The Lyon report indicates that as key indices and leading stocks achieve a series of critical breakthroughs, China’s internet and Hong Kong’s technology sectors are demonstrating renewed strength.
The KraneShares CSI China Internet ETF (KWEB.US) extended its breakout above the 50-day moving average last week, completing a short-term double-bottom pattern. This move initially points to $39.75, with potential to test or even surpass the October 2025 high near $40.87. A broader breakout within the 2024-2025 range continues to support an intermediate target of $50 to $53.
Alibaba (BABA.US) has broken through its 50-day moving average and the top of a multi-month descending wedge. This pattern supports a recovery toward the October 2025 high in the $192 to $193 region. The long-term structure remains bullish, with extended targets at $230 to $240.
Meituan (03690.HK) is building a base above HK$92, with momentum improving. A breakout above the HK$108 to HK$109 zone would confirm a trend reversal, opening initial targets at HK$130 to HK$131.
The Hang Seng Tech Index has held key support and broken above its 50-day moving average, completing a small double-bottom pattern. This establishes an initial target at 6,040 points, with the next resistance near 6,715 points. A broader base formation from 2022 to 2024 continues to support upside toward 7,540 to 7,550 points.
The Hang Seng Biotech Index has also broken above its recent downtrend line and the 50-day moving average, signaling the potential for the next leg up toward the October 2025 high in the 18,000 to 18,100 region.
Wuxi Bio (02269.HK) has formed a tactical base above the 200-day moving average and broken above the 50-day moving average. Initial upside targets are HK$42 to HK$43, with secondary targets at HK$54 to HK$55.
The Hang Seng Index is nearing a breakout from a multi-month triangle consolidation pattern. A close above the 26,700 to 26,800 range would confirm an upward extension, with targets at 28,900 points. Key support lies at 25,100 to 25,200.
A potential catalyst is the Hang Seng Properties Sub-index, which has reclaimed its 50-day moving average and is approaching the major resistance zone of 19,334 to 19,948 points. A breakout here would be a significant bullish signal, expanding upside potential to 28,000 points.
The key driver is Sun Hung Kai Properties (00016.HK), which has broken out of its multi-year trading range. This marks the end of a five-year consolidation period and supports upside targets at HK$160 to HK$165.
