[ET Net News Agency, 15 April 2026] After US President Trump revealed receiving a call
from Iran, a new round of Iran-US negotiations is expected to commence in Pakistan within
the next two days. US stocks further reflected expectations for the talks, extending the
previous night's rally. Asia-Pacific markets generally rose, with Hong Kong stocks
regaining 26,000 at the opening, breaking through both the 50 day moving average (around
26,070) and the 100 day moving average (around 26,082) simultaneously for the first time
in a month and a half. However, resistance remains strong at that level, and the gains
narrowed. The HSI closed the midday session at 26,069, still below the 50 day and 100 day
moving averages, up 197 points or 0.8%, with main board turnover nearing HKD 135 billion.
The Hang Seng China Enterprises Index stood at 8,747, up 75 points or 0.9%. The Hang Seng
Tech Index stood at 4,943, up 91 points or 1.9%.

"Mak Ka Ka: Market remains cautiously optimistic, HSI rebound strength limited"

According to US President Trump, the US and Iran may restart meetings in Pakistan within
two days, raising hopes for a ceasefire. Brent crude oil futures dropped to the USD 95
dollar, and US inflation concerns eased. Mak Ka Ka, Head of Financial Products Trading and
Research Department of SinoPac Securities (Asia), told ET Net News Agency that market
expectations for a US-Iran ceasefire have risen, turning the atmosphere optimistic and
boosting risk appetite, with falling oil prices driving equities up. However, the market
remains in a wait and see mode regarding the progress of peace talks, and the HSI rebound
strength is limited. Current resistance is at 26,500 with support at 25,500. Future trends
depend on the negotiation results.
Recently, southbound inflow momentum has significantly weakened. From Friday 10 Apr to
14 Apr, the scale of net inflows and outflows was only around HKD 2 billion. Mak Ka Ka
stated that the HSI currently lacks positive economic data and news to support an upward
surge, causing southbound investors to adopt a wait and see attitude. With the HSI
fluctuating in a narrow range, southbound performance has been quiet. She noted that
whether southbound funds regain active inflows depends on whether more positive economic
data and corporate profit surprises support Hong Kong stocks. Furthermore, a return to
normal passage in the Strait of Hormuz would also benefit investment sentiment.

"Impact of share placements limited to individual stocks"

CATL (03750) is reportedly considering a new round of share placements in Hong Kong,
planning to raise up to USD 5 billion, news of which caused its share price to drop over
7% yesterday. Following this, several listed companies also announced placements or stake
reductions. For instance, TransThera (02617) intends to place 5.085 million shares at an
18% discount, raising approximately HKD 280 million net; CStone Pharma (02616) plans to
raise over HKD 1.05 billion via a placement at a nearly 7% discount.
Mak Ka Ka believes today's placement actions by multiple firms mainly impact individual
stocks, with limited impact on the overall market. Regarding individual stocks, she noted
that while placements create downward pressure, stocks like CStone Pharma use the funds
for R&D, leading to higher market tolerance. For large-cap firms like CATL, although the
share price fell over 7% yesterday, the decline significantly narrowed today, reflecting
that the market is gradually digesting the news, though time is still needed for full
absorption.

"Undervalued pharmaceutical sector attracts capital"

The General Office of the State Council today issued "Several Opinions on Improving the
Price Formation Mechanism for Medicines," proposing 14 measures to optimise the mechanism.
Pharmaceutical stocks rose collectively, with Innovent Bio (01801) up about 4%; Fosun
Pharma (02196) up over 3%; and CSPC Pharma (01093) up over 2%. However, Mak Ka Ka pointed
out that the rise was primarily driven by the market's view that valuations in the
healthcare sector are currently low, with news impact being relatively limited. Mak Ka Ka
explained that the pharmaceutical sector is less sensitive to market volatility and
performs stably, making it attractive for capital during volatile periods. As the market
remains in wait and see mode, capital easily flows into this sector during periods lacking
clear investment themes. She suggests investors build positions when the sector is at low
levels.
Mak Ka Ka added that performance within the pharmaceutical sector is quite polarised. In
terms of deployment, she suggests prioritising large-cap pharmaceutical stocks, such as
Wuxi Bio (02269), whose recent pipeline status and overseas orders provide earnings
certainty. She expects the stock to fluctuate between HKD 35.5 and 39 recently and
suggests waiting for the price to pull back to the HKD 35.5 level before deploying.