---
title: "Hong Kong Stock Market Review: Exploiting Loopholes"
type: "News"
locale: "zh-CN"
url: "https://longbridge.com/zh-CN/news/209935408.md"
description: "Hong Kong Stock Market Review: Taking advantage of the loophole. The policy of equipment updates has an impact on industries such as electric power, chemicals, and railways. The development of 6G will not increase much expenditure, but the larger-scale policy has surprised the market. The domestic economy relies on exports. With the increase in tariffs and the rise in exchange rates after Tespu took office, it is expected to introduce more stimulus policies. EAST BUY has taken advantage of calculation methods to exploit loopholes, which is unfavorable to small shareholders. Exercise caution towards EAST BUY, as financial data has been revised downwards, with profits declining by 25-40%. Stock prices and operations face challenges"
datetime: "2024-07-26T11:48:49.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/209935408.md)
  - [en](https://longbridge.com/en/news/209935408.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/209935408.md)
---

> 支持的语言: [English](https://longbridge.com/en/news/209935408.md) | [繁體中文](https://longbridge.com/zh-HK/news/209935408.md)


# Hong Kong Stock Market Review: Exploiting Loopholes

The policy of equipment updates, coupled with the emergence of the 6G trial network, has led the market to believe that telecom operators are about to bleed, with China Unicom, the least funded, suffering the most severe decline.

However, equipment updates involve multiple industries, with the main focus being on electric power, energy, chemical industry, and railways. On average, the expenditure for each industry is not substantial. While 6G may advance, the spending will not be significant on top of the already extensive 5G coverage. Ultimately, the market has overreacted, especially considering the Hang Seng Index has already experienced a downturn this year.

Compared to past policies, these new measures are on a larger scale, with the central government's funding proportion increased to 90%, which has indeed surprised the market. Considering that the domestic economy in recent years has been supported by exports, with the new tariffs and rising exchange rates under the new administration, coupled with the current subsidy deadline by the end of the year, there may be expectations for more stimulating policies to be introduced next year.

Furthermore, the incident involving EAST BUY once again highlights the loopholes in the Hong Kong stock market.

In the first half of this year, Hui Tongxing had a net profit of 141 million yuan, compared to EAST BUY's profit of only 250 million yuan in the second half of last year. However, the transaction price was calculated based on net assets, a practice that is generally only used in the absence of market reference value or during company liquidation.

By this calculation, the valuation of 100% equity of Hui Tongxing is only about 76.58 million yuan, which is less than half of its half-year profit. Although the announcement explained that the company heavily relies on influencers, so other valuation methods cannot be used. Moreover, based on the insignificant amount, it does not constitute a major transaction and does not require a shareholder vote at the general meeting, which to some extent exploits a loophole and disregards the interests of minority shareholders.

After the release of the previous article, those who still firmly believe in EAST BUY are mostly based on its self-operated product strategy and platform strategy. While it cannot be said that failure is inevitable at this point, the uncertainty has increased significantly. Today's significant drop mainly reflects the downward adjustment of this year's financial data. Brokerage firms generally predict a profit decline of 25-40% this year. Regardless of stock price or operational aspects, there are numerous challenges to be faced

### 相关股票

- [EAST BUY (01797.HK)](https://longbridge.com/zh-CN/quote/01797.HK.md)

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