China - Market Strategy 04 (Aug 18 - Jan 23)

Re: China - Market Direction 04 (Aug 18 - Dec 20)

Postby winston » Tue Jul 07, 2020 1:40 pm

Dear China, Enjoy This Bull Market. Love, Donald

by Shuli Ren

The benchmark CSI 300 Index has rallied 14% this year, to trade at a five-year high.

The S&P 500 Index, by comparison, is still in the red.

Daily trading volume has exceeded 1 trillion yuan ($142 billion) for three consecutive trading days.

Bullish sell-side analysts are tossing around buzz words like national champions, import substitutes and capital market reforms; ultimately, these boil down the idea that turning inward is good for stocks.


Source: Bloomberg

https://finance.yahoo.com/news/dear-chi ... 48763.html
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Re: China - Market Direction 04 (Aug 18 - Dec 20)

Postby winston » Wed Jul 08, 2020 7:51 am

Margin Debts

Mainland investors have pushed outstanding margin debt on domestic exchanges to more than 1.2 trillion yuan as of Monday, Bloomberg data showed.

The figure rose 36.7 billion yuan from July 3, the biggest increase since January 2015.

Source: The Standard
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Re: China - Market Direction 04 (Aug 18 - Dec 20)

Postby behappyalways » Fri Jul 10, 2020 4:35 pm

China State Funds Start Selling in Warning Sign for Stock Rally
https://www.bloomberg.com/news/articles ... emium-asia
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Re: China - Market Direction 04 (Aug 18 - Dec 20)

Postby winston » Tue Jul 14, 2020 2:59 pm

Chinese investors borrow most money in five years to buy stocks as bull market charges on

by Zhang Shidong

Chinese traders are borrowing money to buy stocks at the fastest pace in five years, helping to fuel a runaway rally that has added US$1 trillion to market capitalisation in the past week.

The outstanding balance of margin trading " borrowing funds from a broker to buy shares " on the Shanghai and Shenzhen stock exchanges rose for a 10th consecutive day on Friday to 1.3 trillion yuan (US$185.9 billion), according to China Securities Finance. That was the highest level since August 2015.

The outstanding level of leveraged buying was still about 40 per cent shy of its peak of 2.3 trillion yuan reached in June 2015.


Source: South China Morning Post

https://finance.yahoo.com/news/china-st ... 00738.html
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Re: China - Market Direction 04 (Aug 18 - Dec 20)

Postby behappyalways » Tue Jul 14, 2020 4:23 pm

2020.07.12【文茜世界周報】QE大放水 全球熱錢湧入亞洲股匯雙漲
https://www.youtube.com/watch?v=74KMWabIiC0



winston wrote:Chinese investors borrow most money in five years to buy stocks as bull market charges on

by Zhang Shidong

Chinese traders are borrowing money to buy stocks at the fastest pace in five years, helping to fuel a runaway rally that has added US$1 trillion to market capitalisation in the past week.

The outstanding balance of margin trading " borrowing funds from a broker to buy shares " on the Shanghai and Shenzhen stock exchanges rose for a 10th consecutive day on Friday to 1.3 trillion yuan (US$185.9 billion), according to China Securities Finance. That was the highest level since August 2015.

The outstanding level of leveraged buying was still about 40 per cent shy of its peak of 2.3 trillion yuan reached in June 2015.


Source: South China Morning Post

https://finance.yahoo.com/news/china-st ... 00738.html
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Re: China - Market Direction 04 (Aug 18 - Dec 20)

Postby winston » Fri Jul 17, 2020 7:40 am

China stocks slide despite good data

Source: SCMP

https://www.scmp.com/business/money/sto ... owing-pace
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Re: China - Market Direction 04 (Aug 18 - Dec 20)

Postby winston » Fri Jul 24, 2020 5:23 pm

Panic Selling Grips Chinese Stocks After U.S. Tensions Worsen

Traders based beyond mainland China sold more than $2.3 billion billion of Chinese stocks Friday, one of the largest ever outflows via Hong Kong’s exchange links.

Overseas investors sold 16.4 billion yuan of China stocks Friday, the most since a record 17.4 billion yuan was dumped on July 14.

Turnover rose to 1.3 trillion yuan, the 17th session over the 1 trillion yuan mark.


Source: Bloomberg

https://finance.yahoo.com/news/china-tr ... 17556.html
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Re: China - Market Direction 04 (Aug 18 - Dec 20)

Postby winston » Mon Jul 27, 2020 7:36 am

China: 1.55m Chinese open stock trading accounts In June

A total of 1.55 million investors opened accounts to trade stocks on Shanghai and Shenzhen bourses in June, up 46.72 percent year on year, industry data showed, state media reports.

