Hong Kong Stock Index Up

 Hong Kong Stock Index Up

Hong Kong Stock Index Up By 20% From January'S Lows

sharp rise was seen in the Hang Seng Index, the key stock benchmark index in Hong Kong. According to experts, the Hang Seng Index is very close to entering into the bullish market phase.

After all, the Hang Seng Index has already staged an impressive recovery from its 5-year lows. To turn from multi-year lows into an almost bullish phase means a gain of almost 20%.

Hang Seng Index Trades Near 17916

Overall, a 1.5% gain was seen in the Hang Seng Index, which has sent it near the 17916.0 level, a 5-month high. And if we measure the current trading levels from January's lows, that's a recovery of 20%.

Normally, whenever a stock market gains 20% or more from the recent lows, it officially enters into a bullish phase & that's exactly what we are seeing in the case of the Hang Seng Index.

During Monday's sessions, most of the gains in the Hang Seng Index were driven by the property and tech sectors. The semiconductor companies, in particular, received a nice boost after the release of earnings from Alphabet and Microsoft Corp.

The property sector was lifted after the announcement that China is loosening restrictions related to home buying in various cities. This move was well-received as it is aimed at helping the already struggling property sector.

Another factor that lifted the Hang Seng Index was positive earnings from the Insurer AIA Group along with other positive results.

Since the last ten days, the Hang Seng Index has been enjoying an uptrend, which has also raised hopes for China's economic recovery. At the same time, it also signifies that Beijing will announce more stimulus measures.

While the Hang Seng Index has been going through an uptrend, it is important to note that vulnerability remains high when it comes to US-China tension and even negative news in terms of China's growth.

Trending Stories