[ET Net News Agency, 28 November 2025] US markets were closed on Thursday for the
Thanksgiving holiday, while the major European indices ended broadly steady. On the final
trading day of November, the Hang Seng Index opened several dozen points higher,
immediately breaking above the 26,000 mark and hitting an intraday high of 26,011.
However, buying interest above 26,000 proved weak, and the HSI reversed course to close
the morning at 25,884, down 61 points or 0.2%, with main board turnover near HKD 75.5
billion. The Hang Seng China Enterprises Index lost 20 points, or 0.2%, to 9,144, while
the Hang Seng Tech Index edged up 5 points, or 0.1%, to 5,603.

"Jaseper Tsang: HSI support at 100-day moving average until 26,000 level is firmly
reclaimed"

After four consecutive sessions in which the HSI failed to consolidate above 26,000,
Jaseper Tsang, Vice-Chairman of the Hong Kong Institute of Financial Analysts and
Professional Commentators Limited, told ET Net News Agency that whether the index can
stabilize above this level in the near term will hinge on the performance of US equities.
Tsang noted that as concerns over an AI bubble have faded and December rate cut
expectations have increased, capital has flowed actively back into US stocks, prompting a
rebound and, in turn, supporting the HSI. If US markets can remain buoyant amid heightened
rate cut expectations, Hong Kong stocks may find a solid footing above 26,000. However,
with few catalysts left for the year, the 26,500 level remains a major resistance zone for
the HSI.

"Vanke's crisis signals "Quasi-SOEs" must rely on self-rescue"

Vanke (02202) has entered a dark period. Following an initial shock earlier this week
when the company sought to extend RMB 2 billion in domestic bonds, the first such request
in its history, fresh concerns emerged yesterday as its major shareholder, Shenzhen Metro
Group, attempted to secure a short-term loan to repay a total of RMB 5.7 billion in
onshore bonds, only to be rejected by at least two Chinese commercial banks.
Vanke's domestic bonds continued to plunge, with "21 Vanke 04" dropping nearly 44%
intraday, "21 Vanke 06" down over 38%, "22 Vanke 02" falling 22.5%, and "21 Vanke 02"
losing nearly 21%, all triggering temporary trading halts. The company's share price hit a
record low of HKD 3.50 today.
Jaseper Tsang commented that the market was not entirely surprised by Vanke's debt
predicament, as there had already been speculation that Shenzhen Metro might tighten its
financial support. In fact, Shenzhen Metro has faced funding pressures since the first
quarter of 2024, making sustained support for Vanke increasingly difficult. Tsang added
that investors have been closely monitoring Vanke's ability to generate cash from property
sales, but with the Mainland China property market weakening again in recent months,
self-rescue appears unlikely. This explains why even with Shenzhen Metro leading the
effort, banks have refused to lend.
Vanke, long regarded as a bellwether "quasi-SOE" in the sector due to its backing from
Shenzhen Metro, is now seen as a new signal from Beijing regarding the handling of real
estate sector risks. Tsang noted that the central government has always advocated a
"crossing the river by feeling the stones" approach, with an explicit policy of
self-rescue for private developers. This episode suggests that even "quasi-SOEs" like
Vanke will likely have to rely on their own resources for survival. As a result, the
sector is likely to see further differentiation, with capital gravitating toward central
SOE-backed developers such as China Overseas (00688) and China Res Land (01109).
The Vanke incident has further undermined confidence in the property sector. Tsang
believes the central government may introduce a new round of property market measures
before year-end, possibly around the Central Economic Work Conference, but expects these
to stay consistent with previous efforts, focusing mainly on stimulating demand.