On October 6th,how to convert usdt to usd on binance prior to the reopening of A-shares and Hong Kong Stock Connect, there was a rebound correction in the Hong Kong stock market. However, the market turnover remained below 50 billion yuan, indicating an overall cautious and wait-and-see sentiment.
The Hang Seng Index rose by more than 270 points but remained constrained below the key resistance level of 17,800 points. Therefore, in the short term, the pattern of seeking a bottom and exploring further downside is expected to continue without significant changes.
The market still expresses concerns about the Federal Reserve's current policy of maintaining high interest rates, fearing that it may deepen the impact on the macroeconomy, potentially triggering a liquidity crisis similar to the Silicon Valley Bank and Credit Suisse earlier this year.
In fact, Metro Bank, a British bank, may need to raise £600 million due to not meeting capital requirements. From a trend perspective, the first resistance level for the Hang Seng Index (key resistance for rebound) is still observed at 17,800 points. Only by breaking through this resistance level can there be room for further upward movement; otherwise, the short-term market is believed to remain in a pattern of seeking a bottom and exploring downside.
On the other hand, as we mentioned, although the Hong Kong stock market has reached the final stage of bottoming out, there may still be opportunities for a post-decline rebound during the operation. However, based on past experiences of reaching a bottom, it still requires a significant increase in market turnover to confirm the appearance of a phase bottom for Hong Kong stocks.
In the current situation of continued shrinking market volume, it is believed that the Hong Kong stock market is still in a phase of seeking a bottom, but it is estimated to have entered the final stage of short-term decline. However, it is important to note that the end of a decline wave often represents the highest volatility period. Therefore, in terms of operations, it is still necessary to pay attention to the rhythm and be prepared with cash, mindset, and a list. Moreover, more importantly, it is about waiting for the market to experience a final significant volume decline before embracing the risk.
In summary, it is recommended to consider buying on dips below the value level of 18,000 points for the Hang Seng Index, but it is advisable to execute in stages and batches. As for the potential stocks to consider, they include China Resources Beer (00291), Hong Kong Exchanges and Clearing (00388), Tencent (00700), CNOOC (00883), China Mobile (00941), Lenovo (00992), BYD (01211), WuXi Biologics (02269), Li Ning (02331), Haidilao (06862), SMIC (06969), and Baidu-SW (09888), among others. It is suggested to continue monitoring these stocks.
The Hang Seng Index closed at 17,486 points, up 272 points or 1.58%. The H-share index closed at 5,974 points, up 86 points or 1.46%. The Hang Seng Tech Index closed at 3,816 points, up 58 points or 1.55%.
In addition, the Main Board of the Hong Kong stock market had a turnover of over 47.9 billion yuan, while the short-selling amount was 7.82 billion yuan, resulting in a short-selling ratio of 16.31%, which is still relatively high. As for the ratio of advancing to declining stocks, it was 1,076:460, with 48 stocks experiencing an intra-day increase of over 11% and 49 stocks experiencing an intra-day decrease of over 10%. The Hong Kong Stock Connect will resume on Monday.
