[Hong Kong Stock Analysis] Hong Kong stocks rose more than 400 points in the first half of the day, approaching the 10-day moving average. CATL surged 9% after earnings, making it the strongest blue chip. Optimism about the end of the Iran conflict. Analysis: Northbound funds flowing into the Hang Seng Tech Index is a positive signal.

U.S. President Trump suddenly changed his tone, indicating that the Iran conflict is nearing an end. Oil prices plummeted, stocks initially fell then rose, and regional markets generally rebounded. The Seoul Composite Index rose 3%. Hong Kong stocks, after testing the 250-day moving average yesterday and narrowing their decline, showed gains in the early session today. The Hang Seng Index once rose over 460 points, surpassing 25,800 points and approaching the 10-day moving average. CATL (03750) surged 9% after earnings, the largest half-day gain among blue chips.

Centaline Asset Management investment strategist Liu Weiqiang said in our video program “ET Market Opening Live” that, based on technical analysis, the Hang Seng Index can initially target 26,180 points on the upside, with support at 25,240 points on the downside. If this level holds, the outlook remains positive. “From a technical perspective, since the end of January, the Hang Seng Index has been in a downward parallel channel. A technical rebound could see it rise roughly to 26,180 points, which is the first target at this level.”

“The key support level is 25,240 points. Under any circumstances, if it falls below this level, it will be pressured at the bottom of this balance channel. But I believe the market can hold this level for now.”

Additionally, yesterday (Monday), Northbound funds recorded the largest inflow ever, with ETF purchases of tech stocks amounting to 4 billion yuan. Liu Weiqiang said that the inflow of Northbound funds into the tech index is a positive signal, and he believes that the heavyweight tech stocks can boost the Hang Seng Index.