Hang Seng Falls Below H$24,200 as China Tech Slides

The Hang Seng Index fell below H$24,200 on Thursday, sliding to H$23,988 during Hong Kong trading as major Chinese technology names declined and the index moved closer to a death cross between its 50-day and 200-day moving averages.

Alibaba slipped to $108, its weakest level since July 14 last year. Baidu fell to H$112.4. BYD Electronics dropped to H$24.38; the stock is down about 30% year-to-date and roughly 60% below its prior peak. JD.com and Li Auto each lost more than 5%. Other decliners included BeOne Medicines, ENN Energy Holdings, CNOOC and Sunny Optical.

The local sell-off followed a sharp pullback in U.S. technology markets, where the Nasdaq 100 fell more than 500 points. Underperformers in the U.S. included Qualcomm, Arm Holdings, Marvell Technology, AppLovin, Western Digital, Broadcom, AMD and Micron. Traders pointed to profit-taking in stocks that had rallied earlier in the year.

U.S. consumer inflation data released Wednesday showed a 4.2% annual rate, raising concern about potential further Federal Reserve rate increases. Oil prices remained elevated after overnight exchanges between U.S. and Iranian forces; Brent traded near $94.70 a barrel and West Texas Intermediate near $92. U.S. officials indicated the two sides were nearing an agreement even as clashes continued.

Technically, the Hang Seng has entered a correction, down more than 14% from its January high near H$28,040 to recent lows around H$24,000. The index briefly moved below the H$24,200 level first tested on March 23. The gap between the 50-day and 200-day exponential moving averages has narrowed; a cross of the shorter average below the longer one is known as a death cross. One level traders are watching for further weakness is H$23,180, the low recorded on June 20.

Declines on Thursday extended beyond technology to energy and industrial stocks, reflecting a broader risk-off tone in Hong Kong. Market participants will watch upcoming economic data, Federal Reserve commentary and any further geopolitical developments to assess whether the correction will deepen or stabilize.