2026-01-02 10:27:30

During holidays and festivals, mainland funds face short-term lock-up, and market liquidity experiences a significant contraction. This temporary tightening of capital supply directly impacts the execution efficiency of quantitative trading strategies—insufficient high-frequency trading counterparts, limited arbitrage opportunities, and decreased market participation. Interestingly, this state of "passive stagnation" has created a peculiar market pattern: traditional trading logic becomes invalid, and risk assets are re-priced. Even fringe markets like Hong Kong stocks, during periods of mainland incremental fund absence, have shown unusual attractiveness. Under liquidity pressure, funds seek gaps, and market structure temporarily distorts—perhaps this is the most easily overlooked trading opportunity within cyclical fluctuations.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

10 Likes

Reward
10
6
Repost
Share

Comment

0/400

GateUser-e87b21ee

· 4h ago

When liquidity tightens, quant traders start to panic, but isn't this an opportunity? Hong Kong stocks become somewhat interesting at this moment, feeling like digging for gold in the cracks. Locking in positions during the holiday, just in time to see who is swimming naked. The moment traditional logic fails, smart money has already been lurking in Hong Kong stocks. When funds look for gaps, it's easiest to make mistakes, but also the easiest to make money. This stagnation period might actually be a good time for trial and error. Under liquidity pressure, some people are secretly enjoying themselves.

View OriginalReply0

AirdropBuffet

· 4h ago

Liquidity is truly amazing. Locking it during holidays actually creates opportunities? You can even smell the blood in the Hong Kong stocks.

View OriginalReply0

CompoundPersonality

· 4h ago

Liquidity shrinks and quantitative easing stops, while Hong Kong stocks are instead picking up bargains at the margins. This logic is quite interesting. When the market stalls, opportunities can still emerge. No wonder the big players are waiting for gaps. Locking funds during holidays is a tactic that compresses arbitrage space, making it uncomfortable. The failure of traditional logic is the biggest opportunity—see who can think of this. Under liquidity pressure, you can actually see who is swimming naked. That’s impressive.

View OriginalReply0

ImpermanentLossFan

· 4h ago

Liquidity freezes during holidays, and quantitative machines have to shut down, which instead gives wild retail investors a chance to find gaps.

View OriginalReply0

ApyWhisperer

· 4h ago

When liquidity contracts, quant guys have to sit tight. Meanwhile, is there an opportunity to scoop up bargains in the Hong Kong stocks? That's interesting.

View OriginalReply0

SillyWhale

· 4h ago

Holidays and market closures like this, could it actually give Hong Kong stocks a chance? That's quite interesting.

View OriginalReply0