Morning Trend | KINGDEE INT'L reduces volume to seek a bottom, left-side funds wait for a change after the cooling of SaaS speculation

KINGDEE INT'L (0268.HK) has seen its stock price continue to shrink in volume while seeking a bottom after falling from its high. The SaaS sector lacks performance and conceptual catalysts in the short term, leading to a sharp decline in market enthusiasm for the sector, with weak inflows of main funds. Technically, it shows a clear death cross pattern, with daily lines consistently closing below multiple moving averages, and the bearish pattern remains unchanged. The fundamentals are stable, but market expectations are overdrawn, and the performance has not met the short-term speculative funds' expectations, resulting in a larger pullback in the sector. Future changes will depend on performance realization and industry policy dividends. If the existing market continues, it will be challenging for the sector to remain active. The current main support level for the stock price is HKD 12; if it falls below this, it will test the previous low of HKD 10. The opportunity for a right-side rally relies on significant positive stimuli from the industry and fund inflows. If positioning at the current low, strict control of positions is necessary to avoid accelerated declines leading to asset shrinkage. It is recommended that investors primarily adopt a defensive wait-and-see approach, closely monitoring overall anomalies in the SaaS sector and market volume changes alongside the performance of mainstream stocks