Hong Kong investors are preparing for a Year of the Snake filled with uncertainty, turning to both artificial intelligence (AI) and feng shui experts for insights into the coming year’s market performance. This unique blend of modern technology and ancient tradition reflects the complex landscape of the Hong Kong financial market.
Several AI models offer varying predictions for the Hang Seng Index (HSI). Calvin Tsai, co-founder of the Hong Kong Programme Trading Research Centre (HKPTRC), utilizes a machine learning model that processes various factors through regression analysis. This model forecasts a flat first quarter for the HSI, followed by a rise in the second quarter and a decline in the latter half of 2025.
Meanwhile, Arbor, a technology company, employs its “ArborChat” AI model, which leverages deep-reasoning AI and publicly available information, including 30 investment research reports. ArborChat projects an 18% rise in the HSI for 2025, citing growth in corporate earnings and supportive fiscal policies from Beijing as key drivers, while acknowledging risks from geopolitical tensions and economic challenges.
Adding another layer of analysis, CLSA, a brokerage firm, has released its annual “Feng Shui Index,” a tongue-in-cheek prediction based on the principles of feng shui. The index anticipates early turbulence for the benchmark index, followed by a jump in May, considered the snake’s “home month.” The summer months are predicted to be less active, with a final surge at the end of 2025. A separate feng shui AI program developed by Poe, a chatbot aggregator from Quora, suggests improving fortunes for the HSI in the first four months, followed by potential irrational decision-making in May due to “overheated fire,” and a smoother trajectory for the remainder of the year.
According to CLSA’s “wand-bearer” Forest Chan, an equities analyst at the firm, “The snake symbolizes adaptability and flexibility.” He anticipates a “smoother path with few surprises for the Hang Seng Index” compared to the volatile Year of the Dragon.
Beyond the HSI, predictions extend to other asset classes. Tsai’s model anticipates a potential surge in Bitcoin prices to between US$100,000 and US$150,000 due to the “halving” event, which reduces the supply of new Bitcoin entering the market. Conversely, CLSA’s Feng Shui Index suggests challenges for cryptocurrencies in the Year of the Snake due to the lack of metal and coins in the bazi chart.
Feng Shui masters are generally optimistic about the Hong Kong property market, citing its “earth nature.” CLSA’s report points to the south and east as the most auspicious directions for property gains this year, while Arbor’s AI chatbot expresses more caution due to economic and geopolitical risks. Sector-specific predictions suggest positive performance for wood-related industries like clothing and water-related sectors like entertainment. Fire-related industries, such as technology and oil and gas, are expected to perform better in the summer and late autumn. These predictions align with ArborChat’s outlook, which favors technology, financial services, telecoms, and utilities.
Ultimately, both AI and feng shui offer different perspectives on the market outlook for 2025. The reliance on both reflects a nuanced approach to investment decision-making in Hong Kong, blending data-driven analysis with traditional beliefs. As Tsai emphasizes, leveraging AI and data is crucial for navigating the increasingly complex financial landscape. Cheney Cheng, Arbor’s co-founder and CEO, adds that AI should be used as a tool to assist investors, emphasizing the importance of human insight in conjunction with AI-driven analysis.
