[ET Net News Agency, 04 June 2026] Renewed conflict between the US and Iran, coupled with still-strong US employment data, has led some Federal Reserve officials to emphasise that interest rates may need to be raised this year. Although the semiconductor sector should be looking bright, multiple negative factors saw capital drag down US stocks, and Hong Kong stocks were similarly dragged down. With the mining and tech net sectors being sold off, the HSI reported 25,276 at the half-day mark, down 357 points or 1.4%, with main board turnover exceeding HKD 143.8 billion. The Hang Seng China Enterprises Index reported 8,506, down 90 points or 1%. The Hang Seng Technology Index reported 4,984, down 72 points or 1.4%.
"Cheung Chi Wai: Mainland China increasing restrictions on overseas investment continues to disrupt the broader market"
The US House of Representatives passed a resolution, local time Wednesday (3rd), by 215 votes to 208, passing a motion to stop the war between the US and Iran. A new round of conflict has broken out between the US and Iran, with Kuwait and Bahrain also coming under attack from Tehran, and Brent crude oil futures prices have currently rebounded to the USD 96 level. Cheung Chi Wai, a joint managing director at Prudential Brokerage Ltd, told ET Net News Agency that the broader market currently possesses several negative factors, one of which is the rebound in oil prices, with the market remaining pessimistic about the war having no end in sight. The House of Representatives' resolution demanding a halt to military action against Iran releases a signal of inconsistent attitudes within the US towards the US-Iran war, causing Iran's attitude to harden and lead it to proactively launch attacks.
In addition, following Mainland China's earlier announcement of a strict ban on residents trading overseas stocks, offshore brokerages have also announced a ban on accepting account opening applications from Mainland China residents, and will no longer accept buy orders from relevant clients, effective from the 12th of this month. Cheung Chi Wai stated that the market is currently worried that the regulatory scope and degree of impact will continue to increase, causing external investors to be relatively hesitant about entering the market. Cheung Chi Wai stated that these two factors will continue to bring downward pressure on Hong Kong stocks in the short term, predicting that the current support level for Hong Kong stocks is around 24,900 points, which means the HSI still has about 300 to 400 points of downside room at present.
"Chasing Lenovo at highs should warrant readiness to stop losses"
Recently, the share price of Lenovo (00992) has seen a ferocious upward momentum, surging rapidly from the level of around HKD 13 on 21 May, once touching a historic high of HKD 27.42 at its peak. However, the share price has experienced a clear correction over the past two days, currently hovering around HKD 25. Yesterday, it was even net sold by southbound capital to the tune of around HKD 870 million, becoming the individual stock with the most net selling by southbound capital on that day.
Cheung Chi Wai stated that although Lenovo's results are glittering, the short-term rise in its share price has been too sharp, with the cumulative increase already exceeding 100%. He believes that Lenovo's share price shows a tendency of overheated speculation and is currently in a high-level adjustment phase, with the market starting to lean towards profit-taking. Therefore, he advises that investors should not chase highs in the short term and should mainly adopt a wait-and-see attitude; if they already hold the shares, they can first use the previous gap-up opening position of HKD 22.62 as a stop-loss indicator. If that position can be firmly defended, it can be regarded as an important short-term support and can be used for medium-to-long-term deployment.
"Cheung Chi Wai: Mainland China increasing restrictions on overseas investment continues to disrupt the broader market"
The US House of Representatives passed a resolution, local time Wednesday (3rd), by 215 votes to 208, passing a motion to stop the war between the US and Iran. A new round of conflict has broken out between the US and Iran, with Kuwait and Bahrain also coming under attack from Tehran, and Brent crude oil futures prices have currently rebounded to the USD 96 level. Cheung Chi Wai, a joint managing director at Prudential Brokerage Ltd, told ET Net News Agency that the broader market currently possesses several negative factors, one of which is the rebound in oil prices, with the market remaining pessimistic about the war having no end in sight. The House of Representatives' resolution demanding a halt to military action against Iran releases a signal of inconsistent attitudes within the US towards the US-Iran war, causing Iran's attitude to harden and lead it to proactively launch attacks.
In addition, following Mainland China's earlier announcement of a strict ban on residents trading overseas stocks, offshore brokerages have also announced a ban on accepting account opening applications from Mainland China residents, and will no longer accept buy orders from relevant clients, effective from the 12th of this month. Cheung Chi Wai stated that the market is currently worried that the regulatory scope and degree of impact will continue to increase, causing external investors to be relatively hesitant about entering the market. Cheung Chi Wai stated that these two factors will continue to bring downward pressure on Hong Kong stocks in the short term, predicting that the current support level for Hong Kong stocks is around 24,900 points, which means the HSI still has about 300 to 400 points of downside room at present.
"Chasing Lenovo at highs should warrant readiness to stop losses"
Recently, the share price of Lenovo (00992) has seen a ferocious upward momentum, surging rapidly from the level of around HKD 13 on 21 May, once touching a historic high of HKD 27.42 at its peak. However, the share price has experienced a clear correction over the past two days, currently hovering around HKD 25. Yesterday, it was even net sold by southbound capital to the tune of around HKD 870 million, becoming the individual stock with the most net selling by southbound capital on that day.
Cheung Chi Wai stated that although Lenovo's results are glittering, the short-term rise in its share price has been too sharp, with the cumulative increase already exceeding 100%. He believes that Lenovo's share price shows a tendency of overheated speculation and is currently in a high-level adjustment phase, with the market starting to lean towards profit-taking. Therefore, he advises that investors should not chase highs in the short term and should mainly adopt a wait-and-see attitude; if they already hold the shares, they can first use the previous gap-up opening position of HKD 22.62 as a stop-loss indicator. If that position can be firmly defended, it can be regarded as an important short-term support and can be used for medium-to-long-term deployment.
