The top Hong Kong stock index is looking toward the March high for support after a recent correction.
HK 50 – Weekly Chart
The HK 50 has the March high level below which would require another move lower or around 3%. That 24,904 level could be important to the bull run.
Asian shares have followed the U.S. market lower this week, and the Nikkei also fell on comments from Chinese officials regarding support for Taiwan.
The recent pullback could now hinge on Nvidia’s results, and an initial positive earnings reaction could soothe AI valuation fears. A weaker update would have seen the market trend lower into December.
In the broader market, Bitcoin’s slump below $90,000 also rattled the share prices of Hong Kong-listed firms in the digital asset space. The world’s largest cryptocurrency has suffered from the October hit, and investors are shying away, but a near-term support could come soon, with potential for a move to $80k if sentiment is weakened.
Yunfeng Financial Group, backed by Alibaba founder Jack Ma, fell this week but is still strong for the year after announcing its expansion and $44 million acquisition of Ethereum for its “strategic reserve”.
But in the blue-chip index, the pullback may be limited, as foreign investment has surged into Hong Kong in 2025. According to the IIF, foreign capital inflows into the Chinese stock market hit $50.6 billion, or four times higher than the $11.4 billion last year.
Hong Kong’s destination as an IPO hub, alongside a better outlook for the Chinese economy and AI stocks, should continue to add demand in the coming year and beyond. Chinese banking stocks were able to escape the selling on Wednesday.
