Following a significant decline in investors’ confidence in Chinese equity markets, because of enhanced regulatory restrictions and the recent credit implosion, Chinese officials met with Wall Street executives to discuss and reassure them that the surge in crackdowns is not to hinder tech companies, but rather, to improve monitoring of companies with customer facing services and work on data privacy issues.
The major Asian markets were closed today. In Friday’s session, the Nikkei jumped 0.58% and the Shanghai Composite Index soared 0.19%. Seoul's KOSPI increased 0.33%. As of 11:00 p.m. EST, the ASX 200 index declined 1.62% and the Hang Seng index, in Hong Kong, slumped 3.51%.
It is the Hang Seng index where investors need to keep a close eye on as the index dropped over 4% today. In terms of technical price action, the index was trading below the 50, 100 and 200-day SMA on the daily time frame which meant that bears were in full control of the price and we were likely to see more sell off for the index. However, it is important to note that the RSI has entered an oversold area which means that we could see a bounce back for the HSI index in the coming days.
