[ET Net News Agency, 09 December 2025] Hong Kong equities opened on an uncertain note,
with broad-based declines across metals, property, domestic consumption, chipmakers, and
tech stocks dragging the Hang Seng Index firmly into negative territory. By midday, the
HSI had fallen 215 points or 0.8% to 25,549, its lowest level since 24 November, on
turnover of nearly HKD 107.8 billion. The Hang Seng China Enterprises Index lost 101
points or 1.1% to 8,981, while the Hang Seng Tech Index dropped 74 points or 1.3% to
5,587.

"Yuen Che Hay: Fed and BOJ rate decisions largely priced in"

Market turnover in Hong Kong remains subdued and sentiment continues to deteriorate.
After the HSI lost over 300 points and touched its 100-day moving average yesterday, no
rebound materialised in early trade; instead, the index slid another 200-plus points.
Based on yesterday's close, more than 900 series of HSI callable bull contracts were
knocked out. Yuen Che Hay, the Co-Director of Investment Strategy of Quam Asset
Securities, told ET Net News Agency that the key for the HSI now is to hold the 25,200
level, the critical support seen in both October and November. If this level is breached,
a further decline towards 24,500 could follow, making 25,200 pivotal for stabilising the
market. Yuen pointed out that there have been no major negative news catalysts recently;
rather, the steady decline is likely due to capital rotation. He expects the HSI to hold
above 25,200 following the Fed meeting, as the market has already priced in a 25bps rate
cut this time, as well as two more 25bps cuts next year, with only the timing in question.
If the outcome matches expectations, there should be no new pressure on Hong Kong stocks.
Regarding the more unpredictable risk of a Bank of Japan rate hike, Yuen noted that
concerns about unwinding of yen carry trades appear to have been largely absorbed, as
indicated by bitcoin's recent stabilisation. He expects that major risks from yen
volatility have already been priced in and that any unwinding of related trades is mostly
done. As such, the actual BOJ decision is likely to have only a muted impact on the
market. However, he cautioned that if the BOJ's post-meeting statement hints at further
rate hikes, this could trigger significant volatility, as the market is not currently
pricing this in.

"H200 chip supply to China could boost AI sector, pending Mainland China response"

Former US President Trump announced via Truth Social that he had personally notified
Nvidia of approval to export H200 chips to China, claiming a "positive response from
President Xi," and that 25% of revenue from related sales will go to the US. Yuen noted
that the H200 is more advanced than the earlier H20 and even the H100, though still not on
par with the Blackwell series. Nonetheless, the H200 is superior to most domestically
produced chips commonly used in China. Yuen expects the H200 to be highly attractive to
both the Chinese government and tech firms, with the only question being whether mainland
authorities still have reservations about Nvidia chips.
Previously, although Trump had approved sales of the H20 chip to China, Mainland China
authorities ultimately banned their use in data centres and other tech companies on
national security grounds. According to Yuen, the H200 represents a significant step up
from the lagging H20, and while China has developed some even more advanced chips, these
have yet to reach mass production or widespread application. If H200 chips are permitted
for use in China, they would immediately boost data processing speeds in AI and data
centre sectors, an instant upgrade over the current domestic landscape. The ball is now in
Beijing's court after the US signalled its readiness.
Yuen believes that this development is immediately positive for data centre and cloud
computing stocks, though the scale of the boost will depend on whether Beijing authorises
their use. For a meaningful rally, investors will look for announcements from individual
firms or from Nvidia regarding the actual volume of H200 exports to China. AI
infrastructure stocks in Hong Kong initially surged on the news, but gains narrowed as the
session wore on. GDS (09698) rose 4.1% to HKD 35.58, extending its four-day rally to
9.48%. Kingsoft Cloud (03896) climbed 1.78% to HKD 6.3.