【Hong Kong Stock Analysis】Hong Kong stocks rose over 400 points following external markets; FuShang: Middle East instability may drive Hong Kong investment market, "personal safety" becomes an advantage

The market continues to watch the latest developments in Iran. Oil prices fell overnight, while regional stock markets generally rose. The Nikkei Average initially gained 0.5%, and the Seoul Composite Index in South Korea rose over 2%. The Hang Seng Index once increased by more than 400 points this morning. Alibaba (09988), which will release earnings on Thursday, rose 3%. Geely Auto (00175) was included as an autonomous driving partner by NVIDIA (US: NVDA), with its stock price rising 6% to a four-month high.

The Hang Seng Index rebounded on Monday, returning to the 10-day moving average, with slightly increased trading volume, but Northbound funds turned to net outflows. The Iran conflict shows signs of turning, affecting many Middle Eastern countries. There are reports that wealthy families in the Middle East are secretly transferring assets from Singapore and Dubai to Hong Kong. Wu Ying-shan, Director of Wealth Management at Fuchang Financial, analyzed in our video program “ET Market Opening Live” that the instability in the Middle East could indeed boost Hong Kong’s investment market. “Many wealthy families establish family offices. Previously, a major advantage in the Middle East was tax exemption, but I believe the greater advantage now is personal safety. If geopolitical instability leads to bombings of buildings and airports, I don’t think tax policies will help much. Therefore, Hong Kong, as an international financial center, could be one of the main destinations for family offices or wealthy investors transferring assets from the Middle East.”

Regarding the trend of the Hang Seng Index, she pointed out that the 25,000-point level provides strong support. “This level has formed four bottoms already. If it can hold, and market sentiment eases, the index could rise above 27,000 points.”

She reminded investors that this Wednesday, Tencent (00700) and Alibaba (09988) will release earnings, which will significantly influence market sentiment, especially regarding AI innovation or capital gains. “How these turn out is very important.”

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