The Next Leg Up? 3 HK Leaders With Clean Breakout Structures

Executive Summary

Hong Kong is starting to feel “alive” again, and the timing matters. When macro expectations begin to stabilise (growth, liquidity, earnings direction), money usually rotates back into the biggest, most liquid leaders first. That’s why I’m focusing on 3 HK blue chips across tech platforms, banking, and semiconductor names that tend to move early when sentiment turns.

In this article, I break down Alibaba, HSBC, and Zijin Gold. 1GT Signals are flashing, highlighting the key support zones that must hold, the breakout levels that confirm trend continuation, and the upside targets if momentum stays intact. Best part, these are all accessible via SGX-listed HK SDRs, so you don’t need a HKEX account to execute the trade plan cleanly.

1) Alibaba Group Holding Limited (9988.HK); Alibaba HK SDR 5to1 (HBBD)

Alibaba (9988.HK) is one of China’s largest internet platforms, best known for its e-commerce marketplaces (Taobao/Tmall), logistics network (Cainiao), and cloud computing business (Alibaba Cloud), with additional exposure to digital media and local services.

Alibaba is starting to look a lot more constructive again after spending months digesting its earlier surge. Structurally, the longer-term uptrend still looks intact, price remains above the 200-day moving average (blue line), while the 100-day (red line) continues to slope upward, acting as a key “line in the sand” for the trend.

More importantly, momentum has just returned with a fresh 1GT bullish signal triggered when prices broke above the HK$160 (S$5.13) resistance turned support and that signal is now playing out as prices are testing the immediate HK$170 (S$5.44) resistance.

With the HK$160 (S$5.13) area is the immediate support to watch now; as long as it holds, buyers still have control and the breakout attempt remains valid. If the move sustains, the next upside level would be HK$185 (S$5.92), where sellers previously stepped in.

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

To take a position via the Alibaba HK SDR 50to1 (Ticker: HBBD), which is listed on the SGX, note that it trades with a 5 SDR to 1 share ratio. 

Based on a 0.16 HKD-to-SGD exchange rate, the SDR is currently priced around S$5.40 - S$5.50.

Conservative traders may prefer to wait for a pull back toward the HK$160 (S$5.13) to accumulate as long as the shorter term uptrend remains intact

Aggressive traders might accumulate on a breakout above HK$170 (S$5.44) with a stop just below, with targets drawn toward the HK$185 (S$5.92) resistance first.

2) HSBC Holdings PLC (5.HK); HSBC HK SDR 5TO1 (HSHD)

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 core financial heavyweight and a key beneficiary of higher interest rates and cross-border capital flows.

Technically, the trend remains firmly bullish. Price continues to hold above both the 100-day (red line) and 200-day (blue line) moving averages, with both lines still pointing higher, a strong sign that the longer-term uptrend is intact. The 20-day (green line) is also rising steadily, reaffirming that the shorter term uptrend is aligned with the longer term uptrend.

The most recent 1GT Bullish signal came right as price rebounded from the HK$115 (S$3.68) zone, and since then the structure has stayed clean, higher highs, higher lows, and shallow pullbacks. The new support area to watch now is HK$130 (S$4.16), after the recent breakout. As long as buyers keep defending this level, the next upside targets remain HK$145 (S$4.64) followed by HK$160 (S$5.12), which are new highs where profit taking could show up.

💡 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$4.30 – S$4.40, reflecting the underlying chart structure.

Conservative traders may prefer to wait for a stronger hold above HK$130 (S$4.16) to confirm breakout strength, before accumulating on dips.

Aggressive traders might look to accumulate above the HK$145 (S$4.64) with a tighter stop below, while keeping HK$130 (S$4.16) in mind as the key support level if volatility spikes.

3) Zijin Gold International Company Limited (2259.HK); Zijin Gold HK SDR 10TO1 (HZGD)

Zijin Gold International (2259.HK) is one of China’s largest gold and base metals producers, with operations spanning mining, smelting, and resource development across China and overseas. The company is a key beneficiary of rising gold prices and increased demand for hard assets, making it an important proxy for precious metals exposure within the Hong Kong market.

Since IPO, Zijin Gold previously kept under the HK$160 (S$2.56), has recently shifted decisively into a strong bullish phase. Where prices swiftly broke above the HK$160 (S$2.56) and HK$200 (S$3.20) and continued to trade higher with strength. 

The 20-day moving average has accelerated upward, confirming that short-term momentum is strong. As it was only listed on 30 Sep 2025, there is no indication for the 100-day and 200-day moving averages. 

With the absence of the longer term moving averages as a confirmation of the trend, a trailing support could be used instead, where as long as prices are able to hold above the Trailing support, it provides another confirmation of the uptrend being intact. 

The most recent 1GT Bullish signal appeared as the price broke above the HK$160 (S$2.56) region, which marked the end of its prior consolidation phase. Since then, momentum has expanded sharply, with price forming a sequence of higher highs.

Following the latest breakout, the support was at HK$240 (S$3.84).  However, prices pulled back under this level, once again turning it into a resistance. Below that, a rising trailing support is now forming close to the HK$200 (S$3.20), which coincides with the upward-sloping short-term trend structure and would be a key level to monitor on any pullback.

As long as these support levels continue to hold, the immediate targets are HK$240 (S$3.84), followed by HK$280 (S$4.48), where profit-taking may start to emerge near these levels.

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

You can take a position via the Zijin Gold HK SDR 10to1 (Ticker: HZGB), 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$3.80–S$3.85, reflecting the underlying chart structure.

Trading for Zijin Gold HK SDR 10to1 (Ticker: HZGB) will commence from Monday, 2 February 2026. It will commence alongside 2 new HK SDRs, China Mobile HK SDR 5to1 (HCMD) and Horizon Robotics HK SDR 1to1 (HHZD).

More conservative traders may prefer to look for periods of consolidation close to the HK$200 (S$3.20) area before positioning for an entry, close to this support, with a stop below the trailing support.

More aggressive traders might consider entries on sustained strength above HK$240 (S$3.84), if the momentum continues to pick up, while keeping this level in mind as the key support with a stop place below it, keeping HK$280 (S$4.48) as the target.

 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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- Joey

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