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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InAmid a widening performance gap between Asian markets, the Hang Seng Index retreated by over 10% in the first half of the year. This slump was primarily driven by the underperformance of major Chinese tech constituents, with Trip.com shares plunging 42% due to regulatory investigations in Beijing and weak earnings reports. In stark contrast, regional peers saw massive gains, as Japan's Nikkei 225 surged 34% and South Korea's Kospi skyrocketed by 85% during the same period.
This divergence highlights the ongoing headwinds facing the Chinese tech sector relative to the semiconductor and AI-driven rallies in Japan and South Korea. Per market data, Trip.com (9961.HK) closed at 317.4 HKD on July 2, 2026, while the Nikkei-linked 1330.T stood at 72,180 JPY. This market action coincides with stronger-than-expected Japanese retail sales, which grew 5.3% in June versus a 3.2% forecast, according to economic calendar data.
Traders should monitor support levels for the Hang Seng as regulatory scrutiny persists, noting that 9961.HK touched a low of 315.8 HKD during the July 2, 2026 session. Looking ahead, the trajectory of Chinese tech will likely depend on broader economic recovery signals, such as the Manufacturing PMI which recently printed at 50.3, serving as a key catalyst for sentiment in the coming weeks.