08-06-2022, 04:17 PM
https://www.bloomberg.com/news/articles/...ech-stocks
Three Charts Show China Tech Stock Rally Primed for More Gains
Hang Seng gauge of technology shares hit two-month high
Turnaround comes as Chinese stocks see sentiment shift
China’s technology stocks are riding a wave of optimism that a regulatory crackdown on the sector may ease, and technical indicators suggest the gains could hold.
The Hang Seng Tech Index rallied to a two-month high on Monday after the Wall Street Journal reported that Chinese regulators were close to wrapping up their probe of Didi Global Inc. Technical signs indicate that the advance may be longer-lasting than in previous episodes.
Here are three charts to illustrate the improving sentiment in Chinese tech stocks:
![[Image: Hang-Sng-01.jpg]](https://i.ibb.co/b3cVYyj/Hang-Sng-01.jpg)
The Hang Seng Tech Index has climbed above its 50-day moving average and managed to hold above that level for a week.
![[Image: Hang-Sng-02.jpg]](https://i.ibb.co/NsrkBMj/Hang-Sng-02.jpg)
The Hang Seng Tech Index’s moving average convergence divergence, or MACD, indicator suggests that the index may have switched to a rising trend.
![[Image: Hang-Sng-03.jpg]](https://i.ibb.co/8NN2rBV/Hang-Sng-03.jpg)
Valuations for the technology sector remain far below the longer-term average, which may indicate there’s room for more gains.
Three Charts Show China Tech Stock Rally Primed for More Gains
Hang Seng gauge of technology shares hit two-month high
Turnaround comes as Chinese stocks see sentiment shift
China’s technology stocks are riding a wave of optimism that a regulatory crackdown on the sector may ease, and technical indicators suggest the gains could hold.
The Hang Seng Tech Index rallied to a two-month high on Monday after the Wall Street Journal reported that Chinese regulators were close to wrapping up their probe of Didi Global Inc. Technical signs indicate that the advance may be longer-lasting than in previous episodes.
Here are three charts to illustrate the improving sentiment in Chinese tech stocks:
The Hang Seng Tech Index has climbed above its 50-day moving average and managed to hold above that level for a week.
The Hang Seng Tech Index’s moving average convergence divergence, or MACD, indicator suggests that the index may have switched to a rising trend.
Valuations for the technology sector remain far below the longer-term average, which may indicate there’s room for more gains.