Emperor Capital Group

Something interesting to share about Hong Kong market we noticed this year!

Hang Seng Index was ranging between 23000-24500 from January to April. After Easter holiday break, trading volume surged and a mini bull run began and brought the market to 28589. The uptrend in mid April last till end of June. As soon as after 1st of July holiday, the trend turned around. Buyers took profit; short sellers came in, a downtrend occurred and it lasted for months.

Then, came to 1st of October, National Day! Another public holiday for Hong Kong market! Hang Seng Index rebounded from 52 weeks low-20368 till this Tuesday- 23161, a day before Chung Yeung festival holiday!

There is no public holiday after yesterday for Hong Kong market until Christmas and New Year break where the trading activity is lowest for the year. What will the trend be from now till Christmas? The rebound continues? The rebound is done and here comes another downtrend? We are curious to find out! Seems like every holiday marks a new trend for Hang Seng Index! 

It is an exciting year for Hong Kong market. It had been a financially and mentally roller coaster ride for investors; the uptrend and downtrend provided trading opportunities for traders no matter is in stocks, futures or option market. If there is any particular stock we are interested, Hong Kong Stock Exchange (HK:388) is one of them. Volatile market presents making money opportunity which, this is good for HK Stock Exchange's business. Closed at $203.60, HKSE is 34% down from its historical price at $311.

Apart from HKEX, securities companies are the one that is benefited during busy market days. We bought Emperor Capital Group (HK:717), one of the leading financial broker house in Hong Kong. Trading at P/E ratio at 11, the share price went from $0.40 a year ago to $2.32 in April. Now, price at $0.69. 

We do not expect HK:717 goes back to $2.32 anytime soon. We think the share price will consolidate between $0.50-$0.75 for the time being. Hence, it is an opportunity to slowly collect the share before another uptrend begins.