Where are we now in the Hong Kong Stock market ?Now, it is always clearer when we have a longer time frame to plot the chart and it seems more common sense why we should buy later and not earlier. Bear in mind that the chart is constantly plotting its price movements and in December 2022, that was the picture shown and one has to rely on this to make a decision.
Of course, if you are trading, then you would have a stop loss, probably at 16968 level. But if you are like me who see the longer term potential of the China market, then a paper loss of 20% is pretty common. And you would average down at 17193 recently when it presents another better buying opportunity.
19116 is an important support level and the price action has went down below it. The next support is at 17193 level and if this breaches, then it is possible that it may returns back to the bearish trend again. I doubt so when the National Team in China are seriously propping up the stock market with different measures.
If we take 14903 as the bottom price point, then the index has risen more than 32% , thus a 8-10% retracement is very common. It should be a buying opportunity for those who continues to believe in the cheap valuation of the Hong Kong stock market.
The only sectors that remains hazy is the property sectors which may take some years to stabilise(2025-2026). Banks are pretty stable not forgetting they are state owned so the government will ensure its viability. Tech stocks are what drives the China market in the coming years - robotics, AI, E-commerce, EV, semiconductors, etc which the Government continues to pour investments into it.
I remain bullish on the HK/China stock market and will continue to accumulate on weakness. Please DYODD
