NetEase and Tencent Weigh on Hang Seng
The Hang Seng Index weakened again for a second day in Hong Kong trading on Wednesday (July 22nd). The index fell 1%, or 239.63 points, to 24,892.66.
The main pressure came from technology stocks and the trading sector. Tencent Holdings was the biggest drag on the index, falling 7.1%, indicating strong pressure from large-cap stocks.
NetEase recorded the deepest decline among the Hang Seng's major stocks, with a 7.4% decline. This decline also worsened sentiment toward Chinese technology stocks, which had previously been a market support.
Overall, 50 of the 93 stocks in the index weakened, while 38 stocks gained. Sectorally, two of the four sectors were in the red, led by trading and industrial stocks.
The Hang Seng's weakening market impact suggests investors remain cautious about Chinese stocks, particularly the technology sector. If pressure on Tencent and NetEase persists, the index risks retesting psychological support below 24,900. However, a rebound remains possible if bargain hunting begins to take hold in major tech stocks. (arl)
Source: Newsmaker.id
