The six-day winning streak came to an abrupt end, has the rebound in the Hong Kong stock market ended?

On Thursday, October 3rd, after six consecutive days of gains, the Hong Kong stock market experienced a pullback. The Hang Seng Index plummeted by 4.4% in the morning session, but staged a V-shaped rebound in the afternoon, recovering most of the losses, and ultimately closing down by 1.47%.

The halt to the continuous rise has left investors who entered the market feeling uncertain. How should we view today's pullback, and will the upward trend of the Hong Kong stock market come to an end?

Zhang Yidong, Chief Global Strategy Analyst at CICC, stated that the volatility in the Hong Kong stock market is a validation of the reversal logic, rather than a short-lived rebound. In October, both the Hong Kong and A-share markets are expected to shift from the recent short squeeze rebound to a more sustainable volatile reversal.

Chen Guo, Chief Strategy Analyst at CITIC Securities, also mentioned that the fluctuations in the Hong Kong stock market are normal, and there is no need to worry about the end of the bull market:

Chen Guo pointed out that due to investors' profit-taking needs, the rapid rise in the previous period will inevitably lead to a pullback. Furthermore, although the Hang Seng Index currently ranks first globally in terms of returns, it is still fluctuating around 20,000 points, which is still some distance away from the high of 30,000 points in 2021. There are still some stocks with relatively low valuations that market funds are willing to buy. Chen Guo predicts that the Hong Kong stock market will continue to experience a slow and steady upward trend after the volatility