Lion-OCBC Securities Hang Seng TECH ETF – [Is A Bottom Forming? ]

Chart Source: Poemsview 9th March 2021

The Lion-OCBC Securities Hang Seng TECH ETF listed on the SGX comprises of the 30 largest Tech- themed companies listed in Hong Kong. Companies like Alibaba, Tencent, Xiaomi, Meituan Dianping, Jd.com are just some names inside this ETF. A common saying that the HSI tech index is the China’s Nasdaq index is not very accurate as it only tracks companies listed in Hong Kong but there are other tech companies listed in Shanghai and shenzhen exchange. The Chinext or Star Market is probably more accurate as it tracks the broader China tech market.

As many have asked if this is a good time to start entering if you want some exposure to the HK tech stocks and are not sure which company to enter into. Rather than choosing which company to invest in, this ETF gives a good exposure to the HK tech companies. Instead of tracking so many companies this ETF tracks the 30 companies which might save you some time and effort in your research. There are a few HSI Tech ETF that are listed like on the HongKong Exchange like 3033.hk, 3067.hk. 3088.hk but we’re looking at the one listed on SGX which is closer to home which means we don’t have to pay custody fees too. Another point is the currency exchange risk. So for simplicity sake we’re looking at Lion-OCBC Securities Hang Seng TECH ETF.

Lets looks at the chart of this ETF an as we can see from the chart is it kind of forming a double bottom of around $1.32 level. If it can maintain at around this support and start consolidating around here thats a positive sign to us. It has retraced close to 30% since the high of $1.83 and at this level it does look attractive for a long term play. As usual, don’t scale in all your entry at one shot, go in in different batches. Now that it has reached a nice support, of around $1.31 , the next support might be around the $1.25 then $1.20 area. The short term resistance is at the 5ema and the downtrend line.

Remember that investments carries risk so do remember to do your own due diligence and risk management.

Are you bullish in the future of the HK tech stocks? What are your thoughts? Share them with us.

Yours

Humbly

Kelwin&Roy

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