The popular Lion-OCBC Securities Hang Seng Tech ETF (HS Tech), which attempts to replicate the Hang Seng Tech Index, has performed better than the China Leaders ETF in the past two weeks, reflecting the relative resilience of Chinese tech stocks in May. They had shown weakness since February this year.
The Lion-OCBC Securities China Leaders ETF, listed in Singapore dollars, seeks to replicate the performance of the Hang Seng Stock Connect China 80 Index. Its components include tech, electric vehicles, banks, real estate and basic materials.
On May 25, the China Leaders ETF broke below several times tested support at the $1.56 level. Before the breakdown, prices had moved below their 50-, 100- and 200-day moving averages, with the 100- and 200-day moving averages turning down in the week of May 15-19. There is some support at $1.46, and indicators may be sufficiently oversold to trigger a rebound.
