HangSeng50: Both profit targets banked updated trade is here!Five days ago, the Hang Seng had an unfriendly technical backdrop in Asia with the US imposing a 50% tariff on copper imports in the country on July 9, Chinese PPI deflation reading of 3.6% year-on-year, and geopolitical tensions from the Strait of Hormuz. But with its positive MACD histogram divergence and the 50-day EMA intact, it turned out to be a good momentum long trade with its 24,355 primary target breached on July 10 and 24,533 secondary target breached thereafter. The story became more interesting on Wednesday with Q2 GDP growing by only 4.3% year-on-year which was below the 4.5% market expectation and the official target floor of Beijing for the first time since late 2022. But the details behind this GDP miss reveal that China's economy is unbalanced rather than broken as the retail sales grew by 1.0% (vs. 0.1% drop expected) in June, industrial production recorded 5.3% (vs. 4.6% estimate) and exports grew at the fastest pace since October 2021. On the other hand, the domestic demand is weak with fixed asset investment falling 5.7% year-on-year (vs. 4.9% drop expected) and property investment falling 18% in the first six months.
Indeed, the daily chart shows a real structural change. Both the EMA 9 and EMA 20 that provided resistance throughout the month of June have been retaken and are curling higher, indicating institutional accumulation. An additional bullish MA Cross at 23,952 and 23,738 corroborates this change in direction. The RSI at 60.48 offers a very interesting indicator as it has convincingly crossed above its signal line of 39.60, indicating strong buying pressure while remaining below overbought conditions and hence showing there is some scope for continuation of the trend. This is confirmed by a bullish MACD crossover, where the MACD line at 219.25 is comfortably above the signal line and the histogram is showing its biggest readings since April. But, of course, the miss on Q2 GDP growth (brings a fundamental driver into play as the story switches from sentiment to policy dependence. Although the technical indicators are providing the runway for an advance, hitting the extended target of 25,113 would depend on a policy announcement in late July in the Politburo meeting.
Updated trade plan
Direction : Long both targets banked, manage the remainder with discipline
Status : Primary target (24,355) hit 10 July. Secondary target (24,533) hit 15 July.
New operative target : 24,874
Extended target : 25,113
Trailing stop : 24,000
Key date to watch : Late July Politburo meeting
Technical scenarios
Bull case : Stimulus mandate unlocked with Q2 growth below the 4.5% floor, the late-July Politburo meeting is critical. If Beijing implements rate cuts or fiscal expansion, the confirmed MACD crossover supports a move toward the 25,113 EMA 200 target. The GDP miss effectively acts as a catalyst for aggressive policy support.
Base case : Consolidation and positioning the index will likely oscillate between support at 24,355 and the 24,874 peak as institutions await the Politburo signal. Expect RSI cooling and MACD histogram compression. With the 24,000 trailing stop secure, this remains the most probable near-term outcome.
Bear case : Structural headwinds trigger reversal If the 4.3% growth and 18% property slump signal ineffective stimulus, risk appetite will likely fade. A daily close below the 24,000 trailing stop invalidates the current recovery, refocusing on June lows. Until then, the EMA and RSI structural shift remains the dominant framework.
