The Hang Seng and Hang Seng China Indices Break Key Support Levels.
After a steep decline this week that put the nation’s benchmarks below crucial technical support levels, Chinese equities may take a respite, indicating a potential recovery.
The Mainland CSI 300 fell 0.3%.
Both the Hang Seng and Hang Seng China indexes have breached previous resistance levels, marking their steepest declines since the global financial crisis of 2008.
Bloomberg claims that despite this, investors are still gloomy, as shown by the unexpected increase in volatility skewness this week due to investors’ heightened demand for bearish options, which are now profitable due to market losses.
Early trading saw gains and losses for Chinese companies traded in Hong Kong, while the mainland’s CSI 300 declined 0.3%.