Hang Seng technology stock index reaches two-month high
Chinese tech equities are riding a tide of confidence that sector regulations will be eased, and tech indicators indicate that growth will continue.
On Monday, the Hang Seng Tech index hit a two-month high after Chinese regulators said they were near to concluding their investigation into Didi Clobal Inc.
Technical Signs Indicate Stocks Rise May Be Longer
The shift reflects a broader shift in sentiment toward Chinese stocks, as investors believe that loosening limitations on the virus’s spread in big cities will boost spending and investment.
The Hang Seng Tech index climbed above its 50-day moving average and stayed there for a week, in contrast to earlier breakouts last year, when the index tended to rebound immediately after breaking this level.
Technology sector prices are still substantially below the long-term average, indicating that more growth is possible.