Long
HangSeng50: First profit target Hit ;MACD called the reversal!In this video, there is an update on the Hang Seng 50 trade which I have suggested in my earlier article on 9th July 2026 where the index was down 0.86% due to a 50% tariff on copper announced by Mr. Trump, the fall in shares of electric vehicles and deflationary producer prices reported from China. Just then, the MACD histogram was printing its biggest green bar for weeks and that became our trigger. Within 24 hours, the index was up three percent, and by 10th July, Friday, we achieved our first target of 24,355 when the Hang Seng is likely to post its best weekly performance since March 2025. In this video, I will show you why the index reversed, how the trade currently stands and how I will manage the position till the next target of 24,533 is reached. It would be an interesting watch for any trader dealing with indices or anyone interested in learning reversal in a chart using MACD. Long
Hang Seng 50: Trapped between stimulus hope and a tariff wall ?For the Hang Seng 50, Thursday's trading started off with all the pressure associated with an extremely complicated macro environment facing an Asian index this cycle. July 9 has been the deadline for the latest tariff package from the USA to return to high rates unless they were extended further. Instead of easing tensions, the market is receiving new pressures in the form of another tariff on Chinese goods. This time, President Trump decided to implement a 50% tariff on US copper imports from China, directly hitting the EV and tech companies that form the foundation of the Hang Seng most actively traded stocks. At the same time, Trump stated about the new tariffs on drugs and semiconductors. All this led to an instant drop in stocks BYD was down by 1.47%, Li Auto by 1.41%, Baidu by 1.12%, and Alibaba by 1.03%. It resulted in a decrease of 1.16% in the Hang Seng Tech Index. Moreover, China's macro numbers added more pressure. PPI fell by 3.6% YOY in June. The counterbalance to this is Beijing itself. The Chinese mainland markets ; the CSI 300 and Shanghai Composite are both trading positively due to expectations for new stimulus measures, and the dichotomy between the mainland and Hong Kong's outlooks is one which has characterized this market all year. Hong Kong trades the fear, while the mainland trades the government reaction.
This is a very accurate portrayal of the above mentioned split personality. What the price action here tells us is the index has undergone a controlled and systematic decline from its May high close to 26,900 to its current level at around 23,988, which represents a roughly 11% decline, and is now trying to stabilize itself inside the June-July congestion area. The EMA configuration here is the most important aspect of the chart. The lone EMA is moving upwards from left to right, has been acting as a ceiling for the entire decline. Each rally has found its resistance there without taking control of it, which is precisely what defines a market still in technical decline despite its attempt at stabilizing. This price is moving just above the 50-day EMA at 23,566, which has been the only support so far in terms of structural value.RSI at 49.01 is the least dishonest indicator on the chart. The RSI indicator is slightly below the neutral 50 level, thus indicating that the asset is neither oversold nor overbought. Instead, the current RSI value shows that the asset has experienced an 11 percent decline and now has no particular direction. This is not a problem with the indicator but rather the purpose of the trading strategy based on such data. However, the MACD is where the most valuable signal is on the chart. In this case, the MACD line at −382 and the signal at −507.6 are very low and even negative. Therefore, the medium-term trend of the asset has been bearish since the moment of its fall. However, the histogram of the MACD has become positive and displays the largest green bar visible on the entire chart during the current session. The appearance of the positive histogram within very negative MACD lines is the earliest momentum reversal indicator. This does not mean that the downtrend will end soon. Instead, it means that the pace of falling has slowed down.
Trade recommendation
Direction : Cautiously long
Entry horizon : 23,500 – 23,988
Primary target : 24,355
Secondary target : 24,533
Stop loss : 23,500
Technical scenarios
Beijing-led resurgence : A tangible fiscal package encompassing property relief, rate cuts, or government spending would validate the MACD’s bullish divergence. A sustained RSI rise above 50 and a close above 24,000 would solidify the current congestion zone as support. In this optimistic scenario, the index would target 24,533, with 24,874 marking a full trend recovery.
Protectionist attrition : Ongoing trade restrictions may yield tariff exhaustion, where negative news triggers a diminishing bearish response. This suggests a sideways grind within the 23,500–24,355 corridor, favoring a patient, range-bound strategy over momentum chasing.
Structural anchor failure : A daily close below 23,500, breaking the 50-day EMA, would signal that headwinds have overwhelmed stimulus support. This invalidates the consolidation thesis, exposing the index to a drop toward 23,000 and potentially the April lows near 20,264. The 50-day EMA remains the critical line in the sand.
Long 
What If Hang Seng Is About to Shock the World?Hang Seng Index — Monthly Elliott Wave Outlook
This chart presents a long-term Elliott Wave interpretation of the Hang Seng Index, focusing on the broader cyclical structure rather than short-term fluctuations.
From a structural standpoint, the index appears to be completing a prolonged corrective phase, potentially forming a Wave 2 base following the prior impulsive advance. The current price zone is technically significant, as it aligns with a region where long-term buyers may begin to re-enter the market.
