Hong Kong’s market continues to show encouraging signs of resilience, with leadership emerging from the financial and energy sectors. As market sentiment gradually improves, several large-cap names are regaining momentum after periods of consolidation, supported by strengthening technical structures and renewed buying interest.

In this month’s SDR update, we highlight three Hong Kong leaders: Bank of China, HSBC and PetroChina. Each displays fresh 1GT Bullish signals as prices rebound from key support levels and trend higher. With important resistance levels now coming into focus, these stocks could present opportunities for investors seeking exposure to Hong Kong’s improving market momentum while maintaining disciplined risk management.

Bank of China Limited (3988.HK) is one of China's largest state-owned commercial banks, providing a comprehensive range of corporate banking, retail banking, wealth management and treasury services. With its extensive domestic and international network, the bank remains a key beneficiary of China's economic activity and plays an important role within the country's financial system.

From a technical perspective, the stock continues to trade within a constructive uptrend, supported by the rising 100-day (red line) and 200-day (blue line) moving averages. 

The 20-day (green line) has also turned higher again, reflecting improving short-term momentum after the recent consolidation.

A fresh 1GT Bullish signal emerged as price rebounded from the HK$5.00 (S$0.80) support zone, indicating that buyers have regained control following the pullback. 

This reinforces the positive technical structure and suggests that bullish momentum is beginning to strengthen once again.

Price has broken the HK$5.40 (S$0.86) resistance level, where it has broken above the recent consolidation range, turning into a new support level.

A sustained breakout above this level could pave the way towards HK$5.80 (S$0.93), representing the next major upside target.

As long as this level continues to hold, the broader technical outlook remains constructive and favours further upside.

💡 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$0.86- S$0.90, reflecting the underlying chart structure.

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

More aggressive traders could look to enter after a breakout above HK$5.40 (S$0.86) for further upside momentum towards HK$5.80 (S$0.93), while maintaining support above HK$5.00 (S$0.80) would remain important for the bullish outlook to stay intact.

HSBC Holdings Plc (5.HK) is one of the world's largest banking and financial services groups, with a strong presence across Asia, Europe and the Middle East. The bank offers a diversified range of services spanning retail banking, commercial banking, wealth management and global markets, making it a key proxy for both Asian economic activity and global financial conditions.

From a technical perspective, HSBC continues to display a strong and well-established uptrend. 

Price remains comfortably above the 100-day (red line) and 200-day (blue line) moving averages, while the 20-day (green line) continues to trend higher, reflecting sustained short-term momentum. 

The positive alignment of all three moving averages suggests that buyers remain firmly in control.

After a brief consolidation below HK$150 (S$4.80) around the end of June, a new 1GT Bullish signal emerged, reinforcing the continuation of the prevailing uptrend. 

Since then, the stock has resumed its advance and recently broke above the HK$160 (S$5.12) resistance, turning it into new support.

With price staying above this level, it could signal the continuation of the current rally and potentially open the door for further upside beyond recent highs.

Price is now moving towards the next key resistance level at HK$170 (S$5.44). 

Immediate support is now seen at HK$160 (S$5.12), while stronger support remains at HK$150 (S$4.80). 

As long as these levels continue to hold, the broader technical outlook remains constructive and favours further upside.

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

You can take a position via the HSBC HK SDR 5to1 (Ticker: HSHD), 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$5.35 - S$5.55, reflecting the underlying chart structure.

Traders could look to enter near the immediate support of HK$160 (S$5.12) with the target to be around HK$170 (S$5.44), while maintaining support above HK$150 (S$4.80) would remain important for the overall bullish outlook to stay intact.

PetroChina Co., Ltd. (857.HK) is one of China's largest integrated energy companies, with operations spanning oil and gas exploration, refining, petrochemicals, natural gas distribution and fuel marketing. As a major state-owned energy producer, PetroChina remains a key beneficiary of energy demand and commodity price trends across China and the broader region.

From a technical perspective, PetroChina is showing signs of regaining strength after undergoing a healthy correction over the past few months. 

Price has rebounded strongly from the HK$8.50 (S$2.72) support zone, both the 100-day (red line) and 200-day (blue line) moving averages sloping upwards, indicating long-term strength remains intact. 

The 20-day (green line) has also turned higher, indicating that short-term momentum is improving as buyers return to the stock.

A fresh 1GT Bullish signal emerged as price tests the HK$10.00 (S$3.20) level, signalling that buying momentum has strengthened following the recent recovery. 

The successful firm breakout above this support zone suggests that the broader bullish structure is beginning to re-establish itself after the earlier pullback.

Price is now testing the immediate resistance of HK$10.00 (S$3.20), with the next key resistance at HK$11.00 (S$3.52). 

A decisive move above HK$10.00 (S$3.20) would also confirm the continuation of the recovery and reinforce the improving technical outlook.

As long as these levels continue to hold, the broader technical outlook remains constructive and favours further upside.

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

You can take a position via the PetroChina HK SDR 1to2 (Ticker: HPCD), which trades on the SGX with a 1 SDR to 2 underlying shares ratio. 

Using the 0.16 HKD-to-SGD exchange rate, the SDR is currently priced around S$3.10 - S$3.30, reflecting the underlying chart structure.

Conservative traders may consider accumulating on pullbacks closer to the HK$8.50 (S$2.72) support zone.

Aggressive traders may consider looking out for a sustained breakout above HK$10.00 (S$3.20) to confirm further upside momentum towards HK$11.00 (S$3.52), while maintaining above the support of HK$8.50 (S$2.72) would be important for the longer-term bullish outlook to stay intact.

 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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