CFD Update: Hang Seng tumbles for second straight session
The Hang Sang index fell to levels not seen since 2016 as several issues kept trader’s fingers on the sell button. The carnage was widespread as the ChinaA50 dropped 4.87% and the Shanghai Composite lost 4.95%.
Investors are very nervous over the potential delisting of U.S. duel listed stocks like Alibaba and JD.com. Both shares plunged over 10%. Neo, the electric carmaker, was also hit hard due to delisting fears. Its price fell 12.81% after it sank in last night’s U.S. session.
The other big issue facing Chai right now is its latest Covid outbreak. The numbers are the largest the country has seen since 2020. Shanghai and Shenzhen are back in partial lockdown. This is driving fear around business confidence. Despite the big numbers in the outbreaks, China is maintaining its Covid 0 policy for now.
Back to the Hang Seng, over 8% has been taken off the index in the last two days of trade. The HK50 index is down just 20% for the month of March.
Looking at the monthly HK50 price, has the price now started to be extended? We can see that the price has moved back into a demand area that has stopped two previous declines. Could we see this area come back in as support for buyers and offer up some resistance to the current one-way traffic?
HK50 Monthly Chart 
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