If this interpretation holds, the next phase would be a Wave 3 advance — typically characterized by strong momentum, expanding participation, and sustained trend development.
Key observations:
The correction has been deep and extended, consistent with higher-degree Wave 2 behavior
Price is stabilizing near historically reactive levels
Early signs of structure suggest a potential transition from correction to accumulation
Upside framework (conditional):
Medium-term projection: ~188,000
Longer-term cycle potential remains open if momentum confirms
It’s important to emphasize that this is a scenario-based analysis, not a prediction. Confirmation would require continued higher highs and higher lows on higher timeframes, supported by momentum and volume expansion.
Conclusion:
The Hang Seng remains one of the more underfollowed major indices in the current global landscape. From a cyclical perspective, this region may represent an early-stage inflection point — worth monitoring as the structure evolves.
This analysis is for educational purposes and should not be considered financial advice.
FIBCOS | Forex • Indices • Bonds • Crypto • Options • Stocks Long 
HSI Index Falls to November LowHSI Index Falls to November Low
Today, the Hong Kong stock index HSI is showing downward momentum, dropping below 25,200 for the first time since mid-October.
Factors adding to selling pressure include (according to media reports):
→ Tech sector slump: Hong Kong is following the US, where investors have started offloading tech giants’ shares amid fears of an AI “bubble.” Market participants worry that current company valuations are overinflated. Even Nvidia’s strong report released this week only provided a short-term boost.
→ Geopolitics: In addition to strained trade relations between China and the US, tensions with Japan have added to uncertainty.
→ China’s economic data: Indicators continue to raise concerns despite government stimulus measures.
Technical analysis of the HSI shows that price action since late summer 2025 formed an upward channel (marked in blue).
At the same time:
→ on 5 November, the price rebounded sharply from the lower boundary, confirming strong buying interest;
→ this week (as indicated by the arrow), it failed to reverse upwards.
As a result, bears have pushed through an important support level and are attempting to consolidate their gains.
It is possible that:
→ the 25,700 level (where the channel was broken) may act as resistance;
→ bears may grow more ambitious, potentially driving the HSI down to test key support around 24,800 in the near term.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice. H
Hang Seng Index Hits 4-Year HighHang Seng Index Hits 4-Year High
As the chart shows, Hong Kong’s Hang Seng Index climbed above the 27,300 mark today – for the first time since summer 2021. The bullish momentum has been supported in part by corporate news. According to media reports:
→ Shares of Chinese EV maker NIO Inc. rose by around 5% following news that vehicle deliveries had increased by 64.1% year-on-year.
→ Shares of Ascletis Pharma Inc. jumped 12.8% after the company announced a share buyback programme.
→ Alibaba shares surged 4% after JPMorgan raised its price target by more than 40%, citing AI industry development and strong user engagement.
Since 1 September, the Hang Seng Index has gained over 7%.
Technical Analysis of the Hang Seng Index Chart
In our 23 September review of the index chart, we:
→ highlighted that the price had fallen to the lower boundary of the blue ascending channel;
→ noted signs of demand emerging around the psychological 26,000 level.
Since then (as shown by the arrow), price action has been supported by these levels. On 26 September, bears attempted once more to break below 26k, but failed – giving bulls the opportunity to seize control. This resulted in the formation of a steep upward trajectory, highlighted in orange.
From an optimistic perspective:
→ The market has resumed its uptrend, breaking above the corrective bull flag pattern (shown in red).
→ The September high near the psychological 27,000 level was broken decisively — the long candlestick points to a demand–supply imbalance favouring buyers, reinforcing the relevance of the bullish Fair Value Gap pattern highlighted in purple.
→ The price is now trading in the upper half of the blue channel (a sign of strong demand).
