Hang Seng recorded its biggest rebound in over a decade as China’s state council vows to support stock market
The Hang Seng Index gained as much as 8% on Wednesday, its biggest jump in over a decade. Hang Seng Tech index rallied nearly 20%, the most substantial gain in the history.
Hong Kong’s stock market skyrocketed today after state media Xinhua revealed that China’s state council vowed to keep its stock market stable and signalled a green light for Chinese companies to list overseas.
The Hang Seng Index gained as much as 8% on Wednesday, its biggest jump in over a decade. Hang Seng Tech index, a gauge of Chinese tech firms rallied nearly 20%, the most substantial gain in the history.
The broad rally was powered by a report from the meeting with Vice Premier Liu Hem, citing that China had made positive progress in talks with the US regulatory authority to keep the US-listed China stocks stable and continue to support overseas share listing.
Hang Seng technical analysis
Hang Seng has been under intensive selling pressure recently. The index has dropped over 34% from its recent high and reached the floor level for the past six years.
From the technical point of view, the index remains skewed to its downward trajectory even after today’s rise. It might be too early to call a 'bottom out' for now, only a further boost to break through the trend line at around 20552 could cement the view of an overturn.
However, overall the market is now reacting to the headlines where technical elements would just take a back seat.
Follow Hebe Chen on Twitter @BifeiChen
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