22 July 2025,00:38
Daily Market Analysis
22 July 2025, 00:38
*Hang Seng Index climbs above 25,000 for first time since early 2022
*Chinese tech giants rally after Beijing signals end to price wars
*Optimism builds ahead of Politburo meeting and potential US-China trade thaw
The yellow metal appears to be regaining its luster as a perfect storm of political uncertainty and eWith Hong Kong equities extended their winning streak, with the Hang Seng Index briefly crossing the 25,000 mark—a level not seen since early 2022—driven by improved U.S.-China trade dynamics and a rally in Chinese tech shares. The move was fueled by Beijing’s call to rein in aggressive pricing competition among tech platforms, seen as part of the broader “anti-involution” push. This has buoyed investor confidence, particularly in heavyweight names like Alibaba, Meituan, and JD.com.
Further support came from renewed optimism surrounding a potential US-China trade breakthrough, alongside ongoing stimulus measures from Beijing. However, upside was capped after the People’s Bank of China left both the one-year (3.00%) and five-year (3.50%) loan prime rates unchanged on July 21, a cautious move that tempered expectations for additional easing.
Sector-wise, tech and EV stocks led the gains. Alibaba (+2.59%) and Baidu (+1.05%) lifted the Hang Seng TECH Index by 0.87%, while BYD and Li Auto climbed 2.1% and 0.32%, respectively, buoyed by upbeat export data that supported EV demand.
The HK50 continues to display strong bullish momentum, currently testing a key resistance zone around 25,125. The MACD indicates sustained upward momentum, with widening bullish divergence suggesting continued buying interest. Meanwhile, RSI stands at 66, indicating positive momentum but still below overbought territory—implying there’s room for further upside.
Should the index achieve a confirmed breakout above 25,125, it could unlock a broader move toward the next major resistance near 27,830, which coincides with a key Fibonacci retracement level.
On the downside, initial support is seen at 23,225, followed by a firmer floor around 21,325, levels that previously held during market pullbacks.
Resistance Levels: 25125.00, 27830.00
Support Levels: 23225.00, 21325.00
Step into the world of trading with confidence today. Open a free PU Prime live CFD trading account now to experience real-time market action, or refine your strategies risk-free with our demo account.
This content is for educational and informational purposes only and should not be considered investment advice, a personal recommendation, or an offer to buy or sell any financial instruments.
This material has been prepared without considering any individual investment objectives, financial situations. Any references to past performance of a financial instrument, index, or investment product are not indicative of future results.
PU Prime makes no representation as to the accuracy or completeness of this content and accepts no liability for any loss or damage arising from reliance on the information provided. Trading involves risk, and you should carefully consider your investment objectives and risk tolerance before making any trading decisions. Never invest more than you can afford to lose.
Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.
Sign up for a PU Prime Live Account with our hassle-free process.
Effortlessly fund your account with a wide range of channels and accepted currencies.
Access hundreds of instruments under market-leading trading conditions.
Trading Platforms
Learn
About PU Prime
Corporate
Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.
Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.
By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.
Thank You for Your Acknowledgement!
Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.
Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.
Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.
Thank You for Your Acknowledgement!
