Cling Seng Index (HSI) Plummets Additional on China Expertise Clampdown

Cling Seng Index (HSI) Information, and Evaluation:

• Cling Seng slumps to ranges final seen in November 2020.
• Chinese language regulators proceed to squeeze expertise firms.

The Cling Seng Index (HSI) is down one other 4%+ in the present day as China continues to clampdown on expertise firms, with the regulators taking intention on the meals sector in the present day. The HSI is now down almost 20% after printing an all-time excessive in February this yr. The indices’ constituents are a sea of purple with double-digit losses seen in Alibaba Well being Data tech (-18.5%), China Feihe (-16.2%), Meituan Dianping (-17.6%) amongst others. The Cling Seng Tech index has been hit even tougher and the current sell-off has seen the indices lose over 40% this yr.

The day by day HSI chart reveals the current injury brought on by the federal government crackdown with the index now buying and selling beneath all three easy transferring averages, whereas the 50-day sma has fallen by way of the 200-day sma, forming a bearish ‘loss of life cross’. The CCI indicator is flashing an excessive oversold warning, whereas volatility, measured by the 14-day ATR, is climbing sharply. The multi-month larger low made on the finish of final yr has been damaged with ease in the present day, leaving the October 30 swing-low at 23,961 the following stage of assist.

Cling Seng Index (HSI) Each day Worth Chart

In current weeks, Chinese language regulators have been curbing, and fining, Chinese language expertise firms, hitting a variety of sectors and corporations onerous. The meals sector is presently within the authorities’s cross-hairs with the regulator in the present day saying a brand new set of pointers, whereas in current days the non-public tutoring sector and music licenses have all felt the wrath of the Chinese language authorities.

What’s your view on the Cling Seng Index (HSI) – bullish or bearish?? You’ll be able to tell us by way of the shape on the finish of this piece or you may contact the writer by way of Twitter @nickcawley1.