Hong Kong’s market is navigating a more uneven environment, with different sectors responding differently to current macro conditions. Rising energy prices and ongoing geopolitical developments have supported strength in oil-related names, while financials are beginning to stabilise after a period of consolidation. Rather than a broad-based rally, the market is showing signs of selective strength, with fresh 1GT Bullish signals emerging in pockets where momentum is starting to rebuild.

In this month’s SDR update, we highlight three Hong Kong stocks: PetroChina, HSBC and Bank of China. Each reflects a different part of this evolving landscape. PetroChina is benefiting from continued energy momentum, Bank of China remains in a well-supported uptrend, while HSBC is gradually stabilising and attempting to break above its key resistance. With key support levels holding and 1GT Bullish signals appearing near important price zones, these charts provide a clearer roadmap for how the next phase of price action may develop.

Bank of China Limited (3988.HK)  is one of China’s “Big Four” state-owned banks, playing a key role in supporting domestic lending, trade financing and cross-border capital flows. As a core financial institution, it often serves as a proxy for broader sentiment toward China’s banking sector and economic stability.

From a technical perspective, the structure has been steadily improving after an extended consolidation phase. 

Price is holding above both the 100-day (red line) and 200-day (blue line) moving averages, with both sloping higher, an indication that the longer-term trend is showing strength and gradually turning constructive. 

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

A recent 1GT Bullish signal emerged around the HK$4.80 (S$0.77) level, where the price broke above this key level, which it was previously capped under. 

Since then, the stock has formed higher lows and is now attempting to build momentum toward the next resistance zone.

Price is currently testing the HK$5.20 (S$0.83) level, which acts as an immediate resistance. 

A sustained breakout above this level could open the path toward HK$5.60 (S$0.90).

As long as these levels hold, the overall structure remains constructive and suggests that the current momentum may continue.

💡 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$0.83–S$0.85, reflecting the underlying chart structure.

Conservative traders may prefer to accumulate closer to the HK$4.80 (S$0.77) support zone on pullbacks. 

More aggressive traders could look to position on a firm breakout above HK$5.20 (S$0.83), with HK$5.60 (S$0.90) as the next upside target, while keeping HK$4.80 (S$0.77) as the key level that needs to hold. 

PetroChina Co., Ltd. (857.HK) is one of China’s largest oil and gas producers, with operations spanning exploration, production, and refining. As a key energy player, the stock tends to benefit from rising crude oil prices and geopolitical developments that support energy demand.

From a technical perspective, the uptrend remains well-supported. 

Price is trading above both the 100-day (red line) and 200-day (blue line) moving averages, with both lines trending higher, signalling that the longer-term trend is firmly intact. 

The 20-day (green line) is also sloping upwards, indicating that short-term momentum is aligned with the broader uptrend.

A recent 1GT Bullish signal appeared when the price broke above the HK$11.20 (S$3.58) resistance level, where prices have been capped for the past 2 months. 

This level has since then acted as a new support, with the stock gradually pushing upward.

As long as the price continues to hold above the new support level, it could open the path toward HK$12.50 (S$4.00), where the next major upside target lies.

The overall structure remains constructive and supports the case for further upside continuation.

💡 So how does one take a position in PetroChina Co., Ltd. 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 share ratio. 

Using the 0.16 HKD-to-SGD exchange rate, the SDR is currently priced around S$3.70–S$3.90, reflecting the underlying chart structure.

Traders may consider to accumulate closer to the HK$11.20 (S$3.58) support zone on pullbacks. Keeping in mind the HK$12.50 (S$4.00) level as the next upside target, with HK$10.00 (S$3.20) as the key level that needs to be held for the bullish setup to remain 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 Americas. In Hong Kong, it remains a key financial heavyweight and a major beneficiary of higher interest rates and cross-border capital flows.

Price continues to trade above both the 100-day (red line) and 200-day (blue line) moving averages, with both lines trending higher, a strong indication that the longer-term trend is still in place. 

The 20-day (green line) is also rising steadily, reflecting continued short-term momentum despite the recent pullback.

After the previous rally, the price experienced a healthy pullback toward the HK$115 (S$3.68) region.

This level has since acted as a solid support base, with buyers stepping in and defending the structure. 

Since then, prices continue to show renewed strength, breaking above the HK$130 (S$4.16) resistance, turning into a new support with a new 1GT Bullish signal. 

Price is now approaching the HK$145 (S$4.64) resistance level. A sustained move above this level could open the path toward HK$160 (S$5.12), which represents the next key upside level and a potential area where profit-taking may emerge.

As long as the price continues to hold above these levels, the broader uptrend remains intact and suggests further upside potential.

💡 So how does one take a position in HSBC Holdings PLC 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$4.30–S$4.50, reflecting the underlying chart structure.

Conservative traders may prefer to accumulate closer to the HK$130 (S$4.16) support zone on pullbacks.

More aggressive traders could look to position on a firm breakout above HK$145 (S$4.64), with HK$160 (S$5.12) as the next upside target, while keeping HK$130 (S$4.16) in mind as the key level that needs to be held.

 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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