Executive Summary

Global markets are in chaos. From the US to Asia, stocks have plunged in one of the worst two-day sell-offs since World War II, sparked by Trump’s sweeping tariffs and fears of a full-blown global recession. The Hang Seng collapsed nearly 10%, and Hong Kong banks like Bank of China (3988.HK) were hit hard.

But amidst the panic, I zoom in on Bank of China’s SDR listed on SGX, using my One Good Trend (1GT) Strategy to assess if this could be a rare opportunity in disguise. In this article, I break down the chart signals, highlight the next key support zones, and explain what needs to happen before I’d consider entering again. If you’re feeling unsure about what to do next—pause, breathe, and read on. Timing the market in moments like these is where smart traders get ahead.

1) Bank of China Ltd (3988.HK)

Bank of China Ltd., one of the four biggest state-owned commercial banks in China, is widely recognised for its strong presence in both domestic and global banking sectors.

With its dual listing in Hong Kong and representation via Singapore Depository Receipts (SDRs), it offers local investors access to one of China's key financial institutions with stable dividend yield and long-term growth visibility.

From a technical standpoint, the long-term trend continues to look strong based on my One Good Trend strategy.

The 100-day moving average (red line) is sloping upward firmly above the 200-day moving average (blue line), reinforcing the overall bullish structure.

However, on Trump sweeping tariffs last week, US market have tanked about 10% in 2 days making it one of the worst 2 day sell down in history since World War 2.

We have therefore started to see some heavy selling in Bank of China now.

The 20-day moving average (green line) has began to point down after breaking the 4.50 support level with a new 1GT Bearish signal triggered.

Previously, my 1GT (Pro) Indicator has done well to capture key moments in the stock’s trend as it trades higher but finally a bearish signal appeared.

This can actually be an attractive opportunity to get in again at much lower prices once we see some stability in prices near its next support and perhaps a new 1GT Bullish signals appearing again.

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

Well, you can take a position in this SDR, which is named Bank of CN HK SDR 1to1 (HBND) currently priced at S$0.745.

Next support can be found around HKD 4.00 (S$0.68) and HKD 3.80 (S$0.65), also where the 100-day moving average red line is.

These are key levels to watch for conservative traders looking to accumulate on dips, with a stop-loss placed slightly below that to manage risk.

Though the price is looking attractive, we would prefer to wait for a firm confirmation of a reversal before thinking about getting in.

And that would mean waiting for a new 1GT Bullish signal triggered again and for the short-term trend to turn back up.

When that happens, both the longer term and short-term trend will be up, which give us a higher winning probability.

Watching closely to see when that happens with alerts set so I would be informed of any 1GT Bullish signal coming back again. Let’s be patient.

On the upside, the immediate target would be HKD 4.80 (S$0.82) which is where any rebound can lead prices to before some profit taking again.

Overall, this stock remains in a solid uptrend in the longer term though in the short term some selling expected which can lead to some bargains soon.

For Bank of China’s HK SDR listed on SGX, the SDR ratio is 1 SDR to 1 underlying share.

This means the conversion from HKD to SGD is simply done by multiplying by the exchange rate of 0.17.

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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Look forward to see you on the inside!

- Joey

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