[ET Net News Agency, 23 July 2026] Alphabet raised its full-year capital expenditure forecast post-earnings to potentially exceed USD 200 billion, yet Asian markets remained strong this morning. Hong Kong stocks rose early on, driven by AI hardware, though gains narrowed intraday. Two major aluminium stocks and Meituan (03690) took over to lead the rise. The HSI stood at 25,227 at midday, up 334 points or 1.3%, with Main Board turnover exceeding HKD 129.5 billion. The Hang Seng China Enterprises Index stood at 8,360, up 109 points or 1.3%. The Hang Seng Tech Index stood at 4,705, up 37 points or 0.8%.
"Nip Chun Pong: HSI strongly recovers lost ground within the month; holding steady above the 100-day line sets up the next push towards 26,000"
Following a pullback over the past two trading sessions, Hong Kong stocks rebounded by more than 300 points today, with the half-day gain successfully erasing the losses of the past two days. Nip Chun Pong, the Chief Strategist at Solo Securities, told ET Net News Agency that Hong Kong stocks have performed quite strongly since entering July. The HSI has jumped over 2,300 points during the month, fully recovering from the fall of roughly 2,301 points in June. Yesterday, the broader market was dragged down by a retreat in Tencent (00700), but the relevant news is believed to have been digested by the market, and Tencent is expected to have a chance to gradually rebound towards the HKD 460 level in the short term. With heavyweight stocks stabilizing, the probability of the HSI holding steady above the 100-day line (around 25,200 points) over the next two to three trading sessions is extremely high. Once it successfully holds steady, the next step will be to challenge the early June high of 26,045 points, with an initial eye on the 26,000 psychological barrier.
As Hong Kong stocks are about to enter earnings season, Nip Chun Pong pointed out that market trends will be dominated by several large heavyweights such as HSBC (00005), Tencent, and Alibaba (09988). Since the share prices of both Tencent and Alibaba fell after their last quarterly results announcements, if their second-quarter performance turns out better than market expectations, it will provide a substantial boost to the broader market. In particular, rumours circulated yesterday that Tencent's second-quarter gaming revenue might drop, placing pressure on its stock price; if its final results beat expectations, its rebound magnitude will be the largest among all heavyweights. Therefore, among individual stock earnings, Tencent's situation warrants the most attention.
As for HSBC, which hit a new high today, it managed to trend upwards against the market in June when the HSI fell over 9%. This was mainly because it was less affected by the cloud of illegality surrounding Mainland China cross-border investments, and the market also holds expectations for its quarterly results to be announced on 4 August. He expects HSBC can still be viewed favourably over the next week or two, with initial resistance seen at HKD 170, but warned investors to guard against the risk of a pullback driven by "selling on good news" after the results announcement.
"Horizon Robotics faces short-term pressure from CB issuance; Li Auto lags behind and can be accumulated below HKD 47"
Regarding individual stocks, Horizon Robotics (09660) announced plans for a share placement and convertible bond issuance, dragging down its stock price under pressure. Nip Chun Pong analysed that the stock issued a positive profit alert on 21 July, forecasting year-on-year growth of 25% to 35% in revenue and customer contract revenue, but it provided limited boost to the share price at that time. Now that fundraising news has surfaced again, price volatility is within expectations. However, the stock plummeted from a high of nearly HKD 8 in April to a low of HKD 3.6 last month, accumulating a drop of over 50%. A gradual recovery from the low at the current stage is a reasonable restoration. Technically, the stock has been capped by resistance at HKD 4.8 since mid-June; even after the market digests the fundraising news, resistance in the HKD 4.8 to HKD 5 range is expected to remain heavy. If investors intend to position for buying on dips, waiting until the stock price falls below HKD 4 would be safer.
