Update on Hong Kong Exchange
This is an update to our note titled Hong Kong Exchange dated 7th July ‘21.
Like many others, HK Exchange’s stock has been a tricky one to trade this entire year. An initial break-out earlier in July, brought forth when Didi’s delisting (and Chinese ADRs homecoming) was first mentioned, quickly crumbled under the heavy sour sentiment over-hanging the market, and the continued tanking of the HSTECH index (Hang Seng Tech Index).
Yet, with more details recently from the Exchange itself, over how they will be supporting this inevitable ‘Homecoming’ of Chinese ADRs, ATEC thinks it actually adds on to its positive case.
Sure, there is not much interest in the Hong Kong market for now, since no one is sure when the HSTECH will end its drop, nor is anyone willing to bet on an immediate stimulus from Beijing.
Yet, based on our technical framework, ATEC thinks that the corrective wave for the stock is looking very mature. For now, we will set HK$480 as a trigger level.
Good luck out there.