Home Forex Markets Hang Seng Technology Index (HSTECH) Trend Analysis: Geopolitics dominates the market, with strong wait-and-see sentiment

Hang Seng Technology Index (HSTECH) Trend Analysis: Geopolitics dominates the market, with strong wait-and-see sentiment

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Hang Seng Technology Index (HSTECH) Trend Analysis: Geopolitics dominates the market, with strong wait-and-see sentiment


A number of negative factors have raided the market, among which the US House of Representatives Speaker Nancy Pelosi’s trip to Asia has attracted special attention.

market atmosphere

The Hong Kong stock market was led by short-term factors, focusing on the direction of Sino-US relations.

Externally, the Speaker of the U.S. House of Representatives, Nancy Pelosi, is campaigning for the Biden administration’s midterm elections and is embarking on a trip to Asia. The Chinese military has warned the U.S. not to visit Taiwan. With Pelosi’s special plane taking off from Singapore, the situation in the Taiwan Strait is at a tense moment. Affected by uncertain factors, investors tended to avoid risks. Asia-Pacific stock markets fell in recent days, and Hong Kong stocks also retreated. Confirmation is expected after 22:00 (GMT+8).

In the internal disk, everyone is waiting for the results, and the market has a strong wait-and-see mood.

In addition, the news that Alibaba was included in the “pre-delisting” by the US Securities Regulatory Commission on Monday suppressed its stock price. As the first constituent stock of HSTECH, Alibaba’s stock price collapsed. According to the “Foreign Company Accountability Act” passed by the United States in 2020, Alibaba needs to prove to the SEC within 15 days that it does not meet the conditions for delisting, otherwise it will be transferred to the definitive list. After entering the list, if the U.S. regulatory agency cannot check the review manuscript for three consecutive years, it may be forced to be delisted.

At the same time, Tencent’s share price fell below the HK$300 mark yesterday, hitting a three-year low, causing Hong Kong stocks and the Hang Seng Technology Index to continue to drop.

Chart trend

Hang Seng Technology Index (HSTECH) Trend Analysis: Geopolitics dominates the market, with strong wait-and-see sentiment

Consistent with last week’s analysis, HSTECH maintained a shock of 4800-3800, the index continued to drop after falling below 4500, and the resistance moved down to the 4300 line. Next, focus on the support of 4000-3800, until it effectively breaks below 3800 to open a new downward space. The market outlook will continue to rise above 4800.

Fixed investment strategy

In terms of strategy, in the long run, the valuation of Hong Kong stocks is relatively low, and the Hang Seng Technology Index has concentrated Hong Kong’s top technology Internet stocks, so it is still the best choice to buy the Hang Seng Technology Index; the short-term market is disturbed by unexpected factors. , to maintain the fixed investment ideas and fixed investment scale unchanged.

(by Arthur)

Follow me on Twitter @ArthurZ22426704

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