Hang Seng Index News: China Export Surge Fuels Break Above 25,000 Mark

Hang Seng Index Gets Boost as China Exports Soar

Could China’s trade data escalate the US-China trade war? The Hang Seng Index advanced on Thursday, August 7. Investors reacted to gravity-defying Chinese trade data.

This month, US-China trade talks, China’s key economic indicators, and stimulus news from Beijing will fuel sentiment. These key drivers will determine whether the Index drops below 24,500 or targets 26,000.

Hang Seng Index Eyes Four-Day Winning Streak

The Hang Seng Index climbed 0.52% to 25,041 in morning trading. The Index rebounded from an early low of 24,821. Mainland China’s CSI 300 and Shanghai Composite rose 0.05% and 0.12%, respectively.

Overnight (August 6), US equity markets reversed Tuesday’s losses. Upbeat corporate earnings and reports that Apple Inc. (AAPL) plans to invest $100 billion in building its US manufacturing base lifted sentiment. The Nasdaq Composite Index rallied 1.21%, while the Dow and the S&P 500 advanced 0.18% and 0.73%, respectively.

Notably, Apple jumped 5.09%. Arista Networks (ANET) soared 17.49% after raising its revenue projections above estimates.

Beyond corporate news, expectations of a September Fed rate cut boosted demand for risk assets, including Hong Kong-listed stocks. According to the CME FedWatch Tool, the chances of a September Fed rate cut rose from 92.9% on August 5 to 94.9% on August 6.

Real Estate Stocks Lead EV and Tech Stock Gains

Increasing bets on a more dovish Fed rate path lifted demand for Hong Kong-listed real estate stocks. Longfor Group (0960) rallied 3.46%, while Shimao Group (0813) gained 1.45% in morning trading.

Meanwhile, electric vehicle (EV) and broader tech stocks also supported the Hang Seng Index’s morning gains. Geely Automobile (0175) and BYD (1211) rose 0.98% and 1.88%, respectively. Tech heavyweights Baidu (9888) and Alibaba (9988) rallied 1.64% and 2.4%, respectively.

China Exports Signal Demand Surge

Chinese economic data impressed early in the Thursday session. Exports jumped 7.2% year-on-year in July, up from June’s 5.8% increase, while imports rose 4.1% (June: +1.1%). Economists had expected exports to rise 5.4% and imports to fall 1%.

While July’s data signaled a pickup in economic momentum, trade developments remain key. US tariffs on transshipments and plans to introduce rules of origin levies could affect China’s efforts to bypass US tariffs. The uncertain outlook capped the morning gains.

Technical Setup: Hang Seng Breaks Above the 25,000 Level

Extending gains from Wednesday, the Hang Seng Index trades above the July congestion zone and the 50-day Exponential Moving Average (EMA), signaling bullish momentum.

Progress toward a trade deal, upbeat Chinese data, and fresh stimulus could send the Hang Seng Index toward the July 24 high of 25,736. Sustained buying may bring the 26,000 level into sight.

Conversely, rising US-China trade tensions and Beijing’s silence on effective stimulus may weigh on risk appetite. A break below the 25,000 level may expose the crucial 24,500 support level. If broken, intensifying selling pressure may drag the Index toward the 50-day EMA.

Hang Seng Technical Outlook

• Resistance: 25,500, 25,736, then 26,000.
• Support: 25,000, 24,500, then the 50-day EMA (24,343).
• The short-term bias remains bullish, but it remains dependent on US-China trade headlines, Beijing’s stimulus measures, and incoming Chinese economic data.

Hang Seng Forecast: Will the Index Drop Below 25,000 or Hit 26,000?

Following the morning gains, the Hang Seng Index stretched away from July’s congestion zone. China’s positive trade data, recent stimulus announcements, and expectations of a Fed rate cut have boosted demand for Hong Kong-listed stocks.

However, trade uncertainties linger as the US targets transshipments, leaving the Index below the July 24 high of 25,736. Punitive tariffs on transshipments and the introduction of rules of origin policies may impact Chinese exports and the economy.

Additional stimulus measures and positive US-China trade developments could drive the Hang Seng Index toward 25,736. A move toward 25,736 would bring the 26,000 level into sight. On the other hand, renewed tariff threats may escalate US-China tensions and drag the Index below 25,000. A drop below 25,000 exposes 24,500 and the 50-day EMA.

Stay informed with real-time updates. US-China trade headlines will continue to drive sentiment. Follow our live coverage and consult our economic calendar.