Lyon Feng Shui Index 2026: The Hang Seng Index can still leverage the power of the annual fire luck this year

CITIC Lyon Securities published its 2026 Feng Shui Index Guide on the occasion of the beginning of spring, indicating that the upcoming Year of the Fire Horse will be a "Fire Horse Year." If investors can boldly take action, ride the momentum, and adapt flexibly, they will be able to navigate the surging tide of fortune in the coming year.

Looking back at the past four Horse Years, Lyon noted that three of them showed a steady growth trend, and it is expected that this year will continue the same trend. The firm also pointed out that the Hang Seng Index, established in 1969, belongs to the Earth element and is associated with the Rooster zodiac. According to astrological calculations, it is advisable to keep a low profile in the Horse Year, but under the influence of the intense fire energy, the Earth Rooster's destiny may welcome good fortune.

According to the firm's predictions, the Fire Horse Year will start with a market decline, with the market potentially dropping by up to 5% from early February to early April. Subsequently, it is expected to rise, with an increase of over 10% from early June to early July, and in the second half of the year, it will present a "dressage performance" of two steps forward and one step back. By December, as the golden energy converges into the winter water, the cold wave will sweep through the world, extinguishing the flames of the Fire Horse. Lyon anticipates that the market may experience a pullback, and as the Year of the Sheep approaches in January of the following year, the market may welcome a final surge.

In terms of industries, Lyon believes that sectors associated with the "Metal" element will experience the strongest trend in several years, with expectations for positive performance in machinery manufacturing, construction steel, financial products, military industry, and legal services. The "Fire" industries are expected to perform well, with energy production and telecommunications benefiting from favorable fortunes, while demand in the jewelry, eyewear, and lighting industries remains strong. This year, the "Earth" industries may be constrained by other elements, and Lyon expects the real estate sector to struggle for favorable fortunes, although infrastructure materials like sand, gravel, and cement have promising prospects. In the fourth quarter, the hotel industry and various jewelry sectors may rejuvenate. As for the "Wood" industries such as furniture, plants, and pharmaceuticals, as well as the "Water" sectors like trade, beverages, and toys, they will receive support in the spring-summer and winter seasons, respectively