Hong Kong markets are beginning to show signs of improving momentum, with selective sectors stabilising after months of volatility and consolidation. While broader market sentiment remains cautious, several large-cap names are starting to trade more constructively above key moving averages, suggesting that buyers may gradually be stepping back into the market.

In this month’s SDR update, we highlight three Hong Kong leaders: SMIC, Bank of China and Baidu, that are showing improving technical structures alongside fresh 1GT Bullish signals. From semiconductors and AI-related technology to financials, these setups reflect areas where momentum is beginning to strengthen as key support levels continue to hold.

Semiconductor Manufacturing International Corp. (981.HK), commonly known as SMIC, is China’s largest semiconductor foundry and a key player in the country’s push toward greater technological self-sufficiency. The stock often attracts strong attention during periods of renewed optimism toward AI, chips, and China technology-related themes.

SMIC’s structure has turned constructive after a prolonged consolidation phase previously. 

Price has recently rebounded strongly near the HK$63 (S$2.02) support zone and is now trading firmly above both the 100-day (red line) and 200-day (blue line) moving averages. 

The 20-day (green line) has also sloped higher, indicating that short-term momentum is strengthening quickly.

A recent 1GT Bullish signal emerged after it broke above the HK$80 (S$2.56) resistance, a level where it has been capped under for the past few months.

Since then, buying momentum has remained strong, with price now pushing toward the next key resistance zone.

Price is currently approaching the HK$92 (S$2.94) resistance level, where price previously was not able to break above. 

A successful breakout above this level could open the path toward HK$100 (S$3.20), which represents the next major upside target and a potential psychological resistance area.

💡 So how does one take a position in Semiconductor Manufacturing International Corp. from the HK SDR traded on the SGX?

You can take a position via the SMIC HK SDR 5to1 (Ticker: HSMD), which trades on the SGX with a 5 SDR to 1 underlying share ratio. 

Using the 0.16 HKD-to-SGD exchange rate, the SDR is currently priced around S$2.60–S$2.80, reflecting the underlying chart structure.

Conservative traders may prefer to accumulate closer to the HK$80 (S$2.56) support zone on pullbacks.

More aggressive traders could look to position on a confirmed breakout above HK$92 (S$2.94), with HK$100 (S$3.20) as the next upside target, while keeping HK$80 (S$2.56) as the key level that needs to be held.

Bank of China Limited (3988.HK) is one of China’s “Big Four” state-owned banks and plays a major role in supporting domestic lending, trade financing and cross-border financial activity. As one of the country’s largest financial institutions, the stock is often closely tied to sentiment surrounding China’s economic recovery and banking sector stability.

Price is now trading firmly above both the 100-day (red line) and 200-day (blue line) moving averages, with both lines gradually sloping higher, a sign that the longer-term trend is stabilising and beginning to strengthen. 

The 20-day (green line) is also pointing upwards, reflecting improving short-term momentum.

A recent 1GT Bullish signal emerged around the end of March, where the price started to show more strength and momentum. 

Since then, the stock has continued to show momentum and is now consolidating beneath a key resistance.

Price found a higher support around HK$5.00 (S$0.80), where prices have managed to stay above since April.  

Price is currently testing the key HK$5.30 (S$0.85) resistance level, which the price has been capped under for the past few weeks. 

A sustained breakout above this zone could open the path toward HK$5.60 (S$0.90), which represents the next key upside target.

As long as price remains above these support levels, the broader structure remains constructive and supports the potential for further upside continuation.

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

You can take a position via the Bank of China HK SDR 1to1 (Ticker: HBND), which trades on the SGX with a 1 SDR to 1 underlying share ratio. 

Using the 0.16 HKD-to-SGD exchange rate, the SDR is currently priced around S$0.84–S$0.86, reflecting the underlying chart structure.

Conservative traders may prefer to accumulate closer to the HK$5.00 (S$0.80) support zone on pullbacks.

More aggressive traders could look to position on a firm breakout above HK$5.30 (S$0.85), with HK$5.60 (S$0.90) as the next upside target, while keeping HK$5.00 (S$0.80) as the key level that needs to be held.

Baidu Inc. (9888.HK) is one of China’s leading technology companies, with businesses spanning internet search, artificial intelligence, cloud computing, and autonomous driving. The stock is often viewed as a proxy for sentiment toward China’s technology and AI-related sectors.

From a technical perspective, the stock is attempting to stabilise after it reached the peak of HK$160 (S$2.56) earlier this year. 

Price has rebounded from the HK$100 (S$1.60) support zone and is now trading above the rising 200-day (blue line) moving average, with the 100-day (red line) still sloping upwards as well.  

The 20-day (green line) has also been sloping higher, suggesting that short-term momentum is gradually improving.

A recent 1GT Bullish signal appeared in mid-April, where the price has rebounded from the HK$100 (S$1.60) support level and showed more strength afterwards.

Price is currently testing the immediate HK$130 (S$2.08) resistance level, which remains an important psychological level. 

A sustained move above this level could open the path toward HK$160 (S$2.56), where the next major upside target sits and where stronger profit-taking may emerge.

As long as these support levels continue to hold, the broader stabilisation structure remains intact and suggests that the recovery phase may continue to build momentum.

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

You can take a position via the Baidu HK SDR 10TO1 (Ticker: HBUD), which trades on the SGX with a 10 SDR to 1 underlying share ratio. 

Using the 0.16 HKD-to-SGD exchange rate, the SDR is currently priced around S$2.10–S$2.20, reflecting the underlying chart structure.

Traders could look to position when the price stabilises above HK$130 (S$2.08), with HK$160 as the next major upside target, while keeping HK$100 (S$1.60) as the key level that needs to hold.

 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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