Individual investors stood at 1.547 million last month, accounting for the majority of investors, while new institutional investors reached 2,100.

The number was up by 27.58 percent from May. This year, June was the month with the third highest number of accounts opened, second only to 1.89 million in March and 1.64 million in April.

Based on data of the past five years, the peak period of opening accounts lies in March.

By the end of June, about 1.68 million investors opened accounts in the A-share market, with individuals reaching 16,735, accounting for 12 percent of the total population, data from the Securities Depository and Clearing Corporation Limited showed.

Positive sentiment in China's stock market in June gave a strong boost to investors' confidence and enthusiasm.

Shanghai and Shenzhen stock exchanges in June witnessed a trading volume of 1,188.7 billion shares, with a turnover of 14.46 trillion yuan.

In June, the average daily trading volume on the Shanghai Stock Exchange registered 287.48 billion yuan, up 15.03 percent from the previous month, and the average daily trading volume on the Shenzhen Stock Exchange was 438.67 billion yuan, up 16.98 percent from the previous month.

Source: The Standard

https://www.thestandard.com.hk/breaking ... s--In-June
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Re: China - Market Direction 04 (Aug 18 - Dec 20)

Postby winston » Tue Jul 28, 2020 2:54 pm

China Strategy: Escalating US-China tensions adds to uncertainties

2Q macro data showed economic activities continuing on the path to recovery, with better-than-expected infrastructure and property activities.

While headline retail growth was still in negative territory, the robust momentum for online retail sales remained intact.

While the rebound in 2Q could lower the government’s incentive to ramp up the intensity of policy support in the near term, we believe the possibility of lowering policy rates remains, owing to growth uncertainties and pressures on the job market front.

Comparing the strong outperformance of the China A-shares market with the previous rally in 2014-15, our view is that the current situation is relatively more “healthy”, with better control in overall leverage and a more targeted and disciplined monetary easing.

We believe the government would be ready to step in to pre-empt a replay of the “2015-rally” if needed.

At current levels, valuation of MSCI China is stretched at 16.1x 20e PE and 13.4x 21e PE, which is beyond to +2 s.d. to historical average.

The announcement of the launch of the Hang Seng TECH Index would be positive to market sentiment.

Given the stretched valuations, the market is set to be more volatile and vulnerable to consolidation and profit taking on the back of renewed US-China tensions and potentially disappointing 2Q results.

Multiple headlines on US-China tension would add to uncertainties in the near-term and remains as our biggest concern to the Chinese equities market. Should geopolictical tension escalates, the A-shares market would be better positioned than the offshore Chinese equities markets.

We recommend that investors deploy a barbell strategy focusing on reasonably valued growth stocks and market leaders that would benefit from cyclical growth upside. Any consolidation would be an opportunity to accumulate on a dip.

Property sales momentum has remained broadly positive but concerns of a cautious policy tone ahead of the Politburo meeting at the end of the month could cap the sector in range-bound in the near term.

We believe a differentiated property policy will remain intact and remain selective in the sector with our preference being Country Garden (2007 HK).

While 1H20 growth for China’s insurance sector is likely to be muted, it is a laggard with gradual recovery prospects and reasonable valuations. We maintain our preference for Ping An (2318 HK) as a long-term holding.

With an improving infrastructure and property FAI, we believe infrastructure and construction-related sectors, such as construction machinery and materials would benefit from the cyclical pick up.

While we maintain our preference for rising online engagement as an investment theme, the share prices of many players are approaching our fair value estimates, and we recommend that investors accumulate on dip.

Source: OCBC
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Re: China - Market Direction 04 (Aug 18 - Dec 20)

Postby winston » Tue Jul 28, 2020 9:08 pm

vested in A50 (2822)

These Stocks Are Booming (With More Profits Ahead)

by Chris Igou

The trend is your friend. And right now, in Chinese stocks, the trend is UP.

After grinding higher from March through late June, Chinese stocks broke out heading into July.

Buying after a breakout like today’s has often been a smart move. Similar instances have led to 4% gains in one month, 5% gains in three months, and a solid 10% gain over a typical six-month period.

We’ve only seen breakouts like this a handful of times since 2000. And history tells us this market’s rally can continue to even higher highs.


Source: DailyWealth.com

https://dailytradealert.com/2020/07/28/ ... its-ahead/
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