However, smart driving-related stocks still depend on the overall performance of the new energy vehicle sector for momentum, and the overall attractiveness of auto stocks is currently not particularly prominent. If picking within the sector, Nip Chun Pong suggested considering Li Auto (02015), which has lagged behind relatively. The stock previously recovered from a low near HKD 45 to around HKD 49.24, an accumulated gain of less than 10%. The initial target price can be set at HKD 52, and if the stock price drops below the HKD 47 level, investors can consider accumulating on dips.
"Nip Chun Pong: HSI strongly recovers lost ground within the month; holding steady above the 100-day line sets up the next push towards 26,000"
Following a pullback over the past two trading sessions, Hong Kong stocks rebounded by more than 300 points today, with the half-day gain successfully erasing the losses of the past two days. Nip Chun Pong, the Chief Strategist at Solo Securities, told ET Net News Agency that Hong Kong stocks have performed quite strongly since entering July. The HSI has jumped over 2,300 points during the month, fully recovering from the fall of roughly 2,301 points in June. Yesterday, the broader market was dragged down by a retreat in Tencent (00700), but the relevant news is believed to have been digested by the market, and Tencent is expected to have a chance to gradually rebound towards the HKD 460 level in the short term. With heavyweight stocks stabilizing, the probability of the HSI holding steady above the 100-day line (around 25,200 points) over the next two to three trading sessions is extremely high. Once it successfully holds steady, the next step will be to challenge the early June high of 26,045 points, with an initial eye on the 26,000 psychological barrier.
As Hong Kong stocks are about to enter earnings season, Nip Chun Pong pointed out that market trends will be dominated by several large heavyweights such as HSBC (00005), Tencent, and Alibaba (09988). Since the share prices of both Tencent and Alibaba fell after their last quarterly results announcements, if their second-quarter performance turns out better than market expectations, it will provide a substantial boost to the broader market. In particular, rumours circulated yesterday that Tencent's second-quarter gaming revenue might drop, placing pressure on its stock price; if its final results beat expectations, its rebound magnitude will be the largest among all heavyweights. Therefore, among individual stock earnings, Tencent's situation warrants the most attention.
As for HSBC, which hit a new high today, it managed to trend upwards against the market in June when the HSI fell over 9%. This was mainly because it was less affected by the cloud of illegality surrounding Mainland China cross-border investments, and the market also holds expectations for its quarterly results to be announced on 4 August. He expects HSBC can still be viewed favourably over the next week or two, with initial resistance seen at HKD 170, but warned investors to guard against the risk of a pullback driven by "selling on good news" after the results announcement.
"Horizon Robotics faces short-term pressure from CB issuance; Li Auto lags behind and can be accumulated below HKD 47"
Regarding individual stocks, Horizon Robotics (09660) announced plans for a share placement and convertible bond issuance, dragging down its stock price under pressure. Nip Chun Pong analysed that the stock issued a positive profit alert on 21 July, forecasting year-on-year growth of 25% to 35% in revenue and customer contract revenue, but it provided limited boost to the share price at that time. Now that fundraising news has surfaced again, price volatility is within expectations. However, the stock plummeted from a high of nearly HKD 8 in April to a low of HKD 3.6 last month, accumulating a drop of over 50%. A gradual recovery from the low at the current stage is a reasonable restoration. Technically, the stock has been capped by resistance at HKD 4.8 since mid-June; even after the market digests the fundraising news, resistance in the HKD 4.8 to HKD 5 range is expected to remain heavy. If investors intend to position for buying on dips, waiting until the stock price falls below HKD 4 would be safer.
However, smart driving-related stocks still depend on the overall performance of the new energy vehicle sector for momentum, and the overall attractiveness of auto stocks is currently not particularly prominent. If picking within the sector, Nip Chun Pong suggested considering Li Auto (02015), which has lagged behind relatively. The stock previously recovered from a low near HKD 45 to around HKD 49.24, an accumulated gain of less than 10%. The initial target price can be set at HKD 52, and if the stock price drops below the HKD 47 level, investors can consider accumulating on dips.
