[ET Net News Agency, 10 February 2026] US equities extended last Friday's rally into
Monday, with all three major indices ending higher. Tech shares led the advance, buoyed by
positive developments in artificial intelligence, supporting the Dow Jones as it
consolidated above the landmark 50,000 level and posted new intraday and closing highs. In
Hong Kong, the Hang Seng Index ended the morning session at 27,173, up 146 points, or
0.5%, on turnover exceeding HKD 133.8 billion. The Hang Seng China Enterprises Index
gained 71 points, or 0.8%, to 9,239, while the Hang Seng Tech Index climbed 45 points, or
0.8%, to finish at 5,463.

"Kwok Ka Yiu: Southbound funds reducing exposure ahead of holidays, HSI faces resistance
near 27,500"

Benefiting from the improved external sentiment and the Dow's move through 50,000, Hong
Kong stocks followed global markets higher, though early gains were pared as the index
approached the 27,400 level. Kwok Ka Yiu, the Director of Business Development at Harbour
Family Office, told ET Net News Agency that while Hong Kong shares tracked the global
uptrend, there was a notable shift to net outflows from southbound funds yesterday. With
strong funding demand onshore in the lead-up to the Lunar New Year, and a lack of further
market-moving developments recently, investors have been taking profits after the recent
rally. The longer holiday period on the Mainland China this year has also encouraged
institutional investors to lighten positions before the break, which is capping short-term
gains on the HSI. Kwok expects resistance around the 27,500 level, and does not anticipate
major new policy measures ahead of the holiday, seeing HSI gains as staying limited in the
near term.

"Growing Incentives for Sino-foreign pharma partnerships, more collaborations expected"

Innovent Bio (01801) recently announced a strategic partnership with Eli Lilly to
advance global development of innovative cancer and immunology treatments, receiving a USD
350 million upfront payment and up to USD 8.5 billion in milestone payments. The market
sees this not only as backing for the export licensing capabilities of Chinese pharma
firms but also as a signal of potential for deeper strategic cooperation with global
pharmaceutical giants, sharply boosting sentiment in the sector, with the biotech index
spiking more than 3.7% at midday.
Kwok commented that the deep collaboration between Innovent and Lilly reflects foreign
companies' recognition of the R&D strengths and technological capabilities of Chinese
pharmaceutical firms, and expects more such partnerships to emerge going forward. He
pointed out that both sides have clear incentives, Chinese firms can leverage global
partners' sales networks to accelerate and expand their overseas business, while foreign
multinationals can reduce R&D risks by partnering with proven Chinese innovators and
accelerate product launches, creating a clear win-win dynamic.
With these positive expectations, Kwok believes Innovent Bio is likely to maintain
strong trading interest in the short term, with a recovery above the HKD 100 well within
reach. However, whether the rally can be sustained will depend on whether upcoming
earnings meet or exceed market expectations.