Don’t Miss the Turn: These 3 HK Tech Giants Are Building Strength

Executive Summary

The tide may finally be turning for Hong Kong’s equity market and quietly, its tech giants are leading the charge. While media headlines stay focused on property debt and geopolitical risks, the charts of three major Hong Kong names, Xiaomi, Semiconductor Manufacturing International Corp and Tencent, are showing renewed strength. Each of these SGX-traded SDRs has flashed fresh 1GT (Pro) bullish signals, backed by rising momentum and trend alignment across all timeframes.

What’s fueling this resurgence? Behind the scenes, the Hong Kong Monetary Authority has just lowered interest rates in step with the Fed, while local leadership has pledged to accelerate economic support. Combined with steady southbound inflows from the mainland and a more constructive risk tone, we’re now seeing solid technical setups emerge. 

In this article, I’ll break down each chart, highlight the key levels, and show how you can position using the SDRs listed in Singapore, giving you seamless exposure without FX conversion.

1) Semiconductor Manufacturing Intl Co (0981.HK), SMIC HK SDR 5to1 (HSMD)

Semiconductor Manufacturing International Corp (0981.HK), China’s leading pure-play semiconductor foundry, has returned to the spotlight with a renewed uptrend and a strong technical breakout in recent sessions.

After months of range-bound movement, the stock has steadily climbed back above all its key moving averages. Most recently, it broke out from the HK$65 (S$2.21) resistance zone, fueled by a bullish 1GT (Pro) signal that triggered late August.

Now, both the 100-day (red) and 200-day (blue) moving averages are also pointing upward, reinforcing a strong long-term uptrend.

With momentum building, price is now approaching the HK$75 (S$2.55) resistance. A successful breakout above this zone could pave the way toward the next key level at HK$85 (S$2.89).

The current structure shows a series of higher lows since June, backed by stable volume, signs that the bulls are in control.

2 support zones to monitor includes the Immediate support at HK$65 (S$2.21) and a stronger base at HK$55 (S$1.87), where the previous bullish move originated

💡 So how does one take a position in SMIC from the HK SDR traded on the SGX?

Well, you can take a position in this SDR, which is named SMIC HK SDR 5to1 (HSMD), currently priced around S$2.40–S$2.50.

A conservative approach would be to accumulate near HK$65 (S$2.21) on pullbacks, where dynamic support and structure align.

A more aggressive entry could come on a confirmed breakout above HK$75 (S$2.55), with an eye on HK$85 (S$2.89) as the next upside target.

Note: Since the SDR ratio is 1 SDR to 1/5 of a SMIC share, the price in SGD is computed by taking the HKD price, multiplying it by the 0.17 exchange rate, and dividing by 5.

2) Tencent Holdings Ltd (700.HK); Tencent HK SDR 10to1 (HTCD)

Tencent (0700.HK) is a leading Chinese technology conglomerate, best known for its WeChat platform, gaming empire (including titles like Honor of Kings), and extensive investments across tech, cloud, and fintech. 

It has continued its impressive run, breaking out to new multi-month highs and firmly reclaiming market leadership among Chinese tech stocks.

On the daily chart, Tencent had previously tested the key resistance zone near HK$660 (S$11.22), following a powerful trend continuation from the HK$600 (S$10.20) base. This latest surge is backed by consistent volume and persistent momentum, with the 20-day, 100-day, and 200-day moving averages all sloping upwards and well-aligned.

More importantly, the recent uptrend was preceded by a textbook bullish structure, with the last two 1GT Bullish signals flashing as the price bounced off the 100-day moving average. These signals correctly captured the start of the impulse move from late July, which is now stretching into late September.

With HK$660 (S$11.22) now tested, the next upside target lies at HK$720 (S$12.24), if the HK$660 (S$11.22) level gives way to form a new support, a level not seen since early 2021. This zone could act as a natural profit-taking area if the current rally extends.

On the downside, the first support to watch is HK$600 (S$10.20), followed by HK$540 (S$9.18), which served as a launchpad for the July breakout.

💡 So how does one take a position in Tencent from the HK SDR traded on the SGX?

You can take a position in this SDR, which is named Tencent HK SDR 10to1 (HTCD), currently priced around S$10.50 – S$11.00.

A retracement toward the HK$600 could present an opportunity to accumulate on the dips, where conservative traders could position themselves to ride the potential rebound toward HK$660 (S$11.22).

An aggressive strategy would be to ride the breakout above HK$660 (S$11.22), aiming for HK$720 (S$12.24) as the next target.

Note: Since the SDR ratio is 1 SDR to 1/10 of a Tencent share, the price in SGD is calculated by taking the HKD price, multiplying by the exchange rate (0.17), and dividing by 10.

3) Xiaomi Corporation Class B (1810.HK); Xiaomi HK SDR 2to1 (HXXD)

Xiaomi Corp (1810.HK) is a global consumer electronics giant, manufacturing smartphones, smart home devices, and IoT products, with a growing presence in electric vehicles and ecosystem software. 

The company has seen renewed buying interest this month, after bouncing off the 50.00 HKD (S$4.25) level and witnessing a new 1GT Bullish signal just a couple of weeks ago. This signal was timely, marking the latest rebound from its 20 day and 100 day moving averages (green and red line).

Technically, Xiaomi is now reclaiming bullish momentum. The price has closed above its 20-day (green) and 100-day (red) moving averages, with all three major MAs turning upward again, signaling a potential continuation of the broader uptrend that began last year.

On the upside, immediate resistance lies around 60.00 HKD, which corresponds to S$5.10 based on current exchange rates and SDR ratio. A break above this zone could open the door toward the next resistance band near 70.00 HKD (S$5.95),  marking a new all time high.

Support-wise, the 50.00 HKD level (S$4.25) remains the key area to monitor. This level has provided multiple springboards for past rallies as the 200 day moving average is close it as well

💡 So how does one take a position in Xiaomi from the HK SDR traded on the SGX?

You can take a position in this SDR, known as Xiaomi HK SDR 2to1 (HXXD), currently priced around S$4.50–S$5.00.

A conservative entry approach would be to accumulate on pullbacks toward the 50.00 HKD (S$4.25) support, where trend-following buyers may step in again.

An aggressive strategy would be to enter on a confirmed breakout above the 60.00 HKD (S$5.10) resistance, with a potential upside target at 70.00 HKD (S$5.95).

Note: This SDR represents half a share (2 SDRs = 1 share), so to convert HKD to SGD, multiply the HKD price by 0.17 and divide by 2.

 About the Author - Joey Choy

Joey is Singapore’s renowned mentor on how to make an income by trading the stock market, an author and one of the most-watched, quoted and followed stock trading trainers in Singapore. Over the years, he has conducted numerous full house seminars, enriching thousands to trade more profitably. 

Joey’s come back story from a S$740k debt has been featured in the Business Times and inspired thousands in Singapore. In less than 3 years, he is highly regarded as one of the Top Tier Remisiers (Stock Brokers) and Traders, bagging numerous yearly awards like Top Trading Representative and Top CFD Achiever every year from 2014 to 2023 in Phillip Securities.

More about Joey here

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