China - Market Direction 01 (May 12 - Jul 15)

[winston]

Keep building portfolio amid Beijing support and positive data

State-run Shanghai Securities News said on its front page yesterday that logic should dictate, and logic continues to back the bull run in A shares.

The Shanghai Composite Index hit an intraday low of 4,264 points yesterday morning but staged a V-shaped rebound in the afternoon session to close 98 points higher at 4,576 points.

Yesterday, I mentioned that the index should secure support near 4,200 points.

This would offer a chance to accumulate A50 ETF.

Obviously, Beijing is nervous about the high volatility in domestic stock markets, dominated by retail investors with high gearing.

Any sudden change in sentiment could trigger panic-selling due to margin calls. As mainland leaders do not want to see the market collapsing, positive commentaries in state-run media is not surprising.

A moderate pull-back would help create a slow and long bull market.

As liquidity flows back from new IPO applications, Shanghai stock market should be able to stabilize. It was a good to see foreigners buying Shanghai A shares during the market correction under the Shanghai- Hong Kong Stock Connect scheme.

There are signs that China's economy is stabilizing. Factory activity was better this month. Let's accumulate quality shares after the recent correction.

Source: Dr Check, The Standard HK

[behappyalways]

Sigh......


China Stocks Not Expensive, Atlantis's Liu Says
http://www.bloomberg.com/news/videos/20 ... s-liu-says

[behappyalways]

China Stocks Plunge Most Since 1996 as Bubble Warnings Increase
http://www.bloomberg.com/news/articles/ ... s-increase

[behappyalways]

孖展拆倉潮加劇
A股單日大跌7%
內地股災　兩周瀉兩成
http://hk.apple.nextmedia.com/financees ... 7/19199695

Sigh......


China Stocks Not Expensive, Atlantis's Liu Says
http://www.bloomberg.com/news/videos/20 ... s-liu-says

[behappyalways]

人行突減息兼降準
分析：雙管齊下罕見　救市意味濃
http://hk.apple.nextmedia.com/financees ... 8/19200641

[winston]

vested in A50 2823

Some foreign brokers said Shanghai A shares are expensive and the bull market is near an end after recent sharp falls.

Why didn't they tell us earlier instead of after the index had fallen 20 percent?

Dr Check is afraid they may be wrong (at least for today), as the People's Bank of China has just announced another rate cut and a lowering of the bank reserve requirement ratio at the same time.

This shows how keen the central government is to keep this bull run humming.

In such a policy-oriented market, the Shanghai Composite Index may rebound 5 percent today.

Dr Check had set 4,200 points as the trough of this correction.


Source: Dr Check, The Standard HK

[behappyalways]

人行重手放水
抗孖展拆倉潮
A股四千關掀保衞戰
http://hk.apple.nextmedia.com/financees ... 9/19201700

[behappyalways]

希臘危機觸發歐亞股災
http://hk.apple.nextmedia.com/news/firs ... 0/19203059

[behappyalways]

Some Chinese Are Taking 22% Margin Loans to Finance Stock Purchases
http://www.bloomberg.com/news/articles/ ... 2-interest

[behappyalways]

20層高大廈躍下
深圳男疑炒燶股跳樓亡
http://hk.apple.nextmedia.com/internati ... 1/19204100