Hang Seng rallied almost 2.5% today and was the best performing major stock market index from Asia-Pacific region. The move higher was triggered by a Bloomberg report released yesterday in the evening. Bloomberg reported that Chinese regulators, including the Chinese Securities Regulatory Commission, are reviewing a plan that would remove 20% tax on dividends from Hong Kong shares, that were bought via Stock Connect. Stock Connect is a system that links Hong Kong stock exchange with exchanges from China Mainland, namely Shanghai and Shenzhen. The move would be aimed to remove double taxation of dividends. The move higher on the Hang Seng today was driven primarily by dividend stocks.
Taking a look at CHN.cash chart at D1 interval, we can see that the index has experienced a massive rally over the past few months. The index jumped over 35% off the low reached on January 22, 2024. CHN.cash climbed to the highest level in 9 months. The index is currently testing the 6,700 pts resistance zone, marked with the 61.8% retracement of the downward impulse launched at the beginning of 2023.
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Source: xStation5
