- The Hang Seng Index remains in a tight sideways range, with a breakout above resistance or below support needed to confirm the next directional move.
- Stock-specific momentum, particularly in AI, energy, and mining names, continues to drive index performance, while mixed earnings and external risks keep overall sentiment balanced.
Hong Kong experienced a half-day trading session on 16 February, the eve of the Lunar New Year. That’s why the three major indices opened lower today, 17 February, but rebounded higher. The Han Seng turns positive after dropping nearly 2% at one point during the trading session. At the close, the index rose by 0.52%, or 138.80 points, to trade around 26,705.94.
The Hang Seng China Enterprises Index rose by 0.42% while the Hang Seng Technology Index increased by 0.13%. On the full-year front, during the snake year, the Hang Seng index advanced more than 32%, the Hang Seng Technology index gained 13%, and the Hang Seng China Enterprises Index climbed more than 23%.
The three major indices under the Hang Seng Index (HSI) umbrella are:
- Hang Seng China Enterprise Index (HSCEI) tracks major mainland Chinese companies listed in Hong Kong (H-shares).
- Hang Seng TECH Index (HSTECH) focuses on the largest technology and innovation companies listed in Hong Kong.
- Hang Seng China Affiliated Corporations Index (Red Chips Index) covers Chinese state-owned or affiliated firms incorporated outside mainland China but listed in Hong Kong.
Before delving into the details of blue-chip stock performance and key movers in the Chinese stock markets, let’s take a technical look at the Hang Seng Index.
The Technical Outlook for the Hang Seng:
The Hang Seng Index is currently trading in a tight sideways range, reflecting a period of consolidation after its prior upward move. Price action is fluctuating within a tight zone between immediate resistance near 27,301 and short-term support around 26,335.
This narrow zone suggests market indecision, with neither buyers nor sellers taking full control. A confirmed breakout above the 27,301 resistance level could open the door for renewed bullish momentum toward the 28,000 psychological area, while a decisive break below the 26,335 support area would likely shift the short-term bias to the downside.
On the downside, deeper support levels are seen at 25,092, followed by 23,222, which could act as potential demand zones if selling pressure intensifies. On the upside, 27,301 remains the key resistance barrier that caps gains for now.
From a technical indicators perspective, the MACD indicates weakening bullish momentum and a lack of strong directional conviction. Meanwhile, the RSI is trading below the neutral 50 level, suggesting a mild bearish pressure but not yet oversold conditions.
Overall, momentum signals align with the current sideways structure, reinforcing the idea that a breakout above or below this tight range is needed to determine the next directional move.
Hang Seng Index | Blue-Chip Movers Update:
- Zijin Mining led gains, rising 4.67% to HKD 43.52 and contributing 18.71 points to the Hang Seng Index. Citi raised its target price by over 30% for both A- and H-shares, upgraded earnings forecasts on stronger gold and lithium outlooks, and maintained a “Buy” rating. The new H-share target stands at HKD 51.8, with expectations of a higher dividend payout ratio from 2025.
- China Hongqiao Group climbed 3.71% to HKD 36.6, adding 7.39 points to the index.
- CNOOC Limited gained 3.71% to HKD 25.14, contributing 22.58 points.
- On the downside, HSBC Holdings slipped 1.11% to HKD 134.2, weighing on the index by 28.39 points.
Hang Seng Index’s Key Movers:
- HaiZhi Technology Group surged 29.59% to HKD 120, hitting a new high on its second trading day. The company focuses on industrial AI solutions, and its AI-driven revenue has grown sharply, with strong momentum continuing into 2025.
- Vobile Group rose 8.22% to HKD 6.32. The stock gained attention after launching new AI content tracking features on its Vobile MAX platform, addressing copyright issues linked to AI-generated content.
- COSCO Shipping Energy Transportation climbed 5.85% to HKD 17.2. The move comes amid strong shipping rates and elevated geopolitical tensions, with expectations of higher tanker profitability in early 2026.
- Sands China gained 2.7% to HKD 19 after releasing its 2025 results. Revenue rose 5.1% year-on-year, while the company doubled its final dividend to HKD 0.50 per share despite a decline in net profit.
The index is consolidating within a tight range as investors weigh mixed earnings results, sector-specific momentum, and broader market uncertainty. A breakout above resistance or below support is needed to signal the next clear trend.
Mining, energy, shipping, and AI-related stocks are providing support, while selective weakness in financials and consumer names is limiting broader upside momentum.