Chart of the day - CHN.cash (26.02.2025)

The CHN.cash contract, which tracks the benchmark of the largest Chinese companies listed in Hong Kong, the HSCEI (Hang Seng China Enterprises Index), is up over 3.2% today, extending its euphoric rally. Since the beginning of the year, the Hang Seng Index has risen by over 18%, making it the best-performing global index.

Investors seem to be hoping that DeepSeek and other Chinese AI models will act as a magnet for foreign investment, enabling domestic companies to expand aggressively into new markets, directly challenging their American counterparts. Additionally, recent moves by the Chinese administration suggest a more favorable stance towards the private sector.

Since the beginning of the year, shares of Alibaba (BABA.US), the leading Chinese tech giant, have surged by nearly 70%, and the recent 10% drop caused by U.S. tariff concerns was quickly bought up by investors, signalling sustained 'appetite' for Chinese stocks

CHN.cash (D1) 

Looking at the daily chart, the CHN.cash index has surged nearly 100% from last year's lows, with gains accelerating after the launch of DeepSeek. However, the benchmark remains within a long-term downward price channel, where it is likely heading toward a test of the upper boundary near the 9,000-point level.

A similar bullish impulse was observed in 2020-2021, but it proved short-lived, as the index eventually plunged under the weight of a struggling Chinese economy. This time, China’s macroeconomic data still does not indicate a strong recovery, and domestic consumer demand remains weak. The major support zone is marked by EMA50 and EMA200 levels at 7800 and 7100 levels, while at least short term resistance zone may be found near 9000 point level.

Source: xStation5