American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

Hang Seng index forms a bullish pattern after strong China GDP data

by admin January 18, 2025
January 18, 2025
Hang Seng index forms a bullish pattern after strong China GDP data

The Hang Seng index bounced back this week after China reported strong fourth-quarter economic numbers. It rose to a high of H$19,500, up from Monday’s low of H$18,680. So, what next for the blue-chip Hang index?

Strong China GDP data

The Chinese economy rebounded in the fourth quarter, helped by the government’s stimulus measures and exports. 

According to the National Bureau of Statistics (NBS), the economy expanded by 5.4% in Q4 after growing by 4.6% in the third quarter. This recovery was better than the median estimate of 5.0%.

The economy expanded by 1.6% on a quarter-on-quarter basis, after growing by 1.3% in the previous quarter. This growth means that China hit its annual growth target of 5.0%.

More data showed that fixed asset investments rose by 3.2%, lower than the median estimate of 3.3%. 

China’s industrial production rose by 6.2% in December, while retail sales rose by 3.7%, higher than the median estimate of 3.5%. 

These numbers mean the Chinese economy is doing better than most analysts expected. It is also a sign that the stimulus measures have started to work and the slow growth of the last few years has ended. 

Still, Chinese bond yields continued falling as analysts anticipate more stimulus from the People’s Bank of China (PBoC). The 30-year yield dropped to 1.87%, while the 10-year yield has fallen to 1.645%. The yield has dropped for 35 consecutive days, the longest plunge in years. 

Still, some analysts warn that China is going through a rough patch. In an X post, Kyle Bass, a popular American hedge fund manager, said that China was still experiencing a complete financial crash. He cited the overnight policy rate and the ongoing real estate crash. 

🇺🇸 Kyle Bass 🇹🇼

@Jkylebass

·Follow

China is experiencing a complete financial crash. China’s 10Yr govt bonds yield 1.65%, their ‘policy overnight rate’ sits at 1.5%, their real estate collapse continues (Vanke 2025 bonds collapsing this week), and overnight rate just spiked to 16%. Complete disaster for xi. #China

3:34 PM · Jan 16, 2025

6.8K

Reply

Read 579 replies

Trade war risks remain

The Hang Seng index rose after a report from the United States showed that core consumer inflation data dropped in December. That report led to a strong surge in the stock market as investors anticipated a somewhat dovish Fed. 

A key risk for the Hang Seng index is the upcoming Donald Trump inauguration and the potential implications of the market. Trump has pledged to impose major tariffs to help reboot American manufacturing. In line with this, he wants to create an external revenue service that will be tasked with implementing these tariffs. 

Tingyi, SMIC, NetEase, and Zijin Mining Group are the best-performing Hang Seng index stocks this year. MTR, Citic Pacific, China Construction Bank, and China Mengniu Dairy are the top laggards in the index this year.

Hang Seng index analysis

The daily chart shows that the Hang Seng index has bounced back and crossed the 100-day exponential moving average on the daily chart. 

It has moved between the 38.2% and 50% Fibonacci Retracement levels, a positive sign. Another bullish sign is that the index has formed a falling wedge chart pattern, often leading to a strong bullish breakout. 

Therefore, Hong Kong stocks will likely bounce back in the next few weeks, and possibly move above the key resistance at H$20,000. A drop below the support at H$19,000 will invalidate the bullish view.

The post Hang Seng index forms a bullish pattern after strong China GDP data appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Trump era sparks hopes for looser capital rules among Wall Street banks
next post
Stocks in the news today: TSM, UNH, BAC, FNMA, MS, and TGT

Related Posts

MongoDB stock price forms golden cross nears ahead...

December 8, 2024

Battery Recycler Li-Cycle Secures US$75 Million Investment from...

March 16, 2024

Tesla stock price is crashing: Best 3 EV...

March 5, 2025

Will the crashing IndusInd Bank share price recover?

March 29, 2025

NatWest share price has double-topped ahead of earnings

October 24, 2024

5 Top Weekly TSXV Stocks: Wolfden Resources Leads...

February 13, 2024

BXMT: Is Blackstone Mortgage Trust a good dividend...

October 26, 2024

NVDY, NVDL ETFs analysis ahead of the NVIDIA...

February 24, 2025

Tesco share price is beating Walmart, Kroger, and...

September 10, 2024

Gareth Soloway: Gold and Silver Price Targets, Next...

April 18, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved