Stock market expert analyzes: Chinese Hang Seng Index under pressure - what happens next?

The Chinese Hang Seng Index was trading around four percent below its previous day's closing price on Wednesday. Economic growth in the Middle Kingdom was a strong 5.2 percent, but was still below market expectations. In addition to the badly hit real estate values, the EV manufacturer BYD also came under a lot of pressure.

Although GDP growth of 5.2 percent exceeded Beijing's official target of "around 5 percent," sentiment on the Chinese stock market remained poor. Because experts had previously expected 5.3 percent.

The technology-heavy Hang Seng Index, which includes big players such as Tencent, Alibaba, Xiaomi and BYD, extended its weekly loss to a whopping six percent. On Wednesday morning it was just above the 15,000 point mark and thus around five percent above the 2022 annual low of 14,597 points.

While stocks from the ailing real estate sector such as Country Garden, China Evergrande, China Vanke, Longfor and Sunac China lost between 2.7 and over seven percent, the car manufacturer BYD also recorded a temporary loss of more than six percent.

From a short-term perspective, BYD's chart image generated a sell signal with the slide below the December low at 196.90 Hong Kong dollars, but with the medium-term uptrend line the next massive support awaits at 180 dollars. At this point at the latest, the share price should be able to turn upwards.