[ET Net News Agency, 06 February 2025] The United States Postal Service previously
announced the suspension of receiving international inbound parcels from Mainland China
and Hong Kong, but made adjustments within a day. The latest announcement stated that they
will resume receiving all international inbound parcels and mail from Mainland China and
Hong Kong, effective on Wednesday (5th), with the expectation that the tariff exemption
clause will remain unchanged. With the uncertain state of Sino-US relations, the Hong Kong
stock market has not closely followed suit. The Hang Seng Index opened 1 point higher,
fluctuating narrowly after the market opened until tech stocks surged, keeping the Hang
Seng Index up by about 50 points, gaining 58 points or 0.3% at midday to reach 20,655,
with the main board trading close to HKD 79.7 billion. The Hang Seng China Enterprises
Index reported 7,587, up by 21 points or 0.3%. The Hang Seng Tech Index reported 4,977, up
by 47 points or 1%.

"Yip Sheung Chi: Hang Seng Index is to peak at 21,000 for short-term"

Yip Sheung Chi, the Chief Strategist of First Shanghai Securities, told ET Net News
Agency that Sino-US policies are changing, but many policies, such as the temporary
suspension of tariffs on Mexico and Canada, may not be implemented immediately after
announcement. Additionally, the current policy intensity remains within market
expectations, and it is believed that the market is gradually adapting to the uncertainty
of US policies. He expects that in the short term, the Hang Seng Index will fluctuate
between 19,600 and 21,000.
He emphasized that the current Sino-US struggle only affects the market sentiment, and
besides monitoring Sino-US negotiation news, more attention should be paid to the economic
situations of both China and the US. For instance, whether there will be economic stimulus
policies introduced during the upcoming meetings. This is the key point of market focus.

"AI hype will not cease, but topics will be shifted"

Lenovo Group (00992) is hyping the prospects of AI applications and is currently on the
rise, with a continuous increase for 4 days, totalling a 23.4% increase. It temporarily
reached a high of HKD 11.66 in the morning, challenging the high of HKD 11.87 at May 2024
for the fifth time. Yip Sheung Chi believes that Lenovo's upward trend is strong and has
the potential to break the resistance level of HKD 12, but it will not skyrocket. He
explained that the emergence of DeepSeek has provided a new direction for AI applications
such as computers and servers, but the actual effects of AI applications have not yet been
demonstrated. The current trend of Lenovo's stock price reflects anticipated profit growth
in the next two years, and for further breakthroughs, market reactions to their AI
products must be considered. He pointed out that many AI-related stocks including Lenovo
and Kingsoft Cloud (03896) can continue to be hyped, but their stock prices are already on
the expensive side.
YOFC (06869) is also within the scope of AI application speculation, having previously
surged to HKD 21.2, reaching a historical high, but its current trend is downward, with
the current price having dropped by 20% from the peak of HKD 21.2. Yip Sheung Chi stated
that the stock is currently in an adjustment phase after the surge, focusing on
consolidation before breaking through HKD 18, and can be considered for purchase below HKD
15. He pointed out that China will definitely strengthen AI infrastructure in the future,
and as long as the market still believes that AI investment is valuable, the hype around
AI will continue, although the specific sub-topics of speculation may vary, such as the
previous hype around AI hardware chips, now shifting to AI software applications.