[ET Net News Agency, 26 March 2026] With signs of a temporary ceasefire in Iran, the
market's focus has shifted back to Hong Kong's earnings season. Several blue chips slumped
after results, and new-consumption names tumbled as well. The HSI again lost the so-called
bull-bear line, the 250-day moving average (around 25,114). By midday it fell 347 points
(-1.4%) to 24,988, with main board turnover above HKD 136.7 billion. HSCEI was 8,452
(-1.5%); HSTECH 4,817 (-2.1%).

"Wong Wai Ho: 24,200 isn't an unbreakable floor"

Yesterday's headlines hinted at progress in US-Iran talks, but both sides' conditions
are tough, keeping expectations cautious. The HSI popped above the 250-day line and
quickly rolled over, at one point down more than 400 points intraday. Wong Wai Ho, the
First Vice President of the Yan Yun Family Office (HK) Limited, told ET Net News Agency
that with neither side likely to fully accept the other's terms, and Israel yet to weigh
in, uncertainty remains high, prompting a pullback across Hong Kong and broader Asia.
With the HSI seesawing around the 250-day average, Wong sees 24,200 (the recent low) as
key support, but cautions that headline-driven swings make technicals less reliable. If
Middle East news worsens, 24,200 could still break; he does not advise piling in just
because that level is reached.

"Earnings disappointments cloud the outlook; optimism likely to fade next quarter, but not
turn outright bearish"

As earnings season wraps up, many focal names have underwhelmed, often due to weaker
guidance. Wong is watching upcoming results from heavyweight Mainland China financials; if
their outlooks also soften, large investors may trim Hong Kong exposure. At the start of
the year, consensus turned upbeat and earnings forecasts were raised, but recent prints
haven't matched that optimism. If financials' guidance also misses, the market could face
valuation compression next quarter.
That said, he doesn't foresee a steep Q2 selloff. Some de-rating has already been priced
in. Sentiment is less optimistic than early in the year, but hasn't flipped decisively
bearish.

"Pop Mart faces multiple headwinds; advises a more pragmatic stance"

Pop Mart (09992) reported full-year revenue and profit both more than doubling, with
Americas revenue up over 7x. But management's FY guidance was cautious, targeting only
about 20% revenue growth, triggering a 22% plunge yesterday. Bearish broker calls
followed, and the stock fell another 9% this morning, the second-worst blue chip. Wong
says the weaker-than-expected guide is the main driver; many brokers had penciled in ~30%,
so 20% disappointed and sparked the two-day slide.
He adds that Pop Mart's prior outperformance may have pulled forward 1-2 years of
growth. In a choppy tape, risk appetite is lower; on fundamentals, demand for
discretionary goods is also being marked down, amplifying selling pressure. Technically,
the stock has slid to around HKD 150, with P/E near 14x, more reasonable, but challenges
remain: cooling enthusiasm for IPs like Labubu and rising input costs. Therefore, HKD 150
is not necessarily a must-buy level.
Wong sees new IPs as key to reaccelerating growth, but even the fastest-rising "Twinkle
Twinkle" series hasn't replicated Labubu's phenomenon. He advises a more pragmatic stance
on Pop Mart rather than chasing narratives.