[ET Net News Agency, 22 December 2025] US stocks ended higher last Friday (19th) despite
a surge in trading volumes on "triple witching" day, with all three major indices closing
in positive territory. European markets set new all-time highs, and the upbeat sentiment
spilled over into Asia-Pacific markets. The Hang Seng Index opened more than 100 points
higher, but met resistance at its 100-day moving average (around 25,868), before paring
gains to close the morning up 51 points, or 0.2%, at 25,742. Main board turnover reached
nearly HKD 95.6 billion. The Hang Seng China Enterprises Index rose 24 points, or 0.3%, to
8,925. The Hang Seng Tech Index advanced 49 points, or 0.9%, to 5,528.

"Mak Ka Ka: HSI likely to trade between 25,400 and 26,000 in the near term"

The HSI has now posted four consecutive gains, but remains capped by the 100-day moving
average, consolidating in a narrow range. Mak Ka Ka, Head of Financial Products Trading
and Research Department of SinoPac Securities (Asia), told ET Net News Agency that, with
both lower funding costs and a stronger renminbi providing support, the HSI is poised to
test the 26,000 level in the short term and is likely to trade between 25,400 and 26,000.
She noted that the recent US rate cut has reduced overall funding costs, while the
renminbi's recent rally against the US dollar, breaking through 7.04 to a 14-month high,
has boosted sentiment towards Hong Kong equities.

"China Shenhua's internal restructuring a long-term positive, but short-term uncertainties
remain"

China Shenhua (01088) announced a proposed acquisition from its parent, China Energy
Investment Corp, involving a basket of coal mining and coal chemical production and sales
businesses, 12 core subsidiaries in total, for a consideration of RMB 133.6 billion. The
assets span key segments of the energy value chain, including coal mining, pithead
coal-fired power, coal chemicals, and port and shipping operations.
Mak commented that the restructuring addresses a two-decade-long issue of competition
between Shenhua and its parent, improving resource integration and sector concentration.
It is a significant step in SOE reform and energy sector consolidation. In the long run,
as the company expands its asset base and strengthens its value chain, both its dividend
capacity and valuation could rise. The post-restructuring group will have a more complete
"coal, power, logistics, chemicals" integrated model, with increases in coal reserves,
annual output, and power generation capacity, while chemical output, such as polyolefins,
will also grow, further cementing its industry leadership and pricing power.
However, following the announcement, China Shenhua's shares briefly fell nearly 3%. Mak
explained that, while the deal is structurally positive for the company, in the short term
the market must digest uncertainties relating to deal approval, integration, and potential
refinancing. As such, shares may not see a significant immediate rally and are expected to
fluctuate in the HKD 38-41 range in the near term.
Mak added that her stance on the stock is currently neutral, as it may take a year or
two for the group to fully absorb the newly injected assets and for the benefits to be
reflected in its valuation.