[ET Net News Agency, 22 June 2026] It is reported that during the US-Iran negotiations, US President Donald Trump posted on a social media platform stating that Iran must immediately stop its proxy actions in Lebanon, otherwise the US will launch strikes against Iran. It is reported that the Iranian delegation considered Trump's threatening remarks inappropriate and left the negotiations on the spot. Iranian media reported that the Iranian side has lodged a protest with the US side, and the US side has not yet responded. The HSI closed the half-day session at 23,690, down 233 points or 1%, with main board turnover exceeding HKD 200.3 billion. The Hang Seng China Enterprises Index stood at 7,893, down 82 points or 1%. The Hang Seng Tech Index stood at 4,542, down 62 points or 1.4%.
"Cheung Chi Wai: Does not rule out the HSI falling to last year's low of 22,700 points in the worst-case scenario"
Following the long weekend, the Hong Kong stock market showed weak performance upon resuming trading this morning. The HSI opened 113 points lower, and the decline further widened, with the intraday low once hitting 23,444 points, marking another new low within this year. Cheung Chi Wai, a joint managing director at Prudential Brokerage Ltd, told ET Net News Agency that the HSI's disappointing performance today was mainly due to the triple whammy of three negative factors. Firstly, regarding external and geopolitical aspects, the progress of the US-Iran negotiations has not been ideal, and Iran once again announced the closure of the Strait of Hormuz, causing renewed turmoil in the Middle East situation and dragging down the performance of some external stock markets. Meanwhile, Chinese officials announced the inclusion of 10 US entities onto the export control list and implemented restrictive measures against 46 US companies in government procurement activities, a move that has further escalated China-US tensions. Apart from external factors, the derivatives market was also under pressure. According to the bull/bear callable contracts (CBBC) street doctor distribution chart, today's low has touched the heavy zone of bull contracts at 23,500 points. To fully digest the liquidity of bull contracts near the low, the HSI technically must break below the support level of 23,500 points.
In addition, major heavyweight e-commerce stocks such as Alibaba and Meituan were previously summoned for regulatory talks by Chinese regulators over their promotional methods for the "618 Shopping Festival", leading to declines in their stock prices and dragging down the broader market. Cheung Chi Wai pointed out that the HSI has currently exhibited a weakening trend of "five consecutive negative candlesticks". Regardless of how the Middle East situation or oil price trends develop, the market remains in a downward phase in the short term, and he advises investors that they must remain cautious. He added that if the HSI subsequently confirms a break below the 23,500-point support level, the next key support level will retreat to the level of 22,700 points seen in June last year.
"Zhipu may fall as fast as it rises; investors should prepare for both scenarios"
Despite the sluggish market sentiment, individual stocks still delivered brilliant performances. Zhipu (02513) maintained its upward trend from last week, surging over 40% at one point after opening higher today. Cheung Chi Wai believes that Zhipu's stock price has significantly benefited from its flagship model "GLM-5.2" launched in early June. Although it has become a market norm for various enterprises to scramble to launch new models and engage in involutionary competition, the market response to Zhipu's launch of its flagship model this time has been excellent, ranking third globally in the model intelligence index, which has convinced the market of its substantial profitability and monetisation capabilities.
Apart from Zhipu's outstanding performance, Cheung Chi Wai pointed out that other peer stocks such as MINIMAX (00100), as well as related leveraged products like the XL2 CSOP SK Hynix, also showed stable performances today against the market trend. He analysed that this reflects the current market pattern of "stock picking over index trading", with capital being highly concentrated in "golden track" stocks that possess strong prospects. Therefore, the AI concept sector appears to benefit even more under the current market trend.
Zhipu's stock price has been rising step by step recently, and many investors may be inclined to chase the highs. However, Cheung Chi Wai reminded retail investors that the adjustment volatility of this type of technology stock is extremely large, often exhibiting characteristics of "sharp rises and sudden plunges". Coupled with the fact that the company has not yet recorded actual profits, investors who intend to enter the market must strictly control their position sizes and absorb shares in batches. If there is no urgency to enter the market at this stage, he suggests waiting for the stock price to pull back below HKD 2,000 before considering buying in stages, so as to reduce the risk of catching a falling knife at high levels.
