Since the start of the pandemic, the Hang Seng Index (HSI) has underperformed the Straits Times Index and this looks set to persist for the rest of 3Q2021. The HSI is up 19.9% since its March 2020 low of 22,805. The STI is up 26% from its March 2020 low, and 34% from its October 2020 low.

The Hong Kong market’s most followed barometer fell below its 200-day moving average, currently at 27,623, on July 8, 2021. At 27,344, it maybe just a whisker away. But in falling below its 200-day moving average, the HSI has fallen below a thrice tested support at the 27,700 to 27,800 range. The break below this support indicates a downside of 24,400 to 24,500.

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