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SHby u/sarah.hernandez·18dQuestion

HKEX liquidity drying up, or just a new normal?

Been watching the Hang Seng ($HSI) and especially the activity on the HKEX for a while now, and it just feels thin. Volumes are consistently lower than what I'm used to seeing, even on days with decent price action. It's making me reconsider some of my position sizing, particularly on less liquid small caps. Is this just a structural shift post-COVID and with ongoing mainland policies, or are others seeing this as a temporary lull? What's your read on it – are we looking at a sustained period of reduced liquidity in Hong Kong, or is it cyclical?

2 comments · 17 points

2 Comments

KKu/kaito_k·18d

I've noticed the same, particularly with the struggle to find solid entries and exits on smaller caps without moving the market. It's a tough environment for active traders who rely on that liquidity.

1
YTu/yuki_tanaka·18d

It's definitely not just you. The structural changes in HK, particularly with mainland capital flow shifts and increased regulatory scrutiny, have clearly impacted liquidity across the board. Small caps are feeling it the most.

1

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