Industrial Securities Co., Ltd. has released a strategy report stating that its proprietary Hong Kong stock market sentiment indicator suggests the market has entered a range that warrants close attention. As of this Friday, the Hong Kong stock sentiment index dropped more than 24.5% week-over-week to 39.9%, returning to levels last seen at the low on December 19 of the previous year and falling below the rolling one-year average by 1.5 standard deviations. Among contributing factors, the five-day moving average of the short-selling ratio rose to 17.5% during the week, reaching the 93rd percentile of the past year's range. This, combined with declines in the RSI, the proportion of Hang Seng Index constituent stocks hitting 60-day highs, and the trading share of small and mid-cap stocks, contributed significantly to the weakening sentiment.