[ET Net News Agency, 13 April 2026] The weekend's direct talks between the US and Iran
in Pakistan failed to reach an agreement due to key differences over nuclear issues and
other matters. US President Donald Trump immediately announced a total blockade of the
Strait of Hormuz by the US military, paralysing maritime traffic at Iranian ports, which
caused oil prices to soar. The collapse of China-US negotiations was not entirely
unexpected by the market; however, Japanese and Korea stock markets fell by approximately
1%. Hong Kong stocks recorded a similar decline in the morning session, with the HSI
reporting 25,587 at midday, down 306 points or 1.2%, with Main Board turnover exceeding
HKD 115.3 billion. The Hang Seng China Enterprises Index reported 8,590, down 64 points or
0.7%. The Hang Seng Tech Index reported 4,812, down 47 points or 1%.

"Cheung Chi Wai: Market is volatile, do not follow too closely"

International oil prices have risen above the USD 100 level, and the reignition of
global inflation has disrupted central banks' plans to cut interest rates, causing tremors
in capital markets. Cheung Chi Wai, a joint managing director at Prudential Brokerage Ltd,
told ET Net News Agency that the sharp rise in oil prices is mainly because both the US
and Iran have now announced blockades of the Strait of Hormuz. This double blockade has
pushed oil prices higher, putting pressure on the HSI. The HSI's rise last week was mainly
driven by market hopes for a ceasefire between the US and Iran, but under the influence of
external news today, it is prone to retracing last week's gains. Additionally, he added
that the HSI closed at 26,073 points last Friday, which is close to the top line of the
Bollinger Band, indicating technical pressure for an adjustment.
Cheung Chi Wai pointed out that the HSI currently faces resistance at the 26,200 level,
while the support level is around 25,182. Given the volatile market performance, he stated
that it is not advisable to "follow too closely" in terms of positioning. He suggested a
staggered approach when buying or selling. When selecting stocks, one could focus on
yield-bearing shares such as Mainland China banks and Mainland China insurance, where
investors can stably harvest dividends of over 5%. For instance, China Taiping (00966) is
worth considering. However, Cheung Chi Wai added that when picking stocks, one should
avoid those in the "eye of the storm", such as HSBC (00005) and other enterprises with
businesses in the Middle East.

"Victory Giant IPO has a strong cornerstone lineup, high confidence for holding"

Mainland China AI and high-performance computing printed circuit board manufacturer and
Nvidia supplier, Victory Giant (02476) (SZ: 300476), is open for H-share IPO subscription
in Hong Kong from today until Thursday (16 Apr). It plans a global offering of 83.348
million H-shares, with approximately 10% for public offer in Hong Kong and the remainder
for international placing. The price per share is HKD 209.88, representing a discount of
approximately 36.86% to its previous A-share closing price. It aims to raise up to HKD
17.493 billion, with a board lot of 100 shares and an entry fee of HKD 21,199.67. The
company is expected to be listed next Tuesday (21 Apr). J.P. Morgan, CITIC Securities, and
GF Securities are the joint sponsors.
Its cornerstone investor lineup is strong, totalling 39 parties, including MSIP under
Morgan Stanley, HHLRA under Hillhouse, Yunfeng Capital founded by Jack Ma and others, and
Janchor Fund. The cornerstone subscription amount accounts for approximately 44.7% of the
total offering. Cheung Chi Wai stated that Victory Giant Technology's business belongs to
the "golden track" of the market, and with dozens of cornerstone investors on board, it is
suitable for subscription. Last week, several other companies also launched IPOs in Hong
Kong, namely Sigenergy (06656), Manycore Tech (00068), and Gpixel (03277), which similarly
attracted many cornerstone investors. Cheung Chi Wai believes that among these four
companies, Victory Giant remains the top choice for subscription because its cornerstone
lineup is stronger and its fundraising amount of HKD 17.2 billion is the highest among the
four. Furthermore, due to its larger market value, funds are more willing to "hold the
stock".