Hang Seng Index Rises Ahead of Alibaba, Tencent, Meituan Earnings

The Hang Seng Index extended gains for a second straight session, supported by strong Chinese macroeconomic data and investor focus on upcoming corporate earnings from major technology firms.

The index has rebounded about 5 per cent from its monthly low, rising from H$24,937 on March 6 to around H$26,220.

The rally followed the release of key economic data from China, indicating resilience in the economy ahead of recent geopolitical tensions. Retail sales rose by 2.8 per cent in February, up from 0.9 per cent in the previous month and above expectations of 2.5 per cent.

Fixed asset investment increased by 1.8 per cent after declining by 3.8 per cent earlier. House prices also fell at a slower pace, suggesting signs of stabilisation in the property sector.

The data signals steady economic momentum as authorities aim to meet the annual growth target of 4.5 per cent to 5 per cent. Historically, the Hang Seng Index tends to perform well during periods of recovery in the Chinese economy due to its exposure to mainland businesses.

Investor attention is now on earnings from major companies including Tencent, Alibaba, and Meituan.

Tencent is scheduled to release its results on Wednesday, with investors closely tracking updates on its growth and investments in artificial intelligence. The stock has gained about 12 per cent from its March low.

Meituan is expected to announce its earnings on Friday. Its stock remains under pressure, having declined over 62 per cent from its October 2024 peak and more than 80 per cent from its all-time high amid rising competition from firms such as Alibaba and JD.com.

Alibaba is also set to report its financial results this week as it focuses on expanding its artificial intelligence business. The company has launched a new AI platform for enterprises and formed a dedicated token group to tap into rising demand.

Analysts at Morgan Stanley have reiterated a bullish outlook on Alibaba, citing strong demand for its AI offerings.

On the technical front, the Hang Seng Index remains above its 100-day and 200-day exponential moving averages, indicating continued upward momentum.

The index has found strong support near H$25,000, a level that has held since late last year. Analysts expect the index to remain stable as long as it stays above the key support level of H$25,060. A breach below this level could trigger further downside towards H$23,700, corresponding to the 50 per cent Fibonacci retracement level.