Hong Kong teeters: 15 stocks affected by Wall Street pressure

The Hong Kong stock market is experiencing a volatile start to the year, with the first trading day of the Year of the Horse marked by a significant decline. Investors are facing pressure from the performance of the U.S. market, which continues to exert a direct influence on Asian markets. The day revealed a peculiar characteristic: an overwhelming presence of bullish certificates in transactions, dominating the available instruments by a wide margin.

Bullish Certificates Lead but with Correction Warning

According to Ming Pao, bullish certificates accounted for a substantial portion of the trading volume, leaving little room for bearish positions. However, this concentration in optimistic positions has raised alarms among market professionals about the risk of a “bull trap,” a common phenomenon when consensus becomes too one-sided. This dynamic forces investors to stay vigilant about the direction of 15 key stocks that could determine the short-term overall trend.

Technical Signals Warn of Weakening of the Main Index

Kwok Si-chi, Vice President of the Hong Kong Securities Analysts Association, shared his perspective on the current market behavior. While acknowledging some volatility in quotes, he anticipates a recovery pattern in the coming weeks, with a weak opening followed by an upward movement. However, technical indicators paint a more cautious picture: the Hang Seng Index has fallen below its major moving averages, both the 10-day and 20-day. This break of technical supports suggests uncertainty that requires attention, especially for those closely monitoring these stocks, as it could signal further corrections before any sustained recovery.