Thinking of shorting the Hang Seng TECH Index?
The strict COVID-19 regulations in China have led to the fall of many Chinese stocks. $HSTECH(HSTECH)$ fell for a third day, facing its longest losing streak in 3 weeks after trading resumed after a holiday. The Hang Seng TECH Index represents the 30 largest technology companies listed in Hong Kong that have high business exposure to technology themes and pass the index's screening criteria. China’s stock rout deepened, as investors continued to flee from a growing number of risks:
Talks between U.S. and Chinese officials last Monday did little to banish fears that China could get drawn into the web of western sanctions as a result of its continued support for Russia’s invasion of Ukraine, while authorities have now locked down over 45 million people in two big industrial hubs at opposite ends of the country to stop the spread of Covid-19.
Technology stocks remain particularly stressed: the Hang Seng TECH index lost another 11% on Tuesday and has now unwound all of its pandemic-era gains. Other benchmark cash indices lost between 2% and 5%.
That all happened despite data showing that both industrial production and retail sales were ahead of expectations in February. The data have been somewhat overtaken by events in the meantime. The yuan weakened to a two-month low.
With the recent news releases, would you be shorting the Hang Seng Tech Index? Let me know what you think!![]()
If you wish to leverage on this, consider using DLCs:
If you wish to leverage on this, consider using DLCs:
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