China’s rise to a global economic powerhouse has come in fits and starts. And the last 5 years would be categorized as fits.
This can also be seen on the Hang Seng stock market index (Hong Kong). And should this index decline much further, global markets may throw a fit!
Today’s chart takes a long-term “monthly” view of the Hang Seng Index. As you can see, the index has been chopping its way higher inside a 30-year price channel marked by each (1).
That said, Chinese stocks have really struggled in the last 4 to 5 years. The recent decline has the Hang Sent testing its Covid 2020 lows as well as its long-term price channel support at (2)!
It should also be noted that this is also occurring amidst a major divergence with other key global stock market indices (that have made new highs this year while the Hang Seng heads lower).
The world stock markets may want to pay close attention to what happens at (2)! Stay tuned!
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