Since September 11, the Hang Seng Index has surged over 22%, drawing significant attention from traders. I believe both global and local factors are at play.
On the global front, the Fed’s recent easing cycle has unleashed liquidity, potentially driving more capital into risk markets.
Domestically, China’s supportive measures—ranging from interest rate cuts and reserve requirement reductions to an 800 billion yuan relending plan targeted at the stock market—have lifted investor sentiment.
Also, major players like Tencent, Meituan, and HSBC have bolstered shareholder confidence with aggressive buybacks. In the short term, I’m personally optimistic about the bulls.
If this upward momentum holds, last year’s high of 22,788 could come into my focus. But with the National Day holiday on the horizon, some investors might look to trim positions, with the 20,000 level potentially acting as a support zone.
In this bullish environment, it’s worth keeping an eye on sectors that may benefit from lower interest rates, such as internet and new energy vehicles, along with companies offering strong shareholder returns. Moreover, I think emerging trends emphasized in the recent Politburo meeting, such as domestic consumption and overseas expansion, could present further upside potential.
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