Morning Trend | CHINA HK POWER experienced a volume contraction and fluctuation on October 20th. Is the short-term bullish trend about to reverse?

On October 20th, CHINA HK POWER's performance during the trading session was overall relatively low-key. Although there was a slight inflow of funds in the early session, the total trading volume did not recover to the previously active range throughout the day. In terms of stock price movement, there was a tentative push from short-term bulls, but the cautious mindset of following funds limited the momentum, and the sector remained in a strong wait-and-see sentiment. Recently, defensive utilities in the Hong Kong region have shown weak overall performance, but various local governments have successively introduced energy security and low-carbon-related policies, injecting some foundational support for the industry. Of note, last week, CHINA HK POWER announced that it had obtained procurement qualification for two new energy demonstration projects, sparking heated discussions in the market regarding its long-term valuation repair logic. Some industry analysts believe that these new projects will help enhance the company's future profitability and strategic transformation. However, from actual market observations, despite the new information providing short-term stimulation for buying during the session, following funds still appeared to be lacking in strength and lacked the momentum for sustained collective support. From a technical perspective, CHINA HK POWER's K-line shows a short-term tentative upward trend, but auxiliary indicators are hard to find clear offensive signals, and after a brief intraday surge, it is prone to encountering resistance and retreating. On one hand, the current pattern of reduced trading volume and oscillation has not achieved a clear breakout signal; on the other hand, whether the bulls can launch an effective offensive still requires waiting for new drivers from policies and sector rotation. In a generally gloomy sector atmosphere, relying solely on one or two pieces of new information is unlikely to fundamentally change the cautious state of funds. Short-term risk points should also not be underestimated. Assuming subsequent policy follow-ups or new sector rotations provide a boost, there is still potential for a short-term recovery