Research from Quam Securities, Quam Securities

Quam Securities Research

Research from Quam Securities

Quam Securities

Since its inception in 1986, Quam Securities Limited (Quam Securities) has grown to become one of the few mid-tier securities brokerages in Hong Kong with global execution capabilities for both private and institutional clients. It boasts a well-established network in Greater China including Taiwan and in major world markets through the Global Alliance Partners (GAP). Quam Securities is well-positioned not only to harness and drive business within the China Tonghai International Financial Limited but also between China and the world markets.

Equity Bottom-Up

The Hang Seng Index is a free-float capitalization-weighted index of a selection of companies from the Stock Exchange of Hong Kong. The components of the index are divided into four subindices: Commerce and Industry, Finance, Utilities, and Properties. The index was developed with a base level of 100 as of July 31, 1964.

<ul>
<li>The HSI opened down 99 pts, with losses widening to more than 280 pts at one stage and briefly falling below the 24,000 mark intraday.</li>
<li>Sentiment remained fragile amid a global selloff in AI-related shares, driven by concerns over intensifying competition in the semiconductor industry, elevated valuations and the returns on heavy AI spending.</li>
<li>However, reports that CXMT made key advances in high-density chip design offered some support, highlighting China’s push to strengthen its position in a critical segment of the semiconductor industry.</li>
</ul>


The HSI opened down 99 pts, with losses widening to more than 280 pts at one stage and briefly falling below the 24,000 mark intraday.
Sentiment remained fragile amid a global selloff in AI-related shares, driven by concerns over intensifying competition in the semiconductor industry, elevated valuations and the returns on heavy AI spending.
However, reports that CXMT made key advances in high-density chip design offered some support, highlighting China’s push to strengthen its position in a critical segment of the semiconductor industry.


Tencent Holdings (ADR) / Equity Bottom-Up

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

<ul><li>The HSI closed at 24,271, up 59 pts or 0.25%, with main board turnover totaling HKD162.6bn, supported by optimism over Beijing’s efforts to stabilize the mainland stock market and developments in China’s technology sector.</li><li>Investor attention centered on Tencent Holdings, which planned to issue senior unsecured bonds denominated in US dollars and offshore yuan, with maturities potentially ranging from 10 to 30 years.</li><li>Meanwhile, reports of shareholder disputes involving AI startup Moonshot AI ahead of its planned Hong Kong IPO raised concerns over corporate governance and disclosure.</li></ul>

The HSI closed at 24,271, up 59 pts or 0.25%, with main board turnover totaling HKD162.6bn, supported by optimism over Beijing’s efforts to stabilize the mainland stock market and developments in China’s technology sector.Investor attention centered on Tencent Holdings, which planned to issue senior unsecured bonds denominated in US dollars and offshore yuan, with maturities potentially ranging from 10 to 30 years.Meanwhile, reports of shareholder disputes involving AI startup Moonshot AI ahead of its planned Hong Kong IPO raised concerns over corporate governance and disclosure.

Cross Asset Strategy

<ul><li>The HSI opened 155 pts higher.</li><li>Sentiment improved as US futures advanced and Asian shares recovered from earlier losses, while oil prices retreated after US President Trump said he would not attack Iran before the midterm elections.</li><li>China’s 10-year government bond yield fell to 1.70% on Friday, retreating from a near one-month high in the previous session, as yuan-denominated debt attracts global borrowers seeking cheaper financing.</li></ul>

The HSI opened 155 pts higher.Sentiment improved as US futures advanced and Asian shares recovered from earlier losses, while oil prices retreated after US President Trump said he would not attack Iran before the midterm elections.China’s 10-year government bond yield fell to 1.70% on Friday, retreating from a near one-month high in the previous session, as yuan-denominated debt attracts global borrowers seeking cheaper financing.

Macroeconomics

<ul><li>The HSI closed at 23,785, down 344 pts or 1.43%, extending its morning losses as broad risk-off sentiment intensified.</li><li>Locally, Hong Kong's private-sector activity remained in contraction, with the September PMI falling to 49.2 from 49.5 in August, marking a second straight month below the 50 threshold.</li><li>SSEC/SZSE/GEI moved by -0.79%/-2.07%/-3.15%, tracking losses across Asian markets after a sharp overnight selloff on Wall Street.</li></ul>

The HSI closed at 23,785, down 344 pts or 1.43%, extending its morning losses as broad risk-off sentiment intensified.Locally, Hong Kong's private-sector activity remained in contraction, with the September PMI falling to 49.2 from 49.5 in August, marking a second straight month below the 50 threshold.SSEC/SZSE/GEI moved by -0.79%/-2.07%/-3.15%, tracking losses across Asian markets after a sharp overnight selloff on Wall Street.

<ul><li>After opening down 108 points, the HSI once tumbled more than 200 points before closing at 24,130, down 150 points or 0.62%, reversing part of previous session's rebound, as renewed gains in oil prices revived inflation and interest-rate concerns.</li><li>Brent crude rose above US$101 a barrel after a storm threatened US Gulf oil facilities and Iran-backed Houthis launched attacks on targets in Saudi Arabia, raising concerns over global energy supplies.</li><li>Hong Kong trading also remained subdued as mainland Chinese markets and Southbound Stock Connect stayed closed for the National Day holiday, limiting mainland buying support.</li></ul>

After opening down 108 points, the HSI once tumbled more than 200 points before closing at 24,130, down 150 points or 0.62%, reversing part of previous session's rebound, as renewed gains in oil prices revived inflation and interest-rate concerns.Brent crude rose above US$101 a barrel after a storm threatened US Gulf oil facilities and Iran-backed Houthis launched attacks on targets in Saudi Arabia, raising concerns over global energy supplies.Hong Kong trading also remained subdued as mainland Chinese markets and Southbound Stock Connect stayed closed for the National Day holiday, limiting mainland buying support.