[ET Net News Agency, 29 April 2026] The US Federal Reserve began its two-day interest rate meeting on Tuesday local time. However, reports emerged that OpenAI's new users and revenue failed to meet internal targets, sparking market concerns over future AI investment. Related semiconductor stocks were sold off, dragging the Philadelphia Semiconductor Index down by over 3%. Asia-Pacific markets showed mixed performance, while Mainland China and Hong Kong stocks played catch-up. The HSI opened up by over a hundred points and maintained its high level, briefly reclaiming 26,000 before closing the midday session at 25,995, up 315 points or 1.2%, with main board turnover reaching nearly HKD 133.1 billion. The Hang Seng China Enterprises Index stood at 8,762, up 117 points or 1.4%, while the Hang Seng Tech Index was at 4,879, up 51 points or 1.1%.
"Mak Ka Ka: UAE's exit from OPEC has a medium-to-long-term impact"
The UAE suddenly announced on Tuesday (28/04) that it will officially withdraw from the Organisation of the Petroleum Exporting Countries (OPEC) effective 01/05, stating it aims to break away from Saudi-led collective decision-making and release production capacity at its own pace. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), told ET Net News Agency that the UAE's exit from OPEC will add variables to medium-to-long-term oil supply, as OPEC originally provided oil price stability through supply consensus. However, she noted that the focus of current oil price trends still depends on the development of the situation in the Strait of Hormuz and the recovery timetable for oil production in neighbouring countries. Jaseper Tsang, Vice-Chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators Limited, added that since the UAE's oil exports still rely on the Strait of Hormuz, the actual impact of its exit on supply will depend on the subsequent situation in the strait.
Mak stated that in the short term, oil prices will continue to hover at high levels between 90 and 100 US dollars. However, she mentioned that the market has generally adapted to the high oil price environment. She expects the HSI to fluctuate around the 26,000 level recently, with relatively little room for upside due to a lack of positive news. Tsang also noted that capital is currently speculating on tech hardware such as chip stocks, while Hong Kong stocks mainly reflect the attractiveness of Mainland China enterprises and lack upstream AI companies, making them less attractive to capital in the current investment environment. He expects the HSI to remain within the 25,400 to 26,500 range in the short term, with further gains depending on whether foreign capital can return after risk appetite improves.
"Impact on Hua Hong expected by market; positioning should wait for further share price correction"
According to a Reuters report citing people familiar with the matter, the US Department of Commerce sent letters last week to several major chip equipment manufacturers, including Applied Materials, Lam Research, and KLA, notifying them that new restrictions have been imposed on Hua Hong Semi (01347) and its subsidiary Shanghai Huali Microelectronics, suspending the supply of equipment and other materials to these enterprises.
Following the news, US-listed semiconductor-related stocks Lam Research, Applied Materials, and KLA saw their share prices plunge at Tuesday's (28/04) close, with Lam Research falling 3.1%, KLA falling 4.7%, and Applied Materials falling 5.8%. Hua Hong Semi also recorded a decline of approximately 6% in the first half of today's session.
Mak believes the US ban will bring short-term downward pressure on Hua Hong, but with the support of national policies for Chinese chips, the market will gradually digest the negative news in the medium to long term. Tsang stated that the market had long expected further US sanctions against Mainland China chip companies. While this may affect Hua Hong's production supply in the short term, there is still room for upside in the medium to long term driven by national policies of localisation and self-sufficiency. He noted that today's retracement in Hua Hong's share price is mainly because previous valuations were high, and capital took the opportunity to lock in profits following the news.
Tsang believes that although Hua Hong's share price has retraced today, its valuation remains relatively high. He pointed out that while there is support from national policies for chip localisation and self-sufficiency, it will take at least several years for Hua Hong to truly benefit. Based on long-term earnings growth expectations, the current valuation is still too high. For positioning, he suggests waiting for the share price to fall back to the 50-day moving average (below approximately HKD 92) before accumulating in stages.
"Mak Ka Ka: UAE's exit from OPEC has a medium-to-long-term impact"
The UAE suddenly announced on Tuesday (28/04) that it will officially withdraw from the Organisation of the Petroleum Exporting Countries (OPEC) effective 01/05, stating it aims to break away from Saudi-led collective decision-making and release production capacity at its own pace. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), told ET Net News Agency that the UAE's exit from OPEC will add variables to medium-to-long-term oil supply, as OPEC originally provided oil price stability through supply consensus. However, she noted that the focus of current oil price trends still depends on the development of the situation in the Strait of Hormuz and the recovery timetable for oil production in neighbouring countries. Jaseper Tsang, Vice-Chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators Limited, added that since the UAE's oil exports still rely on the Strait of Hormuz, the actual impact of its exit on supply will depend on the subsequent situation in the strait.
Mak stated that in the short term, oil prices will continue to hover at high levels between 90 and 100 US dollars. However, she mentioned that the market has generally adapted to the high oil price environment. She expects the HSI to fluctuate around the 26,000 level recently, with relatively little room for upside due to a lack of positive news. Tsang also noted that capital is currently speculating on tech hardware such as chip stocks, while Hong Kong stocks mainly reflect the attractiveness of Mainland China enterprises and lack upstream AI companies, making them less attractive to capital in the current investment environment. He expects the HSI to remain within the 25,400 to 26,500 range in the short term, with further gains depending on whether foreign capital can return after risk appetite improves.
"Impact on Hua Hong expected by market; positioning should wait for further share price correction"
According to a Reuters report citing people familiar with the matter, the US Department of Commerce sent letters last week to several major chip equipment manufacturers, including Applied Materials, Lam Research, and KLA, notifying them that new restrictions have been imposed on Hua Hong Semi (01347) and its subsidiary Shanghai Huali Microelectronics, suspending the supply of equipment and other materials to these enterprises.
Following the news, US-listed semiconductor-related stocks Lam Research, Applied Materials, and KLA saw their share prices plunge at Tuesday's (28/04) close, with Lam Research falling 3.1%, KLA falling 4.7%, and Applied Materials falling 5.8%. Hua Hong Semi also recorded a decline of approximately 6% in the first half of today's session.
Mak believes the US ban will bring short-term downward pressure on Hua Hong, but with the support of national policies for Chinese chips, the market will gradually digest the negative news in the medium to long term. Tsang stated that the market had long expected further US sanctions against Mainland China chip companies. While this may affect Hua Hong's production supply in the short term, there is still room for upside in the medium to long term driven by national policies of localisation and self-sufficiency. He noted that today's retracement in Hua Hong's share price is mainly because previous valuations were high, and capital took the opportunity to lock in profits following the news.
Tsang believes that although Hua Hong's share price has retraced today, its valuation remains relatively high. He pointed out that while there is support from national policies for chip localisation and self-sufficiency, it will take at least several years for Hua Hong to truly benefit. Based on long-term earnings growth expectations, the current valuation is still too high. For positioning, he suggests waiting for the share price to fall back to the 50-day moving average (below approximately HKD 92) before accumulating in stages.
