[ET Net News Agency, 09 January 2026] China's National Bureau of Statistics reported
that the Consumer Price Index (CPI) rose by 0.8 per cent year-on-year in December, marking
the highest level in nearly three years. Early trading in the A-share markets saw
continued strength, with the Shanghai Composite briefly touching 4,121, its first return
above 4,100 in a decade. However, profit-taking emerged at higher levels, narrowing gains
by midday. The Hang Seng Index opened more than 100 points higher but saw choppy trading
as A-shares reversed course, causing the HSI to briefly dip into negative territory. By
midday, the HSI stood at 26,158, up just 8 points or less than 0.1 per cent, with main
board turnover exceeding HKD 135.2 billion. The Hang Seng China Enterprises Index edged up
3 points to 9,042, and the Hang Seng Tech Index slipped 3 points to 5,674.

"Wong Wai Ho: Trump tariff ruling unlikely to provide major boost for HK stocks"

After two days of declines totalling over 500 points, the Hang Seng Index found support
near 26,100 today, posting modest gains after southbound funds turned net sellers by more
than HKD 4.9 billion yesterday, snapping a multi-day streak of net inflows. Wong Wai Ho,
the First Vice President of the Yan Yun Family Office (HK) Limited, told ET Net News
Agency that since the end of last year, the HSI has repeatedly failed to break through the
27,000 level, so it remains premature to call a new bull market in Hong Kong equities. He
believes the index will continue to fluctuate within a broad range of 25,100 to 27,000.
Only a decisive breakout above 27,000 would justify a more bullish outlook. In the short
term, the HSI is likely to trade between its 50-day moving average (around 26,000) and
27,000.
According to Bloomberg, the US Supreme Court has scheduled Friday as an opinion issuance
day, indicating a possible ruling on the legality of US President Trump's global tariff
policies. If the court issues an adverse decision for Trump, it would undermine a
signature economic policy and mark his most significant legal setback since returning to
the White House. Wong remarked that even if the court rules against Trump, this alone is
unlikely to propel the HSI past 27,000. Over the medium term, Hong Kong's prospects will
depend more on developments in Mainland China, particularly policy support, with more
significant measures expected after the conclusion of the "Two Sessions" in Beijing.
He added that the market has already factored in much of the tariff decision, so the
impact on Hong Kong stocks will likely be limited. Wong expects the probability of an
unfavourable ruling for the Trump administration is relatively high, but the specific
outcome, whether a full reversal or partial reduction of tariffs, will have differing
effects. Even a full reversal could generate mixed reactions: on the positive side,
removing tariffs would lower market risks, but on the negative side, it would raise
uncertainties over government policy, increasing political risk. Wong advises investors to
remain cautious and notes that as long as the HSI holds above the 50-day moving average
and the 25,100 support, downside risks are manageable.

"Alibaba's US exposure limited, tariff ruling only a short-term positive"

Market optimism over the Supreme Court's pending decision has lifted Alibaba (09988),
which has overseas e-commerce operations. Wong believes that in addition to tariff-related
speculation, the stock has benefited from optimism over the company's AI development and
the positive outlook for Mainland China retail, as highlighted by several investment
banks. Technically, Alibaba had fallen sharply in the previous two sessions, so today's
rise also reflects a technical rebound. Wong also stressed that even if tariffs are fully
removed, the impact on Alibaba should not be overestimated, given that its US business
accounts for only a small portion of its overall operations. He does not expect this
development to drive a sustained rally or produce significant earnings growth.
Separately, five major banks, including JPMorgan, Jefferies, and Citi, cut their target
prices for Alibaba today, lowering their respective ranges from HKD 200-224 to HKD
185-218. Wong pointed out that these adjustments simply reflect the stock's recent
pullback and are not an expression of concern over Alibaba's fundamentals. Even after the
revisions, target prices remain above current levels, indicating continued optimism among
the banks regarding Alibaba's outlook.
In terms of share price, Wong noted that Alibaba has recently been trading in a range
between HKD 140 and HKD 150. Should the price fall below HKD 140, around HKD 138, he
believes this would present an attractive medium-term buying opportunity.