[ET Net News Agency, 27 November 2025] US equities continued their run of gains during
Thanksgiving week, helping to lift Hong Kong stocks once again. The Hang Seng Index broke
above the 26,000 level and reclaimed its 10-day moving average (around 25,932), ending the
morning at 26,014, up 86 points or 0.3%. Main board turnover was close to HKD 117.2
billion. The Hang Seng China Enterprises Index rose 37 points, or 0.4%, to 9,199, while
the Hang Seng Tech Index added 7 points, or 0.1%, to 5,626.

"Mak Ka Ka: Slower southbound flows limit HSI upside"

The HSI saw choppy trading in the morning session, opening slightly higher before
briefly turning negative. Stronger A-shares later helped the index rebound above 26,000
once again. However, similar breakouts in recent days have failed to hold by the close.
Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac
Securities (Asia), told ET Net News Agency that ongoing speculation about a US rate cut in
December has kept sentiment buoyant, with Wall Street now pricing the odds of a December
cut at 84.7%. In addition, a strengthening renminbi has been positive for Hong Kong
shares. Since the start of the year, southbound inflows have reached RMB 1.36 trillion,
matching the full-year total for 2024. Despite continued net inflows, the pace has slowed
noticeably in recent sessions, making it difficult to predict the HSI's trajectory.
Mak added that both Hong Kong and US equities, as well as other major global markets,
have posted solid gains so far this year. With returns already attractive, institutional
investors are likely to lock in profits and refrain from aggressive positioning before
year-end. Some may rotate out of high-flying tech stocks into more defensive or
higher-yield blue chips. She expects the HSI to continue consolidating near the 26,000
level, moving within a short-term range between the 100-day moving average (around 25,714)
and the 20-day average (around 26,200).

"Wuxi AppTec falls on US military ties allegations, but decline remains moderate"

According to Bloomberg, about three weeks before the US and China reached a trade truce,
the Pentagon sent a letter to Congress naming eight Chinese companies that should be
classified as "supporting China's military", the so-called "1260H List." Companies cited
reportedly include Alibaba (09988), Baidu (09888), BYD (01211), Wuxi AppTec (02359), Hua
Hong Semi (01347), RoboSense (02498), and, in A-shares, Eoptolink (SHE:300502) and Zhongji
Innolight (SHE:300308). The report notes it is unclear whether these companies have
officially been added to the list.
Wuxi AppTec, a global CXO giant with significant US exposure, saw its shares drop as
much as 4% today. Mak Ka Ka said that, given Wuxi AppTec's large overseas, especially US,
business, it is understandable that the stock reacted more sharply than other peers cited
in the report. For companies like Alibaba and BYD, US operations are relatively limited,
so the impact on their shares has been more muted. Still, Wuxi AppTec's decline was
moderate compared to last year's fall after the introduction of China's "Biosecurity Law."
Since it is not yet clear whether these companies have officially been included on the
"1260H List," the ultimate impact on Wuxi AppTec remains uncertain. Nevertheless, the news
is clearly negative and raises risks that may prompt some investors to rebalance their
portfolios. Consequently, the stock may face short-term pressure. However, Mak does not
recommend excessive pessimism and expects initial support around HKD 100. In the medium to
long term, the outlook will depend on the group's ability to grow its European business
and increase its domestic market share to diversify away from the US.
Wuxi Bio (02269), a related company not named in the list, also came under pressure. Mak
noted that although not directly affected, Wuxi Bio is neither a high-dividend nor a
defensive stock, making it more susceptible to negative news. Given recent share price
weakness, today's decline does not come as a surprise.