[ET Net News Agency, 09 February 2026] The release of US non-farm payroll data was
postponed, but in the wake of last week's global asset storm, Wall Street finished Friday
with an impressive rebound, investors aggressively bargain hunting and driving the Dow
Jones up by over 1,200 points, a historic breakthrough of the 50,000 level. Gold
strengthened alongside, with New York futures soaring back above USD 5,000 in Asian trade.
Japanese and Korean equities also surged, benefitting from Wall Street's rally. Hong Kong
stocks tracked the global risk-on mood, with the HSI opening 422 points higher. Gains
moderated amid a pullback in tech, declines in the three telecoms, and weakness in
consumer plays. By midday, the HSI was up 385 points, or 1.5%, at 26,945, with main board
turnover near HKD 136.3 billion. The Hang Seng China Enterprises Index gained 111 points,
or 1.2%, at 9,142, while the Hang Seng Tech Index rose 55 points, or 1%, to 5,401.

"Nip Chun Pong: PBOC liquidity injection aids stability, but not enough for a sustained
HSI rally"

After opening up over 400 points, the HSI briefly broke above the 27,000 mark but
encountered resistance at the 10-day moving average (27,123), settling into a narrow
range. Nip Chun Pong, the Chief Strategist at Solo Securities, told ET Net News Agency
that Hong Kong shares remain primarily driven by external factors. Today's sharp rally is
largely a knock-on effect from the strong finish in US stocks. Without material positive
news out of the Mainland China, if the HSI cannot close above 27,000 for two consecutive
trading days, it is likely to remain range-bound between 26,500 and 27,000. Nip Chun Pong
added that the earlier tailwinds, a weaker dollar and stronger renminbi, have faded as the
US Dollar Index has stabilised. On the data front, the Mainland China will not release its
"three horses" (consumption, investment, export) or PMI figures this month due to the
Spring Festival holiday; the main economic release, CPI, is expected at a modest 0.4%
year-on-year increase, a soft reading.
Bloomberg further reported that ahead of the Spring Festival, the Mainland China faces a
liquidity gap in excess of RMB 3 trillion. The central bank is expected to ramp up
liquidity injections this week to ensure funding is ample throughout the holiday, mainly
through reverse repo operations on seven- or fourteen-day terms. Nip Chun Pong noted,
however, that while this can stabilise liquidity conditions, it is unlikely to provide a
sustained boost for Hong Kong equities.

"GigaDevice concept stock rally looks extended, watch HKD 350 resistance"

The global memory chip rally, spurred by the "super cycle" in AI infrastructure,
structural supply shortages, and robust earnings growth, has powered steep share price
gains. In the US, Micron Technology surged 136% from its 21 November low of USD 192.59 to
455.5 on 30 January. Nip Chun Pong observed that Micron's fundamentals remain strong; even
after its rally, its P/E ratio of around 30 still looks attractive compared to market
leader Nvidia at over 45. After pulling back from the USD 450 level, further upside is
possible for Micron if US tech sector sentiment remains constructive.
Turning to Hong Kong, memory chip concept stock GigaDevice (03986) listed on 13 January
and peaked at HKD 361 on 22 January, a rise of 122% from its IPO price of HKD 162, before
falling back to around HKD 312. Nip Chun Pong stressed that GigaDevice and Micron are
vastly different in scale: GigaDevice earned RMB 6.8 billion in total revenue for the
first three quarters, while Micron's quarterly revenue alone was USD 13.6 billion, growing
by an impressive 56% above already high base expectations. The two are not comparable in
scale or growth. On valuation, GigaDevice trades at over 100 times earnings, far above
Micron's low-30s, and their business fundamentals and valuations diverge significantly.
Nip Chun Pong believes earlier gains in GigaDevice were primarily driven by tight supply
and demand for shares, and that these factors are now largely reflected in the share
price. Unless upcoming results significantly exceed expectations, the stock's room for
further gains is limited. In the near term, investors should watch whether it can break
through HKD 350, with major resistance expected near HKD 400.