[ET Net News Agency, 12 January 2026] Despite the minimal likelihood of a US Federal
Reserve rate cut this month, both Mainland Chinese and Hong Kong markets have maintained
their early-year strength. A-shares continued to advance, with Hong Kong stocks following
suit. Supported by a surge in Meituan (03690) and AI concepts, the Hang Seng Index closed
the morning session at 26,456, up 224 points or 0.9 per cent. The Hang Seng China
Enterprises Index rose 97 points or 1.1 per cent to 9,146, while the Hang Seng Tech Index
climbed 117 points or 2.1 per cent to 5,805.
It is worth noting that main board turnover reached HKD 168.4 billion by midday, with
robust trading volume adding further positive signals to the market's upward move.

"Ryan Chan: Hang Seng Index range seen at 26,000 to 27,000"

After three consecutive declining sessions, the Hang Seng Index posted a bullish
candlestick this morning, signalling a technical reversal. Ryan Chan, an executive
director of Eddid Financial, told ET Net News Agency that the 27,000 level remains a
significant resistance for the HSI, and there is not yet a clear catalyst to push the
index higher. However, the 50-day moving average, around 26,000 points, has provided solid
support, and the narrowing of the index's trading range typically precedes a breakout.
Chan noted that while the HSI experienced three straight declines, there are currently no
obvious negative factors in the market. As long as capital flows remain robust, the index
still has potential to move higher. He also highlighted that heavyweight stocks like
Alibaba (09988) and Tencent (00700) have yet to show clear breakouts, and further gains in
the broader market could be driven by these major names, keeping the outlook optimistic.

"Meituan's rally driven by optimism and technical rebound"

The State Council's Anti-Monopoly and Anti-Unfair Competition Committee Office has
launched an investigation and assessment into competition within the food delivery
platform sector, according to the Anti-Monopoly Law of the People's Republic of China.
Responding to questions from the media, officials stated that this review is an important
step to address competitive concerns, assess monopoly risks, and regulate market order. In
recent times, issues such as intense subsidy battles, price wars, and traffic control have
become prominent in the food delivery industry, squeezing the offline economy and
intensifying internal competition. On the back of this news, Meituan staged a strong
rebound.
However, Chan expressed doubts about whether the antitrust investigation can
meaningfully help Meituan escape the current vicious cycle of competition. He explained
that subsidies, price competition, and the battle for user traffic are deeply entrenched,
and difficult to change given established market habits. If platforms reduce subsidies,
they risk a sharp drop in orders and revenue. While delivery firms may respond to official
calls, it is unlikely that internal competition will be halted immediately. Chan
attributed today's rise in Meituan shares mainly to improved sentiment and a technical
rebound after previous sharp declines.

"Kuaishou shares poised to challenge HKD 92.6 on AI momentum"

SensorTower data shows that beginning this month, Kuaishou's (01024) Koling AI has
ranked first among all graphic and design apps in South Korea, and has also entered the
top ten in markets such as the US, Turkey, and Vietnam. Chan noted that strong download
figures reflect positive market recognition of Kuaishou's AI capabilities, and he believes
the company's shares warrant a higher target. Kuaishou is seen as capable of challenging
its previous high of HKD 92.6, though there may be minor resistance around HKD 84. For
investors not already holding the stock, entry at current levels is the only option, with
support seen at the 10-day and 100-day moving averages, near HKD 70.