Futures on the Hang Seng China Enterprises Index (HSCEI; CHN.cash) fell nearly 0.7%, with sentiment hit by a combination of the recent tech sell-off on Wall Street and a fresh batch of weaker-than-expected Chinese economic data. The ongoing deterioration in the property market continues to weigh on consumer demand and is increasingly spilling over into softer business activity, as companies scale back capital spending.
CHN.cash is currently trading below its three key exponential moving averages on the daily chart (EMA10, EMA30, EMA100), indicating strong downward momentum. Futures are hovering around the critical support level near 8,890, and a drop below the yellow buffer zone (8,825–8,890) could trigger further selling. On the upside, the announcement of new stimulus measures, coupled with a rebound toward the EMA100, could help the index overcome selling pressure and stabilize. Source: xStation5
What is driving CHN.cash today?
-
Retail sales, consumption and property: Consumer activity remains subdued (1.3% YoY vs 2.8% expected) as the prolonged property downturn continues to erode household wealth and confidence. Falling home prices and contracting real estate investment are feeding through to weaker spending, with retail sales missing expectations and autos a key drag after trade-in subsidies were paused. Authorities have signalled support for consumption, but policy measures so far have been targeted and insufficient to materially lift sentiment.
-
Soft investment: Fixed-asset investment contracted more sharply than expected (-2.6%), driven by deepening declines in property investment and cautious private-sector spending. Developers’ deleveraging, weak demand visibility and the absence of large-scale fiscal stimulus have weighed on capex. While Beijing has pledged additional fiscal support and special bond issuance, markets remain sceptical about the timing and scale of effective follow-through.
-
Industrial production: Industrial output growth slowed to its weakest pace since August (4,8% vs 5% expected), reflecting soft domestic demand and efforts to curb excess supply in some sectors. External demand has provided partial support, but weaker consumption and investment at home are limiting momentum. Without stronger policy easing to revive demand, manufacturing activity risks further loss of traction in coming months.
🍫Cocoa Retreats from Monthly High
BREAKING: Mixed Inflation in Canada↔️USDCAD muted
Sanofi Under Pressure After FDA Delay and Failed Trials
Crypto news: Bitcoin slides below $90k again🚩Cryptocurrencies under pressure
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
