[ET Net News Agency, 17 March 2026] US Treasury Secretary Bessent said the US currently
does not mind some Iranian, Indian and Chinese oil tankers passing through the Strait of
Hormuz. Together with Trump pressing allies to join the escort plan, oil pulled back from
highs, aiding a rebound in US stocks overnight. The three major indices closed higher.
Asia Pacific equities rose this morning, and Hong Kong stocks continued higher led by new
consumption and Mainland China property. At midday, the HSI was at 26,088, reclaiming
26,000, up 254 points or 1%, with main board turnover near HKD 140.2 billion. The Hang
Seng China Enterprises Index was at 8,898, up 81 points or 0.9%. The Hang Seng Tech Index
was at 5,180, up 68 points or 1.3%.

"Mak Ka Ka: Middle East factors are gradually being priced in, lifting the HSI to 26,000"

Geopolitical tensions persist, but external markets are broadly firmer. After opening
over 100 points higher, the HSI extended gains under heavyweight tech leadership, at one
point rising more than 400 points to a two-week high. Mai Ka Ka, Head of Financial
Products Trading and Research Department of SinoPac Securities (Asia), told ET Net News
Agency that although Middle East tensions have not eased and are unlikely to reverse in
the near term, the market has been gradually digesting this uncertainty. Tech shares had
seen steep declines and became oversold, drawing investors to accumulate ahead of
earnings.
The Fed will announce its rate decision this week. Mak noted that while the market
expects a pause with rates unchanged, the statement and dot plot may hint at future cuts,
which are in focus. She expects that if the Fed does not cut, the HSI will likely
oscillate around 26,000 in the near term, with initial support near 25,800, and in an
optimistic case could test 26,500.

"Leapmotor found the right overseas partner, boosting brand value"

Leapmotor (09863) posted RMB 538 million in net profit last year, versus a RMB 2.821
billion net loss a year earlier. Revenue was RMB 64.732 billion, up 1x year on year. The
group's full-year vehicle deliveries ranked first among China's new energy vehicle
upstarts, with 596,000 units delivered, up 103.1% versus 2024, marking a second straight
year of doubling. It is the only China NEV upstart with a single-month delivery exceeding
70,000 units. Leapmotor rose for an eighth straight day, up 4.71% at midday to 46.66.
Mak said Leapmotor has performed strongly over recent quarters, with gross margin
hitting 15% in Q4 on continuous quarter-on-quarter improvement. Product mix optimisation
and cost control strategies have delivered solid results. While competition in the
Mainland China auto market is intense this year, the recent surge in oil prices, if
sustained, could further accelerate the oil-to-electric transition, easing pressure on EV
makers.
Mak added that Leapmotor's exports are impressive mainly because it found a powerful
overseas partner in Stellantis. While the name may be less prominent in Asia, its
portfolio includes world-renowned high-value marques such as Jeep and Maserati, along with
a strong sales network. This not only expands Leapmotor's export footprint but also brings
a brand premium, providing significant support.
Leapmotor's share price peaked at HKD 76.3 last year before retreating to a HKD 37.64
low earlier this month, effectively halving. It has since risen for eight straight days.
Mak said the early-month low attracted institutional inflows that triggered a rebound.
However, with today's sizable gain and ongoing geopolitical uncertainties abroad still
impacting the market, she expects Hong Kong stocks to remain volatile in the short term.
For investors interested in the name, she suggests buying on pullbacks near HKD 42 for
relatively better safety, with a target of HKD 51 to 52.