Hang Seng Index (HSI) Plummets Further on China Technology Clampdown
Hang Seng Index (HSI) News, and Analysis:
- Hang Seng slumps to levels last seen in November 2020.
- Chinese regulators continue to squeeze technology companies.
The Hang Seng Index (HSI) is down another 4%+ today as China continues to clampdown on technology companies, with the regulators taking aim at the food sector today. The HSI is now down nearly 20% after printing an all-time high in February this year. The indices’ constituents are a sea of red with double-digit losses seen in Alibaba Health Info tech (-18.5%), China Feihe (-16.2%), Meituan Dianping (-17.6%) among others. The Hang Seng Tech index has been hit even harder and the recent sell-off has seen the indices lose over 40% this year.
The daily HSI chart shows the recent damage caused by the government crackdown with the index now trading below all three simple moving averages, while the 50-day sma has fallen through the 200-day sma, forming a bearish ‘death cross’. The CCI indicator is flashing an extreme oversold warning, while volatility, measured by the 14-day ATR, is climbing sharply. The multi-month higher low made at the end of last year has been broken with ease today, leaving the October 30 swing-low at 23,961 the next level of support.
Hang Seng Index (HSI) Daily Price Chart
In recent weeks, Chinese regulators have been curbing, and fining, Chinese technology companies, hitting a range of sectors and companies hard. The food sector is currently in the government’s cross-hairs with the regulator today announcing a new set of guidelines, while in recent days the private tutoring sector and music licenses have all felt the wrath of the Chinese government.
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