The bankruptcy of SVB Silicon Valley Bank continued to ferment, causing investors to pay attention to the global banking system. The decline in the European bank index dragged down European stock markets, and the risk aversion sentiment in the financial market rose.
The Hang Seng Technology Index (HSTECH) adjusts its constituent stocks at the end of each month, and the latest update time is February 28, 2023. After adjustment, the three companies with the largest proportion since March 2023 are: Tencent Holdings, Xiaomi Group and Alibaba. The stock price fluctuations of these three companies have the greatest impact on the trend of the Hang Seng Technology Index.
Hong Kong stocks continue to be affected by the trend of mainland China and the US stock market. At present, the market is focusing on the follow-up of the bankruptcy of SVB Silicon Valley Bank, and the risk aversion sentiment is high.
Overseas, the bankruptcy of SVB Silicon Valley Bank in the United States continued to ferment. Although the U.S. government and the Federal Reserve intervened, investors were still worried that more banks might have problems, especially in Europe. European stocks opened sharply lower, further stimulating risk aversion.
In mainland China, the “two sessions” of the CCP concluded successfully, and the market is waiting for the policies of the new leadership team to be introduced.
Chart trend: pay attention to the resistance at the 4000 mark
Chart from IG
After HSTECH fell below the 4000 mark, this line turned into a strong resistance, and the short-term downward pressure was huge. Continue to pay attention to the long and short competition for this line. If the Hang Seng Technology Index continues to be under pressure here, it may continue to test 3800 and point to 3500 after falling below; if it recovers 4000 and stabilizes, it is expected to resume the upward test of 4400. At present, the performance of European and American stock markets dominates the trend of Hong Kong stocks.
The Hang Seng Technology Index gathers the best technology and Internet stocks in Hong Kong, and has great potential for rebound and rise. As the macro fundamentals are changing, especially as the Fed’s interest rate hike cycle is approaching the end, and China’s economic momentum is re-gathering, foreign capital is re-pricing the Chinese and Hong Kong stock markets, and buying opportunities are highlighted. Periodic adjustments will not hinder the long-term trend. It is advisable to consider regular investment to buy the Hang Seng Technology Index ETF and wait for the market to rise.
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