Hong Kong stocks show no sign of - Spring Festival effect

The Hong Kong stock market has become more mainland-oriented but has not performed as well as the A-share market. With the Spring Festival approaching, the goal of returning to 27,000 has been set. Today, it fell by over 400 points to below 26,600, failing to approach the high of 28,000 points, reflecting the desire for a joyful Spring Festival. Northbound capital is not reliable. Overseas markets like the US, Japan, and South Korea all hit record highs in February (see yesterday's column). The Hong Kong market, standing alone, does not reflect the far-ahead lead of a world financial center. Not focusing on the market but considering various celebratory themes inevitably leads to mistakes. The fine-tuning of the core strategy of weekly straddle/strangle on Hang Seng Index options: on Thursday afternoon, the cost of call options approached the strike price before 5 pm, fantasizing about the so-called Spring Festival effect in the stock market. There was no fine-tuning of put options to 266put, whose cost was equal to that of calls. Both night and day sessions saw prices rise from over 70 to tenfold. The US market fell 2% yesterday, and the Hang Seng followed. Northbound capital is not strong enough to hold it up. Current affairs are hard to judge; the core of the straddle/strangle is not to judge. Perhaps when the market expects a celebratory rally and positions accordingly, the big players are also celebrating by selling at highs. The HKEX report shows a significant drop in Hang Seng Index futures turnover, also reflecting market difficulty. The Hang Seng Index's support at 26,400 remains and is expected to hold before the holiday. The Hong Kong market has become a fundraising hub for mainland IPOs, with the capital-siphoning machine running at full capacity, launching new listings every day.$Hang Seng Index(00HSI.HK)