[ET Net News Agency, 29 January 2026] US Treasury Secretary Bessent has denied any
market intervention to support the Japanese yen and reiterated the longstanding policy of
a strong US dollar. In response, the yen weakened sharply while the dollar surged. Despite
these global currency moves, Hong Kong equities remained buoyant, supported by optimism
over renminbi-denominated assets and positive news from Mainland China property
developers. The Hang Seng Index gained 148 points or 0.5% to close the morning at 27,975,
setting another four-and-a-half-year high and edging closer to the 28,000 mark, with main
board turnover near HKD 172 billion. The Hang Seng China Enterprises Index rose 43 points
or 0.5% to 9,555, while the Hang Seng Tech Index slipped 39 points or 0.7% to 5,860.

"Hong Kong stocks supported by US dollar weakness but 28,000 seen as key resistance"

The Hang Seng Index soared 699 points yesterday, closing at the day's high of 27,826, a
four-and-a-half-year peak. Although the rally was substantial, today's pullback was
modest; the index briefly dipped 200 points intraday before recovering. Jaseper Tsang,
Vice-Chairman of the Hong Kong Institute of Financial Analysts and Professional
Commentators Limited, told ET Net News Agency that the sustained weakness in the US dollar
has led investors to expect further depreciation of dollar assets, with some funds
rotating into Asia-Pacific emerging markets, lending support to Hong Kong stocks. Whether
the dollar's weakness will persist remains to be seen, but with the HSI's current
price-to-earnings ratio still around 12, below the ten-year average of 13, there is still
room for speculative trading.
However, Tsang pointed out that while turnover reached HKD 360 billion yesterday, the
short-selling ratio also rose to 18%. He advises investors to keep an eye on whether the
short-selling ratio remains between 18% and 20% over the coming days. With short interest
elevated, the HSI is likely to trade sideways near the 28,000 level, where profit-taking
could emerge as the index tests this major psychological barrier, capping further gains.
In addition, recent sharp rises in precious metals, especially silver, have been highly
speculative. If prices reverse from these highs, it could pose risks to the financial
markets. Tsang suggests watching whether the HSI can remain above 27,500 for five
consecutive days, as this level aligns with a 12x P/E ratio and would be a meaningful
indicator for continued market strength.

"Jaseper Tsang: Stronger renminbi boosts Macao tourism"

Sands China (01928) recently reported Q4 2025 results for its parent, Las Vegas Sands
Corp, noting that Q4 net revenue for Sands China rose 16.4% year-on-year to USD 2.05
billion, but net income fell 10.1% to $213 million. Adjusted property EBITDA was USD 608
million, up 6.4% year-on-year. For the full year 2025, net revenue rose 5.1% to USD 7.44
billion, while net income fell 14.2% and adjusted property EBITDA dipped slightly by
0.85%.
Macao's gaming regulator earlier reported December gross gaming revenue of MOP 20.89
billion, up 14.8% year-on-year. Although this was below the analyst consensus of 18%,
double-digit growth was still recorded. Tsang noted that while gaming revenue rose,
non-gaming performance may have been less impressive. With China's property market
correction in recent years impacting the wealth effect and leading to "consumption
downgrade," rising tourist numbers in Macao may not necessarily translate into higher
spending. The once-lucrative VIP segment continues to underperform post-pandemic, with
operators now relying on the mass market. As a result, a return to pre-pandemic
profitability remains a challenge.
After Sands China's results, its share price fell nearly 10% to HKD 17 before
rebounding. Tsang expects initial support for Sands around HKD 17, noting that revenues
can be subject to seasonal fluctuations and hotel promotions. Among gaming names, he sees
a brighter outlook for Galaxy Ent (00027) and MGM China (02282). Galaxy has expanded hotel
capacity and invested in non-gaming features, while MGM has positioned itself with a
unique and personalised experience that appeals to visitors.
Looking ahead to 2026, Tsang believes the recent strength of the renminbi is likely to
encourage more outbound travel from Mainland China residents. At the same time, the
ability of neighbouring countries to attract Chinese tourists has diminished: Cambodia's
gaming sector is grappling with fraud scandals, while Japanese tourism faces political
headwinds. This should further enhance Macao's appeal to Mainland China tourists,
supporting a positive medium- to long-term view on Macao's gaming revenue. As Macao's 2025
revenue base is relatively low, a rebound at the start of 2026 is likely, though the
ongoing trend of consumption downgrade on the Mainland China means a sharp full-year
increase cannot be guaranteed.