Amidst the on-going concerns about COVID, inflation, and a potential energy crisis, we also have China to worry about.
That is, the Chinese stock market. And in particular, the Hang Seng Index.
For the past few month, we have heard worries about the global economy and supply chain issues. Well, we managed to layer in another major concern this month with the over-sized Chinese investment firm Evergrande teetering on the brink of default. This has sent Chinese stocks tumbling lower.
Today, we look at a long-term “monthly” chart of the Hang Send Index.
As you can see, the powerful Chinese stock market index is testing 23-year rising trend line support. And at the same time, it’s also nearing its 2016 and 2019 support at (1).
What the Hang Song Index does here will send a very important message to stocks and investors around the world. Stay tuned!