At the same time, the RSI indicator has entered the overbought zone. Once the first wave of positive sentiment fades, a bout of profit-taking could happen, which might trigger a correction — potentially involving a retest of the 27k level or the lower orange line.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice. H
Hang Seng Index Finds SupportHang Seng Index Finds Support
As the chart shows, Hong Kong’s Hang Seng Index (Hong Kong 50 on FXOpen) has fallen more than 3% from its 2025 high over the past week. In recent days, several factors may have driven bearish sentiment:
→ Domestic Chinese policy: Media reports indicate that on Monday the head of China’s central bank held a press conference, but market participants may have been disappointed by the proposed economic stimulus measures.
→ US influence: This includes both trade deal negotiations and the Federal Reserve’s recent decision to cut interest rates.
→ Other news: For example, the approach of Typhoon Ragas.
Additionally, reaching a peak near 27,000 points may have prompted long-position holders to take profits, creating a wave of selling.
Nevertheless, the chart shows several technical signs suggesting that the market is finding support, and the scope for further declines appears limited.
Technical Analysis of the Hang Seng Index Chart
Market movements in September have formed an ascending channel (shown in blue), with support provided by:
→ the lower boundary of this channel;
→ the psychological level of $26,000;
→ the 50% retracement level following the A→B impulse.
Bulls may take confidence from the fact that the RSI is in oversold territory.
In the short term, the initiative remains with the bears:
→ they are holding the Hang Seng stock price within a descending trajectory (shown in red);
→ the break below the 26,300 level occurred aggressively (marked with an arrow) — wide candles indicate a seller-dominated imbalance, making the consideration of a bearish Fair Value Gap pattern (highlighted in purple) relevant.
However, in the longer term, the odds favour the bulls:
→ the index has risen approximately 30% since the start of 2025;
→ in this context, we may be inside a Bullish Flag pattern, suggesting a potential resumption of the prevailing uptrend after an intermediate correction.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice. H
Long
Hang Seng Index Pulls Back from 2025 HighHang Seng Index Pulls Back from 2025 High
Yesterday, the Hong Kong Hang Seng Index (Hong Kong 50 on FXOpen) climbed above 25,745 points, setting a new 2025 high — and marking its highest level since autumn 2021.
August’s bullish sentiment was fuelled by the following drivers:
→ China and the US agreed to continue tariff negotiations in mutual trade through to November.
→ Citi analysts noted that the implementation of additional demand-stimulus measures in China is progressing as planned.
→ According to Reuters, investor interest in China’s technology sector is increasing.
However, today the Hang Seng is trading lower, suggesting that yesterday’s optimism is gradually fading.
Technical Analysis of the Hang Seng Index
Price action continues to form an upward channel (shown in blue), with the index currently trading near its median line — an area where supply and demand tend to balance. This indicates that the Hang Seng may enter a consolidation phase.
That said, several bearish signals suggest the pullback from the 2025 peak in the Hang Seng Index (Hong Kong 50 on FXOpen) could extend:
→ The breakout above the July high was minimal in both progress and duration. The swift reversal after a brief rise is typical of a false bullish breakout, indicating fragile demand.
→ Today, two relatively long bearish candles have closed near their lows — a sign of increasing selling pressure.
→ The MACD histogram remains above zero but is declining — a pattern often seen when price exits overbought territory.
Potential Support Levels in a Correction Scenario:
→ 50% Fibonacci retracement (around 25,295);
→ 25,180 – marked by an explosive price surge and resistance breakout (as indicated by the arrow), signalling strong buyer dominance;
→ The 25,000 psychological level and the lower boundary of the channel — although, in this case, the depth of the decline would call into question whether this is merely a correction or the start of a longer-term downtrend.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice. H
Will China's strong growth and ongoing stimulus lift the HK50?
Despite US-China trade tensions and weak domestic demand, China’s GDP growth has surpassed its 5% target for the first half of the year. According to the National Bureau of Statistics, Q2 GDP grew 5.2% YoY, with authorities noting that stimulus measures aimed at boosting consumption had some effect. Reflecting this momentum, Morgan Stanley raised its 2024 China growth forecast from 4.2% to 4.5%, while Deutsche Bank revised its outlook to 4.7%, a 0.2 percentage point increase.
