Bocom Intl released a report stating that the Hong Kong stock market sharply declined yesterday (8th). After experiencing a short-term huge rally, the market accumulated a large amount of profit-taking pressure. Against this backdrop, the market is very prone to large fluctuations. Coupled with the Hang Seng Index currently near the previous high of 22,700 points, technically it is a resistance level. Under the expectation gap, both the Hang Seng Index and the Hang Seng Tech Index recorded nearly 10% historical single-day largest declines.

The report points out that in the case of the market's rapid surge in the short term, such intense volatility is a normal part of market technical adjustments. With policy support, the overall upward trend of Hong Kong stocks remains unchanged. It is expected that driven by the resonance of macroeconomic environments at home and abroad, Hong Kong stocks are still worth looking forward to in October. However, from a technical perspective, after the Hang Seng Index breaks through the previous high of 22,700, although the direction remains upward, there may be fluctuations in the subsequent upward process, and the upward slope may relatively ease, making it difficult to replicate the straight surge at the end of September.

With the subsequent correction approaching, it is expected that Hong Kong stocks will attract more long-only funds driven by fundamental factors to enter the market. Coupled with the continuous introduction and implementation of fiscal policies afterwards, as market sentiment returns to rationality, investors will pay more attention to fundamental factors. It is expected that as Hong Kong stocks advance in the future, the differentiation in fundamentals will also lead to price differentiation, where high volatility and high differentiation may become the main characteristics of the future operation of Hong Kong stocks for a period of time.

The bank reminds investors that while strategically buying Hong Kong stocks, they also need to refocus on industry fundamentals, emphasize industry tactics, and select investment symbols supported by improved fundamentals.