD 717 million, Alibaba (09988) was recently reported to be planning a USD 1.5 billion bid for "Pupu Supermarket". Despite repeated orders from authorities to prevent vicious competition, the internal strife among food delivery platforms seems to have no end in sight.
Kimmy Tong analysed that Alibaba has its mainstream AI and cloud businesses to support its outlook, so even if its food delivery business continues to burn cash, it does not affect its valuation. In contrast, Meituan has a single business model and lacks an ecosystem moat. Its newly launched "Tabbit 1.0" browser only focuses on daily life applications and lacks the major technological direction of large language models, hence its valuation has shown no signs of improvement. Kimmy Tong believes that for Meituan to regain an upward trajectory, the urgent task is to stop the food delivery cash-burning war. Although its food delivery subsidies have eased slightly, it was suddenly reported recently that the company was called in for a meeting by authorities due to train ticket sales, so the stock price will continue to be under pressure in the short term.
For retail investors who purchased below HKD 100, Kimmy Tong suggests continuing to hold the stock and wait-and-see at this stage, rather than selling blindly. However, due to the shadow of US and European interest rate hikes and the downward trend in Mainland China stock markets, Meituan still has a chance to fall through the HKD 72 support level in the future. She reminded investors who do not hold any shares that it is definitely not the time to "bottom-fish" now, and they should remain cautious and avoid rushing into the market.
"Kimmy Tong: Only a complete end to the US-Iran war would be a genuine positive"
Following a seven-day losing streak, during which it even fell below the psychological barrier of 24,000 yesterday, the HSI finally staged a rebound today (12 Jun), rising by more than 500 points at its peak during the session. However, Kimmy Tong, Global Markets and FX Strategist of Everbright Securities International, pointed out in an interview with ET Net News Agency that after dropping for several consecutive days from a high of 26,045 points in early June, the HSI's recovery to the 24,500-point level today is purely a technical rebound, and the overall market investment sentiment remains bleak.
Kimmy Tong explained that the non-farm payroll growth for May announced earlier by the US far exceeded market expectations, coupled with the European Central Bank's interest rate hike announcement yesterday. Various factors have intensified market concerns over potential future interest rate hike policies by the Federal Reserve, dampening investment sentiment. On the other hand, although US President Trump previously threatened aggressive strikes against Iran, he subsequently announced the cancellation of the action and conversely stated that a US-Iran agreement could be signed in Europe as early as this weekend. However, Kimmy Tong believes that the market generally adopts a wait-and-see attitude towards such volatile news. She emphasised that only when the war ends completely and the situation in the Middle East restores total stability can substantive positive support be truly brought to the market, by which time the HSI can be expected to stabilise and truly rebound.
Kimmy Tong expects the short-term rebound resistance level for the HSI to be at 25,200 points; however, for the market to truly turn danger into safety and break out of its current downward trajectory, it must technically first rise and stabilise above 26,200 points.
"Meituan lacks hotly-traded themes to attract attention, burning cash only damages valuation"
Technology and internet stocks generally rebounded, with Meituan (03690) alone showing lacklustre performance, continuing to hover at low levels below HKD 80, which is not far from its IPO price of HKD 69 back then. Although Meituan announced in February the acquisition of the fresh food delivery business "Dingdong Maicai" for USD 717 million, Alibaba (09988) was recently reported to be planning a USD 1.5 billion bid for "Pupu Supermarket". Despite repeated orders from authorities to prevent vicious competition, the internal strife among food delivery platforms seems to have no end in sight.
Kimmy Tong analysed that Alibaba has its mainstream AI and cloud businesses to support its outlook, so even if its food delivery business continues to burn cash, it does not affect its valuation. In contrast, Meituan has a single business model and lacks an ecosystem moat. Its newly launched "Tabbit 1.0" browser only focuses on daily life applications and lacks the major technological direction of large language models, hence its valuation has shown no signs of improvement. Kimmy Tong believes that for Meituan to regain an upward trajectory, the urgent task is to stop the food delivery cash-burning war. Although its food delivery subsidies have eased slightly, it was suddenly reported recently that the company was called in for a meeting by authorities due to train ticket sales, so the stock price will continue to be under pressure in the short term.
For retail investors who purchased below HKD 100, Kimmy Tong suggests continuing to hold the stock and wait-and-see at this stage, rather than selling blindly. However, due to the shadow of US and European interest rate hikes and the downward trend in Mainland China stock markets, Meituan still has a chance to fall through the HKD 72 support level in the future. She reminded investors who do not hold any shares that it is definitely not the time to "bottom-fish" now, and they should remain cautious and avoid rushing into the market.
