[ET Net News Agency, 14 January 2026] The US Consumer Price Index (CPI) rose by 2.7 per
cent year-on-year and 0.3 per cent month-on-month in December, both matching expectations
and reinforcing the market's outlook for a potential Federal Reserve rate cut by mid-year.
Despite US-listed Chinese stocks pulling back overnight, the Hong Kong market remained
resilient this morning. Alibaba (09988), the main driver, soared by 5 per cent on turnover
of HKD 21.1 billion, helping the Hang Seng Index reclaim the 27,000 level. By midday, the
HSI stood at 27,092, up 244 points or 0.9 per cent. The Hang Seng China Enterprises Index
rose 81 points or 0.9 per cent to 9,367, and the Hang Seng Tech Index gained 89 points or
1.5 per cent to 5,959. Main board turnover approached HKD 162.7 billion at midday.

"Wan Kong Shing: Alibaba faces no hurdles breaking out, Kuaishou's AI edge more attractive
than small-cap AI plays"

With the HSI locked in a tug-of-war at the 27,000 mark, bulls mounted a strong defence
this morning, anchored by heavyweight Alibaba, which became the market's focal point.
Turnover in Alibaba shares surged, with over HKD 21 billion traded by midday and gains
expanding to around 5 per cent. According to ET Net's HV2 quotation system, Alibaba
recorded net active buying of nearly HKD 6.4 billion in the morning alone, with large
institutional buyers accounting for 77 per cent of trades, indicating aggressive fund
inflows into Alibaba to shore up the Hong Kong market.
Wan Kong Shing, the Chief Investment Officer of iFAST Global Markets, told ET Net News
Agency that after the market's recent breakout, Alibaba's participation is essential for
sustaining upward momentum. He expects Alibaba to challenge last year's high of HKD 186.2
this quarter without difficulty, with support seen at HKD 160.
Wan explained that Alibaba's multiple business lines, including AI, chips, and cloud
services, remain market highlights. Although e-commerce headwinds are expected to drag
full-year earnings down by around 35 per cent, optimism over Alibaba's AI prospects is
offsetting these concerns, supporting further gains this quarter. He suggested that buying
at current levels is less attractive, but those worried about missing out could consider a
partial position, with HKD 155 as an ideal level for further accumulation given the
current strong market.
For the broader market, Wan believes the HSI could break last year's high of 27,381 this
month, with a target of 29,000 by the end of April and a full-year peak forecast at
31,000, led primarily by AI stocks. However, he cautioned that the recently hyped "GPU
Four Little Dragons" and "AI Six Tigers" are mainly concept-driven and not suitable for
long-term investment, profits should be taken when available. Instead, Wan prefers to
focus on leading names, highlighting Kuaishou (01024) as the most attractive AI-themed
stock outside the major techs. He noted that Kuaishou's Kling AI has gained significant
traction overseas, fuelling optimism for domestic AI. He sees no issue with buying at
current prices and recommends further accumulation if the stock pulls back to HKD 73.

"Haidilao eyes HKD 18, but breakout hinges on earnings delivery"

Against the backdrop of China's push for AI and domestic demand, leading restaurant
chain Haidilao (06862) announced a significant management reshuffle, with founder Zhang
Yong returning as CEO after four years. CEO Gou Yiqun, who held the role for just six
months, will move to oversee the group's push for intelligent and automated management.
The news sparked a sharp rally in Haidilao's share price, which jumped more than 7 per
cent by midday. The former CEO's new focus on smart automation opens the door for Haidilao
to capitalise on popular AI and robotics themes, and Wan believes this narrative, along
with Zhang Yong's return, will help the stock revisit last year's high at HKD 18. However,
whether it can decisively break the long-term resistance at HKD 20 will depend on tangible
improvements in financial results. Sustainable share price gains will require clear
evidence of earnings growth.
Although boosting domestic demand is China's top priority this year, Wan pointed out
that policy support is likely to focus more on home appliances and electric vehicles,
meaning Haidilao and other consumer stocks may not benefit directly. Retail and restaurant
stocks have yet to stand out and will need further catalysts. He also noted that if
Haidilao does ramp up smart management, the associated investment could increase costs and
weigh on profits in the short term, making the recent rally more of a theme-driven move
for now.