On Thursday, October 3, after six consecutive days of gains, Hong Kong stocks experienced a pullback. The Hang Seng Index plummeted by 4.4% at one point yesterday, but staged a V-shaped rebound in the afternoon, recovering most of the losses and ultimately closing down by 1.47%. As of the time of writing, Hong Kong stocks fell by nearly 1% at the opening of trading today, with all three major indices declining.

The continuous rise suddenly came to an end, causing doubts in the minds of investors who entered the market. How to view this pullback, will the upward trend of Hong Kong stocks come to an end now?

Zhang Yidong, Chief Global Strategy Analyst at Industrial Securities, stated that the volatility in the Hong Kong stock market is a validation of the reversal logic, rather than a short-term rebound. In October, the Hong Kong and A-share markets are expected to transition from the recent short-covering rebound to a more sustainable volatile reversal.

Chen Guo, Chief Strategy Analyst at CSC Securities, also stated that stock market fluctuations in Hong Kong are normal, and there is no need to worry about the end of the bull market at this point.

Chen Guo stated that due to investors' profit-taking demand, the rapid rise in the previous period will inevitably bring about a pullback. Additionally, although the Hang Seng Index currently ranks first in global returns, it is still fluctuating around 0.02 million points, still some distance away from the high of 0.03 million points in 21. There are still some stocks undervalued, and market funds are willing to buy. Chen Guo predicts that Hong Kong stocks will continue to experience a slow and steady uptrend after the fluctuations.

Editor/Somer