Pre-market trend | BYD ELECTRONIC (0285.HK) continues to decline on May 20, when will the weak pattern come to an end?

Today, BYD Electronic's stock price fell by 1.95%, with a trading volume of HKD 224 million, continuing the recent trend of weakness. The MACD daily line formed a death cross signal below the zero axis, indicating a further strengthening of the medium-term bearish trend, which means that the momentum of the previous rebound has exhausted, and sellers are once again dominating the market rhythm. Although the decline seems moderate, a death cross below the zero axis often has more directional confirmation significance than one above it, indicating that market expectations for its short-term performance have turned cautious. On the news front, the communication equipment and consumer electronics sectors have recently come under pressure. Although the Alibaba Cloud Summit announced the self-developed AI chip Zhenwu M890 and the Qianwen flagship model, the market's interpretation of the AI hardware supply chain leans towards benefiting upstream chip design, with limited transmission effects on foundry and assembly companies. As a leading global electronic manufacturing service provider, BYD Electronic's performance growth is closely related to the order rhythm of major clients. In addition, global long-term bond yields have soared to the highest level since 2007, and the high-interest-rate environment suppresses manufacturing valuations, while the overall risk appetite in the Hong Kong stock market has also declined, putting pressure on such targets. Intel CEO Pat Gelsinger's statement about the increasing importance of CPUs in the AI inference era remains to be validated for direct benefits to consumer electronics components. From a technical perspective, BYD Electronic has recorded consecutive days of declines, and the moving average system shows a bearish arrangement. The trading volume of HKD 224 million is at a moderate level, neither indicating panic selling nor a gentle stabilization, showing that the market is still digesting previous negative news