UPDATE The future of Hong Kong is here and ready to rally 26,944Have you noticed the developments in China lately?
TOp of the market buildings, technology, self driving train stations, delivery drones and flying cars.
Out of a futuristic movie - but in reality.
It seems like China is breaking away from the dependency to produce for America, and is showing the signs of growth, development and economic independence.
And fundamentally it is looking great too.
🧱 Mainland Money Surge
Mainland Chinese investors have poured a record $90 billion into Hong Kong stocks in H1 2025, boosting liquidity and narrowing the valuation gap with A‑shares
🚀 IPO Wave & Tech Strength
A booming IPO pipeline—including DeepSeek, Shein, CATL—has lifted market sentiment, while tech giants like Tencent, Alibaba, Xiaomi ride the AI growth wave
🤝 Trade Truce Optimism
Reduced U.S.–China trade tensions, including tariff de‑escalation and diplomatic overtures, are powering a broader rebound in risk assets across Hong Kong
🏦 Monetary Tailwinds
Expectations of U.S. rate cuts and continuing PBoC easing are lowering borrowing costs and lifting dividend‑yield plays in banking and property
📈 Market Leadership & Momentum
With a ~20 % YTD gain, the Hang Seng is outperforming mainland China, and analysts expect this victory lap to keep going as global investors re‑orient into Asia
As this is an update the setup remains the same and I guess is just waiting for that boost catalyst to take it up
The Cup and Handle pattern remains with the price needing to break above the brim level and for the price to continue above 20 and 200MA the target is still 26,944.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
