[ET Net News Agency, 21 January 2026] Market turbulence continues across the globe, with
the so-called "fear index" VIX spiking more than 30 per cent. Hong Kong stocks have now
fallen for five consecutive sessions, but the Hang Seng Index found support near its
20-day moving average (around 26,323), closing the morning at 26,447, down 39 points or
0.1 per cent. Main board turnover was nearly HKD 127.7 billion. The Hang Seng China
Enterprises Index dropped 24 points or 0.3 per cent to 9,070, while the Hang Seng Tech
Index edged up 8 points or 0.1 per cent to 5,691.

"Jaseper Tsang: The more trouble Trump causes, the more capital flows to Hong Kong"

With less than a month into 2026, US President Trump has taken an aggressive approach on
the world stage, swiftly moving against Venezuela's President Maduro, hinting at possible
intervention in Iranian protests, and dramatically escalating US ambitions over Greenland.
These actions have caused heightened volatility in US markets overnight, pushing the VIX
up more than 6 per cent. US Treasuries have come under sustained selling pressure, with
10-year yields briefly surging above 4.3 per cent. Both the Nasdaq and S&P 500 slumped
more than 2 per cent.
Jaseper Tsang, Vice-Chairman of the Hong Kong Institute of Financial Analysts and
Professional Commentators Limited, told ET Net News Agency that Trump's hardline tactics
under the "MAGA" banner are designed to consolidate US political strength internationally.
His swift action in Venezuela drew applause from his supporters, and although he initially
signalled further moves on Iran, the US ultimately opted for restraint after the Iranian
government's crackdown, suggesting a preference to avoid greater risks there.
Meanwhile, Trump has stoked tensions over Greenland, which Tsang sees as a deliberate
strategy to shift attention away from Iran. This has sparked a strong reaction in Europe,
with Denmark leading the way by signalling it would sell off US Treasuries, eroding
confidence in US dollar assets and triggering the sharp fall in US equities overnight.
Tsang believes that while Greenland offers the US strategic and resource value,
continued uncertainty around this issue could drive further selling of US assets. If
Denmark's move prompts other European countries to follow suit, the mounting pressure
could force Trump to soften his approach and ease tensions with Europe in order to restore
market stability. In this context, the performance of US dollar assets will be a key gauge
of whether Trump advances or retreats on the Greenland issue.
Tsang also points out that if the Greenland dispute undermines US dollar assets, it
could erode Trump's support among his domestic "MAGA" base, especially with the year-end
midterm elections in sight. To secure votes, Trump will need to prevent further declines
in US assets, making it likely he will eventually compromise on Greenland.
On the Hong Kong market, despite the sharp falls in US stocks due to geopolitical
uncertainty, Hong Kong equities have shown relative resilience. Tsang believes that
China's neutral stance in these disputes is helping to support both Mainland China and
Hong Kong stock markets. With China staying out of other countries' conflicts, safe-haven
capital may flow into Chinese markets, betting on AI themes and new policies rather than
worrying about geopolitical risks abroad. As a result, heightened global tensions could
actually be positive for capital flows into Hong Kong and China. Tsang expects risk levels
for Hong Kong stocks remain low for now, with the index still holding its upward channel
established since mid-December. As long as the HSI does not break below the channel bottom
at 26,300, or the stronger support at 26,000, the overall uptrend remains intact.

"Anta's valuation nears bottom, but strong gains still unlikely"

Anta Sports (02020) reported a year-on-year single-digit percentage decline in retail
sales for the Anta brand in the last quarter, while full-year growth was also in the low
single digits. Although FILA and other brands under the group posted solid growth, this
was not enough to support the share price, which tumbled nearly 6 per cent by midday,
making Anta the worst-performing blue chip. Tsang notes that the weak Anta brand
performance was widely expected. In response to intense domestic competition, Anta has
been building up its overseas brand sales for several years, especially outside of FILA.
Last year, these other brands saw annual retail growth of around 50 per cent, helping to
offset the slowdown at home, otherwise, the share price would have faced even greater
pressure.
He predicts that the brand's quarterly sales decline will only weigh on Anta's share
price in the short term. With the forward price-to-earnings ratio dropping to around 15
times, the stock may start to attract investors looking for a bottom, especially if
overseas brand growth continues. He sees stronger support around HKD 77. However, despite
efforts to boost domestic demand, the overall retail environment remains challenging, and
investors are unlikely to pay a high premium even at lower valuations, limiting Anta's
rebound. He expects resistance to emerge when the PE ratio rises to 16-17 times, or around
HKD 86.
Anta is also actively pursuing an acquisition of PUMA, but reports suggest PUMA's major
shareholder is unwilling to accept a low offer, keeping the deal at a stalemate. Tsang
believes PUMA would be Anta's most challenging acquisition ever given its global presence
and brand value, which PUMA's owners are well aware of, making a bargain deal unlikely. If
Anta insists on acquiring PUMA, it will likely have to pay a significant premium, which
could add to share price pressure. Tsang concludes that whether Anta pays up or walks
away, the deal will weigh on the share price, but walking away might be the better option.