News & Analysis / Analysis / The Hang Seng Index is Near Important Support

The Hang Seng Index is Near Important Support

FXOpen

The economy of China is hit by the decision to liquidate the developer Evergrande due to a debt of USD 300 billion. Bloomberg writes that this will have huge consequences for all of China.

While the S&P 500 index rose by more than 3% since the beginning of January, the Hang Seng index fell by more than 8%. JPMorgan and HSBC point to local government debt, non-performing bank loans and negative sentiment in the private sector.

The weekly chart of the stock index Hang Seng (HSI) shows that:

→ The price is in a downward trend, which is shown by the black line.
→ The price dropped close to the 2022 minimum.
→ The RSI indicator is located near the oversold zone.

What is important: the price is near the lower border of the long-term channel (shown by orange lines), from which support can be expected.

Expectations of investors to lower the interest rate from the Fed may increase the appetite for risky assets, which features Chinese stocks.

As Reuters writes, Goldman Sachs noted in its note to clients that hedge funds are actively buying Chinese shares - for the period from January 23 to 25, there was the largest capital inflow in the last 5 years. Perhaps the managers of hedge funds believe that the plans of the Chinese authorities to stimulate the economy for more than $280 billion will become a reality, and the price of the Hang Seng index will make a jump from the lower border of the long-term channel, breaking the black line of the downward trend.

Trade global index CFDs with zero commission and tight spreads. Open your FXOpen account now or learn more about trading index CFDs with FXOpen.

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.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Instrument
Live ECN bid
Live ECN ask
Action
EURUSD
1.09213
1.09214
Trade
GBPUSD
1.29901
1.29903
Trade
AUDUSD
0.63851
0.63852
Trade
USDJPY
149.208
149.212
Trade
USDCAD
1.42910
1.42916
Trade
More
Index CFD Trading with FXOpen

Index CFD Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Trade with tight spreads
  • Take advantage of zero commission
  • Choose from 4 trading platforms: MT4, MT5, TradingView, or TickTrader
Learn more

Latest articles

Market Insights with Gary Thomson: Canada’s Inflation, Fed and BoE Interest Rates, Earnings Reports
Financial Market News

Market Insights with Gary Thomson: Canada’s Inflation, Fed and BoE Interest Rates, Earnings Reports

In this video, we’ll explore the key economic events, market trends, and corporate news shaping the financial landscape. Get ready for expert insights into forex, commodities, and stocks to help you navigate the week ahead. Let’s dive in!

Indices

S&P 500 Analysis: How Long Could the Stock Market Correction Last?

Six days ago, we noted that the Nasdaq 100 had entered a correction phase. Now, the S&P 500 (US SPX 500 mini on FXOpen) has followed suit, closing more than 10% below its 19 February peak on Thursday,

Shares

Spotify (SPOT) Shares Rise by Nearly 7%

According to the stock chart of music streaming giant Spotify (SPOT), the share price:
→ Increased by almost 7% by the end of trading on Friday.
→ Has surged approximately 28% since the start of 2025—one of the strongest performances in

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.