Hang Seng Index Rallies as US Tech Curbs Ease: Is 25000 Within Reach?

The Hang Seng Index rose sharply this week as the US made it simpler for China to purchase breakthrough AI technology. The spike indicates that people are regaining confidence in Hong Kong’s financial markets, with tech businesses such as Alibaba, Tencent, and Meituan leading the way.   The index has already surpassed 19000 and appears to be headed for 25000, a level not seen since the beginning of 2022.

Eased restrictions boost market optimism

The US Department of Commerce’s decision to allow select US chipmakers to resume delivering high-end semiconductors to China has been a significant push.   The  eased rules benefit companies such as Nvidia and AMD, which had previously stopped exporting crucial commodities.   This is fantastic news for Chinese technology, and it may also indicate that trade tensions between China and the United States are beginning to ease.

  Mainland Capital Inflows and Investor Confidence

  Mainland   The Stock Connect program has made it easier for Chinese investors to purchase equities in Hong Kong.   The constant flow of money into the city suggests that individuals are getting increasingly optimistic about the market’s future.   According to a recent Bloomberg story, these purchases have reached their peak in over a year, particularly in the technology and finance sectors.

Is 25000 Achievable?

According to Morgan Stanley and Goldman Sachs experts, 25000 is not only a psychological milestone, but also a technically feasible target. Investors are undoubtedly shifting their thoughts as China’s macroeconomic data improves, with exports and factory output outperforming expectations and geopolitical tensions easing.

 If the trend continues and money flows in, 25000 may become a reality shortly.

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