[ET Net News Agency, 24 March 2026] US President Trump said US-Iran talks made initial
progress and delayed planned strikes on Iranian power and energy infrastructure by five
days, sending the Dow up over 1,000 points at one stage. Tehran denied direct talks and
insisted the war will not end until all sanctions are lifted. Asia-Pacific markets
nevertheless attempted a rebound: the HSI opened over 350 points higher but struggled to
reclaim 25,000. Southbound saw over HKD 11.2 billion net outflows by midday. The HSI rose
447 points or 1.8% to 24,829 at the half. HSCEI was 8,426 (+1.4%) and HSTECH was 4,779
(+1.4%). Turnover was near HKD 149.6 billion.

"Jaseper Tsang: HSI's rebound depends on heavyweights; near term likely choppy"

APAC performance was mixed. Even where Japan and Korea bounced, gains were far smaller
than yesterday's declines. Despite HSI futures topping 25,000 overnight, the cash index
peaked around 24,815 before slipping. Jaseper Tsang, Vice-Chairman of the Hong Kong
Institute of Financial Analysts and Professional Commentators Limited, told ET Net News
Agency that while Trump's remarks slightly cooled tensions, they do not resolve the core
impasse. With Iran denying direct talks and vowing no end to war before sanctions are
lifted, investors remain cautious. Trump's penchant for overstatements further erodes
credibility; markets are looking instead for concrete signs that traffic through the
Strait of Hormuz normalizes. With none yet, and Brent rebounding in Asian hours after last
night's drop, the HSI's rebound room is capped.
Tsang said the rebound's strength hinges on buying in heavyweights. HSBC (00005) is
constrained by Middle East exposure, once a key growth pillar, now clouded by war,
potential capital outflows, and even credit risk if the conflict drags on. Among tech
bellwethers, Tencent (00700) delivered few surprises and Alibaba (09988) missed
expectations; investors also worry both will lift AI capex, pressuring earnings. Without
solid sponsorship in these names, a broad index surge is unlikely. Near term, the HSI's
path will track Middle East headlines; failure to reclaim the 250-day line (~25,100) soon
leaves risk of further swings, with 24,000 possible if tensions worsen.

"WuXi AppTec high-value drugs lift margins"

WuXi AppTec (02359) posted 2025 net profit of RMB 19.195 billion, up 105% year on year;
proposed a final dividend of RMB 1.57927, bringing FY total to RMB 1.9639 (+36.2%).
Revenue rose 15.8% to RMB 45.456 billion. Gross margin improved from 40.8% (2024) to
47.0%.
Post-results, the stock jumped as much as ~10%. Tsang said the beat versus expectations
and higher payout signal confidence in cash flow. Adjusted non-IFRS attributable net
profit was RMB 14.96 billion (+41.3%), also ahead of forecasts. Guidance for 2026 calls
for revenue of RMB 51.3-53.0 billion, with continuing operations growing 18-22% y/y,
underscoring management's constructive outlook. Tsang said the margin expansion was driven
by a higher mix of high-value therapeutics, a direction likely to continue.
Tsang said the valuation remains undemanding at roughly 16-17x forward P/E versus peers
at 24-25x. While US growth has improved, some investors still price in a risk premium tied
to prior US biosecurity legislative overhang. Even assigning 22x P/E implies fair value
near HKD 135, leaving upside to current levels. Given today's results-driven pop and
ongoing Middle East headline risk for Hong Kong stocks, Tsang suggests waiting for
pullbacks toward around HKD 105 for a relatively safer entry.