Hang Seng Index Falls 0.37% to 24,565 on Five-Day Losing Streak, June 09

The Hang Seng Index fell 91 points to 24,565.90 on June 09, marking its fifth consecutive decline with a 0.37% drop. The benchmark opened 105 points lower and fluctuated between 24,486 and 24,741 before closing near session lows. Market sentiment weakened after the U.S. Pentagon expanded its military enterprise list to include Chinese tech giants, while semiconductor stocks rallied on AI infrastructure demand.

Pentagon Sanctions Hit Tech Giants Hard

The U.S. Department of Defense added dozens of Chinese companies to its military enterprise blacklist on June 08, including Alibaba, Baidu, BYD, and WuXi AppTec. Alibaba fell 1.4% and WuXi AppTec dropped 3.7% on the news. The sanctions triggered concern among foreign investors about further restrictions on Chinese tech stocks. However, analysts noted the move could accelerate domestic substitution demand for Chinese semiconductor and component makers.

Chip Stocks Lead Gains as AI Demand Drives Optimism

Semiconductor and printed circuit board (PCB) stocks surged on expectations for continued AI infrastructure investment. Techtrend Intelligence jumped 11.6%, SMIC rose 3.4%, and Huahong Semiconductor gained 2.2%. PCB leader Kingboard Laminates soared 25.2% to a record high, while Shengda Electronics climbed 12.5% and Guanghe Technology rose 15.7%. The Hang Seng Tech Index reversed course to gain 13.70 points, or 0.29%, closing at 4,769.61.

Tencent Bonds Oversubscribed as Tech Stabilizes

Tencent Holdings narrowed gains to 1.5% after reports it raised over $6 billion in dual-currency bond offerings, far exceeding its $4 billion target. The company’s strong capital raise signaled confidence in its AI and cloud initiatives. Tencent’s bond oversubscription reflected investor appetite for stable tech names despite broader market uncertainty.

Meyka Outlook and Technical Picture

Meyka rates the Hang Seng Index a C+ with a 12-month target of 21,555.73, implying 12% downside from current levels. The RSI stands at 36.73, signaling oversold conditions, while the Awesome Oscillator at -529.61 reflects heavy selling pressure. With the index trading below its 50-day average of 25,726 and 200-day average of 26,027, technical support levels near 24,458 face renewed pressure if selling continues.

Final Thoughts

The Hang Seng Index’s five-day decline reflects geopolitical headwinds and rate hike fears, but semiconductor strength suggests selective buying in AI-driven sectors. Meyka’s C+ grade and 12-month target of 21,555.73 point to further downside risk unless foreign fund flows stabilize.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.