HK50 maintained its steady uptrend, marking a new 4-month high. Both EMAs widen the gap, indicating the potential continuation of bullish momentum. If HK50 breaches above the recent high at 24600, the index could gain upward momentum toward the next resistance at 24900. Conversely, if HK50 breaks below the support at 24100, the index may retreat to 23730.
Hang Seng Index Pulls Back as Trade Deal Optimism FadesHang Seng Index Pulls Back as Trade Deal Optimism Fades
Yesterday, Hong Kong’s Hang Seng Index (Hong Kong 50 on FXOpen) climbed above the 23,600 mark, supported by progress made during US–China tariff negotiations.
However, today the Hang Seng Index (HSI) has dropped towards the 23,100 level, which may be explained by fading optimism that dominated the market a day earlier.
According to Reuters, Christopher Hodge, Chief Economist at investment bank Natixis, stated that “these talks will yield nothing of long-term value. Ultimately, tariffs will still be significantly higher and will weigh on US economic growth.”
Technical Analysis of the Hang Seng Index (HSI) Chart
Price movements are forming an upward trend channel (marked in blue), with the following features:
→ The price is situated in the upper half of the channel (a sign of demand), and the upper boundary appears to act clearly as resistance;
→ Yesterday’s reversal suggests that bears became active above the former support area near the 23,385 level.
In this context, it is reasonable to assume that the Hang Seng Index (Hong Kong 50 on FXOpen) may test the support zone formed by the psychological level of 23,000 and the median line of the ascending channel. If the fundamental backdrop gives markets more reasons for caution, a deeper correction towards the lower boundary of the blue channel cannot be ruled out.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice. H
Hang Seng Index Plunges by Around 13%Hang Seng Index Plunges by Around 13%
Hong Kong’s Hang Seng Index (Hong Kong 50 on FXOpen) tumbled by over 13% as trading resumed after the weekend with a sharp bearish gap.
According to media reports, this marked the biggest single-day drop since the 1997 Asian financial crisis.
Hang Seng Index Chart
In our analysis of the upward trend on the Hang Seng (Hong Kong 50 on FXOpen) chart a month ago, we noted that:
→ investor enthusiasm around artificial intelligence was still fuelling the rally;
→ however, the price appeared vulnerable to a correction.
We also highlighted that the outlook would largely depend on the fundamental backdrop, particularly the tariff standoff between China and the United States.
Since then, the Hang Seng Index (Hong Kong 50 on FXOpen) has fallen by around 17%, following the announcement of harsher-than-expected tariffs by President Trump, with China responding in kind.
Despite the drop, Hang Seng is outperforming peers
Despite Monday’s dramatic decline, the Hang Seng is still outperforming several other markets. As shown in the chart above, it remains in positive territory for 2025, unlike:
→ the ASX 200 (Australia 200 on FXOpen);
→ the S&P 500 (US SPX 500 mini on FXOpen);
→ and other global indices, including those in Europe and Japan.
What lies ahead?
Market sentiment remains highly sensitive to tariff-related news. For instance, Bloomberg reported that a post on social media platform X claimed President Trump was considering a 90-day pause on tariffs (excluding China), sparking hopes of a rebound.
Should Trump choose to soften the recently announced tariffs, this could act as a catalyst for a strong recovery across global equity markets.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice. H
Hang Seng Index Reaches Three-Year HighHang Seng Index Reaches Three-Year High
A month ago, while analysing the uptrend in the Hang Seng index (Hong Kong 50 on FXOpen), we noted that:
→ Positive sentiment was driven by the success of the DeepSeek startup, boosting Chinese tech stocks and mobile operators.
→ Price movements formed a bullish structure based on Fibonacci proportions.
→ Analysts predicted the uptrend could persist until the second half of March.
Today, the Hang Seng index (Hong Kong 50 on FXOpen) surged above the 24,500 level for the first time since February 2022. According to Reuters, investor enthusiasm for artificial intelligence continues to fuel the rally.
