Hang Seng Index Analysis - July 14, 2025

Author: Bob Mason

Published: July 14, 2025

Key Highlights

• The Hang Seng Index rose as China's trade data and stimulus measures countered US tariff announcements.
• Electric vehicle (EV), technology, and real estate stocks led the gains following positive Chinese export figures and policy pledges.
• NIO's stock surged by 10% due to strong pre-orders for its L90 SUV model, boosting Hong Kong-listed EV stocks.

Market Overview

On July 14, the Hang Seng Index reversed early losses, buoyed by recent stimulus measures from Beijing and favorable trade data. Despite President Trump's announcement of new tariffs on July 11, which negatively impacted US markets, the Hang Seng Index managed to advance by 0.09% to 24,160.

Impact of Trade Data

China's trade data showed a year-on-year export increase of 5.8% in June, up from 4.8% in May, while imports rose by 1.1%, indicating a recovery in demand despite US tariffs. This data supports Beijing's GDP target of 5% for 2025.

Sector Performance

EV and tech stocks experienced significant gains. Major players like Alibaba and Tencent saw their stocks rise by 1.05% and 0.28%, respectively. NIO Inc. notably surged by 10.43% following strong pre-orders for its new SUV model, indicating robust demand in the EV sector.

US Tariff Announcements

Trump's announcement of 30% tariffs on the EU and Mexico, effective August 1, escalated trade tensions. However, market reactions were muted, with analysts suggesting that these tariffs may serve as a negotiating tactic rather than a permanent measure.

Technical Analysis

The Hang Seng Index is currently trading within a congestion zone, maintaining a position above its 50-day Exponential Moving Average (EMA), which indicates a bullish bias. Key resistance levels are identified at 24,533 and 24,874, while support levels are at 24,000 and the 50-day EMA at 23,626.

Outlook

The future trajectory of the Hang Seng Index will depend on upcoming Chinese GDP data, trade developments, and central bank policies. A successful resolution of trade tensions could propel the index towards higher resistance levels, while continued tariff disputes may lead to a decline towards support levels.

Conclusion

The Hang Seng Index's performance is closely tied to geopolitical developments and economic indicators. Investors should remain vigilant and informed as market conditions evolve.