<div id="readability-page-1"><p><img width="2508" height="1672" src="https://imageproxy.pbkrs.com/https://invezz.com/wp-content/uploads/2022/12/108790375-m.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://invezz.com/wp-content/uploads/2022/12/108790375-m.jpg"/></p><p>The Hang Seng index tumbled by more than 3% on Thursday as concerns about the Chinese economy and the Federal Reserve continued. The index, which tracks the biggest blue-chip companies in China and Hong Kong, retreated to H$18,562, the lowest point since June 1st.</p><h2>Federal Reserve hikes</h2><p>The Hang Seng index and other global indices retreated modestly as investors reacted to the latest Fed minutes. These minutes revealed that all Fed officials believe that the US requires more gradual rate hikes in the next few months.</p><p>The officials believe that inflation remains stubbornly high despite falling to 4% in May this year. Core inflation and the personal consumption index, on the other hand, have dropped at a slower pace than expected.</p><p>The actions of the Fed are important for Hong Kong stocks because of the HKD dollar peg. As a result, Hong Kong’s monetary officials always hike interest rates when the Fed does so and vice versa.</p><p>The Hang Seng index also retreated because of the slowing Chinese economy. Data published this week showed that the manufacturing and services sectors were recovering at a slower pace than expected. As we wrote here, the services PMI index dropped to a six-month low in June.</p><p>All Hang Seng index were in the red on Thursday. JD Health stock price led the plunge, falling by over 5.38%. It was followed by Alibaba Health Information shares, which dropped by over 5.30%. ENN Energy, Sands China, Budweiser, and ANTA Sports products also dropped by more than 4%.</p><p>Other notable Hang Seng constituents like Alibaba, HSBC, Baidu, and Hang Seng Bank shares dropped by more than 3% on Thursday.</p><h2>Hang Seng index analysis</h2><figure><img width="1024" height="502" src="https://imageproxy.pbkrs.com/https://invezz.com/wp-content/uploads/2023/07/hang-seng-index-1024x502.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://invezz.com/wp-content/uploads/2023/07/hang-seng-index-1024x502.png"/></figure><p>The Hang Seng index has come under intense pressure in the past few days. It has moved to the middle point of the descending channel. It also dropped below the 25-period and 50-period moving averages and the crucial support level at $18,794, the lowest point on June 26th.</p><p>Therefore, the Hang Seng index will likely continue falling as sellers target the lower side of the descending channel at $18,100. This view will become invalid if the price rises above the key resistance point at $18,795.</p><p>The post All Hang Seng index constituents dive as China growth concerns linger appeared first on Invezz</p></div>

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<p>The Hang Seng index fell over 3% to H$18,562, its lowest since June 1, due to concerns about the Chinese economy and Federal Reserve rate hikes. All index constituents were in the red, with JD Health and Alibaba Health leading the decline. The index is expected to continue falling unless it rises above the key resistance point at $18,795.</p>

- The Hang Seng index fell over 3% to H$18,562 amid ongoing concerns about the Chinese economy and Federal Reserve policies.  
- The index's decline was influenced by slower-than-expected recovery in China's manufacturing and services sectors, and the belief that the U.S. requires gradual interest rate hikes.  
- Notable declines were observed in major stocks such as JD Health and Alibaba Health, with continued pressure anticipated unless the index rises above H$18,795.