[ET Net News Agency, 07 January 2026] US stocks advanced overnight, with both the Dow
Jones and S&P 500 reaching new record highs. In contrast, Hong Kong equities saw a
pullback this morning as technology and oil stocks led the decline. The Hang Seng Index
closed the morning session at 26,438, down 272 points or 1 per cent, with main board
turnover nearing HKD 148.6 billion. The Hang Seng China Enterprises Index dropped 103
points or 1.1 per cent to 9,140, while the Hang Seng Tech Index fell 96 points or 1.7 per
cent to 5,729.

"Mak Ka Ka: Renminbi likely to encounter resistance at 6.9 this year"

After three consecutive days of gains to start the new year, Hong Kong stocks finally
experienced a technical pullback, with the HSI dropping more than 200 points in early
trade. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac
Securities (Asia), told ET Net News Agency that after the recent run-up, today's weakness
represents a healthy technical consolidation. She expects the Hang Seng Index to remain
range-bound between 26,000 and 26,800 in the short term, with any significant breakout
depending on capital inflows and whether the Renminbi can maintain its recent strength.
Although the HSI has sometimes fallen even as the Renminbi has strengthened, Mak pointed
out that as most Hong Kong-listed companies report in Renminbi, a firm currency is
fundamentally positive for their earnings. With the Federal Reserve expected to enter a
rate-cutting cycle and the US dollar outlook remaining soft, the Renminbi is likely to
remain supported this year, staying within the range of 6.9 to 7.1 against the US dollar.

"Speculative trading in brain-computer interface stocks requires nimble positioning"

Elon Musk recently posted on social media that his brain-computer interface company
Neuralink plans to begin large-scale production of its devices in 2026, alongside the
rollout of a highly streamlined, almost fully automated surgical procedure. The news has
fuelled speculative trading in BCI concept stocks both in China and overseas. In Hong
Kong, relevant plays include Nanjing Panda (00553), MicroPort Neuro (02172), and
BrainAurora (06681), all of which have direct exposure to the sector. Lens (06613) is also
involved in mass production of key hardware modules for Qiangnao Technology, one of
Hangzhou's "Six Little Dragons".
Mak noted that the BCI theme is gradually moving from concept to application, with
initial commercial use cases in healthcare and artificial intelligence. Neuralink's mass
production announcement has boosted capital market attention towards the sector, including
both Hong Kong and A-share markets. She pointed out that, while there is growing
involvement among mainland-listed companies, in Hong Kong the main names are Nanjing Panda
and MicroPort Neuro, with upstream electrode material suppliers also worth monitoring.
However, Mak expects the sector to remain primarily a thematic story, with share prices
likely to remain volatile and driven by speculation. She advises that BCI stocks are best
approached as short-term trades rather than long-term investments. While the industry's
development in China may accelerate, large-scale commercial production remains some way
off. For instance, Nanjing Panda's BCI business is still a negligible contributor to its
revenues, and its core electronic components business faced pressure last year. Mak
cautioned that investors chasing the trend should be mindful of the risks.