The market continues to track the banking crisis in the United States and Europe, with investors focusing on the attitude of the government and regulators to the bankruptcy of Credit Suisse, while lowering future economic expectations. Global stock market sentiment is relatively cautious.
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. Currently, the banking crisis in the US and Europe dominates the market sentiment.
Overseas, the bankruptcy of Credit Suisse attracted the attention of the market, while continuing to pay attention to the development of the US banking crisis. Successive thunderstorms have heightened investor risk aversion, which is not conducive to stock market performance. Until the global banking system returns to stability, market sentiment will remain disturbed.
On the mainland, the market continues to wait for the policies of the new leadership team to come out.
Chart trend: Below the 4000 mark, there is still a risk of going lower
Chart from IG
HSTECH continued to run below the 4000 mark. Affected by the external market, the trend of Hong Kong stocks continued to pull back. If the Hang Seng Technology Index continues to be under pressure at 4000, once it falls below 3800, it will further point to 3500; if the index recovers to 4000, it will help the bulls restart their upward movement.
The Hang Seng Technology Index gathers the best Internet stocks in Hong Kong. A revolutionary application like ChatGPT is more likely to be implemented in a certain Internet stock. However, the success rate of betting on a certain company is not high. Betting on the index The rebound and upside potential is huge.
New changes are taking place in the macro fundamentals, especially as the Fed’s interest rate hike cycle is approaching the end, and China’s economic momentum is re-gathering, value buying opportunities are emerging, and the current phased adjustments have no substantial impact on long-term growth. It is advisable to consider continuing to invest in the Hang Seng Technology Index ETF and wait for the market to rise.
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