In light of today’s drop in Hong Kong stocks, especially contrasting with China’s rise due to the stimulus package, my strategy would lean towards buying the dip and utilizing a dollar-cost averaging (DCA) approach. While the market’s immediate reaction may seem concerning, it’s important to remember that volatility can present opportunities. DCA allows me to gradually build positions, reducing the risk of mistiming the market and smoothing out price fluctuations.

The Hong Kong market might continue to face headwinds, especially as global interest rate hikes and geopolitical tensions persist. However, as we approach the end of the year, there’s potential for a rebound. Historically, Q4 has seen renewed investor interest, particularly if more clarity emerges around China’s stimulus package and its ripple effects across the region. Sectors such as technology and consumer discretionary might see a revival as confidence returns.

So I’ll keep an eye on key economic indicators and any policy shifts from both Hong Kong and China. While near-term volatility is likely, the long-term fundamentals of many Hong Kong-listed companies remain strong, especially those with exposure to mainland China’s economic recovery. In this context, a buy-the-dip strategy combined with DCA aligns with my view, ensuring I stay invested while managing risk. $MEITUAN-W(03690)$ $PING AN(02318)$ $BABA-W(09988)$ $TENCENT(00700)$  $HKEX(00388)$