Hong Kong’s market continues to show pockets of opportunity, with leadership emerging selectively across different sectors. While overall sentiment remains mixed, financials and technology names are displaying improving technical structures, suggesting that buyers are gradually returning to quality companies with stronger price momentum. At the same time, not every leader is moving in the same direction, highlighting the importance of remaining selective in the current market environment.

In this month’s SDR update, we examine three well-known Hong Kong names: HSBC, SMIC and CATL. HSBC and SMIC are showing fresh 1GT Bullish signals as momentum continues to improve, while CATL is displaying a 1GT Bearish signal after a strong rally, pointing to near-term profit-taking and consolidation. Together, these setups illustrate why disciplined stock selection and proper timing remain essential when navigating Hong Kong’s market.

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. As a leading global bank, HSBC benefits from diversified revenue streams 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, the stock continues to display a constructive long-term uptrend. 

Price remains firmly above the 100-day (red line) and 200-day (blue line) moving averages, while the 20-day (green line) continues to provide dynamic support, reflecting healthy short-term momentum. 

The alignment of all three moving averages suggests that the broader bullish trend remains well supported.

A recent 1GT Bullish signal emerged near the HK$145 (S$4.93) support zone after a brief pullback, where buyers stepped in and defended the rising trend. 

Since then, the stock has resumed trading near its recent highs, signalling that buying interest remains intact.

Price is currently consolidating just above the HK$145 (S$4.93) support level while moving towards the key HK$160 (S$5.44) resistance zone. 

A sustained breakout above this level could signal the continuation of the primary uptrend and open the door for further upside.

As long as these levels continue to hold, the broader technical structure remains constructive and favours the bulls.

💡 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 0.17 HKD-to-SGD exchange rate, the SDR is currently priced around S$4.90-S$5.10, reflecting the underlying chart structure.

Conservative traders may consider accumulating on pullbacks closer to the HK$145 (S$4.93) support zone.

More aggressive traders could look for a sustained breakout above HK$160 (S$5.44) to confirm further upside momentum towards HK$170 (S$5.78), where the breakout is supported by high volume and continues to hold above HK$160 (S$5.44), while maintaining support above HK$145 (S$4.93) would remain important for the bullish outlook to stay intact.

Semiconductor Manufacturing International Corp. (981.HK), commonly known as SMIC, is China’s largest semiconductor foundry and a key player in the country’s drive towards greater semiconductor self-sufficiency. As demand for AI, advanced computing and domestic chip production continues to grow, SMIC remains one of the most closely watched technology counters in the Hong Kong market. 

The stock has regained positive momentum after successfully emerging from an extended consolidation phase. 

Price is trading above both the 100-day (red line) and 200-day (blue line) moving averages, while the 20-day (green line) has flattened after the recent rally, suggesting that short-term momentum is consolidating. 

The overall moving average alignment continues to support a constructive longer-term trend despite the recent pause in momentum. 

A recent 1GT Bullish signal emerged when the price broke above the HK$80 (S$2.72) resistance level, marking a shift in momentum as buyers regained control. 

Price is now approaching the HK$92 (S$3.13) resistance level, which has acted as a key resistance, where profit-taking emerged during the previous rally. 

A firm breakout above this level could pave the way towards HK$100 (S$3.40), marking the next major upside target.

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 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 0.17 HKD-to-SGD exchange rate, the SDR is currently priced around S$2.90–S$3.10, reflecting the underlying chart structure.

Conservative traders may consider accumulating on pullbacks closer to the HK$80 (S$2.72) support zone, where it is a level that has been tested many times. 

More aggressive traders could look for a sustained breakout above HK$92 (S$3.13) to confirm further upside momentum towards HK$100 (S$3.40), where the breakout is supported by high volume and continues to hold aboveHK$92 (S$3.13), while maintaining support above HK$80 (S$2.72) would remain important for the bullish outlook to stay intact.

Contemporary Amperex Technology Co., Limited (3750.HK) is the world's largest electric vehicle battery manufacturer, supplying leading global automakers with advanced lithium-ion battery solutions. As a dominant player in the EV supply chain, the stock is closely watched for trends in electric vehicles, energy storage and clean energy technologies. 

From a technical perspective, CATL is showing some short-term weakness after an extended advance over the past few months. 

While the longer-term trend remains supported by the rising 100-day (red line) and 200-day (blue line) moving averages, recent price action suggests that upside momentum has started to ease. 

The 20-day (green line) has begun to flatten, indicating that buying momentum is slowing as the stock consolidates beneath a major resistance level.

Unlike the previous two stocks featured in this article, CATL is currently displaying a 1GT Bearish signal, indicating that short-term selling pressure has started to outweigh buying momentum. 

This does not necessarily signal a reversal of the longer-term trend, but it suggests that the recent rally may be losing strength as investors lock in profits.

Price was capped under the HK$800 (S$4.53) resistance level, and since then, the stock has pulled back and has broken the HK$700 (S$3.96) support zone. 

Holding above this level would help maintain the current consolidation structure, while a decisive break below it could increase the likelihood of a retracement towards the next support area around HK$600 (S$3.40).

For the broader bullish outlook to remain intact, a fresh move above HK$800 would be needed to signal that buying momentum has returned and the longer-term uptrend is ready to resume.

💡 What should investors consider for CATL HK SDR?

You can take a position via the CATL HK SDR 10TO1 (Ticker: HCCD), which trades on the SGX with a 30 SDR to 1 underlying share ratio. 

Using the 0.17 HKD-to-SGD exchange rate, the SDR is currently priced around S$3.80–S$4.00, reflecting the underlying chart structure.

For investors who currently have positions around the HK$600 (S$3.40) region following our previous article in May, the recent rally has delivered a meaningful gain. 

With the stock now showing a 1GT Bearish signal and encountering resistance near HK$800 (S$4.53), it may be prudent to consider securing part of the profits or tightening risk management while monitoring how the price behaves.

For those who have yet to establish a position, patience may be the better approach. 

Rather than chasing price after the recent rally, investors may wish to wait for the selling pressure to ease and look for a fresh 1GT Bullish signal or a confirmed breakout above the key resistance levels before considering a new entry. 

This would provide greater confidence that the broader uptrend is ready to resume.

Investors who are looking to hold for the long term can consider having some position if prices pull back to near HK$600 (S$3.40), while taking note of HK$600 (S$3.40) as a key support level. 

If the price continues to break this key support level of HK$600 (S$3.40), do make sure to have a stop-loss plan according to one’s risk appetite, as the price might continue to show weakness to the next support of HK$520 (S$2.94).

 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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