I’m not sure if the market will rebound, but the drop in the Hang Seng Tech index can be seen as a correction of the sentiment premium built up during the National Day holiday. decline seems to be driven by funds taking advantage of the adjustment mood in the A-share market to short positions. The Hang Seng Tech index’s rebound this year wasn’t fueled by various news events at the end of September; rather, it was supported by the earnings recovery of Chinese companies like Tencent $TENCENT(00700)$ , Alibaba $Alibaba(BABA)$ , and Meituan $MEITUAN-W(03690)$ , along with significant buybacks and improvements in the underlying fundamentals, such as the Fed's interest rate cuts. While the short-term bullish trend in the A-share market may have ended, the long-term bullish phase for the Hang Seng Tech index and Chinese stocks is just beginning!
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