[ET Net News Agency, 20 May 2026] The benchmark US 10 year treasury yield rose above 4.6% again overnight, while the 30 year yield once hit 5.2%, a new high since the eve of the 2007 financial tsunami. Under the shadow of a financial crisis, overseas stock markets fell almost across the board. The Hong Kong stock market was also dragged down and continued to struggle with the 250 day moving average (around 25,613), commonly known as the bull bear line. There were no highlights apart from chip stocks. The HSI closed the midday session down 141 points or 0.5% at 25,656, with Main Board turnover exceeding HKD 140.7 billion. The Hang Seng China Enterprises Index fell 34 points or 0.4% to 8,605. The Hang Seng Tech Index rose 8 points or 0.2% to 4,865.
"Wan Kong Shing: Market may test 25,300 points this week"
US President Donald Trump threatened to resume strikes against Iran in the coming days if Tehran does not reach a ceasefire agreement soon. Brent crude futures remained high at the USD 110 level, and US long term bond yields continued to climb. Wan Kong Shing, the Chief Investment Officer of iFAST Global Markets, told ET Net News Agency that the decline in Hong Kong stocks was already expected by the market. Although Hong Kong stocks have not yet fallen below the 250 day moving average (around 25,613 points), if there is no sudden positive news from overseas, such as a dramatic easing of the US Iran situation, there is a higher chance that the market will continue to move downwards. Wan Kong Shing believes that the HSI will consolidate within the 25,000 to 25,500 range in the short term, and may have a chance to test 25,300 points this week. The upper resistance level is at 26,000 points, but since the current overseas market conditions are poor, it will be more difficult to test this level.
"Price war among carmakers drags down Hesai revenue, deploy after share price correction"
Hesai (02525) announced its financial results for the first quarter of this year, turning around a loss into a net profit of RMB 18.3 million. Excluding share based compensation expenses, the non GAAP net profit attributable to shareholders was RMB 47.7 million, a year on year surge of nearly 4.53 times. However, the group expects net revenue in the second quarter to grow by about 20% to 27% year on year, showing a slowdown in revenue growth compared to the first quarter. Dragged down by the worsening outlook, Hesai opened 8% lower, with the decline later widening to more than 10%.
Wan Kong Shing said that Hesai has excellent profitability and partners such as Benz and Rivian, ensuring its fundamentals. However, as the automotive sector in Mainland China is currently weak and some carmakers are facing overcapacity issues, whilst Hesai's LiDAR business is closely related to the automotive industry, the market is worried that its outlook will be dragged down, leading to the drop in its share price today.
Wan Kong Shing stated that Hesai's fundamentals are not bad, but whether it is worth buying depends on whether the valuation is attractive enough. He believes that if Hesai's share price corrects to the HKD 145 level, short term deployment can be considered, with an initial target at HKD 165 and a stop loss referenced at HKD 138. As for the medium to long term, he believes it can be held, but since the current sentiment in the automotive sector is mediocre, the share price is more easily dragged down by industry sentiment. In addition, although the company turned a loss into profit this time, it did not pay a dividend, so he does not recommend a heavy position, and the portfolio weight should be controlled between 5% and 10%.
"Wan Kong Shing: Market may test 25,300 points this week"
US President Donald Trump threatened to resume strikes against Iran in the coming days if Tehran does not reach a ceasefire agreement soon. Brent crude futures remained high at the USD 110 level, and US long term bond yields continued to climb. Wan Kong Shing, the Chief Investment Officer of iFAST Global Markets, told ET Net News Agency that the decline in Hong Kong stocks was already expected by the market. Although Hong Kong stocks have not yet fallen below the 250 day moving average (around 25,613 points), if there is no sudden positive news from overseas, such as a dramatic easing of the US Iran situation, there is a higher chance that the market will continue to move downwards. Wan Kong Shing believes that the HSI will consolidate within the 25,000 to 25,500 range in the short term, and may have a chance to test 25,300 points this week. The upper resistance level is at 26,000 points, but since the current overseas market conditions are poor, it will be more difficult to test this level.
"Price war among carmakers drags down Hesai revenue, deploy after share price correction"
Hesai (02525) announced its financial results for the first quarter of this year, turning around a loss into a net profit of RMB 18.3 million. Excluding share based compensation expenses, the non GAAP net profit attributable to shareholders was RMB 47.7 million, a year on year surge of nearly 4.53 times. However, the group expects net revenue in the second quarter to grow by about 20% to 27% year on year, showing a slowdown in revenue growth compared to the first quarter. Dragged down by the worsening outlook, Hesai opened 8% lower, with the decline later widening to more than 10%.
Wan Kong Shing said that Hesai has excellent profitability and partners such as Benz and Rivian, ensuring its fundamentals. However, as the automotive sector in Mainland China is currently weak and some carmakers are facing overcapacity issues, whilst Hesai's LiDAR business is closely related to the automotive industry, the market is worried that its outlook will be dragged down, leading to the drop in its share price today.
Wan Kong Shing stated that Hesai's fundamentals are not bad, but whether it is worth buying depends on whether the valuation is attractive enough. He believes that if Hesai's share price corrects to the HKD 145 level, short term deployment can be considered, with an initial target at HKD 165 and a stop loss referenced at HKD 138. As for the medium to long term, he believes it can be held, but since the current sentiment in the automotive sector is mediocre, the share price is more easily dragged down by industry sentiment. In addition, although the company turned a loss into profit this time, it did not pay a dividend, so he does not recommend a heavy position, and the portfolio weight should be controlled between 5% and 10%.