Technical Analysis of the Hang Seng Chart
New price data support the construction of a large-scale upward channel (marked in blue).
From a bullish perspective:
→ The median line of the blue channel has shifted from resistance to support (as indicated by arrows).
→ The price remains within the intermediate purple ascending channel.
From a bearish perspective:
→ The last two candlesticks show long upper wicks—an indication that sellers are active, possibly locking in profits.
→ The RSI indicator is forming a bearish divergence.
Given these factors, the price appears vulnerable to a pullback. However, the future trajectory will largely depend on fundamental factors, particularly the ongoing tariff tensions between China and the United States.
Trade on TradingView with FXOpen. Consider opening an account and access over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50 per lot.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice. H
CHINA’S TECH SURGE—AI HYPE, HOT MONEY, AND LINGERING DOUBTSCHINA’S TECH SURGE—AI HYPE, HOT MONEY, AND LINGERING DOUBTS
(1/9)
Big News: China’s tech sector is on fire 🔥📈 in 2025, driven by AI breakthroughs and a softer regulatory vibe from Beijing. Hong Kong’s Hang Seng Index is up 13% YTD, outpacing the S&P 500 (+4%). Is this a tech golden age or a speculative bubble? Let’s break it down! 🚀
(2/9) – STOCKS IN FOCUS
• Alibaba: +50% (Hong Kong) 💥
• Xiaomi: +35% 📱
• Baidu: +30% 🔍
• BYD: +25% 🚗
The Hang Seng Tech Index has soared 30% since mid-January, hitting a 3-year high 🎉. Trading volumes are through the roof!
(3/9) – WHY THE SURGE?
• DeepSeek’s cost-effective AI model sparks global buzz 🤖
• Alibaba’s AI partnership with Apple + Jack Ma’s reappearance with Xi Jinping 🇨🇳
• Beijing hints at easing its tech crackdown, boosting investor confidence 💸
(4/9) – ‘HOT MONEY’ DRIVING THE RALLY
• Speculative capital—“hot money”—from hedge funds and retail traders fuels the boom 💨
• Trading volumes spike, but big institutional investors (pension funds, etc.) stay cautious 🧐
• Analysts warn: Momentum, not fundamentals, is driving this rally 📉
(5/9) – AI BREAKTHROUGHS: REAL OR HYPE?
• DeepSeek’s AI model hailed as a game-changer, but details are thin 🤔
• Social media buzz calls it a “bull market” for Chinese tech 🐂
• Critics say it’s more sentiment than substance—China’s history of overpromising looms large ⚠️
(6/9) – REGULATORY REPRIEVE OR TEMPORARY TRUCE?
• Xi Jinping meets tech leaders, signaling a thaw after years of crackdowns 🏛️
• Investors scour photos for clues—Alibaba and Tencent back in favor? 📸
• Skeptics question if it’s a genuine shift or a short-term tactic to prop up the economy 😬
(7/9) – RISKS VS. REWARDS
• Risks: Geopolitical tensions, trade tariffs, and competition from Western tech (e.g., Nvidia’s $589B drop) 🌍
• Rewards: If AI delivers and Beijing stays supportive, Chinese tech could dominate globally 🌟
• The rally’s fate hinges on sustainability—will the gains stick? 🤝
(8/9) – Will China’s tech surge last?
1️⃣ Yes—AI and policy shifts will fuel a new golden age.
2️⃣ Maybe—Short-term gains, but long-term doubts remain.
3️⃣ No—Speculative bubble will burst soon.
Vote below! 🗳️👇
(9/9) – FINAL TAKEAWAY
China’s tech rally is a wild ride 🌍—AI hype, “hot money,” and a regulatory truce are driving stocks sky-high. But with big investors on the sidelines and risks aplenty, it’s a fragile boom. Will Beijing and AI deliver, or is this another fleeting frenzy? Stay tuned! 💪
Long 
Long
Hang Seng Index Hits Four-Month High Amid DeepSeek’s SuccessHang Seng Index Hits Four-Month High Amid DeepSeek’s Success
As shown in the Hang Seng (Hong Kong 50 on FXOpen) chart today, the index has risen above the 21,500 mark for the first time since October 2024.
