Hong Kong stocks continue to be volatile! First, the significant fluctuations in gold and silver prices caused the entire hot resource sector to surge and then wash out, leading the Hang Seng Index to drop from 28,000 to 26,000; next, the three major telecommunications companies faced changes in tax policies, adding variables to future revenue and profit, which further exacerbated their stock prices; and now, it's the turn of technology stocks, with rumors yesterday that the value-added tax for the mobile gaming industry will be increased, causing heavyweights like Tencent (700) to experience a sharp decline in trading volume, resulting in the index flipping from a 300-point gain to a 300-point loss during the day. Although the rumors were later clarified to be false, the market's jittery sentiment is clearly present.
<h2>Prioritize Alibaba and Baidu</h2>
What to look for after the drop? My usual approach is to act on news speculation first. Alibaba (9989) and Baidu (9888) each have chip spin-offs, making them priority considerations for bottom-fishing. Tencent (700) currently only has earnings speculation as a factor, and with share buybacks paused, its rebound potential may not match that of the aforementioned two stocks.
Tang Niu
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Hong Kong stocks experienced significant fluctuations due to the volatility in gold and silver prices and changes in telecommunications taxes, with the Hang Seng Index dropping from 28,000 to 26,000. Technology stocks were affected by rumors of a VAT increase, leading to a sharp decline in Tencent's stock price, with the index shifting from a gain of 300 points to a loss of 300 points. Although the rumors were clarified, market sentiment remains tense. It is recommended to pay attention to low buy opportunities for Alibaba and Baidu, as they have news regarding chip spin-offs, while Tencent faces pressure from performance speculation and a pause in buybacks

- Recent fluctuations in gold and silver prices have impacted the resource sector, causing the Hang Seng Index to drop from 28,000 to 26,000 points.  
- Additionally, changes in tax policies affecting the three major telecom companies have added uncertainty to their future revenue and profits, leading to further declines in stock prices.  
- The tech sector has also been affected, particularly with Tencent experiencing significant declines due to rumors of increased value-added tax on mobile gaming, highlighting a fragile market sentiment.

What to bet on as tech stocks have fallen｜Tang Niu