Hang Seng: Bullish flag emerges ahead of Shein IPO, Baidu and Alibaba earnings

The Hang Seng Index is being positioned as a bullish trade as it forms a bullish flag above its 50-day moving average, with RSI rising to 54 and resistance seen at 26,190. The index rose to 25,517 and is up 13% from its yearly low, with traders focused on catalysts that could extend the rally. Key near-term drivers include Shein’s expected Hong Kong IPO this week and earnings from major constituents Alibaba and Baidu, both of which could influence broader Hong Kong tech sentiment. The article suggests that strong AI-related updates or stable margins from Alibaba and solid AI/growth commentary from Baidu could reinforce risk-on flows, while disappointing results could trigger a pullback and break the bullish setup. Overall, sentiment is constructive but highly event-dependent.