According to Reuters, bullish sentiment is fuelled by optimism surrounding the success of the DeepSeek startup. Leading gainers include tech stocks:
→ Chipmaker Cambricon Technologies surged 6.2%;
→ AI firm CloudWalk Technology hit the 20% upper limit;
→ Major telecom operators China Mobile, China Unicom, and China Telecom also saw gains after announcing their collaboration with DeepSeek’s open-source model to "promote the inclusive adoption of cutting-edge AI technologies."
Analysts at China Securities believe the uptrend could persist until the second half of March.
Technical Analysis of the Hang Seng Chart
Applying Fibonacci retracement levels using the August low (A) and the October 2024 high (B), we can see how these levels acted as temporary support (marked with arrows) as the price retraced to the January low (C).
In the most optimistic scenario:
→ The rally over the past three weeks may signal the resumption of the A→B uptrend;
→ Based on Fibonacci proportions, bulls may target the 1.618 extension of the initial move, implying a potential price level 61.8% higher than the previous peak.
This suggests a possible target around 25,520, though this appears somewhat ambitious for the Hang Seng (Hong Kong 50 on FXOpen) given:
→ Rising inflation in China—today’s data shows the annual CPI climbed from 0.1% (previous reading) to 0.5%;
→ The prospect of escalating tariff tensions with the US after China retaliated against Trump’s 10% tariffs on Chinese imports.
Trade on TradingView with FXOpen. Consider opening an account and access over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50 per lot.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice. H
Long
Chinese Stocks Decline Amid Tariff ThreatsChinese Stocks Decline Amid Tariff Threats
According to Bloomberg, President Donald Trump raised the possibility of imposing tariffs on China during his second day in office.
“We’re considering a 10% tariff on China,” Trump announced during a White House event on Tuesday, indicating February 1 as a potential start date.
During his election campaign, Trump had mentioned tariffs as high as 60%, and the prospect of transitioning from campaign rhetoric to real action is driving bearish sentiment.
According to the technical analysis of the Hang Seng Index (Hong Kong 50 on FXOpen), price fluctuations have been forming a downward trend since October. The formation of the 2025 peak (indicated with an arrow) signals bearish tendencies, as the price failed to hold above:
→ The previous high from December, near 20,210, indicating a false breakout.
→ The psychological level of 20,000.
If Trump follows through on his promises, it is reasonable to anticipate that bears may take control of lower levels in the coming sessions.
Trade on TradingView with FXOpen. Consider opening an account and access over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50 per lot.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice. H
Long 
HSI Index Falls Amid Disappointing Chinese Economic DataHSI Index Falls Amid Disappointing Chinese Economic Data
On Tuesday, Hong Kong's HSI index (traded as Hong Kong 50 on FXOpen) declined, erasing gains from the previous session due to worsening market sentiment following the release of disappointing Chinese economic data for November. As reported by the media:
→ China's export growth slowed to 6.7% year-on-year, falling short of the forecasted 8.5%, according to a Reuters survey. This marks a significant deceleration compared to the 12.7% growth recorded in October.
→ Additionally, Chinese imports contracted, decreasing by 3.9% year-on-year in November, further deteriorating from the 2.3% decline seen in the previous month.
These figures have heightened concerns about the state of China’s economy, with consumer demand remaining weak amid the potential for tariff increases under the Trump administration.
Technical analysis of the Hong Kong HSI Index chart (Hong Kong 50 on FXOpen) reveals that price action throughout 2024 has established an ascending channel (illustrated in blue).
Notably:
→ The median line of the channel has previously acted as a "magnet" for price (highlighted with a blue oval), typically indicating equilibrium between supply and demand.
→ However, as marked with an arrow, it has recently acted as resistance, turning the price downward this week.
This sharp shift in sentiment suggests that the HSI index value (Hong Kong 50 on FXOpen) could retreat to the previous consolidation zone between the 19,000–19,700 levels.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice. H
