China Regulator to Deepen Return-Focused Reform in Fund Sector

The CSI300 index fell 1.18% in the last close to 4815, remaining below its 20- and 50-day moving averages. Although the RSI at 30.6 is approaching oversold territory, the MACD line is below the signal line and in negative territory, indicating weak short-term momentum. The reform emphasis in the news headline may create profit-taking pressure in the fund sector, making it highly likely that the index will test the 4800 support level. However, the low RSI level suggests that downside movement may be limited.

HSI closed at 24,962, down 3.6%, with RSI at 31.7 approaching oversold territory. The MACD line is below the signal line and in negative territory, indicating weak short-term momentum. The price is trading below the 20-day (25,280) and 50-day (25,322) moving averages, further weakening the technical outlook. News reports indicate deepening yield-oriented reforms in the fund sector, which could create short-term uncertainty and increase selling pressure. However, the RSI approaching oversold levels may limit the downside and signal a potential rebound buying opportunity.