[ET Net News Agency, 23 January 2026] A series of strong US economic data released on
Thursday helped all three major indices to rise again. While Wall Street has now posted
two consecutive days of gains, both the S&P 500 and Nasdaq have yet to fully recover the
ground lost in Tuesday's sharp sell-off, with only the Dow having returned to previous
levels. Meanwhile, reports that Alibaba (09988) is planning to spin off its chip division
for a separate listing triggered a surge in Hong Kong stocks at the open. The Hang Seng
Index opened more than 200 points higher and briefly approached the 26,900 mark, but
selling pressure emerged at the highs and the index quickly retreated. At midday, the HSI
was up 88 points, or 0.3 per cent, at 26,718, with main board turnover exceeding HKD 127.9
billion. The Hang Seng China Enterprises Index rose 30 points, or 0.3 per cent, to 9,145.
The Hang Seng Tech Index edged up 7 points, or 0.1 per cent, to 5,769.

"Tam Long Wai: Strength in traditional shares and the renminbi underpin HSI performance"

With geopolitical risks easing and US stocks rebounding for a second day, the
strengthening renminbi and positive news such as Alibaba's planned chip spinoff have
provided further support for Hong Kong equities, with the market briefly touching 26,895
in early trade. Tam Long Wai, Co-Director of Fulbright Securities Limited, told ET Net
News Agency that although Alibaba's chip listing news is positive, the main drivers behind
recent gains have actually been traditional sectors like financials and resources, rather
than the tech giants themselves.
The renminbi's central parity rate against the US dollar was set at 6.9929 today,
breaking above the key 7 level for the first time since 18 May 2023 and rising 90 pips
from the previous trading day to end a two-day losing streak, marking a new high in over
two and a half years. Tam highlighted that a stronger renminbi supports both mainland and
Hong Kong stock markets. As long as the HSI holds above 26,400, he expects that momentum
from traditional shares and the robust renminbi could see the index attempt to retest the
prior high of 27,381, or possibly move even higher in the short term.

"Alibaba's ecosystem provides an edge; T-head seen outperforming Kunlun chip"

According to Bloomberg, Alibaba is preparing to list its semiconductor developer
"T-Head", but the IPO timetable remains unclear. Tam commented that the news has
heightened market attention on Alibaba's AI ambitions, but the ultimate impact will depend
on the valuation assigned to T-Head. Regarding Alibaba's share price, he believes the
spinoff could provide sustained upward momentum for a period, and as long as the HKD 160
level holds, the stock could challenge its previous high of HKD 186.
Alibaba's T-Head will inevitably be compared to Baidu's (09888) earlier spinoff of
Kunlun Chip. Tam pointed out that the market is watching which chip business delivers
greater value to the parent group's overall ecosystem. Alibaba enjoys a broader business
portfolio spanning consumption and technology, and the integration of T-Head is expected
to generate greater synergies and offer more scope for market imagination.
He further noted that many listed companies, such as Xiaomi (01810), have their own chip
businesses, but most of these plans have only been in place for less than a year and are
not yet mature, so talk of spinoffs or new growth drivers remains premature. For now, only
Alibaba and Baidu have relatively mature chip arms. Technology stocks with chip businesses
are seen as more resilient, since the chip sector is currently a market focus, and
companies with exposure to chips are viewed as having greater growth potential than those
with a single business line.