Hong Kong faces a range-bound trade next week on uncertainty that China could announce new economic tightening measures over the weekend, dealers said. "Investor anxieties are heightened every Friday" due to fears of China policy announcements over the weekend, said Castor Pang, strategist at Sun Hung Kai Financial Group.
He said the market will see more selling pressure if there are indeed any such moves by mainland authorities. "The market is also ripe for a correction after gaining more than 1,000 points last week," he added.
Chinese bourses have been hit by continued concerns that authorities are aiming to steer liquidity away from the equity markets.
Jackson Wong, strategist at Tanrich Securities, said trade should stabilise next week but he anticipated profit taking. However, any losses will be capped on the back of strong liquidity.
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