Hang Seng Index (HK50) analisys

China's economy has been under tremendous pressure lately, having underperformed and lost $2 Trillion in value since its peak. Consequently, this can be seen by the Hong Kong Stock Market Index HK50 (The Hang Sheng is an index of the 50 largest companies listed on the Hong Kong stock market), which has been in downtrend channel since the January 2023 peak, currently stopping the drop near the October 2022 lows. Analysts are predicting that this could be the capitulation level for long-term investors.

China has set a gross domestic product growth of at least 5% in 2024, according to a government report delivered to the national legislature for deliberation. If this goal materializes, we could definitively see these levels on the HK50 as a potential buying opportunity.

By: António Costa, Alcral AG Head of Global Investments