CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Chart of the Day - HK.cash (08.10.2024)

08:56 8 October 2024

The Hong Kong stock market experienced a dramatic reversal today, with the Hang Seng Index plummeting 10% in its worst single-day performance since the 2008 financial crisis. This sharp decline comes on the heels of a recent rally that had catapulted Hong Kong to become the top-performing major market this year, highlighting the volatile nature of the region's financial markets.

The steep decline in Hong Kong stocks stands in stark contrast to the performance of mainland Chinese markets. While the Hang Seng tumbled, the Shanghai Composite rose 3.1% and the CSI 300 gained 4%. This divergence underscores the complex dynamics between the two markets and their differing investor bases.

Start investing today or test a free demo

Open account Try demo Download mobile app Download mobile app

The primary catalyst for the selloff appears to be disappointment with the lack of specific new stimulus measures from Chinese officials. A press conference held by the National Development and Reform Commission (NDRC) failed to deliver the additional economic support that investors had been hoping for. This letdown came after China had announced its most aggressive stimulus measures since the pandemic before the Golden Week break, including cheap loans for share buybacks and a swap program to allow institutional investors to access cash for buying shares.

Analysts suggest that profit-taking also played a role in today's decline, as investors moved to lock in gains following the recent strong rally. The property sector was particularly hard hit, with mainland developers listed in Hong Kong falling 11% - potentially one of the largest percentage declines for the sector in years. This highlights ongoing concerns about China's real estate market and its impact on the broader economy. Also the volatility is on the highest levels.

Despite the selloff, China stocks turnover surged to a record 2.6 trillion yuan ($368 billion), indicating significant investor activity and potentially conflicting views on market direction. The high trading volume suggests that while some investors were selling, others saw the dip as a buying opportunity.

In mainland China, certain sectors showed strength despite the overall market turbulence. Tech hardware makers, brokers, healthcare companies, and builders saw significant gains. The CSI semiconductor sub-index surged 16.4%, and a sub-index of brokers was up 10.6%. Thematic indexes from biotechnology to defense and electric vehicles rose more than 10%.

Amid the market volatility, Chinese regulators urged financial institutions to strengthen controls over leverage and prevent bank loans from illegally entering the stock market. This cautionary stance suggests that authorities are wary of excessive speculation and are trying to maintain stability in the financial system.

Looking ahead, investors will be closely watching for any signs of additional economic support from Beijing. The next potential catalyst could be the upcoming Ministry of Finance press conference and National People's Congress meeting later this month, where more details on fiscal expansion may be provided. The sustainability of recent gains and the effectiveness of China's economic stimulus measures will likely remain key focuses for investors in the coming weeks and months.

Today's market action serves as a stark reminder of the unpredictable nature of emerging markets and the significant influence that government policy can have on investor sentiment. As China continues to navigate economic challenges, including a sluggish post-pandemic recovery and ongoing issues in the property sector, market participants will need to remain vigilant and prepared for further volatility.

HK.cash (D1 interval)

The Hang Seng Index has broken through the 50% Fibonacci retracement level, correcting down to the 61.8% retracement. Over the past two years, the 22,845 level has acted as strong resistance three times, triggering significant corrections. Historically, after breaking the 61.8% Fibonacci level, the index has continued to sell off. Both the 100-day and 50-day SMAs point to the 78.6% Fibonacci level, which has acted as support multiple times during corrections. A test of this level has often resulted in a bounce before further moves. The RSI is still in an uptrend, but this could be broken soon, while the MACD continues to favor bulls.

