[ET Net News Agency, 18 December 2025] Blue Owl Capital has reportedly withdrawn from a
planned USD 10 billion data centre financing deal with Oracle, a move later confirmed by
Oracle itself. The news sent Oracle shares sharply lower, dropping more than 5% overnight.
The Nasdaq closed down 1.8%, putting pressure on Hong Kong tech stocks this morning. The
Hang Seng Index opened 137 points lower, but reversed course in early trade, briefly
turning positive before meeting resistance at 25,500 and resuming its decline. By midday,
the HSI was down 111 points, or 0.4%, at 25,357, with main board turnover close to HKD
79.1 billion. The Hang Seng China Enterprises Index slipped 52 points, or 0.6%, to 8,790,
while the Hang Seng Tech Index fell 68 points, or 1.3%, to 5,389.

"Kwok Ka Yiu: HSI likely to remain range-bound with low volatility through year-end"

Overnight, tech stocks led Wall Street lower as all three major indices fell, with most
Asia-Pacific markets following suit. The HSI opened more than 100 points lower, at one
stage losing over 200 points. Later, an upswing in A-shares helped the HSI briefly turn
positive, but the index failed to find follow-through above the 25,500 level. Ka Yiu Kwok,
the Director of Business Development at Harbour Family Office, told ET Net News Agency
that since entering December, the HSI has been trading in a narrow range, mostly within a
1,000-point band. With the US rate cut now behind us and recent mainland data
disappointing, even the Central Economic Work Conference has offered only limited support
for equities. As the market remains directionless, investors have grown more cautious and
turnover has stayed subdued. Kwok expects the HSI to continue trading with low volatility
and light turnover, likely remaining in the 25,000 to 26,000 range through year-end.

"Unverified lithography machine news fails to ignite chip stocks"

According to a Reuters report, Chinese scientists have produced a prototype of an
extreme ultraviolet (EUV) lithography machine for cutting-edge semiconductor
manufacturing. This prototype, completed in early 2025 and currently undergoing testing,
was reportedly built by a team of former engineers from Dutch semiconductor giant ASML.
Sources say the machine is up and running and has successfully generated EUV light, though
it has not yet produced usable chips. The secret project, dubbed "China's Manhattan
Project", highlights Beijing's ambition to compete with the West in AI chip technology.
Kwok noted that since the news has yet to be independently verified, it is difficult to
confirm whether this technological breakthrough is genuine. While China is devoting vast
resources to overcome bottlenecks in high-end chip R&D, even if the technology is cracked,
full-scale mass production remains a distant goal. Still, if China can indeed produce EUV
lithography machines, given its manufacturing prowess, this would represent a major
competitive advantage for domestic chipmakers.
China's two major listed chip stocks, SMIC (00981) and Hua Hong (01347), showed little
reaction today. Both opened lower and, despite some mid-session gains, spent most of the
morning under pressure. Kwok observed that the lithography machine news failed to provide
a boost for chip stocks, underscoring continued investor caution. SMIC, in particular, has
fallen sharply from its October high of HKD 93.5, losing 31.9% to a recent low of HKD
63.65. Given the current sluggish market, Kwok does not rule out further volatility in the
short term, but expects SMIC to find support around the HKD 60 level. Investors bullish on
potential chip breakthroughs in China might consider accumulating at these levels.
Compared with Hua Hong, SMIC enjoys more policy tailwinds and thus remains Kwok's top pick
among domestic chip stocks.