[ET Net News Agency, 28 May 2026] The HSI has maintained its weakness recently. Amidst the ongoing high uncertainty between the US and Iran, global investment sentiment is divided. US, Korea, and Taiwan chip stocks are being sought after, but the HSI lacks storage chip targets, and software stocks, as the main force, are instead dragging down outlook expectations due to rising memory prices. This led the HSI to further break through the support level of 25,200 from the fourth quarter of last year this morning. Although it tried hard to defend 25,000 during the session, it was to no avail. The HSI's decline widened to 587 points, or 2.3%, to close the half-day at 24,740, hitting its lowest level since late March. The Hang Seng China Enterprises Index stood at 8,275, down 187 points, or 2.2%. The Hang Seng Tech Index stood at 4,833, down 73 points, or 1.5%.
The bulls suffered repeated defeats. Based on the previous day's positions, more than 6,000 bull certificates were forced to liquidate. Panic sentiment pushed the Main Board turnover to HKD 195.2 billion for the half-day. Southbound capital ended its four-day selling streak, with a net inflow of HKD 8.46 billion for bargain hunting.
"Wan Kong Shing: HSI to form a double bottom with a higher second low after plunging another 500 points"
The HSI's weakness continued on the futures expiry day. Together with the weak overseas performance, the HSI opened 100 points lower and faced subsequent selling pressure, falling through the technical support level of 25,200 and the psychological barrier of 25,000 in succession, only stabilizing after killing through all the heavy bull certificate zones down to the 24,800 level. Wan Kong Shing, the Chief Investment Officer of iFAST Global Markets, told ET Net News Agency that the HSI follows overseas markets when they fall but not when they rise. The only reason that can be attributed is that the CSRC's previous actions against overseas brokerages still make the market wary, causing the recent trend of continuous outflow of southbound capital from the HSI. Although southbound capital returned significantly this morning, if the overall outflow trend remains unchanged, the HSI will hardly have a chance to rebound.
Regarding the current market atmosphere, Wan Kong Shing pointed out that the fundamentals are actually roughly the same as before, but the HSI's sharp decline, underperforming the global market, is indeed slightly beyond expectations. Although the valuations of the current mainstay technology stocks are already very cheap, their performance over the past quarter was indeed inferior to other sectors overseas, making the market even more pessimistic about software stocks. Both the technology sector and the HSI have fallen into a situation of "only losing and never winning". He expects the market to first look at the 24,800 support, with the next level being 24,500, which is not a strong support, and then this year's low of 24,200. He hopes that if there is support before 24,200, the HSI is expected to form a double bottom with a higher second low to try a rebound upwards. He stressed that it is not advisable to short the HSI at the current price, but whether to buy still depends on the support below and the strength of the southbound capital outflow.
"Kuaishou still suffers despite good results, aiming to bottom-fish if it forms a base at HKD 40"
Kuaishou (01024) announced that its adjusted profit for the first quarter fell by 26.3% year-on-year to RMB 3.374 billion, beating expectations. During the period, revenue only increased by 3.4%, while core commercial revenue grew by 10.7% year-on-year. As for the focus Kling AI, its revenue during the quarter grew by more than three times year-on-year to RMB 650 million. Its share price still fell by 0.8% for the half-day, but it has already outperformed the broader market and the technology sector. Excluding Kling, Kuaishou basically had little revenue growth, and Kling itself is also facing strong competition from ByteDance's Seedance. Wan Kong Shing believes that if Kuaishou spins off Kling, it will help release its valuation, which would indeed be slightly unfavourable to Kuaishou's results, but not too serious.
Kuaishou's post-earnings response was poor. Wan Kong Shing admitted that he felt sorry for Kuaishou. He explained that capital is currently rushing to chase AI hardware, with very little interest in software stocks. Even the overseas leader Google is not favoured by the market despite making money, let alone Kuaishou. He hopes that Kuaishou will wait for hot money to flow back after finding support at low levels. The stock had tested the HKD 42 level last month and is expected to test that level again in the short term. However, he suggested that those holding the stock need not rush to exit, while those without the stock can wait until it drops to the HKD 40 level and finds support before entering. A short-term rebound to the HKD 56 to HKD 58 level is not without a chance.
The bulls suffered repeated defeats. Based on the previous day's positions, more than 6,000 bull certificates were forced to liquidate. Panic sentiment pushed the Main Board turnover to HKD 195.2 billion for the half-day. Southbound capital ended its four-day selling streak, with a net inflow of HKD 8.46 billion for bargain hunting.
"Wan Kong Shing: HSI to form a double bottom with a higher second low after plunging another 500 points"
The HSI's weakness continued on the futures expiry day. Together with the weak overseas performance, the HSI opened 100 points lower and faced subsequent selling pressure, falling through the technical support level of 25,200 and the psychological barrier of 25,000 in succession, only stabilizing after killing through all the heavy bull certificate zones down to the 24,800 level. Wan Kong Shing, the Chief Investment Officer of iFAST Global Markets, told ET Net News Agency that the HSI follows overseas markets when they fall but not when they rise. The only reason that can be attributed is that the CSRC's previous actions against overseas brokerages still make the market wary, causing the recent trend of continuous outflow of southbound capital from the HSI. Although southbound capital returned significantly this morning, if the overall outflow trend remains unchanged, the HSI will hardly have a chance to rebound.
Regarding the current market atmosphere, Wan Kong Shing pointed out that the fundamentals are actually roughly the same as before, but the HSI's sharp decline, underperforming the global market, is indeed slightly beyond expectations. Although the valuations of the current mainstay technology stocks are already very cheap, their performance over the past quarter was indeed inferior to other sectors overseas, making the market even more pessimistic about software stocks. Both the technology sector and the HSI have fallen into a situation of "only losing and never winning". He expects the market to first look at the 24,800 support, with the next level being 24,500, which is not a strong support, and then this year's low of 24,200. He hopes that if there is support before 24,200, the HSI is expected to form a double bottom with a higher second low to try a rebound upwards. He stressed that it is not advisable to short the HSI at the current price, but whether to buy still depends on the support below and the strength of the southbound capital outflow.
"Kuaishou still suffers despite good results, aiming to bottom-fish if it forms a base at HKD 40"
Kuaishou (01024) announced that its adjusted profit for the first quarter fell by 26.3% year-on-year to RMB 3.374 billion, beating expectations. During the period, revenue only increased by 3.4%, while core commercial revenue grew by 10.7% year-on-year. As for the focus Kling AI, its revenue during the quarter grew by more than three times year-on-year to RMB 650 million. Its share price still fell by 0.8% for the half-day, but it has already outperformed the broader market and the technology sector. Excluding Kling, Kuaishou basically had little revenue growth, and Kling itself is also facing strong competition from ByteDance's Seedance. Wan Kong Shing believes that if Kuaishou spins off Kling, it will help release its valuation, which would indeed be slightly unfavourable to Kuaishou's results, but not too serious.
Kuaishou's post-earnings response was poor. Wan Kong Shing admitted that he felt sorry for Kuaishou. He explained that capital is currently rushing to chase AI hardware, with very little interest in software stocks. Even the overseas leader Google is not favoured by the market despite making money, let alone Kuaishou. He hopes that Kuaishou will wait for hot money to flow back after finding support at low levels. The stock had tested the HKD 42 level last month and is expected to test that level again in the short term. However, he suggested that those holding the stock need not rush to exit, while those without the stock can wait until it drops to the HKD 40 level and finds support before entering. A short-term rebound to the HKD 56 to HKD 58 level is not without a chance.
