{"id":24202,"date":"2025-06-10T10:07:52","date_gmt":"2025-06-10T10:07:52","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=24202"},"modified":"2025-06-10T10:07:52","modified_gmt":"2025-06-10T10:07:52","slug":"hong-kong-shares-slip-as-us-china-trade-talks-stretch-on","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/hong-kong-shares-slip-as-us-china-trade-talks-stretch-on\/","title":{"rendered":"Hong Kong Shares Slip as US-China Trade Talks Stretch On"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/indices11-1024x559.png\" alt=\"\" class=\"wp-image-16984\"\/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Hang Seng closes down <strong>0.1%<\/strong>, with intraday high at <strong>24,321<\/strong> and support seen near <strong>24,027<\/strong>.<\/li>\n\n\n\n<li>CSI300 drops <strong>0.5%<\/strong>, breaking its 5-day winning streak.<\/li>\n\n\n\n<li>Rare earth stocks rally, but semiconductors and defense weigh on overall sentiment.<\/li>\n\n\n\n<li>Yuan weakens to <strong>7.1883<\/strong> per USD amid economic uncertainty.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<p>The Hong Kong stock market lost momentum late Tuesday, with the <strong>HK50 index retreating from a session high of 24,321 to close at 24,168<\/strong>, down 0.26%. The MACD histogram turned negative and moving averages flattened, signalling waning short-term momentum. The index initially rallied as markets priced in hopes for progress in the <strong>ongoing U.S.-China trade talks in London<\/strong>, but gains were erased as investor sentiment cooled.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Chinese stocks slid suddenly before a second day of US-China trade talks in London: Here is your Evening Briefing. <a href=\"https:\/\/t.co\/YGk4TgraGR\">https:\/\/t.co\/YGk4TgraGR<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1932362756520358308?ref_src=twsrc%5Etfw\">June 10, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Despite headlines that the discussions had extended into a second day, markets reacted cautiously amid signs that <strong>core strategic issues\u2014such as <a href=\"https:\/\/t.co\/ptciiC9ykr\" target=\"_blank\" rel=\"noopener\" title=\"\">rare earth controls<\/a> and semiconductor access\u2014remain unresolved<\/strong>. In Hong Kong, <strong>tech names slipped 0.8%<\/strong>, dragging the broader Hang Seng Index lower.<\/p>\n\n\n\n<p>Rare earth stocks were a notable outlier, with <strong><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-06-10\/chinese-stocks-lead-sudden-dip-in-risk-assets-before-trade-talks\" target=\"_blank\" rel=\"noopener\" title=\"\">China Rare Earth Holdings jumping 13%<\/a><\/strong>, extending a steep rally. Meanwhile, weaker-than-expected Chinese export and inflation data have fuelled hopes of upcoming <strong>stimulus measures<\/strong>, adding complexity to the market tone.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The HK50 (Hang Seng Index) shows a recent rally from the 23,768 support level, peaking at 24,321 before facing resistance. The sharp upward move on the 7th of June formed a bullish impulse, but since then the price has struggled to break above the high. The Moving Averages (MA 5,10,30) reflect a tightening range, with the 5 and 10-period MAs flattening\u2014indicating consolidation after the spike.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/1_image-10-1024x442.jpg\" alt=\"\" class=\"wp-image-24203\"\/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: HK50 stalls below resistance; bulls eye 24,321 breakout, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" target=\"_blank\" rel=\"noopener\" title=\"\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>The MACD histogram flipped briefly positive during the rally but is now showing declining momentum, with the MACD line curving down toward the signal line, suggesting the bullish pressure may be fading. Price is hovering just under the 24,200 level, which now acts as short-term resistance, while 24,000 forms nearby psychological support.<\/p>\n\n\n\n<p>If bulls fail to hold above 24,000, a pullback to retest 23,768 is possible. Otherwise, a breakout above 24,321 could open up room for further upside.<\/p>\n\n\n\n<p>With both sides negotiating under rising economic pressure\u2014<strong>China\u2019s exports to the U.S. fell 34.5% in May<\/strong>\u2014traders appear reluctant to commit ahead of a concrete outcome. For now, <strong>risk appetite remains capped<\/strong>, with the <strong>HK50 likely to stay range-bound between 24,000 and 24,400<\/strong> until clarity emerges.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*1azgbap*_gcl_au*NjE5NTE3MjY4LjE3NDQ2MDA3NDI.*_ga*MTY4OTgwNTU5Mi4xNzM2NzQ2MTgy*_ga_J26NL1ZVX7*czE3NDQ5NDQ0NTYkbzEyMCRnMCR0MTc0NDk0NDQ1NiRqNjAkbDAkaDA.\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>HK50 pares early gains as traders turn cautious amid prolonged US-China negotiations in London. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":16984,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[76,11],"class_list":["post-24202","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-hk50","tag-indices"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/24202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=24202"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/24202\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16984"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=24202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=24202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=24202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}