HSI Still Below 10-Day Average, Eyes 22,800 Support Level
On.cc · 1 SOURCESabout 7 hours ago5 MIN
Summary
Hong Kong equities extended their losing streak last week, with the Hang Seng Index sliding to 23,737 points on Thursday—a near-three-month trough—before staging a modest recovery. Friday's 425-point advance brought the benchmark to 24,211, but market strategist Chan Ching-san (陳政深) of Eddia Financial warns the upside remains limited as the index trades below its 10-day moving average at 24,271 . Technical indicators suggest a pattern of lower highs across major averages, raising the risk of further weakness toward the 22,800 support level if resistance holds . Meanwhile, Tencent Music Entertainment Group reported that its HK$14 billion acquisition of Himalaya in the first half of the year contributed HK$407 million in revenue within just two months of consolidation, bolstering its position in long-form audio, podcasts, and audiobooks .
Key Points
- Hang Seng Index fell to 23,737 points last week, the lowest in nearly three months, before recovering 425 points to close at 24,211 on Friday
- The index remains below the 10-day moving average at 24,271 points, with major averages in a declining pattern suggesting further downside risk
- Without breaking above the 10-day line decisively, the HSI could retest support at the 22,800 level
- Tencent Music's acquisition of 100% Himalaya equity for approximately HK$14 billion contributed HK$407 million in revenue in under two months
- Despite total liabilities rising to HK$35.87 billion, Tencent Music maintains a net cash position of HK$44.1 billion while returning HK$2.73 billion to shareholders through buybacks
Why It Matters
The HSI's failure to reclaim the 10-day moving average underscores fragile investor confidence amid persistent concerns about mainland China's economic trajectory. For Hong Kong market participants, sustained weakness below key technical levels could accelerate capital outflows, particularly affecting Chinese-heavy indexes where sentiment remains tethered to policy signals from Beijing .
The HSI's failure to reclaim the 10-day moving average underscores fragile investor confidence amid persistent concerns about mainland China's economic trajectory. For Hong Kong market participants, sustained weakness below key technical levels could accelerate capital outflows, particularly affecting Chinese-heavy indexes where sentiment remains tethered to policy signals from Beijing .