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Despite Hong Kong's robust legal and regulatory framework, its stock market still faces unique risks and challenges, such as currency fluctuations due to the Hong Kong dollar's peg to the US dollar and the impact of mainland China's policy changes and economic conditions on Hong Kong stocks.

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Trading costs in the Hong Kong stock market include transaction fees, stamp duty, settlement charges, and currency conversion fees for foreign investors. Additionally, taxes may apply based on local regulations.

HK Non-Essential Consumer Goods Industry

The Hong Kong stock market encompasses non-essential consumption sectors like automotive, education, tourism, catering, and apparel. Of the 643 listed companies, 35% are mainland Chinese, making up 65% of the total market capitalization. Thus, it's heavily influenced by the Chinese economy.

HK Real Estate Industry

In recent years, the real estate and construction sector's share in the Hong Kong stock index has notably decreased. Nevertheless, as of 2022, it retains around 10% market share, covering real estate development, construction engineering, investment, and property management.

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      GBP/JPY Holds Steady Near Multi-Year Highs as Yen Struggles Amid Stimulus Concerns

      Traders' Opinions
      Summary:

      The Pound remains firm against the Yen, supported by broad-based weakness in the Japanese currency amid economic concerns and fresh fiscal stimulus plans. GBP/JPY eyes new multi-year highs as bullish momentum persists.

      Buy GBPJPY
      End Time
      CLOSED

      208.695

      ENTRY

      211.000

      TGT

      207.500

      SL

      -- -- --

      1195

      Points

      Loss

      207.500

      SL

      207.489

      CLOSING

      208.695

      ENTRY

      211.000

      TGT

      The British Pound has maintained its composure near multi-year highs against the Japanese Yen this week, trading around the 208.90 level, as broad-based Yen weakness continues to underpin the pair. Attempts to push the currency lower have been consistently contained above 208.20, suggesting a firm bullish bias among market participants.
      The Japanese Yen’s decline against its major peers is being driven by a combination of disappointing economic growth data and mounting concerns over the fiscal outlook in Japan. Prime Minister Talkaichi’s cabinet recently announced plans for an ambitious USD 137 billion stimulus package, aimed at supporting domestic demand but raising questions about fiscal sustainability. Investors are now weighing the economic benefits of the stimulus against potential pressure on Japan’s already stretched public finances, which has weakened confidence in the Yen.

      Technical AnalysisGBP/JPY Holds Steady Near Multi-Year Highs as Yen Struggles Amid Stimulus Concerns_1

      Technically, the GBP/JPY pair has capitalized on these supportive factors. The pair established an additional support level around 206.90, gaining positive momentum as confirmed by key indicators. This bullish strength allowed the pair to rally to 208.90 yesterday, achieving the initial target outlined in our previous analysis. Following this rise, the pair entered a phase of sideways consolidation, which market watchers interpret as a healthy accumulation period that often precedes a continuation of upward trends.
      Looking at the immediate technical landscape, the GBP/JPY shows no signs of retreating from its bullish trajectory. A decisive breach above 208.60 has opened the door for a further rally, with the next target projected around 209.30. Beyond this, the pair could extend towards the 261.8% Fibonacci extension level near 211.00, a key area where profit-taking and resistance may surface.

      TRADE RECOMMENDATION

      BUY GBPJPY
      ENTRY PRICE: 208.70
      STOP LOSS: 207.50
      TAKE PROFIT: 211.00
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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      Warren Takunda

      Analysts

      Warren Takunda, a seasoned finance leader specializing in the Middle East, is a trusted senior analyst with a proven track record. As head of the finance team, he excels in financial planning, analysis, and reporting. Warren's expertise in financial modeling and investment analysis delivers valuable insights to clients.

      Rank

      4

      Articless

      1932

      Win Rate

      63.79%

      P/L Ratio

      0.72

      Focus on

      XAUUSD, EURUSD, GBPUSD

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