Here’s why Hang Seng Tech Index stuck in a bear market

The Hang Seng Tech Index continued its strong downward trend this week as some key Chinese technology companies published weak financial results and as mainland Chinese investors continued selling Hong Kong shares.

It tumbled to a low of H$5,100, its lowest level since June last year, and is down by over 23% from its highest level in 2025. This retreat has shed billions of dollars in value.

Why the Hang Seng Tech Index has slumped 

The Hang Seng Tech Index, which is Hong Kong’s equivalent of the Nasdaq 100 Index, has crashed in the past few weeks as many Chinese technology companies have struggled.

It also retreated as many Mainland China investors have continued dumping these shares. According to Bloomberg, the investors have dumped billions of dollars in the past few months. They sold shares worth over $946 million on Thursday, continuing a trend that has been going on in the past few weeks.

Some notable companies have published weak financial results. For example, Baidu stock price has retreated in the past few weeks after it reported weak financial results. Its revenue dropped by 4% in the last quarter to over 32.74 billion yuan ($4.8 billion). This revenue figure was lower than the expected 32.6 billion.

Baidu’s results showed that its adjusted operating profit dropped by 41% to over 2.97 billion. Its advertising business has continued slowing, while its AI business has faced major competition from popular names like DeepSeek and Alibaba.

Most Hang Seng Tech Index companies have continued falling in the past few months. Trip.com, the biggest travel technology company in the country, has slumped by over 27% this year, making it the top laggard in the index. It slumped after Beijing launched an antitrust investigation into the company and after its revenue growth slowed.

Kingdee International stock price tumbled by over 22% this year as its revenue growth slowed and as investors continued selling software giants. Meituan stock has slumped by 20% as competition with companies like Alibaba and JD.

The other top laggards in the Hang Seng Tech Index are Tencent Music Entertainment, XPeng, Tencent Holdings, Sunny Optical, and Xiaomi.

On the other hand, the top Hang Seng Tech Index gainers are companies like Hua Hong Semiconductor, SenseTime, Bilibili, Alibaba Health, and Haier Smart Home.

Hang Seng Tech Index technical analysis 

The daily timeframe chart shows that the Hang Seng Tech Index has plunged in the past few months even as top global indices like the TSX Composite and Nasdaq 100 are hovering near their all-time highs.

It has slumped from a high of $6,715 in October last year to the current $5,162. It has moved below the key support level at $5,370, its lowest level in November and December last year.

The index has remained below the Supertrend indicator. It also formed a death cross pattern as the 50-day and 200-day Weighted Moving Averages (WMA) crossed each other.

The Average Directional Index (ADX) has continued rising, reaching a high of 28, its highest level since October last year, a sign that the downtrend is gaining momentum.

Therefore, the most likely scenario is where the Hang Seng Tech Index continues falling, potentially to the key support level at $5,000.