The Hong Kong stock market experienced significant volatility following six consecutive days of gains. During the trading session, the Hang Seng Index initially saw a sharp decline, but managed to recover in the afternoon. By the close, the index narrowed its loss to 1.47%, settling at 22,113.51 points, after briefly dropping over 4% earlier in the day. The Hang Seng Tech Index also closed down 3.46%, having plunged more than 7% at one point. Overall market turnover reduced to HKD 310.3 billion.
Sectors including real estate, pharmaceuticals, and industrials experienced notable declines. Specifically, shares of CIFI Holdings and Sunac China plunged over 20%. Among Chinese brokerage firms, Huatai Securities rose over 12%, while Citic Securities fell more than 8%.
Zhang Yidong, Chief Global Strategy Analyst at Industrial Securities, commented on the market's turbulence. He suggested that this volatility confirms a reversal logic rather than a short-lived rebound. He anticipates that both the Hong Kong and A-share markets will transition from recent forced short squeezes to more sustained reversal trends. Investors are encouraged to abandon bearish sentiments in favor of bullish outlooks for October, viewing the fluctuations as opportunities to identify lasting and impactful investment themes. The medium-term market potential remains open-ended, with sustained capital inflows expected, similar to predictions made in May that foreseen a peak of both domestic and international capital influx starting in Q3.
