HSI breaks support with bearish momentum
From the technical view, we haven't seen any valid new highs since 2007 but a short-term new low today. While the US stock market (as well as other global emerging markets) shows stable and massive growth, Hong Kong stock market doesn't follow the trend but performs badly. The support line projected since 1998 is not likely to hold in the future. In a smaller timeframe, the bearish momentum seems to drive HSI to break this important support line in the upcoming weeks (or months).
From the fundamental perspective, there are increasing numbers of Mainland China-based companies being listed in HKEX and added into the components of Hangseng Index. The poor and deccelerated economic growth may be the catalyst of the future massive stock sell-off. Meanwhile the problematic dIsease controll and prevention policies by HK government may further destroy the HK economy. The economy of HK and China suffer and this trend will not reverse in short term.
From the fundamental perspective, there are increasing numbers of Mainland China-based companies being listed in HKEX and added into the components of Hangseng Index. The poor and deccelerated economic growth may be the catalyst of the future massive stock sell-off. Meanwhile the problematic dIsease controll and prevention policies by HK government may further destroy the HK economy. The economy of HK and China suffer and this trend will not reverse in short term.
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