Apart from deploying in the AI sector, Cheung Chi Wai also suggested that investors could turn their attention to individual stocks with excellent fundamentals and industrial backing, such as Ping An (02318) and Jiangxi Copper (00358). Under the current market conditions, investors might as well adopt a two-pronged strategy: on one hand, allocating a portion of funds into the popular "golden track" stocks, and on the other hand, holding industrial stocks with higher defensiveness to balance the overall risk of the investment portfolio.
"Cheung Chi Wai: Does not rule out the HSI falling to last year's low of 22,700 points in the worst-case scenario"
Following the long weekend, the Hong Kong stock market showed weak performance upon resuming trading this morning. The HSI opened 113 points lower, and the decline further widened, with the intraday low once hitting 23,444 points, marking another new low within this year. Cheung Chi Wai, a joint managing director at Prudential Brokerage Ltd, told ET Net News Agency that the HSI's disappointing performance today was mainly due to the triple whammy of three negative factors. Firstly, regarding external and geopolitical aspects, the progress of the US-Iran negotiations has not been ideal, and Iran once again announced the closure of the Strait of Hormuz, causing renewed turmoil in the Middle East situation and dragging down the performance of some external stock markets. Meanwhile, Chinese officials announced the inclusion of 10 US entities onto the export control list and implemented restrictive measures against 46 US companies in government procurement activities, a move that has further escalated China-US tensions. Apart from external factors, the derivatives market was also under pressure. According to the bull/bear callable contracts (CBBC) street doctor distribution chart, today's low has touched the heavy zone of bull contracts at 23,500 points. To fully digest the liquidity of bull contracts near the low, the HSI technically must break below the support level of 23,500 points.
In addition, major heavyweight e-commerce stocks such as Alibaba and Meituan were previously summoned for regulatory talks by Chinese regulators over their promotional methods for the "618 Shopping Festival", leading to declines in their stock prices and dragging down the broader market. Cheung Chi Wai pointed out that the HSI has currently exhibited a weakening trend of "five consecutive negative candlesticks". Regardless of how the Middle East situation or oil price trends develop, the market remains in a downward phase in the short term, and he advises investors that they must remain cautious. He added that if the HSI subsequently confirms a break below the 23,500-point support level, the next key support level will retreat to the level of 22,700 points seen in June last year.
"Zhipu may fall as fast as it rises; investors should prepare for both scenarios"
Despite the sluggish market sentiment, individual stocks still delivered brilliant performances. Zhipu (02513) maintained its upward trend from last week, surging over 40% at one point after opening higher today. Cheung Chi Wai believes that Zhipu's stock price has significantly benefited from its flagship model "GLM-5.2" launched in early June. Although it has become a market norm for various enterprises to scramble to launch new models and engage in involutionary competition, the market response to Zhipu's launch of its flagship model this time has been excellent, ranking third globally in the model intelligence index, which has convinced the market of its substantial profitability and monetisation capabilities.
Apart from Zhipu's outstanding performance, Cheung Chi Wai pointed out that other peer stocks such as MINIMAX (00100), as well as related leveraged products like the XL2 CSOP SK Hynix, also showed stable performances today against the market trend. He analysed that this reflects the current market pattern of "stock picking over index trading", with capital being highly concentrated in "golden track" stocks that possess strong prospects. Therefore, the AI concept sector appears to benefit even more under the current market trend.
Zhipu's stock price has been rising step by step recently, and many investors may be inclined to chase the highs. However, Cheung Chi Wai reminded retail investors that the adjustment volatility of this type of technology stock is extremely large, often exhibiting characteristics of "sharp rises and sudden plunges". Coupled with the fact that the company has not yet recorded actual profits, investors who intend to enter the market must strictly control their position sizes and absorb shares in batches. If there is no urgency to enter the market at this stage, he suggests waiting for the stock price to pull back below HKD 2,000 before considering buying in stages, so as to reduce the risk of catching a falling knife at high levels.
Apart from deploying in the AI sector, Cheung Chi Wai also suggested that investors could turn their attention to individual stocks with excellent fundamentals and industrial backing, such as Ping An (02318) and Jiangxi Copper (00358). Under the current market conditions, investors might as well adopt a two-pronged strategy: on one hand, allocating a portion of funds into the popular "golden track" stocks, and on the other hand, holding industrial stocks with higher defensiveness to balance the overall risk of the investment portfolio.