 

 

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back
Xtb logo

Join over 1 Million investors from around the world

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 17 October 2024
adobe_unique_id cc 16 October 2025
test_cookie cc 1 March 2024
SESSID cc 9 September 2022
__hssc cc 16 October 2024
__cf_bm cc 16 October 2024
intercom-id-iojaybix cc 13 July 2025
intercom-session-iojaybix cc 23 October 2024
xtbCookiesSettings cc 16 October 2025
xtbLanguageSettings cc 16 October 2025
TS5b68a4e1027
countryIsoCode
userPreviousBranchSymbol cc 16 October 2025
TS5b68a4e1027
_cfuvid
intercom-device-id-iojaybix cc 13 July 2025
__cfruid
__cf_bm cc 16 October 2024
__cf_bm cc 16 October 2024
_cfuvid
adobe_unique_id cc 16 October 2025
TS5b68a4e1027
_cfuvid
xtbCookiesSettings cc 16 October 2025
SERVERID
TS5b68a4e1027
__hssc cc 16 October 2024
test_cookie cc 1 March 2024
intercom-id-iojaybix cc 13 July 2025
intercom-session-iojaybix cc 23 October 2024
intercom-device-id-iojaybix cc 13 July 2025
UserMatchHistory cc 31 March 2024
__cf_bm cc 16 October 2024
__cf_bm cc 16 October 2024
__cf_bm cc 16 October 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-22576382-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_ga_CBPL72L2EC cc 16 October 2026
_ga cc 16 October 2026
AnalyticsSyncHistory cc 8 October 2022
af_id cc 31 March 2025
afUserId cc 1 March 2026
af_id cc 1 March 2026
AF_SYNC cc 8 March 2024
__hstc cc 14 April 2025
__hssrc
_vwo_uuid_v2 cc 17 October 2025
_ga_TC79BEJ20L cc 16 October 2026
_vwo_uuid cc 16 October 2025
_vwo_ds cc 15 November 2024
_vwo_sn cc 16 October 2024
_vis_opt_s cc 24 January 2025
_vis_opt_test_cookie
_ga cc 16 October 2026
_ga_CBPL72L2EC cc 16 October 2026
__hstc cc 14 April 2025
__hssrc
_ga_TC79BEJ20L cc 16 October 2026
af_id cc 31 March 2025
afUserId cc 1 March 2026
af_id cc 1 March 2026
AF_SYNC cc 8 March 2024
_gcl_au cc 14 January 2025
AnalyticsSyncHistory cc 31 March 2024
_gcl_au cc 14 January 2025

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 10 November 2025
_omappvp cc 28 September 2035
_omappvs cc 16 October 2024
_uetsid cc 17 October 2024
_uetvid cc 10 November 2025
_fbp cc 14 January 2025
fr cc 7 December 2022
muc_ads cc 16 October 2026
lang
_ttp cc 10 November 2025
_tt_enable_cookie cc 10 November 2025
_ttp cc 10 November 2025
hubspotutk cc 14 April 2025
YSC
VISITOR_INFO1_LIVE cc 14 April 2025
hubspotutk cc 14 April 2025
_uetsid cc 17 October 2024
_uetvid cc 10 November 2025
_ttp cc 10 November 2025
MUID cc 10 November 2025
_fbp cc 14 January 2025
_tt_enable_cookie cc 10 November 2025
_ttp cc 10 November 2025
li_sugr cc 30 May 2024
guest_id_marketing cc 16 October 2026
guest_id_ads cc 16 October 2026
guest_id cc 16 October 2026
MSPTC cc 10 November 2025
IDE cc 10 November 2025
VISITOR_PRIVACY_METADATA cc 14 April 2025
guest_id_marketing cc 16 October 2026
guest_id_ads cc 16 October 2026
guest_id cc 16 October 2026
muc_ads cc 16 October 2026
MSPTC cc 10 November 2025
IDE cc 10 November 2025

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description
personalization_id cc 16 October 2026
UserMatchHistory cc 8 October 2022
bcookie cc 16 October 2025
lidc cc 17 October 2024
lang
bscookie cc 8 September 2023
li_gc cc 14 April 2025
bcookie cc 16 October 2025
lidc cc 17 October 2024
bscookie cc 1 March 2025
li_gc cc 14 April 2025
personalization_id cc 16 October 2026

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language